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To: Les H who wrote (147959)	2/2/2002 10:28:49 AM
From: Les H	Read Replies (4) \| Respond to of 436258

The absolute toughest competition in investing anywhere ... pbs.org hardy har har ...

To: Les H who wrote (147959)	2/2/2002 12:51:05 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

ROFLMAO: <<GE Capital Services is divided into two divisions: GE Capital Global Insurance Holdings, which owns GE's insurance companies, and GE Capital Corp., which owns everything else. One of GE Global's insurance businesses, Employers Reinsurance--one of the largest reinsurance outfits in the world--has issued almost $1.2 billion in preferred stock to GE Capital, stock on which it pays dividends. Then GE Global itself has issued another $150 million of dividend-paying preferred stock to GE Capital. So why would one wholly owned GE entity have to pay dividends to another? I called a half-dozen GE analysts to find out. None of them were aware of these cross-holdings or what purpose they might serve. Think about that for a minute. These people read the company's financial statements for a living. In Accounting Wonderland, analysts who cover the stock are much like the guests at the Mad Hatter's tea party--blissfully oblivious to the illogic swirling around them. Luckily, GE was happy to set me straight. Take a deep breath: It seems that in 1994, GE Capital transferred Puritan, a life insurance company it owned, to Employers Reinsurance in exchange for the preferred stock on which Employers Reinsurance now pays dividends that are set to approximate the earnings of Puritan's assets at the time of the transfer; the stock GE Global issued GE Capital was in exchange for a loan that GE Capital gave it in 1995 to help it buy two German insurance companies for $1 billion. Got that?>> DAK