- General Electric Co on Tuesday put the remnants of its WMC Mortgage unit into bankruptcy, 11 days after paying a $1.5 billion U.S. fine over defective subprime mortgages issued by WMC before the 2008 financial crisis.
The Chapter 11 filing affords “finality” for WMC, given its limited cash —$175,000— and support from GE, and the threat of further claims, WMC Chief Executive Mark Asdourian said in a filing with the U.S. bankruptcy court in Wilmington, Delaware. It halted originations in 2007 because of the collapse of the U.S. housing and financial markets. WMC sold most of its assets that December to DLJ Capital.
“This filing is another important step in the de-risking of GE Capital,” a GE spokeswoman said in a statement about WMC’s bankruptcy. “GE and GE Capital are not part of the filing and the case has no adverse impact on our business operations.”
truth, it was felled by poor management !