GE's Subprime Story
futureofcapitalism.com

The Center for Public Integrity isn't always my cup of tea, but its article out today on GE's subprime lending activities is worth a look. The Center's Michael Hudson has interviews with eight former staffers of WMC Mortgage Corp., which was acquired by GE in 2004. After the acquisition:

GE asked Amy Brandt to stay on. She added CEO to her title. Internal documents obtained by iWatch News indicate GE promised the 31-year-old executive as much as $20 million in compensation over three years — including a $10 million upfront bonus at the closing of the deal.

General Electric declined to answer questions from iWatch News about the acquisition. It won't say how much scrutiny it gave the lender before it closed the deal, or whether it was aware of WMC's earlier fraud problems.

Read More...

GE's Subprime Story
futureofcapitalism.com

The Center for Public Integrity isn't always my cup of tea, but its article out today on GE's subprime lending activities is worth a look. The Center's Michael Hudson has interviews with eight former staffers of WMC Mortgage Corp., which was acquired by GE in 2004. After the acquisition:

GE asked Amy Brandt to stay on. She added CEO to her title. Internal documents obtained by iWatch News indicate GE promised the 31-year-old executive as much as $20 million in compensation over three years — including a $10 million upfront bonus at the closing of the deal.

General Electric declined to answer questions from iWatch News about the acquisition. It won't say how much scrutiny it gave the lender before it closed the deal, or whether it was aware of WMC's earlier fraud problems.

Read More...