Home > Free Essays > Business > Company Information > General Electric Capital and Financial Regulations

General Electric Capital and Financial Regulations Essay

Exclusively available on IvyPanda Available only on IvyPanda
Updated: Aug 30th, 2020

Since the beginning of the Global Financial Crisis, the General Electric Corporation (GE) has managed to stay afloat despite the harsh conditions. What’s more, the company has managed to remain profitable throughout GFC (Mann 2015). The reasons for this include the regulations introduced to the market since the GFC’s inception, the management decisions made by the GE’s executives, and, to some degree, their leadership practices.

GE’s financial success and robustness that was demonstrated during the crisis-era is often ascribed to the changes brought by Jack Welch, who was the company’s CEO until 2001 (Krames 2005). For instance, GE Capital established by him was responsible for the impressive assets of $661 billion in 2008, in the middle of the crisis (Kapur 2015). Besides, the implementation of the new statutory regime that introduced new regulations has prompted GE to form a risk committee of independent directors, the move which secured stability in the profitable sector of the company (Tonello 2012).

Another external regulation that proved a key point in GE’s success is the “Twin Peaks” regulation model (Cooper et al. 2014). Because of it, the Australian financial institutions were less exposed to the esoteric, highly leveraged, and highly derived financial products (Schmulow 2016). GE Capital, which at this time was engaged in virtually any possible financial activity, benefited grossly from the stability, which was among the main reasons for the impressive bottom lines exhibited by GE during the last years (Mann 2015).

Reference List

Cooper, G, Dirkis, M, Hill, J, Stumbles, J, Tolhurst, G, Vann, R. J, & McCracken, S 2014, Regulation and reforms to enhance financial stability in the post-gfc era. Web.

Kapur, R 2015, GE sells $32 billion loan and lease portfolio to Wells Fargo. Web.

Krames, J 2005, Jack Welch and The 4 E’s of leadership: how to put ge’s leadership formula to work in your organization, McGraw Hill Professional, New York.

Mann, T 2015, . Web.

Schmulow, A 2016, Financial regulation: Is Australia’s ‘twin peaks’ model a successful export. Web.

Tonello, M 2012, . Web.

This essay on General Electric Capital and Financial Regulations was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Essay sample written from scratch by
professional specifically for you?

801 certified writers online

Cite This paper
Select a referencing style:

Reference

IvyPanda. (2020, August 30). General Electric Capital and Financial Regulations. https://ivypanda.com/essays/general-electric-capital-and-financial-regulations/

Reference

IvyPanda. (2020, August 30). General Electric Capital and Financial Regulations. Retrieved from https://ivypanda.com/essays/general-electric-capital-and-financial-regulations/

Work Cited

"General Electric Capital and Financial Regulations." IvyPanda, 30 Aug. 2020, ivypanda.com/essays/general-electric-capital-and-financial-regulations/.

1. IvyPanda. "General Electric Capital and Financial Regulations." August 30, 2020. https://ivypanda.com/essays/general-electric-capital-and-financial-regulations/.


Bibliography


IvyPanda. "General Electric Capital and Financial Regulations." August 30, 2020. https://ivypanda.com/essays/general-electric-capital-and-financial-regulations/.

References

IvyPanda. 2020. "General Electric Capital and Financial Regulations." August 30, 2020. https://ivypanda.com/essays/general-electric-capital-and-financial-regulations/.

References

IvyPanda. (2020) 'General Electric Capital and Financial Regulations'. 30 August.

Powered by CiteTotal, free citation style generator
More related papers