General Electric story updated with analysis from Bernstein Research in last three paragraphs.NEW YORK ( TheStreet) -- General Electric ( GE) is likely to follow its planned purchase of Metlife ( MET)'s retail deposit business with similar deals in 2012. While the deal will increase GE Capital's deposits by $7.5 billion, that is only half way toward its stated goal of increasing "alternative funding" by $15 billion to $20 billion in 2012, according to a Dec. 6 investor presentation. Terms of the deal with MetLife were not disclosed.
Steven Winoker, analyst with Bernstein Research, described the move as "a positive development for GE as GE Capital continues to diversify and reduce its funding risk with increased deposits." He also described MetLife as a "motivated seller" since its deposits "have dragged it into the Fed's review and served as an overhang. Terms of the deal weren't disclosed, but Winoker "understand
s the associated book value is roughly $200M," according to his note. -- Written by Dan Freed in New York. Follow this writer on Twitter.