Since the collapse of SVB Financial and Signature Bank, a lot of bank stocks have been sold off significantly. One of those is the large digital consumer bank and auto lender Ally Financial (NYSE: ALLY), which is down about 18% since SVB started struggling earlier this month. Investors have had their doubts about Ally for many months now, as the company's large retail auto-lending portfolio looms large heading into what could be a much tougher economy for consumers.
Ally Financial (ALLY) closed the most recent trading day at $24.22, moving +0.87% from the previous trading session.
Multiple media outlets reported this week that legendary investor Warren Buffett was in discussions with senior officials of the Biden administration to provide advice and potentially discuss making an investment in some bank stocks. Buffett and his holding company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) are longtime bank investors and know the banking sector extremely well. In fact, Berkshire actually owned and operated a bank for several years in the 1970s before selling it over changes in banking regulations.