GE pays $US1.7 billion to Shinsei

GE will pay Shinsei Bank $US1.7 bln, under its Japanese consumer finance operations sale agreement, to end its obligations to cover interest refund claims.

General Electric will pay $US1.7 billion ($A1.89 billion) to Shinsei Bank to end its obligation to cover interest refund claims.

GE was required to make the payments as part of the sale of its Japanese consumer finance operations. The sale agreement allowed for a buyout option this year. General Electric Capital Corp sold the operations to Shinsei for $US5.4 billion in September 2008.

Because of the buyout, GE's fourth-quarter and 2013 earnings would be trimmed by nine US cents per share, the company said on Wednesday. First-quarter and 2014 results will not be impacted.

Shares of General Electric Co, based in Fairfield, Connecticut, shed 14 US cents to $US 25.13 in Wednesday morning trading.