THE TOP STORY THIS HALF HOUR, A
CREDIT CRUNCH FOR GENERAL
ELECTRIC.
THE WALL STREET JOURNAL IS
REPORTING HOW THE INDUSTRIAL
GIANT'S DEBT WOES ARE SPREADING
ACROSS THE REST OF THE MARKET.
THE COMPANY'S RECENT WOES HAS
THE BOND PRICE SLIDING ALONGSIDE
THE STOCK.
THINGS HAVE ONLY GOTTEN WORSE
HERE.
STOCK IS NOW 50% THIS YEAR ALONE
AND IT IS SITTING AT $8.32 A
SHARE JOINING ME RIGHT NOW WITH
REACTION IS THE FORMER VICE
CHAIRMAN OF GE AND THE FOUNDER
OF THE SUZANNE WRIGHT
FOUNDATION.
BOB WRIGHT IS HERE.
WHAT A DISAPPOINTMENT GE THOSE
BE FOR YOU.
>> LISTEN, I THINK I HAVE TO SAY
LARRY KULP IS THE NEW CEO AND
BASED ON THE INTERVIEWS I'VE
SEEN HIM HAVE AND HOW HE
CONDUCTS HIMSELF, I THINK HE'S A
GREAT CHOICE.
AND I THINK THIS IS THE PERFECT
PERSON, A PERFECT PERSON TO TAKE
ON THIS SITUATION.
HE HAD A SMALLER COMPANY THAT HE
BUILT INTO A HUGE COMPANY.
HE DID SOME ODD 30 ACQUISITIONS
IN A 14-YEAR PERIOD.
ALLEGEDLY HE NEVER TOOK A
WRITE-DOWN, THAT'S ALMOST
INCREDIBLE.
AND HE'S NUTS AND BOLTS GUY AND
WHAT HE'S DOING NOW, HE HAS TO
DO, HE HAS TO GO THROUGH EVERY
SINGLE BUSINESS AREA AND MAKE
SURE THAT THE ONES THAT ARE
EARNING, THAT ARE PROVIDING
EARNINGS ARE DOING IT AT THEIR
VERY BEST AND HE MAY BE ABLE TO,
IF HE'S ABLE TO FIND SOME ASSETS
THAT HE CAN SELL TO OTHER
PEOPLE, THAT DON'T HAVE CURRENT
EARNINGS.
SO IT'S LIKE DIAMONDS, SELLING
JEWELRY.
BUT VALUABLE TO SOMEBODY ELSE
BUT IT'S NOT PROVIDING ANY CASH
TO YOU RIGHT NOW.
HE NEEDS CASH FROM HIS
BUSINESSES AND THERE'S SO MANY
BUSINESSES TO CHOOSE FROM.
MARIA: AND THEY'RE JEWELS.
LOOK AT THE JET BUSINESS, IT'S A
JEWEL OF A BUSINESS.
>> THAT BUSINESS GENERATES CASH.
YOU DON'T WANT TO SELL THAT.
MARIA: EXACTLY.
>> YOU DON'T WANT TO SELL RIGHT
NOW HEALTH CARE, IF YOU SELL A
BUSINESS, IT'S A ONE-TIME HIT.
YOU GET THE MONEY BUT YOU'RE
GOING TO HAVE CREDITORS THAT
WILL WANT THAT MONEY.
SO HE HAS TO PLAN VERY
CAREFULLY, IF HE SELLS
SOMETHING, HOW HE'S GOING TO
COVER PENSION, HOW HE'S GOING TO
COVER CREDITORS AND -- BUT THE
TRICK IS, HE HAS TO GET ALL OF
HIS OPERATING BUSINESSES WORKING
VERY WELL AND GENERATING INCOME
BY THE MONTH, BY THE QUARTER.
MARIA: ONE OF THE WORST
ACQUISITIONS PROBABLY WAS THE
ALMSTON DEAL, NO QUESTION,
RIGHT?
>> IT'S A QUESTION.
IT CAME ALONG AT THE WRONG TIME
BUT THE REAL PROBLEM I HAVE WITH
THAT IS THAT THEY HAD TREMENDOUS
LIABILITIES THAT WERE ON THE
BALANCE SHEET RIGHT THEN AND
THEY DIDN'T ADDRESS THOSE.
THEY HAD A PENSION LIABILITY
THAT WAS GETTING GROWING.
THEY HAD THIS HEALTH CARE --
MARIA: DID THEY NOT KNOW THAT.
>> OF COURSE THEY KNEW IT.
THEY SOMEHOW BURIED IT IN THEIR
MINDS THAT THEY COULD TAKE IT
ANOTHER DAY.
