From BBC NEWS
Merrill to sell loans unit to GE
Merrill Lynch, which has suffered badly in the credit crunch, has said it will sell most of its capital lending business to a unit of General Electric. (General Electric used to make stuff but no more.)
The value of the sale has not been announced, but Merrill's new boss John Thain said it would free up $1.3bn (£656m) to spend elsewhere in the firm. (A big bonus for the boss would be nice!)
The bank wrote down $8.4bn in its last set of three-month results, after its exposure to the US sub-prime crisis. (Oh no! A toxic exposure! Quarantine the bastard!)
Some analysts expect it to make further losses in the next three months.
GE Capital is to buy Merrill Lynch Capital's corporate finance, equipment finance, franchise, energy and healthcare finance units. (Sounds like money can still be made -- That Welch is really hot!)
The commercial real estate finance unit is not included in the deal.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7159274.stm
Published: 2007/12/24 13:40:39 GMT
© BBC MMVII
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