GE Completes Sale of Online Deposit Platform and Transfer of Remaining U.S. Deposits to Goldman Sachs Bank USA

Key Step as GE Capital Exits U.S. Banking System

FAIRFIELD, Conn.--(BUSINESS WIRE)-- GE (NYSE: GE) announced today that it has completed the sale of GE Capital Bank’s U.S. online deposit platform including the transfer of all of GE Capital Bank’s U.S. deposits to Goldman Sachs Bank USA (“GS Bank”). 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.

About GE

GE (NYSE: GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com.

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Caution Concerning Forward-Looking Statements:

This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160418005842/en/

Investors:
GE:
Matt Cribbins, +1 203-373-2424
[email protected]
or
Media:
GE Capital:
Susan Bishop, +1 203-750-5362
[email protected]

Source: GE

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