GE Capital Leaves TLGP
GE Capital (NYSE:GE) has left the government's TLGP program early, in a move that shows the company is no longer struggling as bad as it recently did.
As competitor CIT (NYSE: CIT) still faces a possible bankruptcy, the move to strengthen its image might be enough to lure potential customers to use GE Capital's service.
GE Capital has also managed to cut their commercial paper from $100 billion to $50 billion. The US government's Temporary Liquidity Guarantee Program is set to expire this fall.
GE Capital has been a drag on GE earnings during the financial crisis. Even though the rest of the largely industrial conglomerate has been performing well, investors have been interested in paying a lower per share price due to the perceived danger of GE Capital.
With moves to strengthen the finance division's balance sheet taking hold, some analysts think GE might have an upward trend.
GE Shares are trending up slightly on the news in midday trading. CIT, for its part, is selling for under $1 per share.
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