General Electric announcing two separate deals yesterday

General Electric announcing two separate deals yesterday. The first one was that GE was buying a business called Dresser for three billion Dollars. Dresser makes gas engines that are used in the oil and gas industry and in the mining industry. Dresser derives 60 percent of their revenues outside of North America, which adds to their "global footprint" as they say in the official release, with 85 percent of overall revenues from energy customers around the world. Natural gas fired engines? Check it out, it is all about getting energy to remote areas of the world: Dresser Waukesha.



And then, staying busy with GE Money, the company announced that they would be acquiring 1.6 billion Dollars worth of credit card assets from none other than Citigroup. Creditnet.com reports: "GE bought credit card debt which Citi controlled but did not issue itself, the report said. Instead, they were for "retail partner" cards, which typically carry higher delinquency and default rates than the company's normal, branded accounts.




New statistics show credit card delinquency rates recently declined, but the number of charge offs climbed after dropping for several consecutive months"




So, it is perhaps a case of noting that whilst the climate is still wishy washy, the outlook is improving. And Citi are selling assets like crazy. So we will see in due course whether this was a smart move. GE remember has around 100 million credit customers, ranging from retail clients to big businesses, this finance division has been around since the great depression.