GE to pay $1.7B to Japan's Shinsei bank to end refund liability

|By:, SA News Editor

GE (GE) has agreed to pay $1.7B to Japan's Shinsei Bank (SKLKF) to end the conglomerate's exposure to compensation for interest refund claims.

The deal will hit GE's Q4 and 2013 earnings by $1B, and net EPS by $0.09.

GE's liability goes back to a loss-sharing agreement from 2008, when GE Capital sold its Japanese consumer operations to Shinsei for $5.4B. (PR)