GE Capital Sale Agreements Reach $192 Billion With French Mortgage Deal
August 12 2016 - 6:42PM
Dow Jones News
By Josh Beckerman
General Electric Co., which has been unwinding its GE Capital
business, has received a binding offer for its French prime
mortgage portfolio, increasing its GE Capital asset-sale agreements
to about $192 billion.
The buyer is a newly established French entity with backing from
Austrian bank Bawag PSK AG.
In April 2015, GE Chief Executive Jeff Immelt said the company
would largely disband GE Capital and focus on its industrial
assets. GE's goal is to sell $200 billion of GE Capital
businesses.
Ending net investment, an in-house metric the company uses to
measure the size of its financial operations, is about $1.9 billion
for the mortgage transaction.
GE expects to close the sale in the fourth quarter.
The transaction, along with the sale of GE Money Bank to
Cerberus Capital Management LP that was announced in June, would
mark GE Capital's exit from French consumer finance. Cerberus owns
52% of Bawag.
In June, the U.S. Financial Stability Oversight Council voted to
remove GE Capital's designation as a "systemically important"
financial institution, a label that had subjected GE Capital to
stricter rules and supervision by the Federal Reserve.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 12, 2016 18:27 ET (22:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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