General Electric Co. (GE) shares sank after two analysts sounded more alarm bells around the company's liquidity and a report said former GE employees were being questioned by federal investigators about its troubled insurance business.
Once among the most respected American businesses, GE can now barely go a full week without a negative headline. In just the past month, news about an expanded probe of the company's accounting, credit rating downgrades, potential tax problems, and escalating liquidity concerns have led to a 27 percent erosion in the stock price, overshadowing more positive announcements from GE, including its accelerated exit from Baker Hughes and the restructuring of the struggling power business.
GE's finance arm, especially, has garnered a lot of attention. The insurance business came under the spotlight earlier this year when GE said it would take a $6.2 billion charge related to an old portfolio of long-term care insurance, and has since then thrown up many more red flags. J.P. Morgan analyst Stephen Tusa warned earlier this year that the finance unit, GE Capital, may still have underappreciated risk.
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