NYT writes "F.D.I.C. Is Watching as a Bank Sets Rates". The article says, "Our tale begins in earnest with a letter that the president and chief executive of the American Bankers Association, Edward L. Yingling, sent on May 27, 2009, to Sheila C. Bair, the chairwoman of the Federal Deposit Insurance Corporation. He argued that Ally Bank, an online bank owned entirely by GMAC Financial Services, posed a danger to the industry and the F.D.I.C. Chief among those concerns, he said, was Ally's high interest rates on certificates of deposit." (See Crane Data's June 4 News "ABA Criticizes Aggressive Deposit Gathering Strategies of GMAC Bank".) The NY Times adds, "And wouldn't you know it? Ally decided to lower some of its rates, not once but twice in the last six business days." See also, BusinessWeek's "Money Market Funds in a Squeeze", which says, "Money market funds, the investments that individuals, companies, and institutions use to stash cash, look like another victim of the financial crisis. As interest rates drop and costs rise, some financial firms have pulled out of the business."
