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Ford Motor Company (NYSE:F) said today that the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions have given the go ahead for a U.S. industrial bank in Salt Lake City. [This is an ironic twist on Henry Ford’s distrust of banks and financial institution – AutoCrat.]
“I am excited to share that Ford Credit’s global banking footprint is taking a significant step forward. Following conditional approval from the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions, we are set to launch a U.S. industrial bank in Salt Lake City,” said Cathy O’Callaghan is president and CEO of Ford Credit.
“We already operate two banks in Europe, and we will draw on their expertise and experience. I am incredibly proud of the team, led by Bank President Frank Stepan, who worked tirelessly to shepherd this application through the regulatory process,” said O’Callaghan.
An industrial bank is a financial institution that allows Ford Credit to offer diverse banking services, particularly the ability to accept insured deposits to fund Ford Credit operations. Industrial banks are regulated as traditional commercial banks and comply with all federal and state consumer protection laws.
“This is a long-term strategic initiative that will expand our capabilities, enabling us to offer additional savings options to customers, which will over time help lower our cost of funding as well as broaden our financing offerings.
“The bank will start small and grow over time — much like Ford Credit did when it began in 1959 with 12 people. It will take about a year to put the people, systems, and processes in place to begin taking deposits. In the months and years that follow, we will add products such as certificates of deposit and indirect auto financing through our dealers,” said O’Callaghan.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
FDIC Conditionally Approves Ford Credit Industrial Bank
Click for more.
Ford Motor Company (NYSE:F) said today that the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions have given the go ahead for a U.S. industrial bank in Salt Lake City. [This is an ironic twist on Henry Ford’s distrust of banks and financial institution – AutoCrat.]
“I am excited to share that Ford Credit’s global banking footprint is taking a significant step forward. Following conditional approval from the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions, we are set to launch a U.S. industrial bank in Salt Lake City,” said Cathy O’Callaghan is president and CEO of Ford Credit.
“We already operate two banks in Europe, and we will draw on their expertise and experience. I am incredibly proud of the team, led by Bank President Frank Stepan, who worked tirelessly to shepherd this application through the regulatory process,” said O’Callaghan.
An industrial bank is a financial institution that allows Ford Credit to offer diverse banking services, particularly the ability to accept insured deposits to fund Ford Credit operations. Industrial banks are regulated as traditional commercial banks and comply with all federal and state consumer protection laws.
“This is a long-term strategic initiative that will expand our capabilities, enabling us to offer additional savings options to customers, which will over time help lower our cost of funding as well as broaden our financing offerings.
“The bank will start small and grow over time — much like Ford Credit did when it began in 1959 with 12 people. It will take about a year to put the people, systems, and processes in place to begin taking deposits. In the months and years that follow, we will add products such as certificates of deposit and indirect auto financing through our dealers,” said O’Callaghan.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.