Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
GE's subprime mortgage unit files for bankruptcy
Source: CNN Money
GE's subprime mortgage unit files for bankruptcy
By Matt Egan, CNN Business
Updated 1838 GMT (0238 HKT) April 24, 2019
New York (CNN Business) — General Electric is trying to put its sins from the financial crisis behind it.
WMC Mortgage, a defunct subprime lender that GE Capital acquired during the housing boom, filed for bankruptcy on Tuesday.
The Chapter 11 filing, a rare step by a major company, comes just weeks after GE (GE) agreed to pay a $1.5 billion fine over WMC, a leading subprime lender that was shut down in 2007. News of the bankruptcy was reported earlier by Reuters.
The Justice Department alleged that WMC misrepresented the quality of subprime mortgages — contributing to the mortgage meltdown and ensuing financial meltdown. Investors lost billions of dollars when those subprime loans went bust.
GE said in a statement that WMC filed for bankruptcy to resolve its remaining liabilities "in an efficient and equitable manner.
-snip-
By Matt Egan, CNN Business
Updated 1838 GMT (0238 HKT) April 24, 2019
New York (CNN Business) — General Electric is trying to put its sins from the financial crisis behind it.
WMC Mortgage, a defunct subprime lender that GE Capital acquired during the housing boom, filed for bankruptcy on Tuesday.
The Chapter 11 filing, a rare step by a major company, comes just weeks after GE (GE) agreed to pay a $1.5 billion fine over WMC, a leading subprime lender that was shut down in 2007. News of the bankruptcy was reported earlier by Reuters.
The Justice Department alleged that WMC misrepresented the quality of subprime mortgages — contributing to the mortgage meltdown and ensuing financial meltdown. Investors lost billions of dollars when those subprime loans went bust.
GE said in a statement that WMC filed for bankruptcy to resolve its remaining liabilities "in an efficient and equitable manner.
-snip-
Read more: https://edition.cnn.com/2019/04/24/business/ge-subprime-mortgage-bankruptcy-wmc/index.html
