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FBN’s Elizabeth MacDonald with news that Ally Financial is potentially delaying its IPO for next year.
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Touch on a big bailed out company out -- financial putting its mortgage unit into bankruptcy protection today but ally.
Still -- taxpayers twelve billion dollars in bailout money.
There's McDonald has breaking news and important decision the company is making that has to do with when taxpayers could get paid back.
Or is it if they get -- back.
Yeah -- here's the deal you guys.
This situation is an ally financial is really pretty fluid remember this is one of the most controversial bailouts I mean.
This is a former auto lending and sub prime lending arm.
General Motors and and other word is it may delay its initial public offering.
Of ally financial until next year and again the issue for ally financial getting this -- -- bail out.
Of initially seventeen billion dollars was this too big to fail was -- really that's systemically risky.
GM AC and also we're also hearing word.
That the treasury if it sees that the IPO of ally financial may not be successful in other words it could be unsuccessful.
It could decide to break up ally financial and basically put the lending arm of the auto lending arm of -- financial back in two General Motors were formerly existed.
And just be an online banking unit so the situation again is very much in flux now ally financial did announce it will put -- cap.
Residents of capital which made those very bad subprime mortgage that's.
And that's why -- cap went bankruptcy today it is going to sever ties that -- cut through bankruptcy.
Again the IPOs likely delayed until next year.
And then on top of that it's gonna sell international operations in Canada -- go to Europe England and South America so this is trying to clean up its balance sheet ahead of a possible IPO next year.
To get a better asking price the better offering price guys back to you know -- you -- think you very much appreciate.
