Citi (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS) Splitting Less Than 1 Percent on Ally Deal

In what has become a recent pattern for IPOs with government fingers in them, Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) will split less than 1 percent in fees from Ally Bank's IPO, according to sources close to the situation.

The four banks are lead underwriters on the offering.

It wasn't clear if Barclays Capital and Deutsche Bank (NYSE:DB), which were added as bookrunners, would be included in that fee, or their pay would be separate.

The fee paid by Ally bank will by 0.875 percent of the IPO.

Companies apparently accept the low fees based on the possibility of generating future business, being included in a government sale, and the size of the IPOs connected to the government have been large.

The IPO of General Motors (NYSE:GM) was $23.1 billion, and American International Group's (NYSE:AIG) IPO is expected to be over $15 billion. Ally hasn't released the actual size of the IPO at this time.