GE is taking the axe to its finance arm in a landmark strategy shift

Huge transformation at General Electric! Shows that no matter your company size, you can not sit still!


General Electric Co. [fortune-stock symbol=”GE”] is to get rid most of its GE Capital unit to create a “simpler, more valuable company” focused on its core industrial operations, in a landmark decision for both the company — and, perhaps, the economy too.

GE said it will shed over four-fifths of its in-house bank–the seventh-largest in the U.S.–over the next three years, drawing a thick line under the days when it depended on the freewheeling unit’s financial engineering skills to generate half of its profits.

For the most part, it’s going to give the money it gets for those businesses back to shareholders, mainly through a $50 billion share buyback program, the second-biggest in history. The company’s shares, which have badly lagged the S&P 500 over the last couple of years, rocketed over 8% early Friday, closing in on a seven-year high.

However, Moody’s Investor Service downgraded the company’s debt by…

View original post 621 more words


Published by

Rad BMW Blog

Business & Marketing Development Professional who recently fulfilled a boyhood dream of owning a BMW! Sharing his experiences with his new BMW 535d xDrive!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s