THEY SPENT $53 BILLION ON BUYING
BACK STOCK AND BUYING ALTSRAM
AND DOING THIS INDUSTRIAL
SOFTWARE PROGRAM THAT DOESN'T
GENERATE ANY MONEY.
MARIA: YOU RAN THIS COMPANY A
ALONG WITH JACK WELCH AND YOU
RAN IT REALLY DURING THE GLORY
DAYS.
THE STOCK WAS AT 59 AND 3/4 ON
YOUR WATCH.
IT'S INCREDIBLE TO SEE THIS
COMPANY GO FROM A MARKET VALUE
OF $600 BILLION AT THE HIGH TO,
WHAT, $80 BILLION RIGHT NOW.
I MEAN, PEOPLE ARE COMMENTING
ABOUT IT.
A COUPLE WEEKS AGO I SPOKE WITH
BARRY DILLER.
HE WAS LOOKING AT GE VERSUS
OTHER INDUSTRIAL GIANTS,
PARTICULARLY AS RELATES TO THE
SALE OF NBC UNIVERSAL.
HERE'S WHAT HE SAID.
CAN YOU IMAGINE IF GE WAITED TO
SELL NBC UNIVERSAL TO COMCAST
FOR TODAY, VALUATION WOULD HAVE
BEEN MUCH DIFFERENT.
>> GE IS A WHOLE OTHER STORY.
WHEN YOU SEE THE RISE OF ALL OF
THESE OTHER COMPANIES IN THIS
LAST PERIOD AND YOU SEE THE YEAR
BY YEAR DESTRUCTION OF THE
GREATEST INDUSTRIAL COMPANY
CREATED, GE, IT'S QUITE AN
AMAZING -- YOU CAN PARALLEL IT.
MARIA: WHAT DO YOU THINK
HAPPENED?
>> I WANT TO MAKE A POINT.
I KNOW BARRY DILLER PRETTY WELL
I KNEW JACK WELCH VERY WELL.
THEY BOTH PAY A LOT OF ATTENTION
TO THE BALANCE SHEET.
BARRY IS VERY GOOD AT ACQUIRING
BUT HE CONSTANTLY WANTS TO KNOW
HOW MUCH CASH HAVE I GOT, WHAT
ARE OUR LIABILITIES.
MARIA: THAT'S HIS SUCCESS.
>> THAT'S BEEN HIS SUCCESS.
MARIA: THAT'S WHAT JACK DID.
>> JACK DID THE SAME THING.
JACK DID A LOT OF THINGS.
BUT HE HAD A LOT OF GOOD PEOPLE
AROUND HIM.
LARRY BOSETT WAS THERE FOR MANY
YEARS, REALLY SMART PEOPLE THAT
ARE VERY ATTENTIVE TO THE BLESTT
ARE VERY ATTENTIVE TO THE BLESTE
ARE VERY ATTENTIVE TO THE BLESTB
ARE VERY ATTENTIVE TO THE BLESTL
ARE VERY ATTENTIVE TO THE BLESTN
ARE VERY ATTENTIVE TO THE BLESTE
SHEET.
THAT HISTORY SEEMED TO DISAPPEAR
IN THE LAST TWO OR THREE YEARS.
MARIA: IN A 20 YEAR PERIOD,
WERE THEY NOT AS FOCUSED ON THE
BALANCE SHEET AND KNOWING WHERE
THE CASH WAS, HOW MUCH CASH
WOULD BE LEFT WITH THESE
ACQUISITIONS.
I DON'T KNOW WHAT HAPPENED.
IT'S AN INCREDIBLE FALL FROM
GRACE.
>> HAVE YOU TO THINK MAYBE.
THERE STARTED TO BE OUTSIDE
INTERESTS AND HEDGE FUNDS WERE
COMING IN WITH A LOT OF
SUGGESTIONS AND THAT PUTS A LOT
OF PRESSURE ON YOU.
THEY WANT THAT STOCK PRICE UP.
MARIA: YEAH.
>> BUYING BACK STOCK WHEN YOU
DON'T HAVE THE MONEY TO DO IT IS
A WAY TO INCREASE THE STOCK
PRICE BUT IT'S NOT A WAY TO HELP
THE BALANCE SHEET.
MARIA: CAN IT EVER GO BACK TO
ITS GLORY DAYS?
>> THESE BUSINESSES WE'RE
TALKING ABOUT, HEALTH CARE AND
AVIATION AND POWER ARE NEVER
GOING TO GO AWAY.
AND THEY'RE GLOBAL BUSINESSES.
