Reddit
reddit.com › r/allybank › future with ally bank
r/AllyBank on Reddit: Future with Ally Bank
December 27, 2022 -
I have significant amount of deposits with this bank in multiple ownership category. This bank has been generally simple and convenient to deal with so I'm hoping to stay with this bank for a long time. However in case this bank goes bankrupt, instead of the bank disappearing, wouldn't it more likely that the bank would become an online division of another bank? Or they may get bought out by another bank. I understand FDIC will protect the deposits. What do you all think?
Top answer 1 of 5
18
In the unlikely event a bank fails (it runs out of money to cover withdrawal demands), the FDIC takes over ownership of the bank. It basically seizes it. It tries to find another bank willing to acquire the bank's assets and liabilities - including the accounts that remain. If it finds a buyer then all depositors are made whole. The FDIC within a couple of business days makes all insured amounts available for depositors, who are insured up to $250,000 with the new acquiring bank or a new bank entity created by the FDIC. There is no explicit coverage for losses of uninsured amounts, though the federal government decided to cover uninsured deposits for failed Silicon Valley Bank and Signature Bank. If the FDIC can't find a buyer, then it will sell the failed bank's assets, investments and loan portfolio, which will still have value. And gradually pay the proceeds of what can be recovered to the depositors with uninsured funds. In the case of Indy Bank in 2008, half of uninsured funds were lost but all insured funds were covered. If there's a bank failure, the shareholders are likely wiped out. In the case of Ally, that would include Warren Buffett's Berkshire Hathaway which owns nearly 10% of Ally. There's speculation Buffett would increase his stake in Ally because he knows the business. I think Ally will be fine. The deposits are insured. So I'm keeping the bulk of my non-retirement savings with Ally. It's not in the best shape because according to SeekingAlpha in December it had all these U.S. Treasury bonds paying out interest less than Ally is paying interest to depositors now. Plus there's concerns the number of people defaulting on auto loans due to Ally will go up as the economy worsens. But Ally has access to the Federal Reserve's program where it can post its bonds as collateral at their original value before losses to borrow as much money as it needs to cover withdrawals. And nearly 90% of Ally's funds are insured. It's the banks with a high percentage of uninsured deposits that are much more vulnerable to a run where depositors bail.
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While so many people have withdrawn their money from "small banks" I have transferred more money to Ally. Lol I am not worried if Ally fails, which hopefully doesn't because I don't see a bank that would replace it for me if it does.
The Motley Fool
fool.com › investing › 2023 › 03 › 25 › how-ally-financial-holding-up-banking-industry
How Is Ally Financial Holding Up, Given the Current State of the Banking Industry? | The Motley Fool
March 25, 2023 - While I don't think this will change in the long term, banks that are already paying up for deposits, like Ally, might actually find a bit more stability in the near term given the current environment, although deposit costs may rise more than expected. Even before the collapse of SVB, the big focus for Ally has been on credit.
Seeking Alpha
seekingalpha.com › home › stock ideas › quick picks & lists › financials
Why Ally Is Exposed To The Current Crisis In More Than One Way (NYSE:ALLY) | Seeking Alpha
March 17, 2023 - Ally Financial Inc. has the same underlying duration and interest rate risk issues as other institutions. Click here for our review of ALLY stock prospects.
Fitch Ratings
fitchratings.com › research › banks › fitch-affirms-ally-financial-bbb-rating-outlook-stable-08-03-2024
Fitch Affirms Ally Financial's 'BBB-' Rating; Outlook Stable
Skip to main content · About · About UsContact UsCareersMedia RelationsFeedback · Regulatory · Regulatory AffairsCriteriaCode of Conduct & EthicsPrivacy PolicyReport an Issue / Whistleblowing · Product · Rating ActionsCoverageResearch & AnalyticsRating Products & ToolsRating ...
CBS News
cbsnews.com › moneywatch › a look at ally's failed fed stress test and cds
A look at Ally's failed Fed stress test and CDs - CBS News
May 27, 2013 - Ally Bank's Certificates of Deposits are something I've been recommending for sometime and I have a couple dozen CDs of my own at the bank so I feel the need to comment. ... I'm not privy to the methodology and assumptions used in the stress test. The failure is in contradiction to Bankrate's 4 star Safe and Sound safety rating. Many rating agencies gave banks like Wachovia the highest rating in 2007, however. The conversion from preferred to common stock would result in the U.S.
AUTOFINANCENEWS.NET
autofinancenews.net › home › ally financial only bank to fail fed’s stress test
Ally Financial Only Bank to Fail Fed’s Stress Test - Auto Finance News
February 20, 2014 - The Fed said yesterday 17 of those banks had enough capital on hand to survive a severe market collapse and economic recession. In the Fed’s hypothetical scenario, in which unemployment rose to 12.1%, stocks dropped 50%, housing prices declined 20%, and banks lost a collective $462 billion, only Ally Financial failed.
