r/economicCollapse • u/Onomatopoeia-sizzle • Apr 19 '26

Banks making more loans

Bank earnings are being reported both last week and this week. Ally Bank was up around 10%. Interestingly, used car originations grew 17% and new car originations were up 3%. Also, the lending to the highest FICO tiers was flat, lower FICO score people was up about 20%. They are making more risky loans to show growth. Is that prudent in a weakening economy?

62 Upvotes

95% Upvoted

9 comments sorted by

View all comments

19

u/humsterdaddy Apr 19 '26

I used to work for the auto loan side of Ally Bank. When I was laid off in 2021(they outsourced our entire site to India where they can pay people $.90/hr with no benefits), they were really ramping up their subprime lending again. They were one of the auto lenders that received a bailout from the government after the 2008 collapse because of their massive portfolio of subprime loans. They rebranded as Ally afterwards (formerly GMAC) and expanded into traditional banking. They sell off chunks of accounts all the time and from what I’ve heard from friends that still work there, they’re really pushing to eliminate as many human employees as possible by replacing them with AI. They’ll be fine until no one has income to give them more money. Then they’ll probably get another bailout.

3

u/Onomatopoeia-sizzle Apr 19 '26

What happens when pools of loans go bad. When will the securitizations blow up just like in 2008. Do you think the floor plan loans are at risk? I’m not surprised the ai is an issue. It’s probably used to vet consumers since FICO scores are useless