GE Capital , is a financial services unit of the American multinational conglomerate General Electric. It provides commercial and leasing loans, as well as various financial services for commercial, energy, and support services for GE's industrial business units.
In April 2015, GE announced plans to create a simpler, more valuable company by reducing the size of its financial business through the sale of most of GE Capital's assets.
Vertical GE Capital is now aligned to drive growth in GE's core business GE Capital Govings Services (GECAS), Energy Finance Services (EFS) and GE Industrial Finance, which will include Healthcare Equipment Finance, Work Capital Solutions (WCS) other funding to develop loan and leasing products for the GE Store. A financing center that serves the entire GE system, GE Treasury, and some special insurance platforms, is also part of the "new" GE Capital.
GE Capital Aviation Services is a key financial partner for more than 245 customers in 75 countries, providing aircraft leasing, financing, services and consulting in every industry sector. GE Energy Financial Services provides underwriting capabilities for Power, Renewable Energy, and Oil Gas infrastructure to meet rising demand and sustainability requirements. And the new GE Capital Industry Finance organization serves customers in the areas of Health, Transportation, Distributed Power, Marine industry, and Cities worldwide.
Video GE Capital
Ikhtisar
On July 8, 2013, the Financial Stability Supervisory Board assigned GE Capital "a systemically important financial institution", which made it subject to oversight by the Federal Reserve.
In 2014, GE Capital has 35,000 employees worldwide, operating in over 40 countries, with total assets of US $ 499 billion. It is rated AA with a stable outlook by S & amp; P in 2012.
The subsidiaries of GE Capital also operate under the GE Money brand.
Restructuring Plan
On April 10, 2015, Jeffrey R. Immelt, CEO of General Electric, announces that GE will sell most of GE Capital over the next two years.
The following areas are for sale:
- GE Capital Sponsor Finance is sold to Canada Pension Plan Investment Board and Sumitomo Mitsui Banking Corporation
- GE Capital Real Estate is sold to The Blackstone Group and Wells Fargo.
- The majority of GE & amp; Commercial Loans Leasing is sold to Wells Fargo. Operations in Germany and France were sold to CrÃÆ'Â © dit Mutuel. Operations in Australia are sold to Sankaty Advisors.
- Mubadala GE Capital, a joint venture with Mubadala Development Company, is sold to MidCap Financial, Apollo Management portfolio company.
- The GE Capital Rail service is sold to First Union Rail, a subsidiary of Wells Fargo, and Marmon Group
- GE Capital Bank is sold to Goldman Sachs.
- The GE Health Finance Service is sold to Capital One.
- GE Capital Equity is sold to Ardian.
- GE Capital Transportation Finance is sold to BMO Financial Group.
- GE Capital Corporate Finance - Aircraft sold to Global Jet Capital, portfolio companies AE Industrial Partners, Carlyle Group and GSO Capital Partners.
- Loan equipment and operating equipment rental operations of GE Capital are sold to Linzor Capital Partners.
- The GE Trailer Service is sold to Element Financial and Arval.
- GE Capital's financing, fleet, and vendor financing services in Japan are sold to Sumitomo Mitsui Financial Group
- The financial activities of GE Capital's American restaurant are sold to First Horizon National Corporation, Wintrust Financial and Sterling Bancorp, the hotel's franchise operations are sold to the Western Alliance Bancorp.
Maps GE Capital
Operation
Polish
Poland GE Money Bank SA mainly headquartered in Gda? Sk before December 31, 2009. BPH SA ( B ank P rzemys? Owo- H andlowy) is a financial institution Poland owned 89% by GE Money Bank (before 2008 the largest shareholder is UniCredit), employing about 10,000 people. As of December 31, 2009, Bank BPH merged with GE Money Bank Polska. After the merger of both brands, GE Capital's Polish headquarters is located in three cities: Warsaw, KrakÃÆ'³w and Gda? Sk. In October 2014, the bank's owner, General Electric, said it was considering selling the company. On April 1, 2016, it was revealed that GE has reached an agreement to sell its majority stake in Bank BPH's core bank to Alior Bank, and with this transaction GE will release itself from Core Bank while maintaining the Bank Mortgage and US $ 3.9 B mortgage, which will be segregated in the demerger of a non-mortgage-based asset which will then be merged into Aliva Bank, and GE will keep TFI's BPH, the bank's asset management business; transactions are expected to close in the fourth quarter of 2016 and should seek regulatory approvals and antitrust permits to proceed.
Former operations
Australia
In Australia, the GE Money brand includes GE Consumer Finance and GE Capital Finance businesses. The company provides cars, boats, personal loans and consolidations, credit cards, mortgages and insurance.
