Ally Financial

Ally Financial Inc.
Public company
Traded as NYSE: ALLY
Industry Financial services
Founded 1919 (1919) (as GMAC Inc.)
Headquarters Detroit, Michigan, United States
Key people
Franklin Hobbs, Chairman
Jeffrey J. Brown, CEO
William Muir, President[1]
Revenue Increase US$4.920 billion (2015)[1]
Increase US$1.452 billion (2015)[1]
Profit Increase US$1.289 billion (2015)[1]
Total assets Increase US$158.581 billion (2015)[1]>
Total equity Decrease US$13.439 billion (2015)[1]
Owner Cerberus Capital Management (8.22%)
Perry Capital (4.00%)
The Vanguard Group (3.50%)
Number of employees
7,100 (2015)[1]

Ally Financial Inc., previously known as GMAC Inc. (an acronym for General Motors Acceptance Corporation), is an American bank holding company headquartered in Detroit, Michigan, United States.

The company provides a range of financial services including auto financing, corporate financing, insurance, and online banking. Ally is one of the top auto lenders in the U.S. by volume.


The company was founded in 1919 by General Motors Corporation as the General Motors Acceptance Corporation (GMAC) to be a provider of financing to automotive customers. Over the following years the business has expanded to include insurance, online banking, mortgage operations, and commercial finance.

In 1919, GMAC offices opened in Detroit, New York, Chicago, San Francisco, and Toronto.[2]

In 1985, GMAC formed GMAC Mortgage, LLC and acquired Colonial Mortgage and the servicing arm of Norwest Mortgage. .[3] In 1999, GMAC Mortgage purchased .[4] In 2005, the company formed Residential Capital, LLC (ResCap) as a holding company for its mortgage operations. .[5] In 2000, GMAC was given conditional approval to form GMAC Bank.

In 2006, General Motors Corporation sold a 51% interest in GMAC to Cerberus Capital Management, a private equity company. Also in 2006, GMAC divested a controlling interest of GMAC Commercial Holdings, its real estate division, Capmark Financial Group, Inc. to Goldman Sachs, KKR and Five Mile Capital Partners.[6]

In 2009, Capmark filed for bankruptcy and its North American loan origination and servicing business was acquired by Berkadia, a joint venture of Leucadia and Berkshire Hathaway. .[7]

On 24 December 2008, the Federal Reserve accepted then-GMAC's application to become a bank holding company.[8]

As a result of losses in the company's former ResCap subsidiary, in 2008-2009, the United States Treasury invested $17.2 billion in Ally. The Treasury later recovered $19.6 billion from this investment by selling its remaining stake in the company in December 2014. [9]

On May 15, 2009, GMAC's banking unit changed its name to Ally Bank.

On May 10, 2010, GMAC Inc. announced that it re-branded itself as Ally Financial Inc.[10]

In April 2014, the company became a public company via an initial public offering.[11]

In 2015 it moved its headquarters to One Detroit Center, Michigan.[12]


Ally Auto

Along with Wells Fargo, Bank of America, Capital One, and JP Morgan Chase, Ally is one of the top auto lenders in the U.S. by volume. [13]

The company's Global Automotive Services offer retail auto financing and leasing; dealer lines of credit for vehicle inventory, equipment or facilities; insurance coverage including retail vehicle service contracts and commercial insurance; and re-marketing services through physical auctions and online services.


SmartAuction is an industry-leading resource where a network of more than 8,000 auto industry professionals access daily, live auto actions. Through its website and intuitive mobile app, SmartAuction provides a trusted platform for the purchase and sale of used vehicles. The platform lists 22,000 vehicles each day. More than 5 million vehicles have been sold since it launched in 2000.[14]

Ally Bank

Ally Bank is a direct bank with over $55 billion in customer deposits also and was rated the best online bank by Money Magazine in every year since 2012.[15] Ally Bank offers savings products, including certificates of deposit (CDs), online savings accounts, interest checking accounts, and money market accounts. Ally Bank is a member of the Federal Deposit Insurance Corporation.

Corporate Finance

The company's corporate finance division provides capital to businesses in various industries.[16]

2013 Discrimination settlement

In December 2013, the Consumer Financial Protection Bureau (CFPB) announced a settlement with Ally Financial to resolve alleged discrimination in its indirect auto lending program. According to the consent order, Ally charged African American borrowers an average of 29 basis points more than similarly situated White borrowers, Hispanic borrowers 20 basis points more than White borrowers, and Asian/Pacific Islanders 22 basis points more than White borrowers. The CFPB concluded that these disparities were statistically significant, based on race, and not based on credit worthiness or objective criteria related to borrower risk. The CFPB also alleged that the higher markups resulted from Ally’s specific policy and practice of allowing dealers to mark up a consumer’s interest rate above Ally’s established buy rate and then compensating dealers based on the markup. Under the terms of the consent order, Ally was required to establish a compliance committee, submit a compliance plan to the CFPB and Department of Justice (DOJ) for review, with the option to submit a non-discretionary dealer compensation plan to the CFPB and DOJ for review, and pay $80 million in consumer monetary damages and $18 million in civil penalties.[17]


Ally sponsors the Miami Auto Show.[18]

Ally sponsors the TIME Dealer of the Year Award through 2021.[19]

See also


  1. 1 2 3 4 5 6 7 Ally Financial 2015 Form 10-K Annual Report
  2. Ally: Our History
  3. Gruber, William (March 14, 1985), Gmac Buying Mortgage Portfolio, Chicago Tribune
  4. Strickland, Daryl (March 23, 1999), DiTech Funding to Be Bought by GMAC Mortgage, Los Angeles Times
  5. Warren, Elizabeth (March 10, 2010), Unique Treatment of General Motors Acceptance Corp. (GMAC) Under the TARP, Congressional Oversight Panel
  6. "Investor Group Completes Acquisition of Majority Stake in GMAC Commercial Holding Corp." (Press release). Ally Financial. 23 March 2006. Retrieved 21 September 2011.
  7. Berkadia Commercial Mortgage LLC Completes Acquisition of Capmark’s North American Loan Origination and Servicing Business, Business Wire, December 11, 2009
  8. Dash, Eric; Vikas Bajaj (December 24, 2008). "Fed Approves GMAC Request to Become a Bank". New York Times.
  9. U.S. Treasury Sells Ally Financial Stake; No More Government Motors, Forbes, retrieved 31 December 2014
  10. Campbell, Dakin (May 3, 2010). "GMAC Posts Profit, Will Change Name to Ally Financial". Bloomberg L.P. Retrieved 2013-07-27.
  11. "Ally Financial Announces Pricing of Initial Public Offering". PRNewswire. April 9, 2014.
  12. Blumenthal, Jeff (March 31, 2015). "Ally Financial moving to One Detroit Center". The Detroit News. Retrieved March 31, 2015.
  13. PETER RUDEGEAIR (December 1, 2014). "Ally Financial overtakes Wells Fargo as top U.S. auto lender". Reuters.
  15. Ally Bank
  16. title=Corporate Finance
  17. "CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing". Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. Retrieved 11 September 2015.
  18. Ally Financial new sponsor for Miami International Auto Show, Miami Herald, retrieved 14 October 2014
  19. Ally Renews Exclusive Sponsorship of TIME Dealer of the Year Through 2021, Ally, retrieved July 22, 2015

External links

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