In an investor presentation, General Electric said it has consolidated $50 billion in assets associated with the implementation of FIN 46. Of that, roughly $36 billion is associated with securitization, which presumably includes its ABCP conduit Edison Asset Securitization.
The company describes consolidatio as the “preferred method,” stating that its earnings per share will be lowered by $.04, reflected as a “non-cash transition charge.”
“[This may] put pressure on other ABCP program sponsors to also consolidate,” said Mark Adelson of Nomura Securities, who provided the copy of the presentation: a slide show titled Preliminary 2003 Second Quarter Results.
“Others may say, Who are we to go against GE?',” he added.
More on this in next week’s ASR (7/21).
