GE Capital's performance remains on target

Bloomberg reports that GE Capital is performing in line with their March forecast as they shrink their balance sheet. By shrinking their balance sheet, GE Capital aims to contribute only 30 percent of the parent company’s annual profit.

GE Capital has been able to sell debt without FDIC backing and has “pre-funded” all the debt coming due in 2009, both are encouraging signs for GE. GE Capital CEO Michael Neal said the balance sheet could be shrunk faster, “but the idea is to end up smaller but more profitable company that relies less on a wholesale funding model.”

Peter J. Lazaroff