BREAKING: GE Bond Fund Reports Losses Related to Subprime Exposure


A General Electric (GE) cash management fund worth $5 billion that attempts to keep the value of each share at $1 and offers returns above money market rates is now offering its investors a return of just 96 cents on the dollar.

CNBC’s Steve Liesman told Fast Money that the news, first reported by Barron’s Online Wendesday afternoon, was a “major reason” for the late market sell-off, according to traders he spoke to.

While the actual amount of the write-off, if it is pre-tax, amounts to roughly $200 million (a “rounding error” for GE, said Jeff Macke), the psychological damage – the implication that there’s more bad news lurking out there – could be damaging for futures, Jeff said.

>Read Steve Liesman’s report here

GE is the parent company of CNBC.

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Trader disclosure: On Nov. 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (YHOO), (EMC); Najarian Owns (AMTD) Options, (C) Options, (CSCO) Options, (GOOG) Options, (GS) Options, (XLF) Options, (YHOO) Options, (EMC) Options; Najarian Owns (MER) Options And Is Short (MER); Finerman's Firm And Finerman Own (GS), (KALU); Finerman's Firm Owns (KSS), (NMX), (NYX), (VMSI), (YHOO), (AEO), (PLCE); Finerman's Firm Is Short (SPY), (IYR), (IJR), (MDY); Finerman's Firm Owns (LEH) Puts, (MER) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns S&P 500 December Puts; Finerman's Firm Owns Russell 2000 December Puts; GE Is The Parent Company Of CNBC