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FAIRFIELD, CT-In a shakeup of its financial services operations, General Electric reports that it will split up its successful GE Capital division into four separate businesses.

General Electric Chairman and Chief Executive Officer Jeff Immelt reports that effective Aug. 1, GE Capital will be spilt into GE Commercial Finance, GE Insurance, GE Consumer Finance and GE Equipment Management. For the most part, the corporate structure of GE Capital will be eliminated and each of the business units will report directly to Immelt and GE Vice Chairman Dennis Dammerman, who has oversight of GE Capital.

GE Capital Real Estate, which is headquartered in Stamford, CT., will operate under the GE Commercial Finance business as of Aug. 1.

In addition to its real estate division, GE Commercial Finance will also oversee the operations of current GE Capital businesses such as: Aviation Services, Commercial Equipment Financing, Commercial Finance, Healthcare Financial Services, Structured Finance Group and Vendor Financial Services.

GE Equipment Management will now include: Fleet Services, Rail Services, TIP/Mod Space, European Equipment Management and Penske Truck Leasing operations.

The GE Consumer Finance business will include current Card Services and Global Consumer Finance businesses.

Finally, GE Insurance, which is headquartered in Richmond, Va., will include: Employer’s Reinsurance, Financial Assurance, Financial Guaranty Insurance and Mortgage Insurance operations.

“The reason for doing this is simple–I want more direct contact with the financial services teams,” Immelt says. “GE’s financial businesses generate 40% of the company’s earnings. They have been an important part of GE’s growth for decades, offering tremendous diversity of financial services, great leadership and the best people in the industry. To build on this success, it now makes sense to operate these businesses even more effectively.

Named to lead the four financial businesses were: Michael A. Neal, president and chief executive officer of GE Commercial Finance; David R. Nissen, president and chief executive officer of GE Consumer Finance; Arthur H. Harper, president and chief executive officer of GE Equipment Management and Michael D. Fraizer, president and chief executive officer of GE Insurance.

GE Capital Chairman and Chief Executive Officer Denis J. Nayden will serve as a senior advisor to Immelt and Dammerman once the reorganization takes effect on August 1. He also plans to create a financial services advisory company, GE officials note.

Company officials says that for the most part the reorganization of GE Capital will not result in any significant loss of jobs and the firm’s office presence in Stamford and Danbury, CT., will probably not be affected that much as well.

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