Defending GE (GE) Is Like Defending Chris Brown - Impossible!

After trading higher earlier today, General Electric (NYSE: GE) is back to its old tricks - that is - trading negative. Shares have been in absolute free fall, down nearly 60% since the beginning of the year. The main fears about GE surround the GE Capital unit and its bloated balance sheet. Some think the loan book is a potential time-bomb due to rising delinquencies and a sagging economy. The other fear is a credit rating downgrade, which is already likely fully discounted by the market.

GE executives have been vigorusly trying to combat the market fears. Here is a run-down of their recent moves to defend the stock and stop the slide:

• GE insiders have been buying the stock hand over fist recently to little avail.
  
• In a letter to shareholders, CEO Jeff Immelt takes responsibility for the company's tarnished reputation.
  
• GE cut its quarterly dividend from $0.31 to $0.10 per common share.
  
• Presented at a Barclays Capital conference in early February showing they cut leverage at GE Capital
  
• Yesterday, GE addressed rumors of a capital raise, saying they are "pure speculation" and "inaccurate."
  
• Today, GE CFO Keith Sherin defended the company on CNBC (below is the video, here is StreetInsider.com's summary of his comments, and here is a GE press release).

Also, GE will provide a detailed review of the financial services business the week of March 16 in a dedicated GE Capital meeting.

With all these "reassurances" you would think the stock would recover, or a least stabilize. Right? Well it hasn't and just continues its slide to never, never land. Why? It seems it comes down to one word - TRUST. Quite simply put, no one believes the management. Is it time for a house cleaning?

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