One of the biggest Finance companies in Oz ……………….
GE Money will close its operations in Australia with immediate effect, according to inside sources.
Sources have confirmed that this is indeed the end for GE. GE will continue to honour all approvals that have been issued up to the 31st October but all other applications will be withdrawn at that date.
GE will no longer be in a position to fund loan increases on their existing book, so you can expect there to be mass discharges over the coming months. They will however continue to service their existing customers and will allow any and all redraws to occur for borrowers.
Insiders were unaware of the effect this would have on the Wizard Home Loans brand that is currently for sale. Sources also indicated that the remainder of the GE business would now be put up for sale with the likely buyers being one of the other major non-bank lenders such as Challenger or FirstMac.
This news comes hot on the heels of the decision to not pass on any of the RBA rate cut this month in which the official release stated “GE Money is funded with the support of a guarantee from our AAA-rated parent company, the General Electric Company, and has no liquidity issue”.
Wonder how all those Wizard franchises are going these days.
Richard Taylor | Australia's leading private lender
just declared bankrupt.. and go to receivers…
I am more concerned on borrowers from GE money or wizard !!!!!!Wow are you serious ? Can you provide any links for that ?
Yep totally serious
http://www.lendingcentral.com/2008/10/24/ge-money-closes-its-doors/
Richard Taylor | Australia's leading private lender
What exactly could this mean for wizard borrowers? No decrease in rates? Calling in Loans?
More likely Wizard will be sold off to some altenative lending source and borrowers will probably eventually benefit.
In the meantime dont hold your breath.
Richard Taylor | Australia's leading private lender
Basically this thing is like musical chairs, Every time the music stops someone gets out.
Every time someone gets out, The company is bailed or sold out, Usually by a bigger financial institution, This leads to continued bank consolidation, this is not something that benefits the public as the less banks, The less competition the worse the deals will become for the customer.
I still just can't believe Not one minister in the Australian government is talking about solutions to this problem instead of adrenaline shots (liquidity) into the market which in the short term will boost the BS factor of the market but does nothing to address the underlining problem, Actually it makes the problem worse in the long run by Turning the leverage handle even further, allowing banks to issue more false money, more debt that is back against "AAA" mortgage securitys which are being deflated on.
So every boost of liquidity will:
1. Increase the overall money supply.
2. Increase inflation which is a result of increasing the money supply
3. Devalue the Australian dollar caused by higher inflation, Which in turn increases the cost of imports which is food, Which results in a higher cost of living added on top of the already devaluing dollar from Inflation.
4. Risk is greatly increased by FURTHER increasing leverage within the market creating even more volatility
5. Pathetic interest rates which are far lower then the rate of CPI disourage people from saving or holding money within financial institutions, Contrary to popular belief you don't need people to spend 110% of what they earn to have a strong ecconomy, Actually I would argue that if everyone had savings our ecconomy would be stronger for it.Our government is preaching to us how strong our banking system is compared to other countries, But the fact is that by them taking the exact same steps used by the American's, English and Germans to try and bodge up the ecconomy we are in fact heading towards a land of much Doom and Gloom.
Please I encourage everyone to pick up there phone and talk to there local rep and try and talk some sense into them, Ask the questions that won't get asked on TV, Ask them why is the RBA private, Tell them why arn't you introducing steps to unwind our current leverage and stop company's from commiting fraud, Tell them you don't want tax payers money bailing out these crook banksters when big company's start to fall.
well, looks like that's happening. Every existing GE deal I have under 80% will be getting refinanced to the new FirstMac 3.99% product. It's a no brainer.
what's a firstmac 3.00% product?
loan ranger wrote:well, looks like that's happening. Every existing GE deal I have under 80% will be getting refinanced to the new FirstMac 3.99% product. It's a no brainer.is that so??? …i just got told by my wizard branch, its all business as usual right now …no First Mac refinancing …the 3.99% seem pretty good but would be only only for a year ? whats after ?
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