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How a Loophole Benefits GE in Bank Rescue
Washington Post ^ | June 29, 2009 | Jeff Gerth and Brady Dennis

Posted on 06/28/2009 10:26:13 PM PDT by Lorianne

General Electric, the world's largest industrial company, has quietly become the biggest beneficiary of one of the government's key rescue programs for banks.

At the same time, GE has avoided many of the restrictions facing other financial giants getting help from the government.

The company did not initially qualify for the program, under which the government sought to unfreeze credit markets by guaranteeing debt sold by banking firms. But regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals from GE.

As a result, GE has joined major banks collectively saving billions of dollars by raising money for their operations at lower interest rates. Public records show that GE Capital, the company's massive financing arm, has issued nearly a quarter of the $340 billion in debt backed by the program, which is known as the Temporary Liquidity Guarantee Program, or TLGP. The government's actions have been "powerful and helpful" to the company, GE chief executive Jeffrey Immelt acknowledged in December.

GE's finance arm is not classified as a bank. Rather, it worked its way into the rescue program by owning two relatively small Utah banking institutions, illustrating how the loopholes in the U.S. regulatory system are manifest in the government's historic intervention in the financial crisis.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Government
KEYWORDS: ge; tlgp
Well, this is a surprise ...
1 posted on 06/28/2009 10:26:13 PM PDT by Lorianne
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To: Lorianne
GE is also one of the big supporters of the Cap'n Tax bill. Probably just a coincidence.

SARC/

2 posted on 06/28/2009 10:51:44 PM PDT by FlingWingFlyer (Hey America! How's that "hope and change" thing working out?)
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To: Lorianne
how did ge get that huge contract to centralize all our medical records? was that a no bid contract?
3 posted on 06/28/2009 10:54:05 PM PDT by sloop (pfc in the quiet civil war)
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To: sloop

Westinghouse and GE were originally competitors; until some Congress thugs thru Westinghouse under the bus many years ago. They literaly stabbed Westinghouse in the back especially the politicians who owed their very careers to Westinghouse. I don’t know the whole story; but a lot of the thug politicians were responsible.


4 posted on 06/29/2009 12:02:01 AM PDT by freekitty (Give me back my conservative vote.)
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To: Lorianne

And GE is also the ones pushing all these curly-cue light bulbs down our throats. And the parent company on NBC which gives us the very left-of-center MSNBC. See a link here?


5 posted on 06/29/2009 12:55:36 AM PDT by OrangeHoof (YES WE CAN have a Depression.)
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To: Lorianne
regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals from GE

Bill O'Reilly has been saying the same thing for months now!

6 posted on 06/29/2009 1:02:10 AM PDT by kcvl
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To: Lorianne
Looks like GE plans to be "The Company" that survives the gummint takeover of everything.

Μολὼν λάβε


7 posted on 06/29/2009 1:53:43 AM PDT by wastoute (translation of tag "Come and get them (bastards)" and the Scout Motto)
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To: FlingWingFlyer
GE is also one of the big supporters of the Cap'n Tax bill. Probably just a coincidence.

Check out Nancy Pelosi's stock portfolio; she owns quite a bit of GE stock. The bill she just pushed through gives GE billions of dollars of "free" carbon credits (to use or sell) that their competitors will have to buy at auction from the government (or from them).

Unfortunately, the media doesn't seem to be taking an interest, so it looks like she's going to get away with the biggest embezzlement in US history.

8 posted on 06/29/2009 2:33:11 AM PDT by Technogeeb (The only good Russian is a dead Russian. Rest in Peace, Solzhenitsyn.)
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To: FlingWingFlyer

It is also a coincidence that GE owns MSNBC, Obama’s cheerleader-in-chief.


9 posted on 06/29/2009 2:41:20 AM PDT by monocle
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To: FlingWingFlyer
Wow, good government is possible...for the right price!
10 posted on 06/29/2009 3:43:06 AM PDT by Red Dog #1
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To: Technogeeb
Unfortunately, the media doesn't seem to be taking an interest, so it looks like she's going to get away with the biggest embezzlement in US history.

Brian Williams is very interested. He has a segment almost every night about how hot it is (in late June, no less)! Not the real temperature, mind you, but the "Heat Index", which allows him to post higher numbers on the map.

Of course, NBC is an objective, down the middle news organization with no interest in helping GE's bottom line, aren't they?

11 posted on 06/29/2009 3:51:22 AM PDT by SnuffaBolshevik
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To: sloop

Looks like they might have some competition

Wal-Mart Plans to Market Digital Health Records System
http://www.nytimes.com/2009/03/11/business/11record.html?_r=1&ref=business

... or not, GE services Wal-Mart credit cards
How a Loophole Benefits GE in Bank Rescue
http://www.washingtonpost.com/wp-dyn/content/article/2009/06/28/AR2009062802955_2.html?hpid=topnews&sid=ST2009062803183

GE Capital is one of the world’s largest and most diverse financial operations, lending money for commercial real estate, aircraft leasing and credit cards for stores such as Wal-Mart.

http://freerepublic.com/focus/f-news/2281504/posts


12 posted on 06/29/2009 10:40:21 AM PDT by Lorianne
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