Tags: Ally | auto | lender | Fed

Ally Financial Planning $1 Billion Stock Sale

Friday, 16 Aug 2013 12:30 PM


Ally Financial Inc. is planning to sell roughly $1 billion in common stock, a move that would help boost the company's capital levels, CNBC reported on Friday.

Proceeds from the sale, which could happen early next week or as soon as Friday afternoon, will help raise the company's capital levels after missing the Federal Reserve's mark in this year's stress test, CNBC said.

The Fed singled out the auto lender last March as the weakest of 18 major banks in its stress test of whether the banks could survive a severe economic downturn and a stock market crash.

Ally must resubmit its new test to the Fed by the end of September, and if it passes, the company could go public this winter or early next year, CNBC said.

The stock sale would add roughly 100 basis points to Ally's 1.5 percent Tier 1 common capital ratio, making it roughly 2.5 percent, CNBC said.


© 2015 Thomson/Reuters. All rights reserved.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved