Sychrony/GE getting out of the finance/credit business?

[Anonymous]

http://www.cincinnati.com/story/money/2015/04/13/ge-may-divide-finance-arm-sale/25704549/

According to this article, they've already sold to Citi (Brooks Brothers and a few others) on some and may sell more to Citi and PNC and an 'unidentified large foreign' bank (Barclays?)

Interesting. 

[Anonymous]

http://www.wsj.com/articles/with-ge-move-a-bounty-of-assets-up-for-grabs-1428707191

This article also mentions a 'large foreign bank with a limited US prescence' which sounds a lot like Barclays. 

[Anonymous]

I'm not terribly surprised by this.

When GE announced, what, a year ago or whenever that they were restructuring/renaming in order to allow them to focus more on their manufacturing arm, it seemed to me that selling was one of the likelier possible end results.

The big question is, for those already sold to Citi, whether or not Citi's more stringent underwriting will apply for new applications. One of the allures of Synchrony is that they were a viable option for a lot of consumers with fair credit. That could be a bummer.

[Anonymous]

Sounds like it's time to get as many Synchrony cards as possible before the big sell off  

Hit those CLI chats now folks while it's still a SP.  Man, I'm gonna miss Credit Solutions.

[nick125]

I was pretty certain that GE already spun off their retail businesses as part of Synchrony, which formed a separate publicly traded entity. I think this is refering to GE Capital, which was GE's corporate lending arm. 

[Anonymous]

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@nick125 wrote:

I was pretty certain that GE already spun off their retail businesses as part of Synchrony, which formed a separate publicly traded entity. I think this is refering to GE Capital, which was GE's corporate lending arm. 

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Actually reading the article, I believe you are correct.

"And last year, GE Capital spun off its private label credit card company, Synchrony Financial, in an initial public offering that raised $2.9 billion."

So that name change was more than just a name change.  GE parted ways from "Synchrony" to pave way for this strategic downsizing.  I guess things will be the same for us Synchrony cardholders.

[Imperfectfuture]

My advisor actually follows GE, it was full blown spin off.

This thread belongs in credit in the news, kjel, you know better,

[Anonymous]

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@Imperfectfuture wrote:
My advisor actually follows GE, it was full blown spin off.

This thread belongs in credit in the news, kjel, you know better,

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GE still owns about 85% of the stock in the spinoff. They want to sell the remaining shares and not even be a stockholder in the newly formed bank which has not yet been done.

[Booboo71]

Probaly the Rothchilds? Oh excuse me, they already own everything everywhere!