Updated from 12:25 p.m. EDT
stock soared Tuesday after the company raised $8 billion in federally backed debt and eased investor fears about capital levels at its finance arm.
GE shares were rising 19.4% to $8.85 in recent trading, as the debt backed by the
Temporary Liquidity Guarantee Program sold on Monday calmed a key measure of investor fear about the stock. The cost of debt to insure against a default of GE Capital bonds fell out of distressed range for the first time in more than a week,
The Wall Street Journal
GE Capital has been the fulcrum of investor concerns about the company, which has poured $15 billion into the unit and cut its dividend to preserve $9 billion a year.
The company has insisted it would not need to pour more money into GE Capital, but analysts and some investors believe it is being overly optimistic about the value of assets it holds.
GE CFO Keith Sherin and GE Capital head Mike Neal are expected to provide details on March 19 in New York about the unit.
This article was written by a staff member of TheStreet.com.