Ally Financial Inc. is the parent bank held in Delaware and headquartered in Detroit, Michigan. It's in the list of the largest banks in the United States. The company provides financial services including online banking, car financing, corporate loans, vehicle insurance, mortgages, credit cards, and brokerage company services.
Ally is the largest car finance company in the US with volume and serves about 18,500 automotive dealers and 4.3 million retail customers. Through the SmartAuction online marketplace for automated auctions, launched in 2000, the company has sold more than 5 million vehicles including 356,000 vehicles sold in 2017.
The company is named GMAC Inc. (an acronym for General Motors Acceptance Corporation ) through 2010.
Video Ally Financial
History
The company was founded in 1919 by General Motors (GM) as General Motors Acceptance Corporation (GMAC) to provide financing for automotive customers. In 1939, the company established Motors Insurance Corporation and entered the vehicle insurance market.
In 1985, when GM was under the leadership of Roger Smith, who sought to diversify the company, GMAC formed the GMAC Mortgage and acquired the Colonial Mortgage as well as the Norwest Mortgage service arm, which included a $ 11 billion mortgage portfolio.
In 1991, the company was forced to write-off $ 275 million in bad debt as part of a $ 436 million loss it suffered from fraud committed by John McNamara, who runs the Ponzi scheme.
In 1998, the company formed GMAC Real Estate. In 1999, GMAC Mortgage acquired Ditech. In 2000, the company established GMAC Bank, a direct bank. In 2005, the company formed GMAC ResCap as its parent company for its mortgage operations.
In 2006, General Motors sold 51% stake in GMAC to Cerberus Capital Management, a private equity firm. Also that year, GMAC sold controlling shares of GMAC Commercial Holdings, its real estate division, named Capmark, to Goldman Sachs, Kohlberg Kravis Roberts and Five Mile Capital Partners. GMAC Real Estate is sold to Brookfield Asset Management. In 2009, Capmark filed for bankruptcy and its North American loan and service origination business was acquired by Berkadia, a joint venture of Leucadia National and Berkshire Hathaway.
On December 24, 2008, the Federal Reserve accepted the company's application to become the parent company of the bank. In January 2009, the company closed Nuvell Financial Services, subprime lending division.
As a result of the losses at GMAC ResCap, the US Treasury invested $ 17.2 billion in the company in 2008-2009. The Treasury sold its last stake in the company in 2014, recovering $ 19.6 billion from a $ 17.2 billion investment.
On May 15, 2009, GMAC Bank changed its name to Ally Bank. In May 2010, GMAC re-branded itself as Ally Financial. In September 2010, the company sold the resort's financial business to Centerbridge Partners. In 2012, the company sold its Canadian banking operations to Royal Bank of Canada for $ 3.8 billion. In April 2014, the company became a public company through an initial public offering. In 2015, he moved his headquarters to One Detroit Center. In June 2016, the company acquired TradeKing, a brokerage firm, renamed Ally Invest.
Maps Ally Financial
Sponsors
The company sponsors the South Florida Auto Show and Time Magazine Quality Dealer Award.
Legal issues
completion of discrimination 2013
In December 2013, the Consumer Financial Protection Bureau (CFPB) announces a settlement with Ally Financial to resolve the alleged discrimination in an indirect automatic loan program. According to the approval order, Ally charged African-American borrowers an average of 29 bps more than white borrowers in the same place, Hispanic borrowers 20 bps more than White borrowers, and the population of Asia/Pacific 22 basis points more than borrowers White. The CFPB concludes that this difference is statistically significant, by race, and not based on creditworthiness or objective criteria related to borrower risk. The CFPB also alleges that higher markups result from Ally's specific policies and practices that allow dealers to raise consumer interest rates above the level of purchase set by Ally and then compensate dealers based on markup. Under the terms of the approval order, Ally was asked to establish a compliance committee, submit a compliance plan to the CFPB and the US Department of Justice for review, and pay $ 80 million in consumer monetary damages and $ 18 million in civil penalties.
References
External links
Source of the article : Wikipedia
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