This means Dodd-Frank is working! MetLife will now never be a threat to the banking system like AIG was and MetLife will never need a banking bailout someday, since they have taken this action to "get back to their basic line of business -- insurance". Please ask your Senators and Congressmen to support Dodd-Frank and the Volker rule.
MetLife Sells U.S. Retail Deposit Business to GE Capital
MetLife announced on Dec. 27 that it has agreed sell the bulk of its retail deposits business to GE Capital, as it seeks to trim its operations and focus on its core insurance business. Under the terms of the deal, GE Capital will acquire about $7.5 billion of MetLife’s deposits. The rest, about $3 billion in deposits, will be transferred over the next six months. MetLife is swiftly dismantling its banking business, in a bid to ward off increased regulatory oversight. Although its deposit business, founded in 2001, has always been a small part of the business — representing just two percent — it was large enough to classify MetLife as a bank holding company. The status subjected MetLife to additional rules and increased scrutiny by federal regulators. The acquisition will bring GE Capital $7.5 billion in deposits and MetLife's online-banking platform, which could speed GE's efforts to attract more individual savers. The deal will boost GE Capital's existing U.S. deposit base of $23 billion by about a third and help support its commercial lending business. The move comes as GE Capital, which long existed in a regulatory gray area between banking and industry, has grown more comfortable emphasizing traditional banking after falling under the regulation of the Federal Reserve in the wake of the financial crisis.
From "MetLife Sells U.S. Retail Deposit Business to GE Capital"
Wall Street Journal (12/28/11) Dowell, Andrew; Scism, Leslie
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This company is a stock brokerage firm rather than a bank. But it seemed to fit here rather than making a separate thread just for this one article.
FOREIGN CORRUPT PRACTICES ACT CASES
Siemens Senior Executives Indicted for Violating FCPA
Eight former executives and agents of Siemens AG and its subsidiaries have been charged for allegedly engaging in a scheme to bribe senior Argentine government officials to secure, implement and enforce a $1 billion contract with the Argentine government to produce national identity cards. According to the Department of Justice news release, the Argentine government issued a tender for bids in 1994 for a state-of-the-art national identity card system. The project was terminated in 2001, but during the bidding and implementation phases of the project, the former Siemens executives and agents caused Siemens to pay nearly $100 million in bribes to government officials.
The defendants are charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the wire fraud statute, money laundering conspiracy and wire fraud. In a parallel civil action, the Securities and Exchange Commission (SEC) announced charges against executives and agents of Siemens. Siemens AG in 2008 pled guilty to violations of the FCPA. As part of the plea agreement, Siemens AG and Siemens Argentina agreed to pay fines of $448.5 million and $500,000, respectively.
MetLife Sells U.S. Retail Deposit Business to GE Capital
MetLife announced on Dec. 27 that it has agreed sell the bulk of its retail deposits business to GE Capital, as it seeks to trim its operations and focus on its core insurance business. Under the terms of the deal, GE Capital will acquire about $7.5 billion of MetLife’s deposits. The rest, about $3 billion in deposits, will be transferred over the next six months. MetLife is swiftly dismantling its banking business, in a bid to ward off increased regulatory oversight. Although its deposit business, founded in 2001, has always been a small part of the business — representing just two percent — it was large enough to classify MetLife as a bank holding company. The status subjected MetLife to additional rules and increased scrutiny by federal regulators. The acquisition will bring GE Capital $7.5 billion in deposits and MetLife's online-banking platform, which could speed GE's efforts to attract more individual savers. The deal will boost GE Capital's existing U.S. deposit base of $23 billion by about a third and help support its commercial lending business. The move comes as GE Capital, which long existed in a regulatory gray area between banking and industry, has grown more comfortable emphasizing traditional banking after falling under the regulation of the Federal Reserve in the wake of the financial crisis.
From "MetLife Sells U.S. Retail Deposit Business to GE Capital"
Wall Street Journal (12/28/11) Dowell, Andrew; Scism, Leslie
________
This company is a stock brokerage firm rather than a bank. But it seemed to fit here rather than making a separate thread just for this one article.
FOREIGN CORRUPT PRACTICES ACT CASES
Siemens Senior Executives Indicted for Violating FCPA
Eight former executives and agents of Siemens AG and its subsidiaries have been charged for allegedly engaging in a scheme to bribe senior Argentine government officials to secure, implement and enforce a $1 billion contract with the Argentine government to produce national identity cards. According to the Department of Justice news release, the Argentine government issued a tender for bids in 1994 for a state-of-the-art national identity card system. The project was terminated in 2001, but during the bidding and implementation phases of the project, the former Siemens executives and agents caused Siemens to pay nearly $100 million in bribes to government officials.
The defendants are charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the wire fraud statute, money laundering conspiracy and wire fraud. In a parallel civil action, the Securities and Exchange Commission (SEC) announced charges against executives and agents of Siemens. Siemens AG in 2008 pled guilty to violations of the FCPA. As part of the plea agreement, Siemens AG and Siemens Argentina agreed to pay fines of $448.5 million and $500,000, respectively.