Fed approves Goldman acquisition of GE Capital's U.S. online deposits

Mon Mar 21, 2016 11:21am EDT
 
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By Olivia Oran

(Reuters) - Goldman Sachs Group Inc (GS.N: Quote) received permission on Monday to complete its $17 billion acquisition of GE Capital Bank's U.S. online deposits.

The deal, which was approved by the Federal Reserve, had been pending since August 2015.

Goldman would control around $95 billion in deposits through its GS Bank unit following the acquisition, according to a statement from the Federal Reserve.

The Federal Reserve had extended the initial comment period for the deal and received feedback from 84 individuals and organizations that both opposed and supported it, it said.

Approval from the states of New York and Utah are still needed for the transaction to close, chief executive officer of GS Bank Esta Stecher said in a statement.

The deal gives Goldman a more stable source of funding to help it better weather future crises. Regulators have been pushing since 2008 for investment banks to fund more of their assets with deposits from customers. Deposits are widely seen as less likely to disappear during times of stress because they are federally insured.

GE (GE.N: Quote) has been winding down its financing arm, GE Capital, in an attempt to reduce its regulatory burden.

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A view of the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2013. REUTERS/Brendan McDermid