GE Buys Retail Banking Web Site (GE, MET)
The GE Capital arm of General Electric Co. (NYSE: GE) has struck a deal MetLife Inc. (NYSE: MET) to buy MetLife’s online retail banking group called MetLife Bank. Financial terms of the deal were not released, but GE is picking…
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The GE Capital arm of General Electric Co. (NYSE: GE) has struck a deal MetLife Inc. (NYSE: MET) to buy MetLife’s online retail banking group called MetLife Bank. Financial terms of the deal were not released, but GE is picking up approximately $7.5 billion in retail deposits.
In its announcement, GE Capital’s CEO said:
This acquisition fits with our plans to launch a U.S. deposit platform. It accelerates our timing, helps us build a stronger and more cost efficient funding base, and allows us to better serve our middle market commercial customers.
MetLife gets rid of a business that, because it was regulated as a bank holding company, blocked the firm’s ability to pay a dividend or buy back stock. Once the deal closes, in mid-2012, MetLife returns to being regulated as an insurance company.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
