Daily News: September 24, 2012

GE Capital, MetLife Restructure Deposit Deal

MetLife and MetLife Bank said in a filing that it amended the purchase agreement dated as of December 23, 2011 with GE Capital Bank and GE Capital regarding the sale of the depository business of MetLife Bank.

Under the new structure, MetLife Bank’s deposit business would be assumed by GE Capital Retail Bank, rather than by GE Capital Bank.

The key terms of the agreement, whereby a GE Capital affiliate will acquire approximately $7 billion in MetLife Bank deposits, including certificates of deposit and money market accounts, remain unchanged.

The transaction, as amended, will now be subject to approval by the Office of the Comptroller of the Currency, the primary regulator of GE Capital Retail Bank, and other customary closing conditions. The approval of the Federal Deposit Insurance Corporation (FDIC) will no longer be required for the transaction.

Upon completion of the sale, MetLife Bank would take the remaining administrative steps with the FDIC to terminate its deposit insurance and MetLife would deregister as a bank holding company.

To read a related story posted by MarketWatch click here.