Cramer to feds: Remove GE Capital's shackles

CNBC's Jim Cramer said Thursday it's 'ludicrous' that GE Capital is under "too big to fail" regulations.

"They've done a remarkable job. The GE Capital's financial receivables have decreased 74 percent, cash is up big. The debt they have now is much more oriented towards selling equipment," Cramer said on "Squawk on the Street."

General Electric's financial arm asked the U.S. government to quit designating it as a "systemically important financial institution." The label, given to companies deemed "too big to fail," subjects them to tighter regulations under the Dodd-Frank Act.

"The competition for GE Capital, I think, is very safe. They've got a lot of cash, … and the idea that this company should be under SIFI … is kind of ludicrous, so it's not a surprise," he said, referring to the status of a systemically important financial institution.

The U.S. Treasury said the Financial Stability Oversight Council "welcomes the opportunity to evaluate developments at any designated nonbank financial company and their potential effect on financial stability."

Shares of GE have risen nearly 30 percent in the last year.

GE stock in last 12 monthsSource: FactSet

Disclosure: Cramer's trust owned GE stock when this article was published.