General Electric Co. executives said Tuesday that it is becoming more improbable that regulatory reform measures being debated in Washington would force a separation of the GE Capital unit from the parent company.

"We're consistently hearing from people that we shouldn't be breaking up successful institutions when they weren't the cause of the crisis," Brackett Denniston, GE's general counsel, told investors during an online overview of GE Capital. "This forced-breakup idea is increasingly unlikely to be adopted as part of this total" reform package.

Michael Neal, GE Capital's chief executive, told investors that the finance arm is performing at or better than metrics pegged to the best-case scenario under the Federal Reserve's stress tests of banks. The company said in the presentation that the division will not need outside funds even under an "adverse case" economic scenario.

"We believe funding and liquidity have dramatically improved and the future is manageable," Neal said. "Our portfolio is performing as forecasted — in most cases better than the Fed base case" for the economy as GE outlined at a March 19 meeting.

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