Citigroup (NYSE:C), Goldman (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS) Underwriting Ally Financial IPO

Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS) have been chosen as underwriters by Ally Financial for their upcoming IPO.

Ally Financial remains majority-owned by the U.S. government at this time. They used to operate under the name GMAC.

The government decided to take its $5.5 billion it had in preferred shares and convert them into common stock, amounting to a 73.8 percent stake in Ally.

After the IPO, the government will exit its holdings in Ally over a period of time; a similar practice they entered into with other bailed out companies.

Ally's IPO is estimated to raise over $5 billion. Throughout 2008 and 2009, when Ally received numerous injections of cash, the total amounted to over $17 billion before it was all over.