General Electric's Washington Woes Aplenty

General Electric (GE Quote) may be a big player in wind energy, but the political winds are clearly not blowing in its favor.

CEO Jeff Immelt is no fan of certain aspects of the Obama administration's proposed regulatory revamp for the financial industry, according to an internal memo's sent to company employees Monday.

"One proposal in particular, pertaining to the separation of banking and commerce, has led to some media speculation that, if enacted, could require the separation of GE and GE Capital," Immelt wrote. "It is very early in the process, and Congress will now spend months reviewing and drafting legislation. We are certainly opposed to it, since this issue had nothing to do with the financial crisis. We believe many in Congress will have concerns about this provision as well. GE is and will remain committed to GE Capital and we like our strategy. As the president's plan is discussed, you can be sure GE will be actively involved and make our voice heard."

The only question is how interested the Obama administration is in hearing GE's voice. During a May 19 public presentation, Immelt made light of the suggestion from one questioner that he has "a bit of the seat at the table in Washington."

"I'm a Republican," Immelt said. "I mean, let's get that out there. I'm way over here baby. So, not even close. So, I'm not sure, how much influence."

Indeed, even though the Obama administration appears to be adopting a moderate tone with many of its regulatory proposals, its stance on certain issues near and dear to GE is far from friendly. In addition to the banking and commerce issue, changes to tax treatment of foreign earnings looks like it will create serious headaches for GE. In the company's most recent earnings call, several analysts asked GE executives about tax-related issues, as they try to adjust their earnings models to what is expected to be a much tougher environment for GE's accountants.