NEIL: ALREADY COMMON TO GE
COLLAPSE TO GE COLLAPSE IS
CONTINUING.
SHARES ARE DOWN CLOSE TO 18%
THIS MONTH.
THE FORMER GE VICE CHAIRMAN,
FORMER NBC CHAIRMAN BOB WRIGHT.
ALWAYS GOOD TO SEE YOU.
>> THANK YOU, NEIL.
THANK YOU FOR HAVING ME.
MUCH APPRECIATED.
NEIL: I LOVE HAVING YOU, MY
FRIEND AND I STILL HOLD YOU
RESPONSIBLE FOR HIRING ME ON
CNBC EARLIER OUTPUT IN THE
COMBUSTION ON IT.
MUCH APPRECIATED.
>> YOU WERE OUR STAR.
YOU ARE 13 YEARS OLD.
NEIL: I WISH THAT WERE TRUE.
I ALWAYS AM GRATEFUL FOR YOU.
LET ME GET YOUR FIRST TAKE ON
THE HEADY DAYS AT GE AND
EVERYTHING FIRING ALL CYLINDERS
IN A TEAM THAT WAS CONSIDERED
LIKE A WHARTON DREAM TEAM.
WHAT HAPPENED?
WHAT'S GOING ON?
>> IT WAS A LOT MORE ATTENTION
TO THE BALANCE SHEET AND WE ALSO
HAD A POWERHOUSE IN GE CAPITAL,
WHICH IS A NON-BANK, BANK, WHICH
WAS VERY LARGE AND DO ALL KINDS
OF FINANCIAL TRANSACTION.
MORE THAN THAT WAS A VERY BIG
HELP.
EVERYTHING CAN GET AWAY FROM YOU
AT SOME POINT OR THE OTHER.
THE IMPACT OF GE CAPITAL.
BUT AT THE SAME TIME, WE HAVE TO
DO WITH A NUMBER OF OUTSIDE
ISSUES ACROSS THE BUBBLE IN
POWER, WHICH WAS ENRON, THIS
KIND OF PHONY POWER SHORTAGE IN
AMERICA, WHICH ACTUALLY EXIST.
WE GOT HIT WITH A LOT OF THINGS.
EVERYTHING WAS GETTING BETTER
UNTIL WE HAD 15.
IN 15 AND I DON'T BLAME ANYBODY,
BUT COMING INTO THE BIG TEASE,
THEY BROUGHT A KEY MEMBER OF
THEIR BOARD.
AND ALL OF A SUDDEN THERE SEEMS
TO BE A NONSENSE THE LIABILITIES
WHERE THEY NEEDED TO BE
SATISFIED AND HOW THEY WORK.
NEIL: TO THINK IN RETROSPECT DO
YOU THINK IT WAS THE WRONG
CHOICE AND THAT STARTED THIS
PATH IN THE WRONG DIRECTION.
OF COURSE RIGHT BEFORE 9/11 AND
I UNDERSTAND THAT.
>> ACTUALLY, THE DAY OF 9/11.
NEIL: RIGHT.
SO WHAT OF THAT.
IT WAS HIS PICK.
AMONG THE OTHER CANDIDATES.
I WOULD NOT ALTER THE CODE ON
THE BOARD WITH JACK.
IT JUST, YOU KNOW, SOMEHOW OR
THE OTHER WE LOST OUR HOUR
BECAUSE I NEVER CAN QUITE GET
PAST IT.
WE JUST LOST OUR BURIED IN
DEALING WITH THE BALANCE SHEET
AND THOSE INSURANCE LIABILITY
SHOULD HAVE BEEN DEALT WITH.
THEY COULD'VE BEEN DEALT WITH
FOR 12 OR $13 BILLION IN TERMS
OF REASSURANCE.
NEIL: YOU GUYS DIDN'T MISS A
LINE AND NOT BALANCE SHEET.
NBC UNIVERSAL.
I'M JUST WONDERING NOW HOW YOU
PUT THE EGG BACK TOGETHER.
IS THAT EVEN POSSIBLE?
A LOT OF PEOPLE SAY NO DIVIDEND,
NOTHING.
I MEAN, SELL OFF EVERYTHING BUT
THE KITCHEN.
>> YOU CAN'T REALLY DO THAT
BECAUSE YOU'VE GOT A CERTAIN
AMOUNT OF DEBT THAT IS COVERED
BY GE ITSELF AND YOU HAVE BOND
ISSUES.
