Is GE A Finance Company?

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Scott Lashinksky thinks GE should change its name.

If stock price is a function of earnings power and 40 percent of GE's profits come from financial services, then one could argue that GE, worth about $285 billion, is a $100-billion-plus financial services company.

That makes GE's financial businesses alone worth more than Morgan Stanley, American Express, UBS and JPMorgan Chase.

He's right about GE, but I disagree that a name change is due. Consumers trust the GE brand, and probably most aren't aware of GE's financial endeavors. That brand name is worth something, and GE doesn't want to lose that.





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