Daily News: February 26, 2014

Bloomberg: GE Takes $1.7B Charge to End Shinsei Liability

Bloomberg reported that General Electric will take a 175 billion yen ($1.7 billion) charge after agreeing with Shinsei Bank to conclude an obligation to compensate the Japanese lender for interest refund claims.

Bloomberg said, according to a statement made by the company, the agreement will reduce GE’s fourth-quarter and full-year 2013 net earnings by $1 billion.

Bloomberg notes that GE’s liability dates back to a loss-sharing agreement formed in 2008 when its GE Capital unit sold its Japanese consumer businesses to Shinsei for $5.4 billion.

To read the entire Bloomberg article, click here.