YOU CAN'T BE SELLING THINGS
EXPECT DEAN YOU'LL REDUCE.
NEIL: IT JUST GIVES YOU
TEMPORARY CASH FLOW.
AND THEN YOU DON'T GET THEIR
EARNINGS.
YOU HAVE TO DO THAT VERY
CAREFULLY.
NEIL: SAID IT'S GOING TO BE THE
LAST FUNERAL DIRECTOR.
>> YOU HAVE TO THINK ON THAT GE
HAS ANOTHER ASSET THAT'S VERY
HARD TO VALUE BUT CAN'T BE
REPLACED.
GE HAS A GREAT REPUTATION OUT IN
THE ENTIRE WORLD.
THEY'VE DONE BUSINESS EVERYWHERE
FOR 80, 90 YEARS.
THESE BUSINESSES THEY HAVE ARE
TAKING ADVANTAGE OF THAT AND SO
FORTH.
YOU HAVE TO BE VERY CAREFUL.
THAT'S A REAL ASSET.
MOST OF GE EMPLOYEES ARE OUTSIDE
THE UNITED STATES.
THOUGH THERE IS A HUGE GOODWILL
AFTER AND THAT IS AN ASSET THAT
I THINK LARRY APPRECIATE IAN
FROM HIS SMALLER COMPANY THAT
DIDN'T HAVE THAT REACH.
HE'S GOT TO GET HIS BUSINESS IS
PERFORMING WELL ENOUGH TO COVER
AND REDUCE HIS LEVERAGE.
NEIL: IT FEEDS ON ITSELF NOW.
>> WELL, HE'S TAKING A DAY AT A
TIME AND I THINK THAT'S THE WAY
TO DO IT.
YOU CAN ALWAYS SELL SOMETHING.
IF YOU SELL SOMETHING YOU DON'T
GET IT BACK.
NEIL: GOT TO BE CAREFUL.
NEIL: IF I COULD SWITCH GEARS TO
NBC UNIVERSAL AND OF COURSE
YOU'VE BEEN READING THE BATTLE
OF THIS PRESIDENT HAD WITH THE
PRESS WANTING TO TAKE AWAY JIM
ACOSTA'S PRESS CREDENTIALS.
THIS NETWORK, FOX SPORTS CNN
LEGAL EFFORT TO HOLD ONTO THOSE
CREDENTIALS.
HOW DID YOU FEEL ABOUT THE
ADMINISTRATION'S WAR BUT IN THIS
CASE CNN, BUT THE PRESS IN
GENERAL.
>> WELL, I WISH IT WASN'T THERE.
I THINK IT'S DISTRACTING.
I DO RESENT THE FACT THAT CNN
SPENDS ABOUT 40% OF ITS TIME
ATTACKING THE PRESIDENT IN ONE
FORM OR ANOTHER.
NOTHING HE CAN DO THAT THEN THEY
COULD.
IT DOESN'T GET A LOT OF
COVERAGE.
IT'S A SHAME.
>> THE NETWORK YOU WOULD NOT
HAVE SUPPORTED THE PRESIDENT
REVOKING A PRESS PASS.
OR WOULD YOU.
>> IT DEPENDS WHAT PURPOSE.
YOU COULD SUSPEND SOMEBODY.
UNTIL YOU GET YOUR ACT TOGETHER.
>> I THOUGHT IT WAS AN
UNFORTUNATE PERFORMANCE ON HIS
PART.
HE WOULDN'T RELINQUISH THE
MICROPHONE.
HE WAS ASKED TO DO IT THREE OR
FOUR TIMES.
THAT WAS INAPPROPRIATE.
IN UPCOMING COULD'VE BEEN ASKED
TO SIT DOWN AND NOT ANSWERING
HER QUESTIONS.
THERE'S OTHER WAYS TO DEAL WITH
IT.
VICIOUS BLOWING UP NOW.
NEIL: YOU A FAR BIGGER THINGS TO
WORRY ABOUT.
YOU EVER CALL REPORTERS ARE
RANCOROUS ON THE CARPET FOR
SOMETHING YOU THOUGHT THEY GOT
FACTUALLY WRONG OR
HYPERVENTILATED?
>> I WOULD GO THROUGH ANDY LACK
AT THAT TIME, WHO'S A VERY GOOD
NEWS DIRECTOR.
I WOULD GO THROUGH OTHER PEOPLE.
GENERALLY I WOULDN'T CALL THE