General Electric Co. says it is actively looking for a buyer for its subprime subsidiary, WMC Mortgage, and has revealed that it sold off $3.7 billion, or 75%, of WMC's loan portfolio during the second quarter.GE executives said their "timing was good" and that the sales were completed before there was "additional turmoil" in the subprime mortgage market. The company's second-quarter results show that GE took a $182 million loss on WMC, including exit costs. The giant international company is continuing to restructure the Irvine, Calif.-based mortgage company for the sale and has already reduced its staffing by 70%. WMC still has a $1.1 billion subprime portfolio, and a GE executive said the "platform has value."
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