Ally Financial

{{Infobox company

| name = Ally Financial Inc.

| logo = Ally Financial.svg

| logo_size = 180px

| image = Ally_Detroit_Center.jpg

| image_caption = Headquarters at Ally Detroit Center

| type = Public

| traded_as = {{ubl|{{NYSE|ALLY}}|S&P 400 component}}

| former_name = GMAC Inc. (1919–2010)

| industry = Financial services

| founded = {{Start date and age|1919}} (as General Motors Acceptance Corporation)

| hq_location = Ally Detroit Center
Detroit, Michigan, United States (Ally Financial)
Sandy, Utah, United States (Ally Bank)
Ally Charlotte Center
Charlotte, North Carolina, United States (Corporate Center)

| key_people = Franklin W. Hobbs (chairman)
Michael Rhodes (CEO)
Russell Hutchinson (CFO)

| services = Car finance
Online banking
Mortgage loans
Stockbroker
Electronic trading platform

| revenue = {{increase}} {{US$|8.206 billion|link=yes}} (2021)

| net_income = {{decrease}} US$1.020 billion (2023)

| assets = {{increase}} US$196.392 billion (2023)

| equity = {{increase}} US$13.766 billion (2023)

| num_employees = 11,100

| num_employees_year = 2023

| website = {{URL|ally.com}}

| footnotes = {{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/40729/000004072924000004/ally-20231231.htm| title=Ally Financial 2023 Form 10-K Annual Report | website=U.S. Securities and Exchange Commission | date=February 20, 2024}}

}}

Ally Financial Inc. (known as GMAC until 2010) is an American bank holding company incorporated in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan. The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and other related financing services such as installment sale and lease agreements.

Ally is one of the largest car finance companies in the U.S., providing car financing and leasing for 4.1 million customers and originating 1.2 million car loans in 2023. It is on the list of largest banks in the United States by assets and has 2.0 million depositors.{{cite web |url=https://www.ffiec.gov/npw/Institution/TopHoldings |title=Large Holding Companies |website=Federal Financial Institutions Examination Council}} The company has sold more than five million vehicles, including 505,000 vehicles sold in 2023 via its SmartAuction online marketplace for auto auctions, launched in 2000.

History

=1919–1990=

The company was founded in 1919 by General Motors (GM) as the General Motors Acceptance Corporation (GMAC) to provide financing to automotive customers.{{ cite web| url=https://moneyinc.com/ally-bank/| title=20 Things You Didn't Know About Ally Bank |last=Hanson |first=Dana |website=Money |date=January 25, 2019}} In 1939, the company founded Motors Insurance Corporation and entered the vehicle insurance market.{{cite news| url=https://books.google.com/books?id=vqb8SDu4pv0C&pg=PA12| title=Unique Treatment of General Motors Acceptance Corp. (GMAC) Under the TARP| publisher=DIANE Publishing| first=Elizabeth| last=Warren| year=2011| isbn=978-1-4379-3080-1}}

In 1985, while GM was under the leadership of Roger Smith, who sought to diversify the company, GMAC formed GMAC Mortgage and acquired Colonial Mortgage as well as the servicing arm of Norwest Mortgage, which included an $11 billion mortgage portfolio.{{cite news| title=GMAC Buying Mortgage Portfolio| url=https://www.chicagotribune.com/news/ct-xpm-1985-03-14-8501150290-story.html| first=William| last=Gruber| newspaper=Chicago Tribune| date=March 14, 1985| url-access=subscription}}

=1991–2009=

In 1991, the company was forced to write-off $275 million in bad debt as part of a $436 million loss suffered from fraud committed by John McNamara, who ran a Ponzi scheme.{{cite news| url=https://www.washingtonpost.com/archive/politics/1992/04/18/general-motors-alleges-monumental-fraud/4a8fbde2-6708-49ae-9b91-236802b11837/| title=General Motors Alleges Monumental Fraud| first1=Mark| last1=Potts| first2=Warren| last2=Brown| newspaper=The Washington Post| date=April 18, 1992| url-access=subscription}}

In 1998, the company formed GMAC Real Estate. In 1999, GMAC Mortgage acquired Ditech.{{cite news| url=https://www.latimes.com/archives/la-xpm-1999-mar-23-fi-20075-story.html| title=DiTech Funding to Be Bought by GMAC Mortgage| first=Daryl| last=Strickland| work=Los Angeles Times| date=March 23, 1999}} In 2000, the company formed GMAC Bank, a direct bank. In 2005, the company formed GMAC ResCap as a holding company for its mortgage operations.

