Items Tagged with 'WMC Mortgage Corporation'

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It appears that General Electric may finally be close to putting its shuttered subprime lending unit completely in its past. It’ll just cost the company $1.5 billion to do so. GE revealed Thursday that it reached a tentative agreement with the Department of Justice that would see GE pay a fine of $1.5 billion for the lending activities of WMC Mortgage.

General Electric may be facing a fine of at least $1.5 billion for the lending activities of its shuttered subprime lending unit, WMC Mortgage. GE revealed last week that it booked a reserve of $1.5 billion that may be used as a settlement with the Department of Justice over the company’s subprime lending from 2005 through 2007.

GE disclosed in its annual report on Friday that its lending unit, GE Capital, and defunct subprime lending unit WMC, received subpoenas in January. GE said it will cooperate with the Justice Department's investigation, which is at an early stage.