GE ready to exit the Temporary Liquidity Guarantee Program
GE's Treasurer Kathryn Cassidy believes the move is "a positive step in returning the broader capital markets to normal functioning and is in line with GE Capital's 2009 and 2010 debt issuance and funding cost plans." According to Cassidy, this move will allow GE to respond to strong investor demand for longer-term debt.
GE Capital stated that it is healthy enough to pre-fund its 2010 long-term debt issuance plan before the end of the current year. This move will likely be seen as a show of strength, especially in light of the problems that CIT Group (CIT) is currently experiencing. Investors may see this news and conclude that the current economic crisis is diminishing. (I'm not ready to make this assumption myself, but it is nice to see some positive news coming from the financial realm.)
The move is also good for GE, as it shows that the company has received the benefit of the TLGP program and is now confident about its funding for next year. In addition, the move signals that there will probably be no extension of this program by the FDIC -- the program expires in the fall.
GE shares were trading slightly up this morning.