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The Financial Stability Oversight Council approved the attached resolution by notational vote on June 28, 2016, with nine members voting in favor of the resolution and none opposed. The Chair of the Securities and Exchange Commission recused herself from the vote. The basis for the Council’s rescission of its determination is available at www.fsoc.gov. RESOLUTION REGARDING REEVALUATION OF DETERMINATION REGARDING GE CAPITAL GLOBAL HOLDINGS, LLC WHEREAS, section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “DFA”) authorizes the Financial Stability Oversight Council (the “Council”) to determine that a nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and shall be subject to enhanced prudential standards if the Council determines that material financial distress at the nonbank financial company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the nonbank financial company, could pose a threat to the financial stability of the United States; and WHEREAS, section 113(d) of the DFA requires the Council not less frequently than annually to reevaluate each determination regarding a nonbank financial company under section 113 and rescind any such determination if the Council determines that the nonbank financial company no longer meets the standards for a determination under section 113; and WHEREAS, the Council issued a final rule and accompanying interpretive guidance (the “Rule and Guidance”), codified at 12 C.F.R. Part 1310, and adopted 1 supplemental procedures on February 4, 2015, that describe the processes and procedures by which the Council will reevaluate each currently effective determination; and WHEREAS, on July 8, 2013, the Council made a final determination, in accordance with the DFA and the Rule and Guidance, that General Electric Capital Corporation (“GECC”) shall be supervised by the Federal Reserve and shall be subject to enhanced prudential standards under the DFA; and WHEREAS, as part of a corporate reorganization completed on December 3, 2015, GECC merged with and into its parent, General Electric Company, and GE Capital Global Holdings, LLC (“GE Capital”) succeeded to and became subject to the Council’s determination regarding GECC; and WHEREAS, in connection with the Council’s reevaluation of its determination regarding GE Capital, the Council provided GE Capital an opportunity to submit written materials to the Council to contest the Council’s determination and to meet with the staffs of the Council Members and their Agencies; and 2 WHEREAS, GE Capital submitted materials to the Council and met with the staffs of the Council Members and their Agencies in connection with the Council’s reevaluation of its determination regarding GE Capital; and WHEREAS, the Council has considered a broad range of information available through existing public and regulatory sources, as well as information submitted to the Council by GE Capital; and WHEREAS, based on the reevaluation of the Council’s determination regarding GE Capital, the staffs of the Council Members and their Agencies concluded that fundamental changes in the business of GE Capital since the Council’s determination have significantly reduced the potential for the negative effects of material financial distress at GE Capital to be transmitted to the financial system and recommend that the Council rescind its determination regarding GE Capital; and WHEREAS, the members of the Council have considered the issues and the record in connection with the following actions. 3 NOW, THEREFORE, BE IT RESOLVED, that, based on the information, considerations, and analysis set forth in the attached “Basis for the Financial Stability Oversight Council’s Rescission of its Final Determination regarding GE Capital Global Holdings, LLC” (the “Basis”), and on a review of the administrative record, the Council hereby determines that GE Capital no longer meets the standards for a determination under section 113 of the DFA and hereby rescinds its determination, pursuant to section 113 of the DFA, that material financial distress at GE Capital could pose a threat to the financial stability of the United States and that GE Capital shall be supervised by the Federal Reserve and shall be subject to prudential standards, in accordance with Title I of the DFA. BE IT FURTHER RESOLVED, that the Council has considered and hereby approves the attached “Notice and Explanation of the Basis for the Financial Stability Oversight Council’s Recession of its Determination Regarding GE Capital” (the “Notice”) and authorizes the Notice to be sent to GE Capital. BE IT FURTHER RESOLVED, that the Council hereby approves the Basis and authorizes the Basis to be released to the public. 4 BE IT FURTHER RESOLVED, that the Council hereby delegates authority to the Chairperson, or his designee, to make technical, nonsubstantive, or conforming changes to the text of the Notice and the Basis. 5 ATTACHMENTS [The basis for the Council’s rescission of its determination is available at www.fsoc.gov.]
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