GMAC Inc.'s Ally Bank is expanding into Canada with its online savings products, such as guaranteed investment certificates, the company said Thursday.
The move allows the lender, which has been reliant on capital infusions from the government since December, access to a fresh source of funding. In addition, it will enable GMAC, which makes auto loans in Canada, to tap these new funds.
Earlier this week GMAC, through Ally Bank, tapped the asset-backed securities market for the first time, taking advantage of a federal program aimed at bolstering credit to consumers.
The $941 million debt offering marked a milestone for the lender that was bailed out by the government late last year after running into serious liquidity problems, and has been propped up ever since by federal funds.
As of June 30, GMAC had received $12.5 billion of federal funds.