GE GE announced today an agreement to sell GE Capital Bank's U.S.
online deposit platform along with all deposits of GE Capital Bank,
including online savings accounts, online CDs and brokered CDs, to Goldman
Sachs Bank USA ("GS Bank"). Under this agreement approximately $16 billion
of deposits will be transferred to GS Bank. The sale relates only to the
deposit platform and deposits of GE Capital Bank.
"As we work to reduce the size and complexity of GE Capital, this
transaction is another key step. It advances GE Capital's new strategic
direction by facilitating closure of one of our two U.S. bank charters,
which we believe will help us become less systemically important," said
Keith Sherin, GE Capital chairman and CEO. "I am confident that under GS
Bank our deposit customers will continue to receive the high level of
service and commitment they have come to expect," he added.
The transaction is subject to regulatory approval and includes management,
employees, software, and technology used to operate the platform. Scott
Roberts, president of GE Capital Bank, is expected to join GS Bank to
oversee the platform.
GE Capital Bank is a Utah-chartered industrial bank. GE expects to wind down
the remaining operations of GE Capital Bank following closing of the
transaction, subject to regulatory approval.
Synchrony Financial, the U.S. consumer financial services business majority
owned by GE Capital, also takes retail deposits at Synchrony Bank. Synchrony
Financial is targeted to be split off in a share exchange later this year,
subject to regulatory approval.
Sherin said, "Coupled with the split off of Synchrony Financial, this
transaction will facilitate our complete exit from U.S. banking operations,
eliminate the exposure of the U.S. deposit insurance safety net to GE
Capital and thereby significantly reduce our regulatory footprint in the
United States as we work to pair a smaller GE Capital with GE's long-term
industrial growth."
As previously announced, GE is embarking on a strategy to create a simpler,
more valuable company by reducing the size of its financial businesses
through the sale of most GE Capital assets and by focusing on continued
investment and growth in its world-class industrial businesses. GE and its
Board of Directors have determined that current market conditions are
favorable to pursue these dispositions. GE will retain the financing
businesses that relate directly to GE's industrial businesses.
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