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To: MythMan who wrote (382495)	3/19/2009 11:29:35 AM
From: Secret_Agent_Man	Respond to of 436258

GE Real Estate warns loans defaults could hit 10% NEW YORK (MarketWatch) -- General Electric Co.'s (GE:General Electric Company GE 10.76, +0.44, +4.3%) real estate arm said Thursday its debt-default rate on loans in its portfolio could rise to 10% under adverse economic conditions. Speaking to investors in New York, executives said a stress test on its portfolio based on a Federal baseline assumption for the economy implied the default rate could be 8%, rising as high as 10% if U.S. GDP and unemployment turn more negative. That would result in a potential 2009 segment loss of $900 million, or $1 billion, respectively. For the fourth quarter, GE Real Estate said its debt-default rate was just 1.2%, compared with a 5.4% rate seen at commercial banks, due to unit's avoidance of construction and development loans, second mortgages, malls, and resorts, and having just 3% of its portfolio in subprime lending marketwatch.com