The GE Consumer Finance business will include current Card Services and Global Consumer Finance businesses.

Finally, GE Insurance, which is headquartered in Richmond, Va., will include: Employer's Reinsurance, Financial Assurance, Financial Guaranty Insurance and Mortgage Insurance operations.

"The reason for doing this is simple--I want more direct contact with the financial services teams," Immelt says. "GE's financial businesses generate 40% of the company's earnings. They have been an important part of GE's growth for decades, offering tremendous diversity of financial services, great leadership and the best people in the industry. To build on this success, it now makes sense to operate these businesses even more effectively.

Named to lead the four financial businesses were: Michael A. Neal, president and chief executive officer of GE Commercial Finance; David R. Nissen, president and chief executive officer of GE Consumer Finance; Arthur H. Harper, president and chief executive officer of GE Equipment Management and Michael D. Fraizer, president and chief executive officer of GE Insurance.

GE Capital Chairman and Chief Executive Officer Denis J. Nayden will serve as a senior advisor to Immelt and Dammerman once the reorganization takes effect on August 1. He also plans to create a financial services advisory company, GE officials note.

Company officials says that for the most part the reorganization of GE Capital will not result in any significant loss of jobs and the firm's office presence in Stamford and Danbury, CT., will probably not be affected that much as well.