General Electric is using its resources--most notably, NBC, MSNBC, and CNBC--to get its way in Washington DC.
First, The New York Times reports:
General Electric, for one, is already opposing this aspect of the plan, which could force it to offload its GE Capital finance arm. Whether companies should have no option about such a split, even with a transition period, is arguable — though in G.E.’s case, it might not be a bad idea for shareholders as well as taxpayers given that the finance unit has lately dragged down the value of the industrial business.
G.E. could also be affected by heavier regulation of so-called industrial loan corporations. These businesses have historically been regulated lightly because of their traditionally small size and limited purposes. But the administration argues they resemble banks and should be regulated as such. That sounds right, but companies that own such entities are already on the warpath.
And The Washington Post adds this:
Does anyone seriously think the United States would be reduced to a second-rate economic power if there weren't any CDOs of CDOs, or if the number of credit default swaps on General Electric bonds were limited to the number of outstanding General Electric bonds, or if reasonable leverage limits were put on hedge funds, private-equity funds or structured investment vehicles?
Photoillustration of Jeff Immelt, with appreciation to the legendary George Grosz, who cuttingly illustrated the corruption and hypocrisy of post-WW 1 Germany.
