GE dismantles GE Capital; Plans $90B to Investors

http://www.usatoday.com/story/money/business/2015/04/10/ge-selling-real-estate-assets/25564855/


This article discusses how GE is selling the majority of their business stock in order to simplify the conglomerate and make the company more efficient, focusing on the best sectors of the company.  The article also goes into talking about how the company started out selling their real estate assets, like factories, apartment buildings, and other such things making about $26.5 billion.  Because of this, GE will take a $16 billion after-tax charge.

Because of this change, GE's stock has seen an 8.9% increase in the past week.  Wall Street has given GE a lot of credit for this, saying that they are really making an effort to get back to their manufacturing roots.  Along with the company and Wall Street liking this recent change, shareholders are also very excited about the change because it will give more back to investors.

While GE will be getting rid of and selling most of their financial responsibilities, they will still be keeping things like aircraft leasing operations, and lending energy and health care customers.  I personally feel as though this is a smart move to keep providing this energy because they currently serve over 3,000 health care customers.