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


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)

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Comments (13)
  • Felix Lumpe
    , contributor
    Comments (760) | Send Message
     
    How many more undiscovered/undisclosed land mines like this are there? Seems as though things are quite as "transparent" as the relentless claims would have you believe. Ecoimagine this.
    26 Feb 2014, 08:26 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    Amazing how they get away without disclosure act act with impunity
    And how do they dodge federal taxes?
    What a deal
    26 Feb 2014, 01:00 PM Reply Like
  • agbfpmt
    , contributor
    Comment (1) | Send Message
     
    This is the type Immelt crap that helped ease GE's stock price to $6/share a few years ago. Were he not Jack's pet, he would have been fired years ago. What happened to GE's vaunted due-diligence and risk analysis under this clown .... doesn't GE's feckless BOD review/approve any of these "loser" deals?
    26 Feb 2014, 10:30 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    Ag
    Good old boys club
    I think General Motors and some big banks were also members
    They act irresponsibly with impunity
    26 Feb 2014, 01:01 PM Reply Like
  • User 6830851
    , contributor
    Comments (268) | Send Message
     
    You guys haven't been reading the papers lately. Every bank and big cap is paying to settle criminal and civil charges. Corruption is the norm.

     

    Jack Welch? You mean the guy who cynically made the GE Capital play that brought GE to its knees . . . Ol' Jack picked the right time to get the hell out and retire. Now, he writes lovely books about how to be a great CEO.
    26 Feb 2014, 12:30 PM Reply Like
  • jim2geo
    , contributor
    Comments (5) | Send Message
     
    I don't usually read books like that because I have found they seldom contain any useful information. What I remember about Jack Welch was his supposed leadership style of firing the bottom 10% of employees every year. Of course this was just engineer water cooler talk..
    26 Feb 2014, 08:29 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    Yes,jack was a legend who destroyed billions in value and he has a rep as a visionary
    Not everyone can accomplish that
    27 Feb 2014, 08:42 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    I'd like to see Welch s severance package
    Mckessions CEO just retired at 55 with $159 million one time pension pay out plus his regular pension
    Dick Grasso also did well at the NYSE

     

    http://cnnmon.ie/1g1H4Wx
    2 Mar 2014, 09:25 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    User 6.....
    I'm happy to see someone finally bring j welsh to,task as he enjoys his legacy as a great leader and visionary
    Your comments speak he truth about him-a value destroyer!
    26 Feb 2014, 12:54 PM Reply Like
  • jim2geo
    , contributor
    Comments (5) | Send Message
     
    What I remember about Jack Welsh's leadership style was the firing of the bottom 10% of employees each year. What a concept. Of course that was engineer talk around the water cooler..
    26 Feb 2014, 08:23 PM Reply Like
  • wblockcpa
    , contributor
    Comments (14) | Send Message
     
    GE is setting itself up for getting rid of GE Cap and all that comes with it..good move to wash its hands of this...
    26 Feb 2014, 09:18 PM Reply Like
  • redwingducky
    , contributor
    Comment (1) | Send Message
     
    Sounds like a tax dodge to me
    28 Feb 2014, 04:03 PM Reply Like
  • fordmodela
    , contributor
    Comment (1) | Send Message
     
    I don't understand how this deal would impact 2013 earnings since this liability has been known since 2008. I am pretty sure it should have been reserved for by SEC rules and those reserves would be used or released for this event. If I understand it right there should be no impact retrospectively. If they followed the rules they either under or over reserved, but having no reserves on the balance sheet is not understandable. Anyone have any insight? This is a huge hit to earnings if there were no reserves. They already took the good guy of $5.4B in 2008 !
    1 Mar 2014, 02:37 PM Reply Like
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