Wise
wise.com › us › blog › is-ally-bank-safe
Is Ally Bank safe? 2025 full guide - Wise
February 26, 2025 - Ally Bank is as secure as a traditional brick-and-mortar bank. They're FDIC-insured and use strong digital security measures to keep your money protected. However, it’s important to take normal precautions to avoid scams.
Bogleheads.org
bogleheads.org › board index › us investors › personal investments
Ally Bank - Is this a safe/best place to stash some cash? - Bogleheads.org
I have all of my retirement investments ... safe....really safe. Would consider 1 year or 18 months. This $, by the way, is not from emergency fund.....we've got that covered. Here is my question...perhaps a dumb one: What has your experience been with Ally Bank?...
SmartAsset
smartasset.com › checking-account › is-ally-bank-safe
Ally Bank: Is It Safe to Use?
June 26, 2018 - For one, the The Federal Deposit Insurance Corporation (FDIC) insures Ally Bank and its deposits up to the maximum, federally designated limit of $250,000. This insurance keeps your money safe even when the economy or Ally isn’t doing well.
The Motley Fool
fool.com › investing › 2023 › 03 › 13 › why-bank-stocks-ranging-from-ally-financial-to-us
Why Bank Stocks Ranging From Ally Financial to U.S. Bank Are Crashing (Again) Today | The Motley Fool
March 13, 2023 - Its plans to sell equity to shore up the shortfall flopped. And, at the same time, many of its customers -- including several of Silicon Valley's tech companies -- accelerated their withdrawal of funds from the struggling bank, exacerbating ...
Yahoo! Finance
finance.yahoo.com › news › why-ally-financial-stock-jumped-151300810.html
Why Ally Financial Stock Jumped 43% in 2023
January 9, 2024 - At Ally Financial, 92% of its deposits are FDIC insured. Not only that, but the bank's $153 billion deposit base has increased by $11 billion since the Federal Reserve began raising interest rates in March 2022.
Seeking Alpha
seekingalpha.com › home › financials
Ally: Large Credit Loss Provisions, Recession Looming (ALLY) | Seeking Alpha
March 8, 2023 - Ally Financial is growing rapidly due to increased net interest income now that interest rates are higher. Click here to read why ALLY stock is a Hold.
Abi
abi.org › feed-item › ally-bank-considering-bankruptcy-for-its-mortgage-lending-unit
Ally Bank Considering Bankruptcy for Its Mortgage Lending Unit | ABI
Some analysts think that a ResCap bankruptcy is unlikely specifically because of the effect it might have on Ally’s reputation. Even if the larger company were not financially hurt by the mortgage division’s bankruptcy, consumers and investors might start to question its viability and shy away from investments.
Investing.com
investing.com › news › stock-market-news › ally-financial-trades-low-amid-high-rates-and-bank-collapses-93CH-3234081
Ally Financial trades low amid high rates and bank collapses By Investing.com
November 14, 2023 - Ally Financial (NYSE: ALLY), while contending with broader market volatility triggered by the collapse of regional banks earlier this year, is trading at an exceptionally low valuation.
Macroaxis
macroaxis.com › home › company directory › company profile › probability of bankruptcy
Ally Financial Probability Of Bankruptcy Analysis (NYSE:ALLY) | Macroaxis
November 24, 2025 - Based on the latest financial disclosure, Ally Financial has a Probability Of Bankruptcy of 5.0%. This is 89.99% lower than that of the Consumer Finance sector and 88.61% lower than that of the Financials industry.
Namso Gen
namso-gen.co › home › is ally bank going to collapse?
Is Ally Bank going to collapse?
January 11, 2025 - If Ally Bank were to collapse, the FDIC would step in to protect depositors’ funds up to the insured limit.
Business Insider
businessinsider.com › personal finance › banking › savings › ally bank review 2025: features, pros, and cons
Ally Bank Review 2025: Is It the Right Bank for You?
May 6, 2025 - Yes, Ally is safe to use because its a legit, real online bank.
VerifyThis
verifythis.com › home › brands
Money safe in most major banks after 2023 collapses
June 5, 2025 - Stories That Matter. Brands That Deliver · 64 Local News Brands in 51 Markets
Downdetector
downdetector.com › status › ally
Ally down? Current outages and problems | Downdetector
Real-time problems and outages for Ally. Can't log into your bank account? Is the website down? Here you see what is going on.
NYTimes
nytimes.com › topic › company › ally-financial
Ally Financial - The New York Times
Ally Financial, known as GMAC Financial when it was bailed out for $17 billion, could be harmed if its mortgage unit files for bankruptcy as expected.