Gee. I wasn't expecting the Globalization Genie to disappear up his own a$$ that quick!
I like the comment in the article -
"This news comes hot on the heels of the decision to not pass on any of the RBA rate cut this month in which the official release stated “GE Money is funded with the support of a guarantee from our AAA-rated parent company, the General Electric Company, and has no liquidity issue”.
What a difference a few days can make to so-called "AAA rated" support!
Don't think completely gone.. According to this article they are "downsizing".
GE Money axes operations
* Jens Meyer
* October 24, 2008 - 2:00PM
GE Money, one of the biggest funders of Australia's non-bank housing loans and car loans, is downsizing its business and axing 335 staff as funding costs rise.
The company said today it will cease offering home loans through third parties such as brokers and end its motor finance and small business finance in Australia and New Zealand.
"This is a result of the extreme volatility and greatly increasing cost of funds on the global and local wholesale markets,'' GE Money said in a statement.
Of its 4500 employees, 110 will leave in the next four weeks, with a further 225 to be laid off over the next 12 months.
Victoria, where GE Money has its head office, will bear the brunt of the lay-offs, with 136 staff affected, followed by NSW with 78..
GE Money will close its operations in Australia with immediate effect, according to inside sources.
Sources have confirmed that this is indeed the end for GE. GE will continue to honour all approvals that have been issued up to the 31st October but all other applications will be withdrawn at that date.
Sorry, but initial article was wrong... and they have posted the true press release on their website:
GE Genie just shoved his a$$ back out of the bottle.... still has his head stuck, though.
The update which states "GE Money ceases offering home loans through third party mortgages, motor finance and small business finance in Australia and New Zealand" is still a pretty crap turnaround IMO.
Things must be crook when GE can't survive charging 28% with nothing to pay for 50 Months...wonder were this will leave Harvey Norman and the others?
I wonder what will happen to Credit cards backed by GE.
My Coles Group Source™ MasterCard® is backed by them, You think coles and the like will find another company to finance the cards?.
Would it be worth getting a bankwest one, since I have an account with them given that they are now owned by Commonwealth Bank.
Interest free terms vary from one promotion to another at HVN.
The length of the interest free terms on a promotion is linked directly to how their sales are looking. If sales need a boost they advertise longer interest free terms for a given period.
If GE is pulling out Im sure Gerry has a back up for a credit provider at any rate.
Everybody should believe in something.....I believe I'll have another drink.