Sector Update: Financial

By Staff,

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Financial stocks are lower today with the NYSE Financial Sector Index sinking 0.7% and the S&P Financial 100 Index falling about 0.3%.

In company news, General Electric ( GE ) is higher this afternoon at $23.20 a share, up 0.4%, following reports the industrial giant is planning to spin off the consumer lending unit of its GE Capital division.

GE likely would accomplish the spin-off through an initial public offering, according to the Wall Street Journal. The IPO could come as soon as early 2014 although it size has not yet been determined, the newspaper said.

The consumer lending division has issued store credit cards for around 55 million Americans, It earned $3.24 billion last year and had assets of $139 billion, according to regulatory filings. GE Capital's total assets at the end of 2012 were $539 billion.

In other sector news,

(+) RDN, (+3.4%, nearer 52 week highs) Reaches agreement with Freddie Mac to cap expenses linked to 25,700 first-lein mortgage loans held by the government-affiliated housing finance company at $840 mln. The pact will cost RDN about $20 mln in Q3.

(-) IRC, (-1.5%) Amends unsecured credit facilities totaling $360 million, up $10 mln from its prior pacts and comprised of a four-year, $180-mln revolver extendable for an extra 12 months and a five-year, $180-mln term loan.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: GE

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