Ge May Pay $400m to Leave Subprime Market

Summary


Quitting the troubled subprime lending market will cost General Electric Co. as much as $400 million, the industrial conglomerate has announced. GE said this week it will take a third-quarter charge of between $300 million and $400 million to exit the subprime market.

The subprime losses are among total charges of between $1.7 billion and $1.9 billion, including $900 million to $1 billion to write down the value of Lake, GE's Japanese personal-loan operation, and $500 million for restructuring efforts in GE's industrial operations.

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Ge May Pay $400m to Leave Subprime Market

GE has said it plans to sell the Japanese business.

In announcing it...

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