In 2006, General Motors sold a 51% interest in GMAC to Cerberus Capital Management, a private equity firm. Also that year, GMAC sold a controlling interest of GMAC Commercial Holdings (its real estate division renamed Capmark) to Goldman Sachs, Kohlberg Kravis Roberts, and Five Mile Capital Partners.{{cite press release| url=https://www.sec.gov/Archives/edgar/data/40729/000095012406001419/k03726e8vk.htm| title=General Motors Acceptance Corporation Form 8-K | publisher=U.S. Securities and Exchange Commission| date=March 23, 2006}} GMAC Real Estate was sold to Brookfield Asset Management. In 2009, Capmark filed for bankruptcy and its North American loan origination and servicing business was acquired by Berkadia, a joint venture of Leucadia National and Berkshire Hathaway.{{Cite news | url=https://www.wsj.com/articles/DJFDBR0020091125e5bp000dx | title=Judge Approves Sale Of Capmark Servicing Unit To Berkadia | first=Patrick | last=Fitzgerald | work=The Wall Street Journal | date=November 25, 2009 | url-access=subscription}}

On December 24, 2008, the Federal Reserve accepted the company's application to become a bank holding company.{{cite news| url=https://www.nytimes.com/2008/12/25/business/25gmac.html| title=Fed Approves GMAC Request to Become a Bank| first1=Eric| last1=Dash| first2=Vikas| last2=Bajaj| work=The New York Times| date=December 24, 2008| url-access=subscription}} In January 2009, the company closed Nuvell Financial Services, its subprime lending division.{{cite news| url=https://www.jacksonville.com/article/20090112/BUSINESS/801241288| title=GMAC closing Jacksonville-based subprime auto loan company| last=Basch | first=Mark| newspaper=The Florida Times-Union| location=Jacksonville| date=January 12, 2009}}{{cite news| url=https://www.arkansasbusiness.com/article/40823/nuvell-financial-services-closes-arkansas-jobs-not-affected| title=Nuvell Financial Services Closes, Arkansas Jobs Not Affected| first=Jamie| last=Walden| newspaper=Arkansas Business| date=January 13, 2009| url-access=subscription}}

As a result of losses in GMAC ResCap, a subsidiary of the company, the United States Department of the 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 its $17.2 billion investment.{{cite news| url=https://www.forbes.com/sites/jimhenry/2014/12/31/u-s-treasury-sells-ally-financial-stake-no-more-government-motors/| title=U.S. Treasury Sells Ally Financial Stake; No More Government Motors| journal=Forbes| date=December 31, 2014}}

In April 2009 the bank announced plans to move its Charlotte office from Ballantyne to {{convert|106525|sqft|m2}} on four floors of 440 South Church, with possible expansion later. At the time, the bank had 265 Charlotte employees in three business units.{{cite news| url=http://www.bizjournals.com/charlotte/stories/2009/04/06/daily62.html| title=GMAC Financial selects 440 South Church| last=Boye| first=Will| newspaper=Charlotte Business Journal| date=April 10, 2009}}{{cite news| url=http://blog.cleveland.com/business/2009/03/gmac_financial_adding_jobs_wit.html| title=GMAC Financial adding jobs with North Carolina expansion| last=Kroll| first=Kathryn| newspaper=The Plain Dealer| location=Cleveland| date=March 20, 2009}}

In May 2009, GMAC Bank was rebranded as Ally Bank.{{cite news |title=GMAC Bank re-brands itself as Ally Bank |url=https://www.latimes.com/archives/la-xpm-2009-may-16-fi-gmac16-story.html |newspaper=Los Angeles Times |date=May 16, 2009 |url-access=limited}}

=2010–2019=

In May 2010, GMAC re-branded itself as Ally Financial.{{cite news| url=https://www.cnbc.com/2010/05/03/gmac-posts-profit-to-change-name-to-ally.html| title=GMAC Posts Profit, to Change Name to Ally| agency=Associated Press| work=CNBC| date=May 3, 2010}}

In September 2010, the company sold its resort finance business to Centerbridge Partners.{{Cite news | url=https://www.reuters.com/article/ally-centerbridge-idINN2320983420100923/ | title=Centerbridge buys Ally's resort finance unit | work=Reuters}}

