Regulation

PYMNTS Daily Data Dive: GE Small Enough To Fail Edition

In the wake of the financial crisis, concerns about financial institutions that were "too big to fail" reached a crescendo and led to wide public outcry about regulations. That outcry ended with Dodd-Frank, a financial reform bill that tapped all of the expected players, and some unexpected ones as well.

GE, for example. Finance was always a tenuous partnership, as a drastic restructuring in the wake of the financial crisis meant GE was determined to winnow down that part of the business and get out hyper-regulated territory. As of Wednesday the refashioning had been notable enough so that the U.S. Financial Stability Oversight Council made the decision, via vote, to remove the firm’s label as a “systemically important” financial operation, with stricter oversight of activities. 

What does that mean by the numbers? Well ...

$660 billion | GE Capital's total assets on the balance sheet tied to finance and financial activities at its peak. 

$180 billion | The amount GE has slated for removal from its balance sheet through sale of its assets.

$156 billion | The value of transactions that have already closed through those sales.

$20 billion | The amount GE is now allowed to borrow for stock buybacks.

2% | The amount GE's shares rose on the announcement.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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