GE Capital Sells Deposit Platform to Goldman Sachs
AUG 14, 2015 - 7:16 am
GE (GE) announced 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.
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