The scope of the contract that only relates to deposit platform and deposits of GE Capital Bank would also include the sale of online savings accounts, online CDs and brokered CDs of GE.
As per the contract, the bank’s subsidiary plans to take on $8bn in online deposits and $8bn of brokered certificates of deposit. Currently, Goldman’s deposits stand at $89bn, reports Reuters.
The move is a part of GE’s strategy to simplify the workings of the company by reducing the size of its financial businesses.
Recently, GE also announced its plans of divesting its US healthcare unit to credit card lender Capital One Financial Corp for an estimated $9bn.
GE Capital chairman and CEO Keith Sherin said: "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 US bank charters, which we believe will help us become less systemically important."
GE had also recently announced its plan of divesting around $200bn in GE Capital operations.
"Coupled with the split off of Synchrony Financial, this transaction will facilitate our complete exit from US banking operations, eliminate the exposure of the US 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," added Sherin.
Image: The Goldman Sachs headquarter in New York City. Photo: courtesy of Quantumquark.
