On June 29, 2016, the FSOC announced the rescission of its designation of GE Capital Global Holdings LLC (GE Capital) as a systemically important financial institution (SIFI). The FSOC unanimously decided that GE Capital no longer meets the standards for SIFI designation. Therefore, GE Capital will not be subject to enhanced prudential standards or supervision by the Board of Governors of the Federal Reserve System.

FSOC originally designated GE Capital as a SIFI in 2013 after identifying a number of key concerns, including the company’s reliance on short-term wholesale funding and its leading position in a number of funding markets. Since then, GE Capital made strategic changes to decrease its total assets by over 50%, reduce its interconnectedness with large financial institutions and have more stable funding. In order to become less systemically important, it has undergone a corporate reorganization, a series of divestitures and a transformation of its funding model.

The public explanation of the basis for the FSOC’s rescission is available at: https://www.treasury.gov/initiatives/fsoc/designations/Documents/GE%20Capital%20Public%20Rescission%20Basis.pdf and the FSOC press release is available at: https://www.treasury.gov/initiatives/fsoc/news/Documents/FSOC%20Announces%20Rescission%20of%20Nonbank%20Financi al%20Company%20Designation.pdf