GE To Sell Online Deposit Unit To Goldman Sachs, To Transfer $16 Bln Deposits

(RTTNews) - Conglomerate General Electric Co (GE) on Thursday said it has agreed to sell GE Capital Bank's U.S. online deposit platform to Goldman Sachs Bank USA (GS). The financial terms of the deal were not disclosed.

GE said the sale relates only to the deposit platform and deposits of GE Capital Bank, including online savings accounts, online CDs and brokered CDs. As per the deal, about $16 billion of deposits will be transferred to Goldman Sachs Bank USA.

"As we work to reduce the size and complexity of GE Capital, this transaction is another key step," said GE Chief Executive Keith Sherin.

The deal is subject to regulatory approval.

GE said that following the close of the transaction, it expects to wind down the remaining operations of GE Capital Bank, a Utah-chartered industrial bank.

Also, GE said that Synchrony Financial, the U.S. consumer financial services business majority owned by GE Capital, is targeted to be split off in a share exchange later this year.

"Coupled with the split off of Synchrony Financial, this transaction will facilitate our complete exit from U.S. banking operations, eliminate the exposure of the U.S. deposit insurance safety net to GE Capital and thereby significantly reduce our regulatory footprint in the United States," said CEO Sherin.,

GE is embarking on a strategy to create a simpler, more valuable company by reducing the size of its financial businesses through the sale of most GE Capital assets and by focusing on continued investment and growth in its industrial businesses.