Watching Ally Bank and the American Bankers Association (ABA) fight is like going through kindergarten all over again. First, the ABA sends a letter to Sheila Bair at FDIC saying that Ally Bank should not be offering a high interest rate to attract deposits. Then, the GMAC subsidiary fires back and say that they are actually much better capitalized than many of the members of the ABA.
On May 27, ABA President and Chief Executive Officer Edward L. Yingling let the world know of his concern about Ally Bank’s practices. He claims that Ally Bank’s capital position is weak and that he shouldn’t be allowed to offer such a high interest rate.
Huh? Last time I heard, it’s called competition and capitalism. Is the government going to start dictating how much interests a bank should give to customers as well?
As far as I’m concerned, I applaud Ally Bank for offering customers higher interest rates. It’s time that we get the better end of the stick for once.
For more information on the GMAC bank subsidiary, you may want to check out the Ally Bank review I put together.