GE Capital, the financial services arm of General Electric , said on Tuesday it will not appeal a proposal by the new U.S. risk council to designate the firm as systemically important, a tag that will subject the company to tougher regulations.
The comment from Russell Wilkerson, a spokesman for GE Capital, came a day before the end of a 30-day window for the company to notify regulators on the Financial Stability Oversight Council whether it intended to legally challenge the designation.
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"We have strong capital and liquidity positions and we are already supervised by the Fed. Accordingly, we have decided not to appeal or ask for a hearing," he said.
GE Capital is one of three firms who had been notified by the FSOC about a proposed designation. The other two are American International Group and Prudential Financial .
(Reporting by Sarah N. Lynch; Editing by Gary Hill)