Ally Financial is in talks to purchase ING Group’s online bank, ING Direct USA, The Post has learned.
Sources told The Post that Ally, the automobile and home mortgage lender, is looking to acquire the online banking business to boost its deposit base and further fortify the lending giant, which accepted a taxpayer handout during the height of the financial crisis.
ING Direct could fetch as much as $10 billion in a sale, according to sources, although it’s not clear what deal terms ING is discussing with potential buyers.
Sources said the ING discussions are relatively “far along” but warned that they could still fall apart. A spokeswoman for Ally declined to comment for this story.
Known for its marketing campaign featuring an orange ball, ING Direct boasts about $100 billion in assets. Its Dutch parent launched a sale of the business in order to pay back roughly $13 billion it borrowed from the Dutch government.
The online lending business has grown by offering attractive interest rates to consumers despite widespread banking turmoil.
ING’s deposit base is attractive to financial services companies like Ally that are seeking more stable assets as they wind down their more troubled mortgage assets.
CIT Group also had been interested in acquiring ING Direct but is not currently viewed as a contender.
Ally’s interest comes as the bailed-out lender, formerly known as GMAC Financial, prepares for an IPO in the second quarter. Sources said that increasing its deposit base could be a positive that bankers use to attract investors.