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The Stamford, Conn.-based credit card issuer expects to be independent by the end of the year, and predicts that it will benefit from its separation from General Electric.
September 17 -
The rest of the credit card industry continues to be dogged by slow loan growth, but retail-branded cards are bouncing back, thanks largely to a big push by merchants.
September 14 -
General Electric's decision to sell most of its financial assets marks the most prominent victory in regulators' quest to incentivize breakups of large conglomerates. But it may turn out to be a one-off event.
April 10 -
By locking up key clients, minimizing employee attrition and embracing innovation, Margaret Keane has made all the right moves in preparing Synchrony Financial to stand on its own.
September 22
Synchrony Financial has received regulatory approval for moves that will let the credit card lender cut ties with its longtime parent, General Electric.
The Federal Reserve Board on Wednesday signed off on Synchrony’s application to operate as a stand-alone savings and loan holding company, among other changes.
The Fed’s approvals had been expected. They clear a path for GE, which owns 85% of Synchrony, to offer its shareholders the chance to exchange their GE stock for shares in the split-off company.
“This approval is a critical step in becoming a stand-alone business,” Synchrony Chief Executive Margaret Keane said in a press release.
Stamford, Conn.-based Synchrony held an initial public offering in July 2014. The IPO was the first in a series of steps by GE aimed at downsizing the firm’s financial services footprint and escaping the regulatory scrutiny that comes with being designated as systemically important.
“We are pleased that Synchrony has received this key approval from the Federal Reserve Board,” GE CEO Jeffrey Immelt said in a separate press release Wednesday. “GE Capital is continuing to reduce the size and complexity of the business and is becoming less systemically important.”
Neither company gave an indication Wednesday of when the separation is likely to happen, though GE said that it will discuss details of the proposed exchange offer during its quarterly earnings call this Friday.
During an investor conference last month, Keane
Synchrony, which has $76 billion in assets and specializes in store-branded credit cards, is scheduled to report its earnings on Friday.
