WHEN: TODAY, FRIDAY, April 10, 2015
WHERE: CNBC'S "SQUAWK BOX"
Following is an excerpt from the unofficial transcript of a CNBC interview with GE Chairman & CEO Jeffrey Immelt as the company unveils plans to sell most GE Capital assets. Excerpts of the interview will run throughout CNBC's Business Day programming today. The full transcript of the interview will be available at 9AM ET. All references must be sourced to CNBC.
DAVID FABER: JEFF, GE CAPITAL I MEAN THE FIRST QUESTION IS A SIMPLE ONE WHY AND WHY NOW?
JEFF IMMELT: YEAH, YOU KNOW, SO DAVID I WOULD SAY THE BUSINESS MODEL OF FINANCIAL SERVICES HAS CERTAINLY CHANGED. YOU KNOW, WE'VE GOT A FANTASTIC INDUSTRIAL-- PORTFOLIO. BUT WE WERE A LARGE, WHOLESALE FUNDED-- FINANCE COMPANY. YOU KNOW, THE WHOLESALE FUNDING MODEL IS TOUGHER. WE WERE-- WE FELT LIKE WE WERE DISADVANTAGED VERSUS BANKS.
AND AT THE END OF THE DAY, YOU KNOW, THE WAY INVESTORS-- VIEW FINANCIAL SERVICES VERSUS INDUSTRIAL ASSETS IS JUST STARKLY DIFFERENT. AND WE KINDA FELT FROM AN INVESTOR STANDPOINT THAT THIS WAS THE RIGHT TIME TO MAKE THE MOVE. WE-- AND WE'VE BEEN WORKING THIS WAY SINCE THE FINANCIAL CRISIS. AND YOU KNOW, WHY NOW? I THINK TWO THINGS HAVE HAPPENED-- JUST RECENTLY, YOU KNOW. ONE IS-- YOU REALLY HAVE A PERFECT MARKET TO BE SELLING FINANCIAL SERVICE ASSETS, SO YOU'VE GOT SLOW GROWTH, LOW INTEREST RATES, LOTS OF LIQUIDITY, PEOPLE SEARCHING FOR YIELD. AND I THINK RECENTLY THE FSOC, YOU KNOW, THE FINANCIAL OVERSIGHT-- BOARD, HAS REALLY SAID THAT THERE'S AN OFF RAMP FOR COMPANIES THAT-- WERE SYSTEMICALLY SIGNIFICANT TO KIND OF GET OFF AS THEY SHRUNK. AND YOU KNOW, WE THINK THIS IS GOOD FOR THE SYSTEM. WE THINK IT'S GOOD FOR THE REGULATORY WORLD, IT'S GOOD FOR INVESTORS. AND THAT'S BEEN MORE OR LESS RECENT. NOW'S THE TIME TO DO IT.
DAVID FABER: AND OF COURSE A LOT OF THE PROCEEDS FOR THIS WILL GO TOWARDS A SHARE BUYBACK. $50 BILLION DOLLARS THE COMPANY TALKING ABOUT RETURNING, $90 BILLION TO INVESTORS THROUGH 2018 THAT INCLUDES THE CURRENT DIVIDEND AND IT ALSO INCLUDES THE 85% OF SYNCHRONY THAT THE COMPANY OWNS THAT WILL BE SPUN TO SHAREHOLDERS OF COURSE THAT WAS A VERY SUCCESSFUL OFFERING FOR THE COMPANY FROM ITS GE CAPITAL BUSINESS AND $50 BILLION BUYBACK THOSE ARE KEY PARTS OF THIS
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