In late 2002 to early 2003 GE purchased the Australian Guarantee Corporation (AGC) business from Westpac Banking Corporation, and as a result, AGC Automotive Finance became GE Automotive Finance (GE Auto), and former retail financial contender, AGC Creditline, known as GE CreditLine.
GE Consumer Finance controls most credit cards and loans and has a strategic partnership with Coles Group to operate the Coles Group Source MasterCard. GE Consumer Finance manages GE Creditline, GO MasterCard, Visa and Buyer's Edge credit cards all offering interest-free terms at participating retailers.
GE Finance also has a strategic financial relationship with Myer, the largest department store in Australia. In 2006 and 2007 Myer signed a contract with GE to issue and manage both the new Myer Card and Myer Visa Card. GE is also the card issuer of a dark red ColesMyer card which is no longer an acceptable payment method from Myer's store, following the Myer's decision that was revoked from the ColesMyer group.
In 2004, GE Capital Finance bought the Wizard Home Loans business.
On October 24, 2008, GE Money announced that it would stop offering motorcycle financing in Australia and New Zealand. This move has proven to be detrimental to dealers parallel to GE who has been given 60 days to find an alternative financier to provide floorplan funding. GE Money also announced that it will withdraw from the mortgage industry and no longer provide mortgages other than those sold under the Brand Wizard.
In mid-December 2008, GE Money announced it was in advanced talks with National Australia Bank (NAB) to sell Brand Wizard. Finally, the Wizard was purchased by the Commonwealth Bank of Australia.
In 2015, GE Capital sells Australian and New Zealand businesses to a consortium led by Deutsche Bank, Kohlberg Kravis Roberts, and VÃÆ'¤rde Partners. This business changed its name to Latitude Financial.
Austria
GE Money Austria (formerly GE Capital Bank) was established in 1994 after the successful acquisition and merger of Mercurbank and AVABANK. Today, it is one of Austria's leading consumer and automotive financing businesses and a market leader in retail sales financing. Based in Vienna, with a network of branches across the country, the business provides a range of innovative financial services including auto loans, personal loans, sales financing and third party personal loans. The main focus is on consumers, customers, and business partners, such as car dealers, retailers, and loan brokers.
The Austrian division was purchased, along with card operations of German, Finnish and British stores from GE Money, by the Santander Group in January 2009.
Canada
GE Money Canada provides credit cards with private label and MasterCard card programs to consumers and loan options for resellers in major industries across the country. GE Money-Canada is also an alternative provider of residential mortgages and patient financing through its CareCredit unit. It's part of Synchrony Financial's spinoff in 2014.
Czech Republic
GE Money Bank (formerly GE Capital Bank) is a significant institution in the Czech Republic. Established in 1997 after the acquisition of Agrobanka bank as GE Capital Bank. In 2000, the name was changed to GE Money Bank. This is through an IPO in 2016 and operates under the new name Moneta Money Bank. It is a full service bank with extensive branch and ATM networks. Its services focus on retail clients and small and medium businesses. Its headquarters is located in Prague. The call center operates from Ostrava.
Denmark
GE Money Bank Denmark (formerly GE Capital Bank Denmark) offers credit cards, loans and other financial solutions. The brand names include Acceptcard, Morecard and E-lÃÆ'  ¥ n. In 2014, GE Capital sells Scandinavian operations to Santander.
French
GE Money Bank France was born from the acquisition by GE of CrÃÆ'Â © dit de l'Est and SOVAC in 1995. It provides real-estate mortgages and car loans. GE Capital sold GE Money Bank France to Cerberus Capital Management in 2016.
Hong Kong
GE Capital was established as a Limited Licensing Bank in Hong Kong. Its main focus is on mortgages (home and car) and personal loans. GE Capital sells its operations in Hong Kong to Standard Chartered.
Hungarian
Budapest Bank , was founded in 1987 as one of the first commercial banks when a two-tier banking system was created in Hungary. Since 1995, GE (General Electric Company) as the owner provides a strong background for the bank. Budapest Bank offers a range of financial and banking services to consumers and small and medium businesses. Budapest Bank is sold to MFB in 2014.
India
GE has more than 118 branches in India in July 2006. Most are in the southern states. There are branches in Coimbatore, Erode, Salem Saradha, Trichy, Madurai, Tanjore, Palaghat, Hyderabad, Trivandrum, Rajamundhry, Kakinada, Visakhapatnam, Vijaywada, Hubli, Dharwad and Belgaun. GE is the first BPO in Hyderabad. GE Capital sells India's residential mortgage business to Magma Fincorp.
