Last week MetLife said that it is going to sell most of the deposits that is held by its banking unit to the General Electric’s finance arm as the big insurer aims to try and escape the regulatory oversight that is related to the passage of the Dodd-Frank Act.
GE Capital Financial will acquire around $7.5 billion in MetLife Bank deposits. The new transaction, which includes the certificates of deposit and money market accounts, is now expected to close in the second quarter of 2012. The terms of the deal, that were announced on December 27, had not been disclosed.
Sometime last summer the New York-based MetLife had announced their plans to exit the banking business after the Federal Reserve had denied their attempts to increase the annual dividend, according to the prior report. Without the banking business, MetLife is no longer going to be subject to regulatory oversight make more stringent by the passing of the Dodd-Frank Act. MetLife Bank said that it has around $3 billion in deposits associated with a mortgage business that it plans to sell off in the next six months.
The GE Capital is being represented by Gibson, Dunn & Crutcher. The firm’s team is being led by New York corporate partner Steven Shoemate and Washington, D.C.-base financial institutions partner Cantell Muckenfuss III. The GE Capital’s general counsel, Keith Morgan, is Gibson Dunn’s former partner. While they were based out in London, he served as the managing partner of the firm’s London, Paris and Riyadh offices.
Wachtell, Lipton, Rosen & Katz are all advising MetLife, led by the corporate partners Adam Emmerich and David Lam, along with a corporate of counsel Patricia Robinson. The executive compensation and the benefits partners Michael Segal and David Kahan and the tax partner Joshua Holmes are all working together on this deal.
Nicholas Latrenta is the general counsel for MetLife.
Back in July it was reported that Wachtell and K&L Gates were going to handle MetLife’s exit from the banking business. K&L Gates has not yet been mentioned in MetLife’s announcement and one of the firm’s spokesmen declined to respond to a request for comments.
Last week, the Chesapeake Midstream Partners announced their plans to acquire Marcellus Shale midstream assets from the affiliated Chesapeake Midstream Development for almost $865 million in cash, and in stocks.
Both of the companies are subsidiaries of the Oklahoma City-based Chesapeake Energy Corporation, the second-largest producer of natural gasses in the entire nation. CMP is going to pay $600 million in cash, and an additional $265 million in stocks, to acquire the CMD subsidiary Appalachia Midstream Services. But acquiring this, CMP is going to be picking up almost 200 miles of pipeline in the Marcellus Shale area, which is going to include natural gas reserves that were found throughout the Appalachian Basin.