GE Capital asks U.S. government to lift 'too big to fail' designation
Source: Reuters
Lender GE Capital asked the U.S. government on Thursday to stop designating it as "too big to fail," saying it had shrunk to the point where it would not pose a major threat to the nation's financial stability if it experiences distress.
Chief Executive Officer Keith Sherin said in a statement that the General Electric Co unit no longer met the criteria for a "systemically important financial institution," a label that can trigger requirements for stricter oversight and more capital.
The application came the day after a federal judge struck down the designation of insurer MetLife Inc, but GE Capital said the two events were unrelated. The company had said in October that it hoped to apply to the Financial Stability Oversight Council, which includes the Treasury secretary and Federal Reserve chair, for "de-designation" in the first quarter.
The 2010 Dodd-Frank Wall Street reform law authorized regulators to designate non-bank financial companies as systemically important, largely in response to the near-collapse of insurer American International Group Inc and the $182 billion U.S. government bailout it received during the 2008 economic meltdown.
Read more: http://www.reuters.com/article/ge-capital-usa-idUSL2N1731J4
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