THAT'S ONE OF THE THINGS THAT
PEOPLE DON'T RECOGNIZE THAT
GREAT ASSET OF GE IS THEY'RE ALL
OVER THE WORLD.
MOST OF THEIR EMPLOYEES ARE
OUTSIDE THE UNITED STATES.
THESE ARE LOYAL PEOPLE.
THEY'RE SKILLED PEOPLE.
THAT BUSINESS IS -- LARRY JUST
HAS TO GET THEM ALL FIRING AT
THE SAME TIME FOR GETTING HIS
CASH.
HE HAS TO DO IT DAY BY DAY, ONE
AT A TIME.
IT'S NOT EASY.
I THINK HE'S CAPABLE OF THAT.
MARIA: WE'LL WATCH THE
SITUATION.
LET'S FAST FORWARD TO WHAT
YOU'RE DOING RIGHT NOW.
TODAY IS WORLD PANCREATIC CANCER
DAY.
AND YOU'VE GOT YOUR TIE ON.
>> PANCREATIC CANCER TIE.
MARIA: THE GOAL IS TO RAISE
AWARENESS TO ENCOURAGE OTHERS TO
TAKE ACTION.
YOU FOUNDED THE SUZANNE WRIGHT
FOUNDATION, INSPIRED BY YOUR
WONDERFUL LATE WIFE SUZANNE.
TALK ABOUT WHAT'S BEEN DONE IN
TERMS OF PANCREATIC CANCER.
YOU STARTED HAARPA WHICH IS
BASICALLY MODELED AFTER DARPA.
>> IT COMES FROM DARPA, YEAH.
AND FIRST OF ALL, I'LL SAY
THERE'S BEEN A LOT OF RESEARCH
MONEY PUT INTO PANCREATIC
CANCER, PROBABLY A BILLION
DOLLARS OVER THE LAST SEVEN OR
EIGHT, NINE, 10 YEARS, AND THE
PROBLEM IS THE MORTALITY RATE IS
91.5%.
AND THAT'S THE SAME MORTALITY
RATE AS 50 YEARS AGO.
SO THIS IS LIKE THE BASKETBALL
TEAM THAT HAS GREAT PLAYERS, BUT
THEY CAN'T WIN ANY GAMES.
AND THE SCOREBOARD IN HEALTH
CARE IS MORTALITY.
AND THAT'S -- SO THERE'S BEEN A
FAILURE TO ADDRESS THAT,
UNWILLINGNESS OR UNABLE TO
UNWILLINGNESS OR UNABLE DO THAT.
HARPA IS DESIGNED TO COME IN AND
TACKLE THINGS LIKE EARLY
DETECTION WHICH IS CRITICAL.
PEOPLE GET DETECTED WITH
PANCREATIC CANCER AND 85% ARE
STAGE FOUR.
IT'S GONE TO THE LIVER AND
THERE'S NO SURGERY THAT CAN BE
DONE.
MARIA: HOW DO DO YOU EARLY
DETECTION?
>> ENDOSCOPIC EXAMINATION IS THE
BEST WAY TO DO IT.
IT'S NOT IN THE STANDARD OF
CARE.
COLONOSCOPY WAS NOT IN THE
STANDARD OF CARE 25 YEARS AGO,
NOW IT IS.
ENDOS'S COPIC IS THE ONLY WAY TO
SEE THE -- EXAMINE THE PANCREAS
AND THE LIVER STATEMENT AT THE
SAME TIME.
THERE'S ALSO BLOOD TEST THAT CAN
BE DONE.
THERE'S LOTS OF THINGS.
WHAT HARPA DOES, IT PULLS
TOGETHER PEOPLE THAT HAVE GREAT
IDEAS BUT FOR SOME REASON OR
OTHER GENERALLY COULDN'T GET IT
FINANCED CORRECTLY OR COULDN'T
FINISH IT ON TIME.
YOU PULL IT TOGETHER AND WORK ON
A TIME SCHEDULE.
IT'S THE MOTTO IS FAIL FAST.
IN OTHER WORDS, GET THIS THING
DONE FAST OR LET'S MOVE ON.
MARIA: NOW THAT YOU'RE ON IT, I
THINK THERE'S A LOT MORE
OPTIMISM.
I KNOW WHAT YOU'VE DONE FOR
AUTISM.
I KNOW YOU'RE ON THE SAME GOAL
WITH PANCREATIC CANCER.
>> EVERYBODY I TALK TO THINKS
IT'S A GOOD IDEA.
THERE'S INSTITUTIONAL
RESISTANCE.
THE ACTUAL CHANGE IS -- THIS IS
A CHANGE TO TAKE THIS FROM THE
DEPARTMENT OF DEFENSE AND PUT IT