GE Capital saw that a storm was coming in the mortgage market, especially in the type of low-quality loans arranged by the WMC unit. GE’s mortgage bet looked badly timed. In addition, it may have picked the worst possible partner to anchor the strategy. The group originated more than $65 billion in mortgages from 2005 to 2007, making it one of the top producers of subprime mortgages in the United States.
