Government Removes General Electric Capital's "Too Big To Fail" Designation

General Electric Co. (GE)’s finacing unit is now off the “too big to fail” hook. While some major financial institutions relish, even advocate for the government backstopping their risk, GE is not one of them. After a long struggle and corporate transformation, the U.S. Treasury Department’s Financial Stability Oversight Council (FSOC) announced Wednesday it rescinded a previous systemically significant tag on the firm. As such, GE is no longer subject to enhanced regulatory scrutiny and capital requirements. General Electric dismantles its financial division to avoid FSOC designation GE had been feverishly working for nearly a year to shed the systemically significant label….