New York State Department Of Financial Services Approves Goldman Sachs Bank Purchase Of GE Capital Bank - Goldman Bank USA Will Acquire Certain Limited Assets And Assume Substantially All Deposit Liabilities From GE Capital Bank

The New York State Department of Financial Services (DFS) today approved the application of Goldman Sachs Bank USA (GS Bank), a New York State chartered state member bank subsidiary of The Goldman Sachs Group, Inc., to acquire certain limited assets and assume substantially all of the deposit liabilities of GE Capital Bank, based in Holladay, Utah, an industrial bank subsidiary of General Electric Capital Corporation.

"DFS's approval of this transaction provides funding diversification for GS Bank and the opportunity to serve the needs of consumers and communities," said Department of Financial Services Acting Superintendent Maria T. Vullo. "New York is the financial capital of the world because of the continued strength of its financial markets and the rigorous regulatory framework that supports and encourages business while protecting consumers."

Under the terms of the acquisition, GS Bank will assume approximately $17 billion of GE Capital Bank's deposits, including retail on-line deposits, as well as certain technology of GE Capital Bank. Goldman Bank will hire employees of GE Capital Bank to operate the on-line retail deposit platform.

As part of DFS's approval, GS Bank must ensure that its online deposit platform is accessible to a majority of consumers within its Community Reinvestment Act assessment area. GS Bank must notify DFS immediately of any plans to expand the on-line deposit platform, including any retail lending, which would be subject to separate DFS approval.

In addition, GS Bank must implement enhancements to its compliance programs, including its BSA/AML/sanctions compliance programs, to encompass its new on-line deposit platform.