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Straightforward...ahhhh not really

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September 02, 2009 – Comments (13) | RELATED TICKERS: A , LLY

OK, something has been bothering me for a couple of weeks now, so I thought that I would get it off of my chest.  I absolutely HATE those ally bank commercials.  You know the ones...they say something like "ally - straightforward."  Here's a couple of examples of the ads before I get to why they're completely absurd:

I snagged this one from the front page of CNBC.com.

Here's another.

Here's a few of their witty commercials where some man messes with kids:

Any of you who have made it this far are probably wondering why I hate these commercials and print ads so much.  Well, I'll tell you.  You know who "ally" bank really is?  Freaking GMAC!  Aka the company formerly known as General Motors Acceptance Corporation. 

That's right, the company that is so poorly run that it needed over twelve billion dollars  in government aid and is losing billions of dollars every quarter ($3.9 billion on Q2 including charges to be exact) wants you to lend it money at a rate of 1.75%.  How is changing your name so that nobody knows that you are really a disaster of a company that has literally been run into the ground  and was forced to take billions of dollars in taxpayer aid "straightforward?"  That's about as un-straightforward as it gets if you ask me.  I don't care what sort of guarantees deposits with these guys have.  I would never, ever lend them money out of principle alone.  Good Grief.

Deej

13 Comments – Post Your Own

#1) On September 02, 2009 at 4:57 PM, chk999 (99.98) wrote:

Thanks for the who they really are info. They now go in the "won't touch with a ten lightyear pole" category.

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#2) On September 02, 2009 at 5:02 PM, TMFCHarris (99.61) wrote:

@Deej - wow. I weird feeling about that bank, largely because they seemed to be well funded and out of nowhere. I never would have guess that was their secret, though.

@chk - thank you for using lightyear as a measurement of distance. Pet peeve of mine. ;-)

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#3) On September 02, 2009 at 5:03 PM, brickcityman (< 20) wrote:

I agree whole-heartedly...

 

At first when I saw those ads... I thought GREAT the "free market" works...  The entrenched banking interests are going to get schooled by a new entrant to the market.  And pretty soon all will be well.

 

Of course all one needs to do is pick ever so slightly at the surface and the whole thing starts to stink.

 

I compare Ally bank to allowing your creepy uncle play a clown at your kids birthday party.  Sure the new look may make him seem innocuous, but that still doesn't mean you should trust him with the things you hold dear.

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#4) On September 02, 2009 at 5:05 PM, goldminingXpert (29.78) wrote:

I'm still angry about I think it was ING's "What If A Mortgage Could Make You Richer" ads. Grr!

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#5) On September 02, 2009 at 5:31 PM, leohaas (37.11) wrote:

Yeah, they stink.

Just one question: how come some of the best players on CAPS did not know that Ally was the reincarnation of GMAC?

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#6) On September 02, 2009 at 5:46 PM, jatt22 (51.42) wrote:

thanks  for  da info  .  dang..  devil  comes  in  lot  of faces .

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#7) On September 02, 2009 at 5:52 PM, outoffocus (23.68) wrote:

Just one question: how come some of the best players on CAPS did not know that Ally was the reincarnation of GMAC?

Probably because it wasnt widely advertised.  I mean I knew because I just happen to know alot about GMAC. But I dont recall too much media attention going toward the announcement of the new GMAC.

And to Deej, it does truly sicken me.  GMAC is back up to their old tricks.  Shortly before they went under I remember they were issueing 4% and 5% CDs and I remember thinking back then that I wouldnt wipe my behind with their CDs. Just how long will they be able to get away with paying above market on their savings deposits when they are barely making money?

Oh and the second advertisement you posted is classic:

"We make money with you, not off you". Yea, with our taxpayer dollars.  LOL!!

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#8) On September 02, 2009 at 6:19 PM, JakilaTheHun (99.94) wrote:

Good catch, Deej. 

I've seen those commercials a bunch and I kept wondering if there was some catch.  I wouldn't have guessed it was GMAC incognito. 

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#9) On September 02, 2009 at 10:12 PM, ctojeira (36.70) wrote:

Yes, but they're paying the best money market rate out there and are FDIC insured.  I put $20k into an account with them a couple of months ago, because I needed some money that I can access quickly and easily with no risk.

On the home page of their web site, they fully disclose that they were built on the foundation of GMAC.  Why should this deter me, though?  As long as my money is FDIC insured, why not take the highest available money market rate out there?

Should I take a lower rate because I disagree with the choices made by our government?

Should I not invest in stocks because Wall Street is corrupt?

I guess I don't understand your point. 

 

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#10) On September 02, 2009 at 10:23 PM, RLAprof (< 20) wrote:

#9 I guess it's just the idea of putting out ads like this while they are slipping money out of your wallet to pay you a high interest rate on the CD.

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#11) On September 03, 2009 at 4:38 AM, kaskoosek (93.77) wrote:

good commercials by the way.

 

Though 1.75% is still crap on a CD.

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#12) On September 03, 2009 at 1:04 PM, tonylogan1 (28.22) wrote:

Just one question: how come some of the best players on CAPS did not know that Ally was the reincarnation of GMAC?

Even smart people don't know everything... in fact they know they don't know everything, so they end up learning new things... Now that Deej has posted this I bet CAPS members know the GMAC connection at a much higher % than the general public.

On another note... Dang... I liked those commercials. I always wondered how it was approvable to havee that one fat kid on the kasier permanente ads where he says "things are looking up"... it is basically an 8 year old saying he is an out of shape loser, but now that he has kaiser permanente he is going to start taking care of himself...

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#13) On September 03, 2009 at 2:56 PM, RonChapmanJr (97.01) wrote:

"I would never, ever lend them money out of principle alone."   

I am surprised to hear that coming from you.  I recall an earlier discussion where you were talking bad about a company (Goldman, perhaps) but you said you would still invest with them because it made you money.  Where did this onslaught of principles come from? 

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