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The big banks should follow GE out of the dark

The US multinational's discarding of its financial arm was a radical amputation but the right thing to do, writes NYU Stern professor Roy C Smith

The big banks should follow GE out of the dark
Photo: Getty Images

There is a lesson for the big banks in the way GE has disposed of its finance arm.

The initial strategy, to dismantle GE Capital piecemeal, evoked little approval from the market. It was not until GE announced last month that it was selling off the entire unit that investors rewarded it with a price rise, so far sustained.

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