Key congressman: No need to split banking, commerce

In our story yesterday recapping GE Capital’s latest business update for investors and analysts, one of the topics raised was newly proposed financial regulations – especially one proposal that might force the separation of GE Capital from GE. Here is an update on discussions in Washington, D.C., regarding financial regulation and GE. As Bloomberg News notes in its report, “General Electric Co., Harley-Davidson Inc. and manufacturers with finance businesses should be allowed to keep them under a revision of rules to govern banking, U.S. Representative Barney Frank said in an interview.”

The story further reported that “companies that already have finance arms or industrial loan businesses known as ILCs should be able keep them without being subject to Federal Reserve oversight of their manufacturing operations, Frank said.”

The report continued: “There are ways to allow companies like GE, which already exist as hybrids, to stay intact and have their finance arms regulated more closely, Frank said. The financial crisis didn’t stem from the structure, and it shouldn’t be an obstacle to regulation, Frank said.”

* Read the full story on Bloomberg News