Comments on: Is Ally Bank in Trouble?

By: Friday Finance Findings for October 30th : Generation X Finance

Friday Finance Findings for October 30th : Generation X Finance — Fri, 30 Oct 2009 14:32:15 +0000

[...] Is Ally Bank in Trouble? – Ally has some pretty good rates on online savings accounts and CDs right now. That alone isn’t a bad sign, but news came out about the financial woes of their parent company GMAC. Does this spell bad news for Ally Bank? [...]

By: Sun

Sun — Fri, 30 Oct 2009 12:30:31 +0000

Since the government has already given GMAC so much money, I think think the government will let it fail at this stage, like what happened to Washington Mutual. And GMAC is not like GM where there’s the issue of restructuring to reduce cost and making good cars, it has a terrible balance sheet because of losses from bad loans. While I think GMAC or Ally will stay, knowing the the fact that it is in such a bad situation does change how I think about the bank, though it has good rates, supported by taxpayer money.

By: Credit Card Chaser

Credit Card Chaser — Fri, 30 Oct 2009 00:38:23 +0000

I will admit that knowing that GMAC owns Ally did just change my perception of them. It will be interesting to see how long their rates stay abnormally high.

By: Anthony

Anthony — Thu, 29 Oct 2009 13:36:45 +0000

I agree with Andrew. If Ally was a solid bank with great brand equity, they could offer lower rates and everyone would still move their deposits to it. I’m all about capturing the highest rate possible, but the likelihood of Ally ending up in FDIC receivership, and the hassle that entails, keeps me away.

By: Andrew

Andrew — Thu, 29 Oct 2009 04:08:44 +0000

Just wanted to mention that a higher rate is actually a sign of trouble. I never have been drawn to Ally Bank because of it’s background, but also because it is a traditional move for failing banks to raise their rates on CDs and savings accounts to try to drive in money to bolster their equity (or liabilities on a bank balance sheet) to counteract other losses.