General Electric

• Was an original component of the DJIA
• Was removed from the DJIA in June 2018
• Historically was known for its consistent and growing dividend (until 2010s)
• Known for being a technology leader in industrial segments: (GE industrial)
• Gas & Steam Turbines
• Electric Generators
• Wing Turbines
• Oil & Gas Services
• Jet Engines
• Locomotives
• Lighting
• Medical Diagnostics (X-Ray, CT, MRI)
• Has a large financing arm (GE GAPITAL) (1/3 of business)
• Finances new & used aircraft
• Finances powerplant projects
• Finances renewable energy projects

• In the 2000s and 2010s was run by Financial Engineers
• Jack Welch, Jeff Immelt & John Flannery
• Through dividends and buybacks they returned ~225 billion to shareholders, but failed to invest in the business

General Electric Downfall

• Morphed from it's industrial/technology base into a levered financial company over time (GE Capital)
• Problems with GE Capital Assets (turning into unfunded liabilites) have dragged down the GE with it (2017)
• Had to pay a $50 million fine to the SEC for improper financial reporting
• Issued subprime mortgages through its' WMC unit (potentially fraudulent - being sued by justice department under FIRREA)
• Held on to long-term-care insurance policies after spinning out Genworth Financial Corp in 2004
• Those policies have turned into massive liabilities