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-- -- all of what the Fed does really depends on what happens with the economy in the heart of the economy the middle market companies small and midsize companies account for about a third.
Of the nation's GDP in nearly 34% of total US and -- employment.
They're staggering contribution to our economy was the motivation -- GE capital's new road show for growth this is a Taiwanese city to war.
Aimed at giving this vitally important segment of the USA staged a voice their issues.
And promote growth I spoke with -- Henson he's CEO and president of GE capital America's earlier today about the -- first -- -- -- ask you about.
What it meant to be labeled as a systematically.
Important institution by the government.
And if that's going to change a way to do business.
I think it's something we've been prepared for there's really a couple of key components of being -- systemic one as you did.
Overseen by the Fed and we've been overseen by the -- for the last two years and not much -- change there.
And second will be discussion around capital requirements and we have one of the highest capital ratios of any financial institutions are you -- have to raise your capital requirements from where they are now I don't know the specifics of how little turnout but directionally I think we've been prepared for something like this for some time.
Do you think that you would destabilize the financial system if you failed.
Oh I think we play an important role in the mid market in the US which is what I'm here to talk to you about today but I it's up to others to determine whether or not we would destabilize.
The country I'd like to think -- provide a lot of value.
Well we believe as you believe that the smaller and mid -- companies in this country provide the greatest value they paid employee.
What is it about over 40% of us about 43% of the total population the private sector so that's that's companies within -- what -- -- hundred million dollar range tends to a billion although most of them are in the ten to 5050 to a hundred million dollars as revenue 80% of them or tell exactly.
But now they claim when when we have smaller businesses come and they claim that all these rules and regs -- were talking about that you big guys are able to absorb them.
Better than they can't you have all the accountants you have all of this the lawyers that can deal with the with the folks in Washington is that true was that a fair complaint.
Well we asked him what concerns and they really have three areas you know taxes being -- but increasing regulations or something clearly they talk about and special regulations specific well depends on what industry you're talking about it could be anything from a transportation regulations to health care so they look at health care costs and look at the regulations and when -- -- smaller end.
Of the mid market obviously that's a burden that not all companies have the resources.
To deal with and are also concerned about finding the right workers.
You know despite unemployment being where it is there is a gap of skilled workers particularly in the manufacturing segment and a lot of our companies are trying to fill those.
Those -- manufacturing.
Segment what kind of employees are they looking for him in trouble skilled.
People who valve skilled labor skills computer aided design and things like that.
Computer engineer shortage of those encountered.
Obamacare is something that a lot of small businesses complain to me about particularly in the service and -- restaurants and stuff like that are you.
Hearing those complaints people just wondering what the heck it's gonna look like.
I think there's uncertainty out there and people are voicing concerns about where might lead in what it would do to to their cost structure we'll just have to see that's one of the reasons that we've launched this.
Road show for growth is were traveling around the country to twenty different cities.
Meeting with mid market companies -- drawing them together and talking about what concerns them and how the market is working -- to bring my -- Well it's it's a big part of the US economy it doesn't get as much coverage as we would like to see so bring in our customers together talking and letting them.
Talk amongst themselves talking about how we can help woman just.
Understanding what the issues are that they're dealing with would be positive.
We've seen a huge increase in the value of all stock markets were particularly smaller mid -- companies representative Russell 2000 is that.
-- Judy is taken a big interest you really think that this is has tremendous growth potential -- has been tapped yet small amid a white guy I think so David you know this is this is our core market.
The mid market we founded a couple of years ago amid market research center in conjunction with the Fisher school of business at Ohio State.
And will finish this -- -- in October with our third annual mid market summit will have over 600.
Customers -- this is a key piece.
Of our core constituency.
And when you look at GE capital of where we want to grow.
The commercial lending and leasing operation to the mid market that screen to go.
We really wanna play an important is it is I've got a couple of more question but sure but I just wanna ask about whether -- the average investor out there are folks who may be kind of reluctant to get into the stock market.
Is there any place that they can invest in this smaller cutting is almost all these companies are are are private companies right well -- you know as you get to the larger into the segment you do begin to see some public companies and in fact.
About a quarter of the large companies at some point were in the mid market.
Signs I look at him I think it's a healthy segment of the economy you know growth is good.
From high single digits and they've learned how to make more money -- less revenue.
And -- GE capital America's very interesting interview with that -- -- quite a bit.
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