June 29, 2016
GE Capital shed its “systemically important financial institution” (SIFI) label, which carries with it stricter government oversight. Federal regulators say the finance arm of General Electric Co. made changes to significantly reduce its threat to U.S. financial stability.
Since April 2015, GE’s reduced its finance business by more than half and cut reliance on volatile forms of short-term funding. So far, that’s involved the sale of roughly $180 billion of businesses and closing about $156 billion of such transactions. That included more than $30 billion in real estate assets, as well as GE’s North American commercial lending business.
It is the first time the oversight council removed the “systemically important” tag since it was created under the 2010 Dodd-Frank financial overhaul law. GE may now be able to explore adding more debt to its balance sheet.