General Electric (GE) is 'Committed to Retaining GE Capital'
Following reports yesterday that Obama's new regulatory overhaul could force General Electric (NYSE: GE) to spin-off its GE Capital unit, the conglomerate is out today confirming that it is "committed to retaining GE Capital".
As the WSJ reported yesterday, Obama's plan would require regulators to watch over the parent company and all subsidiaries of any financial firm that is "systemically important" -- not just the financial unit. Further, the proposal would require that all the other divisions of such a company be regulated in the same way as the financial unit.
Shares of General Electric fell more than 6% over the last two trading sessions on fears related to the regulatory overhaul.
Also addressing another issue it has with Obama's plan, GE said that building a partition between a company's main operations and its financial unit would be "unnecessary and unwise".
Traders seem to be responding to GE's reassurance today: the stock most recently traded at $12.13, up 1.3% from yesterday's close. Notably, GE is outperforming both the Dow and S&P 500 which are up 0.4% and 0.64%, respectively.
Create E-mail AlertRelated Categories
Corporate NewsInsiders' Blog
Stocks Mentioned
-0.25Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
