This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GE Capital Not Seeking Equity Partner

General Electric (GE - Get Report) executives say they are not seeking an equity partner for the company's GE Capital unit -- a statement that is unlikely to quell growing speculation about an eventual partnership with a large bank.

"I don't know what the scenario would be where we would entertain that," said CFO Keith Sherin, while GE Capital boss Mike Neal added, "I'm not focused on that. I don't think anybody here is."

The statements came in response to a question from Deutsche Bank analyst Nigel Coe during a conference call Tuesday where executives gave investors a detailed look at GE Capital. Many GE watchers are concerned the unit is painting too rosy a picture of its loan portfolio, and will be unable to adjust to a tougher new regulatory environment without looking much more like a bank. Analysts including Sterne Agee's Nick Heymann have said they expect GE to eventually partner with a large bank such as HSBC Holdings (HBC).

Also on Tuesday, GE executives projected losses for 2010 will be similar to those it is projecting for 2009 -- a more favorable scenario than many analysts are predicting.

GE has raised suspicions among investors and analysts as it has reported relatively small losses in areas like real estate and consumer lending that have stung banks like Citigroup (C - Get Report), Bank of America (BAC - Get Report), JPMorgan Chase (JPM - Get Report) and Wells Fargo (JPM - Get Report). GE has said this is because it has more conservative underwriting standards. Also, it says it does not plan to sell many of the loans it has on its books, so current market prices are irrelevant.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HBC $0.00 0.00%
C $44.66 0.00%
BAC $14.13 0.00%
GE $30.07 0.00%
JPM $61.57 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs