Ally Financial

Yes it was, per Wiki: ”The company was known as GMAC, an acronym for General Motors Acceptance Corporation, until 2010.” More on reddit.com

from Ollo to Ally to Merrick what a journey its been. where to next?! More on reddit.com

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. More on reddit.com