Ally Financial, Inc. history, profile and corporate video
Ally Financial, Inc. is a financial holding company headquartered in Detroit, Michigan, United States. It was founded in 1919 by General Motors (GM) as the General Motors Acceptance Corporation (GMAC) to provide financing to automotive customers.
In 1939, the Motors Insurance Corporation was founded, and the company entered the vehicle insurance market.
In 1985, GMAC formed GMAC Mortgage.
In 1998, the company formed GMAC Real Estate.
In 2000, GMAC formed GMAC 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. GMAC Real Estate was sold to Brookfield Asset Management.
In December 2008, the Federal Reserve System (the central banking system of the United States of America) accepted the company’s application to become a bank holding company.
In May 2009, GMAC Bank was rebranded as Ally Bank.
In May 2010, General Motors Acceptance Corporation (GMAC) re-branded itself as Ally Financial.
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In 2012, the company sold its Canadian banking operations to Royal Bank of Canada.
The company operates through the following business segments: Banking, Dealer Financial Services, Home, Investing, Corporate Finance, and Ally Lending.
Banking
The Banking segment provides banking products including savings, money-market, checking, certificates of deposit (CDs), and others.
Dealer Financial Services
The Dealer Financial Services segment involves independent financing, leasing, commercial insurance, and vehicle protection products.
Home
The Home segment offers fixed and adjustable-rate home loans and consistently competitive rates.
Investing
The Investing segment involves a range of self-directed and managed portfolio products, as well as low fees to help manage their investments.
Corporate Finance
The Corporate Finance segment provides a source of capital for equity sponsors and middle-market companies.
Ally Lending
The Ally Lending segment involves lending solutions that give consumers the option to pay overtime for healthcare, home improvement, auto servicing, and auto modification services.
With more than 9 500 employees, Ally Financial, Inc. is considered one of the largest car finance companies in the U.S. and one of the largest banks in the U.S. by assets. According to Forbes, it is considered one of the top 2000 largest public companies in the world.
*Information from Forbes.com, Wikipedia.org, and www.ally.com.
**Video published on YouTube by “Ally“.
As an expert in the field of finance and corporate history, I can confidently delve into the intricate details of Ally Financial, Inc.'s evolution. My extensive knowledge is drawn from authoritative sources such as Forbes, Wikipedia, and the company's official website, www.ally.com. Furthermore, my expertise extends to the broader financial landscape, allowing me to provide insightful analysis.
Ally Financial, Inc., headquartered in Detroit, Michigan, stands as a testament to resilience and adaptability in the financial sector. Founded in 1919 by General Motors (GM), it initially operated as the General Motors Acceptance Corporation (GMAC), with a primary focus on providing financing solutions for automotive customers. This foundation marked the beginning of a trajectory that would see the company diversify and expand its offerings over the decades.
In 1939, Ally Financial entered the vehicle insurance market with the establishment of the Motors Insurance Corporation. Subsequent years witnessed strategic moves into various financial sectors. In 1985, GMAC ventured into mortgage services, forming GMAC Mortgage. The company's foray into real estate materialized in 1998 with the establishment of GMAC Real Estate. A pivotal milestone occurred in 2000 with the creation of GMAC Bank, broadening the company's scope to include banking services.
Amidst these developments, GMAC ResCap was formed in 2005 as a holding company for mortgage operations. However, a transformative shift took place in 2006 when General Motors sold a 51% interest in GMAC to Cerberus Capital Management, a private equity firm. Concurrently, GMAC Commercial Holdings underwent a restructuring, with a controlling interest being sold to Goldman Sachs, Kohlberg Kravis Roberts, and Five Mile Capital Partners.
The year 2008 marked a crucial juncture, as the Federal Reserve System accepted Ally Financial's application to become a bank holding company. This laid the groundwork for significant changes in 2009 when GMAC Bank was rebranded as Ally Bank. The rebranding reflected a strategic move towards a more consumer-centric approach.
In 2012, Ally Financial continued its strategic realignment by selling its Canadian banking operations to the Royal Bank of Canada. The company presently operates through diverse business segments, showcasing its multifaceted approach to financial services. These segments include Banking, Dealer Financial Services, Home, Investing, Corporate Finance, and Ally Lending.
Ally Financial's Banking segment encompasses a range of products such as savings, money-market, checking, and certificates of deposit (CDs). The Dealer Financial Services segment focuses on independent financing, leasing, commercial insurance, and vehicle protection products. The Home segment offers fixed and adjustable-rate home loans, emphasizing consistently competitive rates.
The Investing segment provides a suite of self-directed and managed portfolio products, coupled with low fees to aid investment management. Meanwhile, the Corporate Finance segment serves as a capital source for equity sponsors and middle-market companies. Lastly, the Ally Lending segment addresses consumer needs by offering lending solutions for healthcare, home improvement, auto servicing, and auto modification services, providing the option to pay over time.
Ally Financial, Inc. is a formidable player in the financial landscape, boasting more than 9,500 employees. It stands as one of the largest car finance companies in the U.S. and ranks among the largest banks in the country by assets. Forbes recognizes Ally Financial, Inc. as one of the top 2000 largest public companies globally, further solidifying its position as a financial powerhouse. This comprehensive overview is based on information gathered from Forbes.com, Wikipedia.org, and the official Ally website. For a visual journey through the company's history and profile, a video published on YouTube by "Ally" provides additional insights.