In 2012, the company sold its Canadian banking operations to Royal Bank of Canada for $3.8 billion.{{cite news| url=https://www.cbc.ca/news/business/royal-bank-buys-online-savings-bank-ally-for-3-8b-1.1236909| title=Royal Bank buys online savings bank Ally for $3.8B| work=CBC News| date=October 23, 2012}} In April 2014, it became a public company via an initial public offering.{{cite press release| url=https://www.prnewswire.com/news-releases/ally-financial-announces-pricing-of-initial-public-offering-254628411.html| title=Ally Financial Announces Pricing of Initial Public Offering| publisher=Ally Financial| via=PR Newswire| date=April 9, 2014}} In 2015, it moved its headquarters to One Detroit Center, which was subsequently renamed Ally Detroit Center.{{cite news| title=Ally Financial moving to One Detroit Center| url=https://www.detroitnews.com/story/business/autos/2015/03/31/ally-hq-moving/70724542/| first=David| last=Shepardson| newspaper=The Detroit News| date=March 31, 2015}} In June 2016, the company acquired TradeKing, a stockbrokerage, for $275 million, which was re-branded as Ally Invest.{{cite news| url=https://www.bizjournals.com/charlotte/news/2017/05/12/tradeking-transformation-complete-after.html| title=TradeKing transformation complete after acquisition by Ally| first=Hilary| last=Burns | newspaper=Charlotte Business Journal| date=May 12, 2017}}

In May 2016, Ally Bank re-entered the mortgage business with the launch of its direct-to-consumer offering called Ally Home.{{cite news |last1=Burns |first1=Hilary |title=Ally Bank launches mortgage offering |url=https://www.bizjournals.com/charlotte/news/2016/12/12/ally-bank-launches-mortgage-offering.html | newspaper=Charlotte Business Journal}} In April 2019, Ally Home partnered with Better.com for mortgage loan selling, processing, mortgage underwriting, and closing services.{{cite news |last1=Lane |first1=Ben |title=Ally Financial partnering with Better.com to launch digital mortgage platform |url=https://www.housingwire.com/articles/48828-ally-financial-partnering-with-bettercom-to-launch-digital-mortgage-platform/ |journal=Housing Wire}}

In October 2019, Ally acquired Health Credit Services (HCS), a technology-focused patient financing company based in Charlotte, North Carolina.{{cite press release| url=https://www.prnewswire.com/news-releases/ally-financial-announces-completion-of-acquisition-of-health-credit-services-300928674.html| title=Ally Financial Announces Completion of Acquisition of Health Credit Services| publisher=Ally Financial| via=PR Newswire| date=October 1, 2019| access-date=April 21, 2023}} It was sold to Synchrony Financial in March 2024.{{Cite press release | url=https://www.prnewswire.com/news-releases/synchrony-completes-acquisition-of-ally-lending-302077598.html | title=Synchrony Completes Acquisition of Ally Lending | publisher=PR Newswire | date=March 4, 2024}}

=2020–present=

On May 3, 2021, Ally began occupying 725,000 square feet at Ally Charlotte Center.{{cite news| url=https://www.bizjournals.com/charlotte/news/2020/02/11/ally-financial-to-occupy-entire-uptown-tower.html| title=Ally Financial to occupy 'very large majority' of uptown tower| first1=Ashley| last1=Fahey| newspaper=Charlotte Business Journal| date=February 11, 2020}}{{cite news| url=https://www.bizjournals.com/charlotte/news/2021/04/22/where-allys-charlotte-growth-goes-from-here.html| title=ALLY'S BIG MOVE Fast-growing online bank joins major rivals on Tryon Street with opening of new hub| first1=Caroline| last1=Hudson| newspaper=Charlotte Business Journal| date=April 22, 2021}}{{cite news| url=https://www.bizjournals.com/charlotte/news/2017/09/20/ally-financial-to-anchor-long-awaited-crescent.html| title=Ally Financial to anchor long-awaited Crescent Communities uptown project| first1=Ashley| last1=Fahey| first2=Hilary| last2=Burns| newspaper=Charlotte Business Journal| date=September 20, 2017}}{{cite news| url=https://www.charlotteobserver.com/news/business/article174230856.html| title=Ally Bank leasing Crescent Communities' new Tryon Place tower| first1=Ely| last1=Portillo| first2=Deon| last2=Roberts| newspaper=The Charlotte Observer| date=September 20, 2017}}

