There’s More Than One Way To Become Small Enough To Fail

GE Capital knows what we're talking about.
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By joho345 (Own work) [CC BY-SA 3.0], via Wikimedia Commons

joho345, via Wikimedia Commons

You can be a total dick about it, like certain large insurance companies, and sue, demanding that the government have a workable definition of “systematically important” before it starts throwing the phrase around. Or you can just meekly do what the government says and it will leave (the much smaller) you alone.

The U.S. Financial Stability Oversight Council said Wednesday that it voted this week to remove its label on GE Capital as “systemically important financial institution,” which carries more stringent oversight….

Since deciding to wind down the finance arm, GE Capital has signed agreements for the sale of about $180 billion of businesses and has closed about $156 billion of those transactions. The head of GE Capital, Keith Sherin, said the decision by regulators is a result of the transformation of GE Capital into a “smaller, safer financial services company.”

GE Capital Sheds ‘Systematically Important’ Label [WSJ]

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