GE to take charge for sub-prime exit
From Times Wire Services
General Electric Co. said it would take a third-quarter charge of $300 million to $400 million to exit the sub-prime mortgage market.
The costs are among total charges of $1.7 billion to $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. GE plans to sell the Japanese business.
In announcing its second-quarter earnings in July, GE said it dumped $3.7 billion of the sub-prime mortgage portfolio held by its WMC Mortgage business.
