Ally Financial Files for IPO

NEW YORK (TheStreet) --Ally Financial is preparing to go public as the U.S. Treasury looks to further reduce its stake in the former GMAC Inc., which it bailed out during the 2008 financial crisis.

The Treasury, advised by a group of 19 investment banks led by Citigroup  Goldman Sachs  , Morgan Stanley and Barclays , will look to unload up to 95 million shares, which it projects could raise as much as $2.66 billion and reduce its stake to 14.1% from 36.8%.

The largest private shareholder is Dan Loeb's Third Point LLC, which has a 9.5% stake acquired over a six month period in late 2013 and early 2014, according to Thursday's S-1 filing and a Third Point investor letter dated Jan. 21, 2014. 

Cerberus Capital Management, which unlike Third Point owned Ally before it had to be bailed out, retains an 8.6% stake.

Ally has received $16.3 billion in taxpayer assistance of which it has repaid $11.6 billion so far, according to Propublica.  Bloomberg puts the total assistance figure at $17.2 billion, and cites a Treasury statement that it has recovered $15.3 billion, not counting the IPO.

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