The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Ally Financial bothered with rebranding as GM? | Deal insight

The GMAC ‘outlet’ Ally Financial that has just stopped selling GMAC loands in Massachussets, is only 73.8% owned by the Treasury but for just $17 bln of the bailout money and between AIG and Ally, there could be some choice for going to IPO which both companies would like to avoid. However, Ally could well be bought by robust financials suchas JP Morgan, TD and maybe even Regions’ Financial fresh from the Morgan Keegan win

GM’s new Auto Finance business is big enough to be considered for standalone operations too and going IPO may best be avoided, one never knows how quickly funds might dry up ahead of or after the Facebook IPO. Ally’s mortgage unit ResCap was also one of the biggest ones listed in the state settlement and a couple of hedge funds like ( who else!) Cerebrus and Fortress have alrdy stepped forward

TD bought Chrysler Auto loans portfolio for $6.3 bln, a running business that gives it equal power with JP Morgan and Wells Fargo in the sector

GM bought Americredit for $3.5 bln nearly two years back. While Ford and Toyota easily finance their Dealers, GM currently does not have a financing product for inventories at its large Dealer networks according to last week’s Reuters report


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