Shinsei buys GE consumer finance unit in Japan

Shinsei Bank wants to replace subprime with prime consumer finance, but the timing could be wrong.

Shinsei Bank has announced that it will spend Ñ580 billion $5.4 billion in cash to buy GE MoneyÆs consumer finance business in Japan. This includes the Lake personal loan business, credit cards and mortgages. The deal is expected to close in the third quarter of this year.

A crucial part of the deal is that GE will share the repayment of some of the excess interest charged to customers, as ordered in recent legislation by the government. UBS advised GE...

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