 General Electric Co (GE.N) faces potential action by the U.S. Justice Department over allegations that its GE Capital unit and now defunct WMC Mortgage Corp unit violated U.S. law in connection with subprime mortgages, according to a regulatory filing on Friday. GE said the department "is likely to assert" violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) "in connection with WMC's origination and sale of subprime mortgage loans in 2006 and 2007," the filing said. "WMC and GE Capital will explore whether an acceptable settlement of this matter can be reached.
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