NEW YORK Aug 16 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
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
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.