Obama to nationalize GE?

Discussion in 'Politics & Religion' started by noob_trad3r, Jun 17, 2009.

  1. I bought my calls back and unloaded all my GE shares today, took my profits and ran.

    I heard that Obama is going to nationalize GE with this new reform proposal.

    Anyhow I closed all equity my positions and will stay cash for now. I am not sure how the rules will change but I do not have any real confidence right now going long with the potential changes.
     
  2. Nationalize GE???

    You obviously have no CLUE and should not be risking any capital in the financial markets.

    Either that, or you enjoy making posts on ET that confirm your screen-name.
     

  3. Read below, sounds like the rules are changing again and GE will be forced insolvent GM style. I unloaded all my GE positions and other stocks and took my profits and will stay cash.

    This sounds bad.


    The Obama administration's proposed regulatory overhaul could force big changes at financial firms. But one large lender, GE Capital, may find them especially painful.

    Though General Electric's lending arm has $613 billion in assets and provides large amounts of credit to consumers and businesses, the vast majority of its operations don't currently fall under the purview of a bank regulator. If the administration's changes become law, GE Capital, because of its size and reach, would likely be classified as a systemically important firm. Such firms would operate under a stricter regulatory regime.

    For GE Capital, such an adjustment would be tricky. Perhaps the biggest potential headache for GE is a demand that regulatory supervision be extended to any systemically important firm's parent company and other subsidiaries. Under the proposed rules, these firms would also face restrictions on "nonfinancial activity." Since GE would be unlikely to countenance limits on its industrial businesses, it might become necessary to split off GE Capital.

    That would bring its own challenges. GE would have to ensure that GE Capital had sufficient capital and stable funding to satisfy regulators and investors. In a recent presentation, it said its Tier 1 "common" ratio was a respectable 6.9% at the end of 2008. However, since it isn't a bank, GE Capital doesn't provide a standard firm-wide Tier 1 capital ratio, the main regulatory measure. On this yardstick, it might fall below large banks.

    When it comes to funding, the new regulations envision "rigorous liquidity requirements" for systemically important firms. One of GE Capital's weaknesses going into the credit crunch was its reliance on short-term funding, underscored by its continued use of government guarantees on shorter-term debt issues.
     
  4. Daal

    Daal

    Its possible that GE will need TARP money, its going to be a comedy to watch CNBC on that day
     
  5. I REPEAT . . . you have no business being in the financial markets. You have no idea what you are doing . . . and it obviously never occurred to you that GE could sell-off GE Capital and make a pretty penny on it.
     
  6. Did you watch CNBC when GE was down 20% that afternoon to 5$ a share I believe?

    Now that was funny!:D
     
  7. That BS article means absolutely ZERO. All speculative garbage. Shit, I'm no GE fan, but whoever wrote that article is an asshole for having no facts, just assumptions.
    Maybe some HF trying to manipulate fools.
     
  8. Assuming it looks good. Bird in hand worth two in the bush. I would rather profit and have cash than risk the rules changing.

    Nothing guarantees Obama from saying GE capital is not up to par and force a government take over.

    No way in hell will I risk that. Rules keep changing too much.
     
  9. Could be, with Jeffy "knee-pads" Immelt who has no clue. And GE owns NBC and CNBC. The average guy has no chance.
     
  10. Wow....you're one to talk.
     
    #10     Jun 17, 2009