GE Capital Blog Entry gets Actual Response from the Company

Leave it to SeekingAlpha.com to post an article from Zero Hedge Blogger 'Tyler Durden' to prompt a response from General Electric's GE Capital Division (NYSE:GE) defending their business -- a sign of the times even bloggers can move markets.

The story on SA was the following:

After providing several hundred billion in second liens and other subordinated tranches to some of the worst companies in existence over the past 5 years, a result of a complete lack of investing discipline which nearly brought parent General Electic (GE) down, GE Capital Corp. is back in the game, and this time it plans to win it. Bankrupt commodity product rollup extraordinaire Spectrum Brands (SPC) (provider of such deflation worthless products as Remington shavers and Rayovac batteries) announced it has secured a $242 million exit financing as part of its emergence into a "normal" company, with none other than perma-glutton for punishment, GE Capital.

The company went bankrupt after several Goldman led refies in 2007 straddled it with over $4 billion in debt. One can bet that Goldman syndicated any exposure faster than you can say Lllloyd: Zero Hedge would not be surprised if it was GE Capital itself that ended up being on the receiving end of the soon to be worthless paper.

But you gotta put capital to use: and those GECC principals are just so familiar with the whole zinc forward curve, and lawn manure comps that it would be a waste not to capitalize on that extensive experience. We give GE about a year before it manages to again somehow be underwater this particular investment.

Page down in the article and read the comments - http://seekingalpha.com/article/143714-ge-capital-back-in-the-game-to-win

After some debate about if GE is a decent investment by various bloggers, this entry shows up to set the record straight:

Ned from GE Capital-- A few points to clarify in your post, GE Capital's corporate lending business primarily provides senior, fully collateralized loans, as is the case here with Spectrum Brands (SPC), where we are at the top of the credit hierarchy. Our loss experience over several decades on these asset-based loans has been very low. Anyone looking for more information on our corporate lending business, please visit: gelending.com

God Bless the Internet.