UPDATE: GE to Sell U.S. Online Deposit Platform to Goldman Sachs Bank USA, $16B Deal

GE (NYSE: GE) announced today 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 GoldmanSachs Bank USA ("GS Bank"). Under this agreement approximately $16 billionof deposits will be transferred to GS Bank. The sale relates only to thedeposit platform and deposits of GE Capital Bank. "As we work to reduce the size and complexity of GE Capital, thistransaction is another key step. It advances GE Capital's new strategicdirection by facilitating closure of one of our two U.S. bank charters,which we believe will help us become less systemically important," saidKeith Sherin, GE Capital chairman and CEO. "I am confident that under GSBank our deposit customers will continue to receive the high level ofservice 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. ScottRoberts, president of GE Capital Bank, is expected to join GS Bank tooversee the platform. GE Capital Bank is a Utah-chartered industrial bank. GE expects to wind downthe remaining operations of GE Capital Bank following closing of thetransaction, subject to regulatory approval. Synchrony Financial, the U.S. consumer financial services business majorityowned by GE Capital, also takes retail deposits at Synchrony Bank. SynchronyFinancial is targeted to be split off in a share exchange later this year,subject to regulatory approval. Sherin said, "Coupled with the split off of Synchrony Financial, thistransaction will facilitate our complete exit from U.S. banking operations,eliminate the exposure of the U.S. deposit insurance safety net to GECapital and thereby significantly reduce our regulatory footprint in theUnited States as we work to pair a smaller GE Capital with GE's long-termindustrial growth." As previously announced, GE is embarking on a strategy to create a simpler,more valuable company by reducing the size of its financial businessesthrough the sale of most GE Capital assets and by focusing on continuedinvestment and growth in its world-class industrial businesses. GE and itsBoard of Directors have determined that current market conditions arefavorable to pursue these dispositions. GE will retain the financingbusinesses that relate directly to GE's industrial businesses.