GE Capital Buys Citigroup's Retail Loans

GE Capital Buys Citigroup's Retail Loans General Electric's (GE) GE Capital announced Tuesday that it had acquired the retail finance portfolios from Citigroup's (C) Retail Partner Cards to add $1.6 billion in managed assets. Financial terms of the deal were not disclosed, but GE Capital expects the transaction to immediately add to earnings.

GE Capital said the purchased loans portfolios provide consumer financing programs and related services to nearly three dozen retail chains with more than 18,000 small- to mid-sized retailers and dealers across the U.S. The retailers operate in four main segments that are core to GE Capital's Sales Finance business: home furnishings; flooring; consumer electronics; and heating, ventilation and air conditioning.

"This acquisition is right in line with GE Capital's goal to invest in core, high performing growth businesses where we have deep experience and broad capabilities to grow," said Mark Begor, president and CEO of GE Capital Retail Finance.

Bill Johnson, CEO of Citi's Retail Partner Cards said, "Selling these assets enables us to streamline the strategic operating model, including our bank legal vehicles and operating platforms, for the Retail Partner Cards business."

Both GE Capital and Citigroup have been hit hard during the financial crisis. For GE Capital, this deal marks the first consumer purchase in two years, according to Bloomberg. For Citi, the sale is a continuation of its non-core asset divestment, part of its efforts to shore up its balance sheet.

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Sonny

When the economy and the dollar finally hit the bottom because of excessive govt spending and dollar printing, what difference will it make? Everyone will stop paying on loans and all the banks will be broke.........just like the Federal Govt. There will be no bailouts, because there will be nothing but worthless dollars to bail with. But to those who work hard, no problem, you will still be able to get food..........to the others, sorry........you will probably die. You can thank your lying govt for making such dependents out of you.

October 06 2010 at 2:46 PM Report abuse rate up rate down Reply
Linda

Instead of paying your CEO's so much money, why don't you focus on helping home owners save their homes? The American Dream is no longer because of crap like this.

October 06 2010 at 12:42 PM Report abuse rate up rate down Reply
Molly

GE Money is sending collections jobs to other countries, including the Philippines. They are trying to collect from U S customers who are experiencing loss of income and unemployment, with a staff from overseas. What a slap in the face to their U S customers.

October 06 2010 at 11:47 AM Report abuse +1 rate up rate down Reply
1 reply to Molly's comment
Linda

I agree with you Molly. Just like I said above I may lose my home, after trying everything I know how to save it, because these people are helping others when they should be focused on the struggling people trying to find jobs, and save their homes here in the U.S.

October 06 2010 at 12:44 PM Report abuse rate up rate down Reply