GE Capital (NYSE:GE), aka the next CIT, is practicing its recently acquired hypnosis skillset (perfected via daily lessons from CNBC anchors) which has culminated with a 63 page presentation replete with far too much empty verbiage and green shootery.
The take home message:
- H1 Net Income has plunged to $1.7 billion on $557 billion in total assets, and only thanks to firing pretty much everybody: $1.9 billion in SG&A savings
- This is down $24 billion from Q4 as GECC is "continuing to rapidly reduce balance sheet"
- Loss reserves are skyrocketing: currently at $6.6 billion, up one billion from Q1 (and much lower than reality)
- 2009 TY original outlook: $5 billion; Fed base case: $2.0-$2.5 billion, Fed adverse case: $0
- How many more people can GECC fire as its balance sheet implodes?
- Oh yeah, and if CRE really blows up, CIT, here we come