Ally Bank Responds to American Bankers Association
CHARLOTTE .- Ally Bank today responded to the American Bankers Association (ABA) complaint that it provides above-average savings rates for customers. Ally Bank was built on the premise that it would provide among the leading rates in the country for its savings products, while avoiding misleading fine print and teaser rates.
In a letter to The Honorable Sheila Bair, chairman of the Federal Deposit Insurance Corporation, dated May 27, 2009, ABA President and Chief Executive Officer Edward L. Yingling expressed concerns that Ally Bank is offering interest rates on its savings products “well above the market” in order to attract deposits. In his letter, Yingling also questioned the financial health of Ally Bank.
In a letter dated today addressed to Yingling, Al de Molina, chief executive officer of GMAC Financial Services, the parent of Ally Bank, said: “While I find it highly inappropriate that the American Bankers Association would attempt to restrain competition in the banking industry, I am not surprised. The public is well aware of Ally Bank’s brand promise. Ally Bank is committed to providing banking products and services to small businesses and individuals on a competitive and fair basis. In being straightforward with our customers, we intend to provide clarity to the public regarding self-serving practices of some banks. I can understand how some of your membership might be troubled by that prospect.”
In addition, de Molina provided a rebuttal to Yingling’s concerns about the bank’s financial health, noting that it is among the best capitalized banks in the country and has a Tier 1 capitalization leverage ratio that is almost triple what is deemed “well capitalized” under the FDIC’s regulations.
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