Based on the terms of the deal, which is expected to complete during the second half of the year, the acquirer will assume certain liabilities of GE Bank and transfer the deposits under the Walmart MoneyCard program.
A regulatory filing with the US SEC stated, "With this modification to the current GE Capital Retail Bank/Walmart/Green Dot tri-party agreement, GE Capital Retail Bank has agreed to assign all of its rights and obligations to Green Dot Bank and Walmart has allowed and accepted such assignment.".
Upon closing of the transaction, Green Dot will become the issuing bank and depository institution for all past and current Walmart MoneyCard accounts issued under the program atleast through the end of the current tri-party agreement, which expires in May 2015.
GE Capital Retail Bank is offloading the card business, as it assumes that the Walmart MoneyCard program can best achieve its full potential by leveraging Green Dot Bank’s expertise in the prepaid market.
Operating as a wholly owned subsidiary of Green Dot Corporation, Green Dot Bank offers traditional banking products and services to the Provo community.
