BUSINESS BRIEFS
GE 1st-quarter profits drop 36% as finance unit still a major drag
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WASHINGTON — General Electric Co.'s first-quarter earnings fell 36 percent as profits tumbled at its troubled finance arm, but the results beat Wall Street forecasts in a glimmer of good news for the struggling firm.
While GE Capital remains a major drag on the conglomerate's profits, GE's strategy of weathering the economic slowdown by relying on its big industrial businesses appears to be paying off, at least for now.
Jeffrey Immelt, GE's chief executive, said the conglomerate is doing its best to navigate through the recession while trying to limit the damage from factors like GE Capital's growing losses.
GE, which has a stake in almost every sector of the economy, from light bulbs and credit cards to windmills, reported net income of $2.74 billion, or 26 cents per share, after paying preferred dividends.
GM BANKRUPTCY 'PROBABLE' BECAUSE OF REQUIRED GOALS
DETROIT — General Motors Corp. Chief Executive Fritz Henderson said a bankruptcy filing is "probable" because of the restructuring goals GM must meet to get more government loans, but that isn't the company's preferred option.Henderson said GM is working on two parallel plans: one that involves bankruptcy and one that doesn't.
Henderson also said GM will need more government aid sometime in the second quarter, although the timing has yet to be decided.
FED CHIEF WANTS REGULATION OF NEW FINANCIAL PRODUCTS
WASHINGTON — Federal Reserve Chairman Ben Bernanke said financial innovation is good for the economy but must be accompanied by proper regulation.New financial products, such as subprime mortgages and structured investment vehicles, have become symbols of the economic crisis.
The challenge for the government is to come up with regulations that protect consumers without stifling innovation, the Fed chief said.
