GE plan further shrinks its money market presence

General Electric Co.'s plan to retrench from the finance business will further reduce its already diminishing presence in the U.S. money market, which it has leaned on to fund consumer and business loans. This development from a major issuer of U.S. commercial paper comes at time when tighter regulations have caused money market funds, which own most of the $1 trillion of ultra short-dated debt issued by banks, brokerages and commercial lenders, to cut their holdings. There was no significant reaction on Friday in the money market in the wake of GE's plan, which includes shedding $375 billion in GE Capital assets. As part of the overhaul, GE will also reduce the lending unit's commercial paper to $5 billion by the end of the year from $22 billion at the close of 2014, analysts and investors said.



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