GE has been shrinking its footprint in financial services ever since the 2008 financial crisis.
General Electric has announced plans to sell a large part of its financial arm, GE Capital, as it focuses increasingly its industrial businesses. GE Capital is a big money generator, but also a source of risk that made stockholders nervous. Analysts have congratulated GE on a bold move.
The sell-off involves GE's investments in real estate. A large portion of GE Capital Real Estate, which is based in Norwalk, will be sold to funds managed by Blackstone, and Wells Fargo will buy a portion of the performing loans at closing. The company also plans to sell additional commercial real estate assets, in a deal that is valued at a total of about $26.5 billion.
GE has been shrinking its footprint in financial services ever since the 2008 financial crisis.
The Fairfield-based conglomerate will keep parts of its financing business related to its industrial operations, like GE Capital Aviation Services, Energy Financial Services and Healthcare Equipment Finance.
The company says it will record about $16 billion in after-tax charges in the first quarter.
This report includes information from the Associated Press.
