That could be a problem if the Federal Reserve asserts control over GE's lending operations, he said.
The reviews will look at the central bank's emergency-lending operations in 2008-09, its inflation-forecasting record and the system for providing money to banks.
Its second-quarter revenues from consumer finance, which includes Champion and other lending operations, was down 5.6% from the first quarter and 11.8% from last year.
Some analysts have called for a break up of the company, saying its corporate and investment bank, its brokerage and its consumer lending operations are worth more apart than they are together.
On Tuesday, the central bank said it is expanding its securities lending operations, allowing big Wall Street firms to borrow for longer periods and, for the first time, exchange triple-A mortgages not backed by Fannie Mae or Freddie Mac for Treasury bonds.
Other heavily-shorted companies include Washington Mutual, Citigroup, Wells Fargo, Wachovia and Countrywide Financial, all companies with a big exposure to the mortgage markets, and CIT Group, a lender which is trying to raise cash and has shut down some of its lending operations.
They included the loss of 1, 400 jobs, an exit from commercial property lending and a scaling down of its business operations, mainly in England.
Working with Lilien, Caplan integrated into one back office the retail and institutional bank, the lending department and the trading division, making operations more efficient and helping salesfolk cross-sell products to account holders.
Wells Fargo, for example, recently announced it would shut down its independent lending offices and merge that business back into its branch operations, cutting 3, 800 jobs in the process.
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It will probably urge a ring-fencing of banks' retail operations from their investment arms, with limits on lending between them.
And if, as seems likely, bank-solvency rules are redesigned, capital charges for prime-broking operations could yet rise, causing a contraction in lending to hedge funds.
The shuttering of various European and U.S. northeast refinery operations of late due to unfavorable margins and a difficult lending environment could also eventually lead to supply-constraint driven gasoline price spikes when demand starts to pick up again towards the summer peak driving season period, say analysts.
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The ring-fence will require banks to put their High Street banking activities - such as taking deposits and lending to UK businesses - into a separate subsidiary from their riskier investment banking operations.
All lending to these companies shut down, so they lost all liquidity needed to keep company operations going.
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Despite the slowdown in mortgage lending, Fried believes WaMu will still be able to achieve profitable growth in other banking operations, particularly consumer and business accounts at its 2, 400 branches.
Somolend is a site for lending for small businesses in the US, providing debt-based investment funding to qualified businesses with existing operations and revenue.
The Fed threw open its emergency lending facilities to investment banks, as well as accepting a much broader range of collateral in its open-market operations.
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