A northeastern life insurer has disclosed plans to sell roughly 70% of its retail banking deposits.
Metropolitan Life Insurance Company, New York (NYSE: MET), says it will sell $7.5 billion in retail banking deposits, including certificates of deposit and money market accounts, to General Electric Capital Corp., Stamford, Conn. The company notes it also transfer the remaining $3 billion in other deposits out of MetLife Bank over the next six months.
The $7.5 billion sale to GE is subject to approval by the Federal Reserve, following a review period that is expected to last between 4 and 6 months.
Commenting on the announcement, research firm Sanford C. Bernstein & Co., New York, says it regards the sale as “a positive development” and a “concrete step” taken to realize the company’s objective of leaving the retail banking business.