“Federal regulators on Wednesday ruled that General Electric’s lending unit is no longer a threat to the financial system, allowing the conglomerate to escape from additional government oversight measures established to prevent another 2008-style financial crisis.
“GE had fought for years to shed its “too big to fail” designation, aggressively shrinking the footprint of its finance business, including selling its credit card unit, and recasting itself as an industrial company that makes airplane engines, trains and other massive manufacturing equipment. On Wednesday, regulators agreed to allow the firm to shed its designation as a “systemically important financial institution” and the regulatory burdens that came with it, including maintaining a bigger financial cushion.”
“Contrary to the nonstop, hysterical claims of industry and its political allies, FSOC has been thorough, deliberative, and fair throughout the designation process, focusing carefully on a rigorous data-driven analysis and clear systemic threats,” said Dennis Kelleher, president of Better Markets, a financial markets public interest group
To read the full Washington Post article by Renae Merle click here.