Italy
In 2008, GE Capital acquired Interbanca, a trading banking firm from Banco Santander, in exchange for GE Capital business in Germany, Finland, Austria and the UK. In May 2015, GE appointed Deutsche Bank to sell the bank, then has net assets of more than EUR1,000,000,000. In 2016 Banca IFIS acquired Interbanca for EUR160 million, with an obligation to pay inter-company debt to GE.
ireland
GE Money Ireland is part of GE Consumer Finance operations in Europe. In the Republic of Ireland, GE Money provides financing and specialty services such as rentals, purchases, mortgages, and loans to businesses and individuals across the country. With headquarters in Dublin, GE Money serves its customers through regional sales centers and dealer networks and partners. GE sells Ireland's loan portfolio to Pepper Home Loans in 2012.
Latvian
GE Money Bank Latvia is a GE-owned universal bank in Latvia (incorporated from former BTB bank and GE Money finance company), offering loan products and deposits to private companies and legal entities. It was acquired by Otkritie FC Bank in 2011.
Japanese
GE Consumer Finance Co., Ltd. (GE ????????????????) is part of GE Consumer Finance's Japan operations. From April 2005, the company started supplying GE Money brand in Japan. In 2008 GE was named In-House of the Year - Japanese Lawyer of the Year by the 2008 ALB Japan Law Awards . Japanese operations were sold to Shinsei Bank in 2008.
Dutch
GE Artesia Bank, part of GE Capitals, a subsidiary of GE Commercial Finance, offers banking services to high net worth individuals as well as companies in the Netherlands. It provides financing of capital, long-term finance, leasing and finance for certain international trade transactions. It's closed in 2015.
New Zealand
In 2002 GE Finance purchased New Zealand-based Australian finance company based in Australian Guarantor to create AGC Credit Card (now GEM Visa Card), which provides financing for retailers such as Harvey Norman and Freedom Furniture, and automatically receives 6 months free interest for each purchase over $ 250 wherever a visa is accepted. In 2006 GE Money New Zealand purchased Pacific Retail Finance (PRF), New Zealand's largest private consumer finance company, and Superbank's mortgage assets, a supermarket-based banking system.
On October 24, 2008 GE Money announced that it was withdrawing from the New Zealand auto financing market, with the loss of 80 staff. It attributes this decision to the credit crunch.
On December 15, 2008, GE Money announced that they will no longer offer home loans through the Home Loan Wizard and are looking for buyers.
In 2015, GE Capital sells Australian and New Zealand businesses to a consortium led by Deutsche Bank, Kohlberg Kravis Roberts, and VÃÆ'¤rde Partners.
Norwegian
GE Money Bank Norge is a division of a Swedish subsidiary, Stockholm, GE Capital AB. It is a leading provider of consumer finance products in Norway with over 300,000 clients and a total loan of 5 billion NOK, second only to the major domestic bank DnB NOR.
It is the second bank in Norway to offer American-style credit cards with zero annual/monthly fees and includes a grace period, after Bankia Bank ASA. In the eighteen months following the launch of GE MasterCard in June 2001, the market increased to more than 100,000 US-style credit cards. Prior to this card, the Norwegian bank only offered an annual fee card or card without an interest free period.
In 2014, GE Capital sells Scandinavian operations to Santander.
Philippines
GE Money, in an effort to expand its presence in Southeast Asia, acquired a majority stake in the now defunct Keppel Bank of the Philippines which acquired what was once De Monte De Piedad Bank, the first saving bank in the Philippines. This acquisition was completed on December 20, 2005 after the Monetary Board of Bangko Sentral ng Pilipinas approved the purchase on December 8, 2005. The bank was renamed GE Money Bank Philippines. GE Money Bank Philippines has 31 branches throughout the Philippine archipelago. GE Money Bank Philippines was acquired by BDO Unibank in 2009.
Romanian
In Romania GE Capital has two subsidiaries:
- GE Money , a personal finance and leasing company.
- GE Garanti Bank , a bank held by GE Capital in a joint venture with Garanti Bank International of Turkey. GE Garanti is situated in Bucharest.
GE Capital sold its Romanian operations to Garanti Bank in 2010.
Russian
Russia GE Money Bank Russia is located in Moscow. It was sold to Sovcombank in 2013.
Swedish
The Swedish subsidiary is GE Capital Bank AB . Based in Stockholm, the bank is traded as GE Money Bank . In 2014, GE Capital sells Scandinavian operations to Santander.
Switzerland
GE Money Bank is the largest small consumer credit provider in Switzerland. In 2006, the company partnered with Migros, enabling them to offer credit card contracts through Migros. Current Bank is Cembra Money Bank and go public (IPO) in 2013.
