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Thursday, December 31, 2009

ALLY BANK

Just so you know: GMAC was the financial serves arm of General Motors. For a long time, GMAC's main business was providing loans to GM dealers and customers. Then they got into the insurance business, and mortgage operations. A few years ago, GM sold it off in order to raise some cash. When the financial crisis rolled around, GMAC re-organized as a bank holding company so they could apply for a bail-out via TARP funds. They are set to get their next infusion soon. The government is the majority shareholder.
Earlier in 2009, GMAC's banking unit became known as Ally Bank. So if you've seen their commercials on TV, and you had never heard of them, that's who they are.

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