GE Capital CEO Sherin on Shedding Too-Big-to-Fail Label

The video discusses GE Capital's transition away from Federal Reserve supervision, allowing for more flexibility in capital and leverage management. It covers the process of removing the SIFI designation, the strategic downsizing of GE Capital, and the focus on supporting GE's industrial businesses. The video also outlines plans for non-US operations, including the sale of bank licenses in the EU.

What is one immediate effect of GE Capital no longer being supervised by the Federal Reserve?

• Increased regulatory oversight

• Reduction in capital requirements

• Expansion of asset portfolio

• Introduction of new financial products

What was the purpose of GE Capital's strategic downsizing plan?

• To enhance liquidity

• To increase market share

• To reduce systemic risk

• To diversify investments

How did GE Capital interact with the Financial Stability Oversight Council during the de-designation process?

• By ignoring FSOC's requests

• By increasing short-term funding

• By providing regular updates and engaging in dialogue

• By contesting the SIFI designation

What is the future focus of GE Capital after its transformation?

• Expanding into new financial markets

• Becoming a major retail bank

• Supporting GE's industrial businesses

• Increasing reliance on wholesale funding

What significant change did GE Capital make to its funding model?

• Increased reliance on wholesale funding

• Expansion of short-term funding

• Elimination of deposits and FDIC insurance

• Introduction of new deposit accounts

What is GE Capital's plan for its non-US operations?

• To sell international assets and return bank licenses

• To increase international funding

• To acquire more international assets

• To open new branches in the EU

Which regulatory authority oversees GE Capital's non-US operations?

• Prudential Regulatory Authority in the UK

• Federal Reserve

• International Monetary Fund

• European Central Bank