By Matt Jarzemsky
Ally Financial Inc. cut J.P. Morgan Chase & Co. (JPM) as an
underwriter for its planned initial public offering, saying other
banks had invested more in their relationship with the
government-owned auto lender.
Detroit-based Ally has moved toward an IPO as it seeks to repay
the $17.2 billion it received in a government bailout during the
financial crisis. The company has also been shedding international
assets and working to resolve liabilities related to its former
mortgage unit, which scuttled Ally's plans for a public debut in
2011.
Ally disclosed its updated underwriter lineup in a filing posted
Tuesday on the U.S. Securities and Exchange Commission's website.
Citigroup Inc. (C) and Morgan Stanley (MS) are leading the
deal.
The group "is a reflection of the investment that the various
banks have made in the Ally relationship over the last year," an
Ally spokeswoman said. She declined to elaborate.
A J.P. Morgan Chase & Co. spokeswoman declined to
comment.
Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com
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