It is no secret that GE Capital has been the lodestone for GE. What looked like a bit of genius, the vertical integration of finance for the customers of GE’s manufacturing and power interests, quickly ran wild in consumer finance and developed a highly opaque balance sheet that has left investors jumpy and hinted at large, unknowable liabilities. Well, GE wants you to just settle the hell down now.
Speaking at an investor conference, Chief Financial Officer Mike Sherin said that 93% of the diversified conglomerate’s long-term debt funding — between $42 billion to $45 billion — is complete for this year and that there is no need for having to tap any external capital. Further, he said the Fairfield, Conn.-based company is “committed” to GE Capital, its troubled financial arm, and hinted a spin-off was unlikely.
Michael Neal, the chief executive of GE Capital, said that in a worst-case scenario, his business unit could face credit losses of up to $13.7 billion this year. However, the unit is predicting 2009 losses of $9.7 billion.
It says something that losses of only $9.7 billion are good news, but almost any number, if it was believed, would do something to avoid the cosmic censorship beyond the event horizon of GE Capital’s balance sheet.
General Electric execs seek to strike optimistic tone [Marketwatch]
Geee Whizzzz. Management said good things about GE.
This baby is going to stay down longer than GE can stay liquid.
Too Define; didn’t Measure, Analyze, Implement, or Control
CFO is Keith Sherin.
Has anyone noticed how GE has been using their bastard child CNBC to spin any positive news they can possibly gather, like when the CFO was on just before the credit downgrade.
They also are looking to raise or refund debt – do you think that TARP fatigue has anything to do with it? Of course it does, GE is scared that with all of the f-up’s going on that Congress may stop the flow of cash due to the public’s anger.
Note: Buffet was also on CNBC just before BRK’s downgrade, by a company he is a majority shareholder in – he used Becky Quick as well….coincidence?
“It says something that losses of only $9.7 billion are good news, but almost any number, if it was believed, would do something to avoid the cosmic censorship beyond the event horizon of GE Capital’s balance sheet.”
painstakingly-worded and non-sensical (“avoid…”?), missing a subjective tense, and proves that you_are_such_a_fucking_nerd that one questions your non-academic experience. hell, instead of garbling authorities like Hawking (is that what you typically do on your TL, DR posts?), you could have just said “would do something to illuminate the black hole that is GE’s balance sheet.” (p.i.)
oh, and this singularity’s naked, silly blogger!