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 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.