GE filed to end its oversight by the Fed on Thursday. Photo: urs flueeler/European Pressphoto Agency
General Electric Co. formally asked to be released from supervision by the Federal Reserve on Thursday, saying it has sufficiently shrunk its once-massive financial-services arm so it would no longer pose a systemic threat to the financial system.
Being categorized as a “systemically important financial institution,” or SIFI, required GE to submit to financial supervision by Fed staff and rein in leverage, two factors in GE’s decision last year to exit most of its lending business, which until recently provided as much as half of the conglomerate’s profits.
In a filing sent Thursday to the Financial Stability Oversight Council, GE said it had cut its total assets in the financing division by more than half, eliminated the majority of its U.S. operations, and cut the company’s ties to the rest of the financial system that had led to its receiving the SIFI designation.