General Electric Co., announces its plan to buy insurance company MetLife Inc. on Tuesday. With this GE will rise by increasing its capital by $7.5 billion in deposits and MetLifes online baking platform, which will speed and attract more individuals in buying this insurance. Terms of the deal will be based on GE and it was expected to be closed by mid 2012 and regulatory approvals is still pending as of now.
The move by GE to reduce risk at GE capital is by acquiring midsize companies, and focusing on acquiring funds by lending and leasing. GE is also looking to launch an online banking platform and looking to attract more retail deposits if this succeeds. GE’s interest in pursuing retail deposits as a way to increase its funds is looking to acquire online banking ING Direct USA. But since it was such a large company it was brought by Capital One Financial Corp instead. GE capital will still continue to build its retail platform and aim to raise more money to create this platform.