Today General Electric has sold most of their assets of GE Capital Real Estate to funds managed by Blackstone and Wells Fargo. In a move to become a sure runner in the industrial company GE’s move out of financial services would be viewed as positive from analysts.
Chairman and CEO Jeff Immelt, in an interview with CNBC, stated “The business model of financial services has certainly changed. We’ve got a fantastic industrial portfolio, but we’re a large wholesale funded finance company. You know the wholesale funding model is tougher, we felt like we’re at a disadvantage versus banks. At the end of the day the way investors view financial services versus industrial assets is starkly different.” You can see the interview below and can read more HERE.