Profit fall at GE sparks split talk from the New York Post reports that the once mighty General Electric is literally in a meltdown, making tought choices for CEO Jeffrey Immelt.
Shares dived yesterday after GE reported a 49 percent drop in second-quarter profit. Its one-time cash cow GE Capital suffered an 80 percent tumble in profit, while its NBC Universal media unit's profit fell 41 percent.
"Getting GE out of the dog house is going to take a lot of fear and pain," said analyst Nick Heymann of Sterne, Agee & Leach.
He said GE's best hope is to convert its loss-laden financial arm into a full-fledged bank -- a conversion regulators could order anyway in the coming weeks.
If that happens, GE could be forced to put up as much as $6 billion in new reserves as a bank.
However, as Haymann noted, "GE doesn't have the cash reserves."