General Electric (GE) is 'Committed to Retaining GE Capital'
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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.
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GE
It's comitted to keeping GE Capitol just like it's comitted to keeping it's 31 cent dividend!
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GE
kevin on Jun 19, 2009 03:26 PMgood one