When Jim Cramer says a business is in a strong position, it's time to worry.
I wrote about GE Capital just the other day. When last we checked, they were using their nominal bank status to collect bank bailout money -- but avoid the same restrictions as banks, thanks to intense lobbying that always seems to work when it's on the behalf of the bad guys. CEO Jeffrey Immelt (who is leading Obama's job creation efforts - funny, how most of GE's jobs went out the door to other countries) is also lobbying for the Grand Bargain.
Now it turns out that his company (which seems to be operate more like a casino) is about to be designated a systemic risk. Which means if they tank, we'll hand them even more money and talk to them sternly to protect the whole house of cards!
General Electric Co. (GE)’s finance arm is in the final stage of a regulatory review to determine if it needs extra scrutiny because of the risk that its potential failure would pose to the U.S. economy, two people with direct knowledge of the matter said.
GE Capital Corp. joins American International Group Inc. (AIG) as the only two non-banks that the Financial Stability Oversight Council has voted to advance to a third round of evaluations for possible designation as systemically important financial institutions, said the people, who asked not to be identified because the information isn’t public.
The decision moves regulators closer to deciding whether GE Capital, which has been regulated by the Federal Reserve since July 2011, should be subject to heightened financial supervision. While GE has said it expects the unit to be designated systemically important, the Fairfield, Connecticut- based company isn’t discussing the status of its review.
I'm sure everything's going to be just fine. Really. I'm sure Mr. Immelt takes the economic health of our country as seriously as he always has!
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