Ally Bank: GMAC’s new name
GMAC LLC, traded its loss linked name for a new name, Ally Bank in an effort to gain a new customer base.
The billions of losses in the car finance and mortgage units has left GMAC to bear the losses.
Sanjay Gupta, the bank's chief marketing officer, said the company wanted a name that would help it shed the baggage that many Americans now associate with banks, which have taken hundreds of billions of dollars of taxpayer money after losses from bad loans and investments piled up.
We fully expect more customers will use us, Gupta said in an interview.
GMAC's conversion to a bank holding company in December was a central part of the Detroit-based company's survival plan, and allowed it to get access to new government funding.
The bank got a $6 billion bailout in December, including $5 billion from the Troubled Asset Relief Program, regulators ordered it last week to plug an $11.5 billion capital shortfall to protect itself in case of a severe recession.
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