NEW YORK (TheStreet) -- General Electric (GE) - Get Report has won approval to remove the classification of "Too Big to Fail" from its financial unit, GE Capital, as the company continues to work to shed its financial businesses in order to focus on its industrial operations.
What the removal of this designation means is that the unit is "no longer a risk to the nation's financial stability," Fox Business anchor Elizabeth MacDonald told Stuart Varney on "Varney & Co." Wednesday morning.
GE Capital is the first company to be released from the "Too Big to Fail" title.
Varney pointed out that the financial unit's credit and capital operations will no longer be subject to certain rules and regulations that other larger operators are subject to.
"That's exactly right," MacDonald said. "Less bureaucratic intervention, they've cut itself in half since 2012, reduced real estate debt [by] three quarters and basically did away with consumer lending in the United States."
Shares of GE are higher by 2.3% to $30.63 at the start of trading on Wednesday morning.
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Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on General Electric stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GE