Fairfield-based General Electric Co. said today its massive finance business, hard hit by turmoil in the credit markets, is now eligible for federal backing of up to $139 billion of its debt.
The Federal Deposit Insurance Corp. approved GE Capital Corp., a major consumer and commercial lender, to participate in the Temporary Liquidity Guarantee Program, GE said.
Up to $139 billion in short- and long-term debt is guaranteed, putting GE on the same footing as competitors who also have federal backing, GE said.
“Our participation helps level the playing field,” GE spokesman Russell Wilkerson said. “It’s beneficial to us and the marketplace. It ensures a stronger lending market.”
GE Capital provides consumer financing for car loans, mortgages outside the United States, and credit cards. Its commercial business finances real estate, corporate lending and leasing. GE also finances energy projects and airline leasing.
Nearly half of GE’s earnings are from its finance businesses, with the remainder from its industrial divisions that make everything from locomotives to water treatment plants, and from NBC-Universal, parent of WVIT-TV Channel 30 in West Hartford.
At 11 a.m., GE shares traded at $15.12, dodwn $1.17, or 7.2 percent. (AP)
