The New York Post is reporting
that Ally Financial is in talks to purchase ING Direct. According to the Post:
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.
ING first announced plans to divest ING Direct USA in October 2009. As I described in my 2009 blog post
, this was part of European Union's requirements after ING received bailout funds during the 2008 financial crisis.
There have been other reports
that Citigroup and Capital One were also on this list of potential buyers.
Although Ally would be better than the mega banks, I wouldn't like to see the reduced competition. In my opinion, the best outcome would be if ING spins ING Direct USA off as a separate company.