In December 2021, Ally acquired Fair Square Financial, a credit card company, for $750 million and rebranded it as Ally Credit Card.{{cite press release| url=https://www.prnewswire.com/news-releases/ally-financial-closes-acquisition-of-credit-card-platform-fair-square-financial-301435409.html| title=Ally Financial closes acquisition of credit card platform Fair Square Financial| publisher=Ally Financial| via=PR Newswire| date=December 1, 2021}}

Awards and recognition

In 2022, the Disability Equality Index (DEI) listed Ally as one of the Best Places to Work for Disability Inclusion.{{Cite web|url=https://disabilityin.org/what-we-do/disability-equality-index/2022companies/|title=2022 Best Places to Work|website=Disability Equality Index}}

Sponsorships

In 2022, Ally committed to reach equal spending in paid advertising across women's and men's sports programming over the next five years.{{cite press release| publisher=Ally Financial| title=Ally pledges equality in media spend, issues bold call to action to further drive parity in women's sports| url=https://www.prnewswire.com/news-releases/ally-pledges-equality-in-media-spend-issues-bold-call-to-action-to-further-drive-parity-in-womens-sports-301573566.html | via=PR Newswire | date=June 23, 2022 }}

Sponsorships include:

League-wide sponsor for NASCAR, the official consumer bank of NASCAR and NASCAR-owned tracks (2023–present){{cite press release| url=https://www.nascar.com/news-media/2023/02/05/nascar-ally-announce-official-partnership/| title=NASCAR, Ally announce official partnership| publisher=NASCAR| date=February 5, 2023}}
Rocket League Championship Series{{cite news| title=Rocket League, Ally Financial team up for new women's competition| url=https://www.sportsbusinessjournal.com/Daily/Issues/2023/03/02/Esports/rocket-league-ally-financial-new-womens-esports-event.aspx| access-date=2023-04-21| newspaper=Sports Business Journal| first=Kevin| last=Hitt| language=en}}
Miami International Auto Show{{cite news| url=https://www.miamiherald.com/news/business/article2743591.html| title=Ally Financial new sponsor for Miami International Auto Show| last=Hannah| first=Sampson| newspaper=Miami Herald| date=October 14, 2014}}
Time Dealer of the Year award{{cite press release| url=https://www.prnewswire.com/news-releases/ally-renews-exclusive-sponsorship-of-time-dealer-of-the-year-through-2021-300116657.html| title=Ally Renews Exclusive Sponsorship of Time Dealer of the Year Through 2021| publisher=Ally Financial| via=PR Newswire| date=July 22, 2015}}
The Ally Challenge
Primary sponsor for Jimmie Johnson at Hendrick Motorsports (2019-2020){{cite news| url=http://www.hendrickmotorsports.com/news/articles/101417/ally-financial-extends-full-season-primary-sponsorship-of-hendrick-motorsports| title=Ally Financial extends full-season primary sponsorship of Hendrick Motorsports| journal=Hendrick Motorsports| date=October 4, 2019}}{{cite news| url=https://www.nascar.com/news-media/2019/10/04/ally-financial-hendrick-motorsports-sponsor-extension-jimmie-johnson/| title=Ally signs three-year, full-season sponsorship extension with Hendrick| journal=NASCAR| date=October 4, 2019}}
Hendrick Motorsports (1998-2007) with drivers Jack Sprague, Ricky Hendrick, Brian Vickers and Casey Mears{{cite news| url=https://www.motorsport.com/nascar-cup/news/jimmie-johnson-sponsor-ally-financial-lowes/3204616/| title=Jimmie Johnson finds new sponsor in Ally Financial for 2019 season| last=Utter| first=Jim| work=Motorsport.com| date=October 28, 2018}}
