For the first time since the 2008 financial crisis, derivatives traders regard General Electric Capital Corp. as less risky than JPMorgan Chase & Co. as GE shrinks the unit and the bank faces billions of dollars in fines.
General Electric Co., whose Connecticut headquarters is about 35 minutes by car from the site of the Newtown school massacre, said it tightened rules against providing consumer financing to firearms retailers.
General Electric Co.’s finance unit and American International Group Inc. opted against fighting a decision by regulators that they pose potential risks to the economy, clearing the way for stricter oversight.
American International Group Inc., Prudential Financial Inc. and a unit of General Electric Co. were identified by U.S. regulators as potential risks to the financial system in a step toward putting the firms under tighter government scrutiny.
Three former bankers with a General Electric Co. unit that sold investment contracts to state and local governments were indicted for conspiring to profit at taxpayers’ expense by rigging bids, showing the broadening scope of a Justice Department investigation of municipal finance.