Under this agreement approximately $16 billion of deposits, which are comprised of online savings accounts, online Certificates of Deposit ("CDs") and brokered CDs, have been transferred, and customer accounts will now be serviced by GS Bank.
"With this sale, we are now in a position to fully exit the U.S. banking system by extinguishing our final U.S. bank charter and terminating our FDIC insurance, which we are targeting to complete by the end of this week," said Keith Sherin, GE Capital chairman and CEO.
"We’re pleased to transfer these deposits and our deposit platform employees to Goldman Sachs. 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," Sherin added.
Exiting the U.S. banking system and eliminating the exposure of the U.S. deposit insurance safety net to GE Capital are key aspects of GE Capital’s request to the Financial Stability Oversight Council (FSOC) for rescission of GE Capital’s designation as a nonbank Systemically Important Financial Institution (SIFI).
On March 31, GE announced that it had filed its request for GE Capital’s SIFI rescission as it continues to transform GE Capital into a smaller, more focused financial services firm. More information regarding the request is available here.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.
Since announcing this strategic change, GE Capital has signed agreements for approximately $166 billion of the $200 billion in ending net investment (ENI) that it plans to sell. The total closed transactions to date are now approximately $146 billion in ENI.