Alex Bowman took over the No. 48 Ally Chevrolet in 2021 after Johnson transitioned from NASCAR to the IndyCar Series;{{cite press release| url=https://www.prnewswire.com/news-releases/hendrick-motorsports-taps-alex-bowman-to-drive-no-48-ally-chevrolet-in-2021-301147018.html| title=Hendrick Motorsports taps Alex Bowman to drive No. 48 Ally Chevrolet in 2021| publisher=Ally Financial| via=PR Newswire| date=October 6, 2020}} In 2022, DC Comics, Milestone Media, and Warner Bros. Discovery partnered with Ally and NASCAR to debut a sponsorship and new paint scheme, based on the DC superhero character Static, for Alex Bowman's No. 48 Chevrolet Camaro ZL1 1LE for the Hendrick Motorsports team, in support of DC's The Milestone Initiative program.{{cite press release| title=Ally, DC, Milestone Media, and Warner Bros. discovery reveal NASCAR paint scheme inspired by The Milestone Initiative| url=https://www.prnewswire.com/news-releases/ally-dc-milestone-media-and-warner-bros-discovery-reveal-nascar-paint-scheme-inspired-by-the-milestone-initiative-301578092.html| publisher=Ally Financial| via=PR Newswire| date=June 29, 2022}}{{cite web |title=First look: Bowman's No. 48 will have some 'Static' at Atlanta Motor Speedway |url=https://www.nascar.com/gallery/first-look-2022-hendrick-ally-chevrolet-alex-bowman-atlanta/ |website=NASCAR |archive-date=11 August 2022 |archive-url=https://web.archive.org/web/20220811225220/https://www.nascar.com/gallery/first-look-2022-hendrick-ally-chevrolet-alex-bowman-atlanta/ |url-status=live }}
Naming rights of the Ally 400 - the Cup Series' race at Nashville Superspeedway (2021-2024){{cite news| url=https://www.wilsonpost.com/sports/superspeedway-s-inaugural-race-christened-ally-400/article_e6285bd0-5aa5-11eb-80c9-f786a29104ed.html| title=Superspeedway's inaugural race christened Ally 400| last=Woody| first=Larry| newspaper=The Wilson Post| date=January 19, 2021}}
National Women's Soccer League (2021–present){{cite press release| title=NWSL Welcomes Ally as League's First Official Banking Partner, League-Wide Sleeve Sponsor| url=https://www.nwslsoccer.com/news/nwsl-welcomes-ally-ad-leagues-first-official-banking-partner-league-wide-sleeve-sponsor| publisher=National Women's Soccer League| date=March 30, 2021}}
National Women's Soccer League Players Association (2022–present){{Cite web |title=Ally signs on as first official NWSLPA partner following inaugural CBA |url=https://justwomenssports.com/article/ally-first-official-partner-nwslpa-cba/ |website=Just Women's Sports | date=February 3, 2022}}
Charlotte FC of Major League Soccer (2020–present){{cite news| url=https://www.charlotteobserver.com/sports/article244386457.html| title=Welcome, Charlotte FC. The city's MLS expansion team gets a new name and crest| first=Alex| last=Ajdrejev| newspaper=The Charlotte Observer| date=July 22, 2020}}
Jimmie Johnson alongside Kamui Kobayashi and Simon Pagenaud (2021); Mike Rockenfeller joined the team for 2021 24 Hours of Daytona.{{cite news| last=Malsher-Lopez| first=David| url=https://us.motorsport.com/imsa/news/jimmie-johnson-action-express-rolex-24-daytona/4921359/| title=Jimmie Johnson to race for Action Express in Rolex 24| website=Motorsport.com| date=December 4, 2020}}
ACC women's basketball tournamenthttps://theacc.com/news/2023/2/20/general-ally-becomes-official-acc-sponsor.aspx

Legal issues

=2013 discrimination settlement=

In December 2013, the Consumer Financial Protection Bureau (CFPB) and United States Department of Justice ordered the company to pay $80 million in consumer monetary damages and $18 million in civil penalties after determining that 235,000 minority borrowers paid higher interest rates for auto loans originated between April 2011 and December 2013 because of the company's discriminatory pricing system. The higher rates resulted from the company's specific policy of allowing dealers to charge, at their discretion, a "dealer markup" above Ally's established "buy rate" and then compensating dealers based on the markup. Ally provided an incentive for dealers to charge higher rates, in violation of the Equal Credit Opportunity Act.{{cite press release| title=CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing| url=https://www.consumerfinance.gov/about-us/newsroom/cfpb-and-doj-order-ally-to-pay-80-million-to-consumers-harmed-by-discriminatory-auto-loan-pricing/| publisher=Consumer Financial Protection Bureau| date=December 20, 2013}}{{cite press release| url=https://www.consumerfinance.gov/about-us/blog/harmed-ally-borrowers-have-been-sent-80-million-in-damages/| title=Harmed Ally borrowers have been sent $80 million in damages| first=Patrice| last=Ficklin| publisher=Consumer Financial Protection Bureau| date=January 29, 2016}}