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GE is considering making deeper cuts in its banking business, deciding that returns from lending are no longer worth the opposition it provokes among investors, Dow Jones reports.
- While the company has long committed to shrinking GE Capital, it has also viewed a smaller, safer banking business as an integral part of a conglomerate; but now, GE is believed to see the bulk of the lending operation as severable, similar to how the company viewed its appliances business which it sold last year.
- The reassessment comes as CEO Jeff Immelt is under pressure to remake GE as a more focused industrial company and win over investors, but scaling back GE Capital would mean sacrificing a unit that generated $2.3B in profit last year.