As part of the subprime fallout, General Electric announced today in it’s earnings report that they will sell WMC Mortgage. After WMC posted a 182 million dollar loss in the second quarter, GE divested 3.7 billion worth of loans from the troubled lender. The remaining 1 billion dollars worth of loans in WMC Mortgage’s portfolio will be included in the sale.
General Electric decided to sell the unit in May, a person familiar with the plan said.
Profit at GE Money, the unit that includes WMC Mortgage, rose 8 percent on a 17 percent revenue increase. Costs of $200 million at the division included the WMC loss.
WMC provided about $100 million of the parent company’s $20.8 billion in total profit last year. The unit this year slashed its workforce by more than half and added $330 million to reserves in the first quarter, GE said in April.
Financial adviser Morgan Stanley will explore a sale of the unit in the “next couple of months,” a memo to employees said. via Bloomberg.com
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Its too bad WMC couldnt get it together. I'm a broker and I used them for several transactions. Service was good but rates were not very competitive. Real Estate Finance