MetLife Inc. (MET), the insurer seeking to exit banking to limit U.S. oversight, amended a deal to sell about $7 billion in deposits to General Electric Co. (GE) so that Federal Deposit Insurance Corp. approval is no longer required.
The deal will now be subject to approval from the Office of the Comptroller of the Currency, the New York-based insurer said yesterday in a regulatory filing. Under the new arrangement, the deposits would be assumed by GE Capital Retail Bank rather than GE Capital Bank, the insurer said. MetLife gained 2.7 percent to $35.80 as of 6:01 p.m. yesterday in extended trading in New York.
MetLife Chief Executive Officer Steven Kandarian is seeking to reduce supervision from the Federal Reserve after the regulator twice blocked his company’s plans to return capital to shareholders. MetLife may increase its dividend and repurchase shares after exiting bank status, according to Barclays Plc.
The new arrangement will “enable us to ultimately deregister as a bank holding company following completion of the deal,” Christopher Breslin, a MetLife spokesman, said yesterday by phone. He declined to say when the sale would be completed or discuss the oversight of the Fed, which had given MetLife a Sept. 30 deadline to submit a new capital plan.
Bryan Hubbard, an OCC spokesman, didn’t respond to requests for comment.
Bloomberg
