Saturday, February 6, 2010

General Electric - Another Coffin Nail?

Big snowstorm in Washington D.C. today. I take a look at the Washington Post to read about the storm and see the following: "Paulson's book details GE chief's private concerns in 2008 over company's debt". Like many we invested in General Electric and have since watch the stock decline. The big question, in the face of this corporate decline (both in reputation and performance), why hasn't Immelt resigned or been fired?

Jeff Gerth, in his article writes:

"As the financial crisis worsened toward the end of 2008, chief executive Jeffrey Immelt and other leaders at General Electric repeatedly assured the public there was no need to worry about the company's ability to access credit markets and refinance its massive debts as they came due.

But in private conversations that alarmed then-Treasury Secretary Henry M. Paulson Jr., Immelt laid out a different picture of GE's credit situation, according to Paulson's new book about the crisis."

One would think that "big" investors, such a Buffet and the mutual funds would also be concerned about the decline of General Electric since they are shareholders too. By now I would have expected them to have stepped in to "protect shareholder value". So far no visible action. I wonder why?

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