Why Gordon Haskett Analyst Inch Sounded a Warning About GE's Finance Arm

The transcript discusses General Electric's (GE) financial struggles, focusing on its significant debt, asset sales, and leadership changes. The company is selling assets like Baker Hughes to raise funds, but faces challenges due to off-balance-sheet debt and liabilities. The aviation business, once a strong performer, is now at risk due to economic conditions. Leadership under Larry Korb is scrutinized, with concerns about his ability to manage GE's complex portfolio. Potential outcomes include insolvency, though asset sales may buy time. GE Capital's performance is weak, with significant losses, highlighting the need for liquidity solutions.

What was the primary reason for GE's asset sales strategy?

• To expand their business operations

• To reduce their workforce

• To raise money due to financial struggles

• To invest in new technologies

Why can't GE's capital arm be sold off?

• It is not a part of GE

• It is a new venture

• It is backed by GE industrial's debt instruments

• It is too profitable

What is Larry Korb's main area of expertise?

• Marketing and Sales

• Business reengineering at a factory floor level

• Financial auditing

• Human resources management

What is the worst-case scenario for GE according to the discussion?

• A significant drop in stock price

• A hostile takeover

• Insolvency

• A major lawsuit

What is the main issue with GE's helicopter leasing business?

• It is highly profitable

• It has a low return on investment

• It is not part of GE Capital

• It is expanding too quickly

What is the expected profit from GE Capital Aviation Services this year?

• $3 billion

• $2 billion

• $1.2 billion

• $500 million

What is the main reason GE is looking to raise money?

• To expand their workforce

• To plug potential liquidity gaps

• To invest in new technologies

• To acquire new companies