General Electric Company has jettisoned another piece of its financial arm, with a $30 billion sale of its commercial finance division to San Francisco bank Wells Fargo & Co. The deal announced Tuesday will see some 3,000 employees shift to the bank in a transaction expected to wrap up in early 2016.
The move comes as the 123-year-old company continues to whittle away at its GE Capital arm in an effort to escape supervision as a systemically important financial institution under the U.S. Federal Reserve. “This is our largest transaction to date and a critical step in our efforts to reduce the size of GE Capital,” Keith Sherin, chairman and CEO of the company’s finance arm, said in a statement.
GE has exceeded its own goals in the process. When the massive shift was announced in April, the company planned to sell $90 billion of its $200 billion lending portfolio by the end of 2015. To date, GE has made $126 billion in deals, with additional transactions expected by the end of the year.
Wells Fargo will acquire “essentially all of GE Capital Corporate Finance’s portfolio,” notes a Tuesday press release. According to the company, the only unit left to be sold is GE Franchise Finance, which provides capital for fast-food locations and other franchises.
Wells Fargo acquired GE Capital’s railway lending business in late September.