GE Catches the Plague

Lehman Brothers, Bear Stearns, Merrill Lynch, Citibank, AIG, Morgan Stanley, and now - General Electric.

GE’s stock, which had been trading around $17 a share a few months ago, dropped to under $6 this past week. Richard Hofmann, an industry analyst told the NY Times, “That’s a scary number for GE.”

On Thursday morning, Keith Sherin, GE’s CFO, appeared on CNBC, (which GE owns) and attempted to defend the company. He may have helped a little - the stock closed Friday at $7.66.

A former writer who has covered GE for Fortune Magazine pointed out to the Times that the last time GE cut a dividend was during the Great Depression, and that “If GE is in trouble, God help us all.”

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