United Kingdom
In the UK, GE Money provides mortgages and secured loans through former First National, obtained from Abbey National, and offers this through intermediaries. On September 25, 2008, it was announced that the UK Financial Services Authority had fined GE Money Home Lending Ã, £ 1.1 million due to a failure in its system, which caused the borrower to be too expensive. It was announced on March 29, 2008 that the credit card business of GE Capital Bank and its managed credit card business has been acquired by Santander Group. In 2015, GE sells mortgage loans in sales to Kensington Mortgage (controlled by Blackstone and TPG) and funds administered by Blackstone, TPG and CarVal Investors. After that, the company stopped taking a new loan.
United States
Prior to June 2, 2014, GE Capital Bank consists of retail and commercial banks. The company was founded in 1988 and is based in Draper, Utah. GE Capital Retail Bank provides retail and credit banking services to consumers in the United States and internationally. It offers retail sales financing, such as private label credit card programs, installment loans, bank cards, and financial services for consumers. The company also provides retail consumer financing solutions, such as personalized credit cards, double cards, flexible loans, and all loyalty cards and gift cards; It offers its products and services through dealers, retailers, associations, contractors, manufacturers, health practices, and service providers. The company was previously known as GE Money Bank and renamed GE Capital Retail Bank in October 2011. GE Capital Retail Bank is operated as a subsidiary of General Electric Capital Corporation.
GE Capital Retail Bank acquired MetLife Bank from MetLife in 2011.
On June 2, 2014, GE Capital Retail Bank is now known as Synchrony Bank. GE Capital then only consists of the original commercial/industrial banks in the United States. GE Capital provides credit services solely for businesses and traders in the United States, and acts as a multi-product commercial financing bank, and uses a Deposit account to fund commercial loans and leases. The company serves a variety of industries, such as automotive, consumer electronics, , health, furniture and home improvements, HVAC, elective health care, jewelry, landscaping and irrigation, luxury goods, marine, music, outdoor electrical appliances, swimming pools and spas, power sports, recreational vehicles, sewing, sporting goods, vacuum, and water treatment industry. GE Capital Bank is a member of the Federal Deposit Insurance Corporation (FDIC). GE Capital Bank was sold to Goldman Sachs in 2016.
GE Capital has WMC Mortgage from 2004 to 2007.
Legal Issues
In April 1997, a lawsuit against General Electric Capital Corp was filed on behalf of a corporate customer who filed for bankruptcy. GE Capital Corp. is accused of unfair debt collection practices. Class action lawsuits generate $ 100 million completion with over 100,000 class members from 50 countries. Plaintiffs claimed that the company requested the approval of a bankrupt borrower to pay off their credit card debt but failed to notify the bankruptcy court of the agreement. The affirmation agreements legally require debtors to continue repaying their debts in exchange for keeping a credit card, even if bankruptcy erases credit card debt. The lawsuit claims that GE Capital is required by law to file an agreement with a bankruptcy court and does not do so. As part of the settlement, the company agreed to refund, at interest, all credit card payments made after the debtor entered into a reaffirmation agreement between 1 January 1993 and 30 June 1997. GE Capital Corp. also promised to advise the credit bureaus to correct a negative credit report related to class members' failure to repay the debts reinforced.
In June 2014, Synchrony Bank, formerly GE Capital Retail Bank, agreed to settle claims of illegal credit card practice filed by the Federal Consumer Financial Protection Bureau and the United States Department of Justice by agreeing to pay $ 225 million to Spanish-speaking customers harmed by practice discriminatory and deceptive marketing. The Bank is also required to pay an additional $ 3.5 million in civil penalties to the CPFB's Civil Penalty Fund for deceptive credit card marketing.
Latest News
On March 13, 2014, GE Capital announced that it will cut its North American consumer finance division under the new name Synchrony Financial through an initial public offering (IPO). On July 31, 2014, Synchrony Financial raised $ 2.9 billion in the IPO when GE sold 125 million shares (15%) of the company.
On April 10, 2015, it was announced that GE would sell most of GE Capital's commercial and consumer businesses within two years, focusing on leasing business related to GE's manufacturing business. The company reached an agreement to sell most of its property business to Wells Fargo and Blackstone for $ 26.5 billion. GE's Chairman and CEO, Jeff Immelt, announced the plan in a letter to shareholders. It's a "big change for GE," but he says it's "right for the company." Under the plan, Immelt said that GE expects more than 90% of its revenues to be generated by its industry business in 2018, up from 58% in 2014.GE Capital, meanwhile, will account for 10% of its revenue in 2018, down from 46% in 2001. Shareholders praised the announcement, pushing stocks on GE up nearly 11 percent on Friday, to $ 28.51, a level not seen since the financial crisis. However, downsizing is no small matter for companies whose empire covers 175 countries and employs around 305,000 people.
In June 2015, the Canadian Pension Plan Investment Agency announced it would acquire a $ 12 billion private equity loan portfolio of GE Capital.
References
External links
- Official website
Source of the article : Wikipedia
0 Comments