GE announced it is selling off the biopharmaceutical arm of the company. (Photo by Ulrich Baumgarten via Getty Images)

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General Electric Has Lost Most of Its Financial Power

The company that once powered America has “burned out.”

Once known as one of America’s last great industrial conglomerates, General Electric has fallen to a middling, indebted company on the brink of disaster in recent years.

That was the sentiment felt throughout former CFO Jeff Bornstein’s yearly address to company executives in the summer of 2017, the Wall Street Journal reported.

GE had yet to earn almost any of the $12 billion in cash it projected for the year and would need at least $8 billion to cover the dividends it had promised stockholders. The company had outlived the perils of the last American Century, skillfully navigating a depression, world wars and the “globalization of business.” But as of last year, it had trouble keeping the lights on, so to speak.

Over the course of several changes in top leadership during the past few years in an effort to revive the aging company, scared investors have driven stock prices down — from $29 in June of 2017 to $17 in December and then $12.75 in June 2018 and, finally, $7.20 this month.

New Chairman Larry Culp is now facing an uphill battle but has the support of his predecessors to “build a new GE.”

Read the full story at the Wall Street Journal