GE’s Subprime Mortgage Unit Files For Bankruptcy


New York (CNN Business)General Electric is trying to put its sins from the financial crisis behind it.
WMC Mortgage, a defunct subprime lender that GE Capital acquired during the housing boom, filed for bankruptcy on Tuesday.
The Chapter 11 filing, a rare step by a major company, comes just weeks after GE (GE) agreed to pay a $1.5 billion fine over WMC, a leading subprime lender that was shut down in 2007. News of the bankruptcy was reported earlier by Reuters.