For most financial institutions, the Fed-mandated stress test and Comprehensive Capital Analysis and Review went pretty well, with prior year laggards Citigroup Inc. (NYSE:C) and Bank of America Corp (NYSE:BAC) emerging stronger than ever. But for Ally Financial Inc (NYSE:GMA), the former auto-loan segment of General Motors, things went even further south than last year, when it was able to muster a 2.5% minimum ratio. This year, Ally finished up with a measly 1.5% Tier 1 common ratio — and the same ratio for its post-stress, proposed capital actions metric. These were the lowest scores of any of the 19 financial institutions tested.
Ally Financial Inc (NYSE:GMA): Not our fault
Almost immediately after the results were in, Ally Financial Inc (NYSE:GMA) released a statement opining that the Fed’s methodology was faulty, and stating that, among other things, Ally’s capital levels are just fine and dandy. Was the Fed unfair to poor Ally?
Of course, Ally wasn’t the only institution flagged by the Fed. Both JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group, Inc. (NYSE:GS) were told that their capital plans didn’t meet specifications, and they must resubmit new and improved proposals before the end of the third quarter.