tag:blogger.com,1999:blog-4491368270187146156.post8143447874410511521..comments2023-12-27T20:01:53.896-05:00Comments on Jacoline Loewen: Jack Welch blames the i-bankersJacoline Loewenhttp://www.blogger.com/profile/14420877042823247140noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4491368270187146156.post-54071160633079524532009-01-28T09:42:00.000-05:002009-01-28T09:42:00.000-05:00Michael@nCompassYou are spot on!I think Jack has a...Michael@nCompass<BR/>You are spot on!<BR/>I think Jack has a few people in mind when he talks about i-banks - Lehmanns, probably?<BR/>Interesting experience you have.Jacoline Loewenhttps://www.blogger.com/profile/14420877042823247140noreply@blogger.comtag:blogger.com,1999:blog-4491368270187146156.post-63649583823533221512009-01-27T12:38:00.000-05:002009-01-27T12:38:00.000-05:00Jack is Jack and no disrespect intended (I first h...Jack is Jack and no disrespect intended (I first hand witnessed how he could transform the people and process side of an organization) but GE practised and perhaps refined an art that has contributed greatly to this meltdown - the art of successfully putting a financial arm behind a manufacturing organization - GE Money and GE Capital (GE $) – they provided funding to, in part, aid other GE businesses in attracting customers. Buy our GE locomotives and GE $ can provide funding, purchase our GE Fanuc assembly equipment and GE $ can provide leasing options, expand your business - GE $ can back your expansion. And it isn’t only GE, GM did it with GMAC, Ford did it, almost everyone decided to provide funding for their customers to purchase their products – in essence creating a market that might not have been there otherwise. GE enjoyed the good years when the financial arm was ‘making’ revenue on lease payments and investments (how profitable were the other arms – appliances is for sale, consumer & industrial is upside down, plastics was sold), they (executives running organizations following this model) reaped big rewards and now who is paying the price – the shareholder, not the executives. In fact the entire economy is paying the price. You can’t blame anyone for taking an organization public – it’s form of raising capital – you have to blame unsustainable business models and organizations that put the quarter ahead of all else. Wasn’t GE Money, GE Capital an i-bank?<BR/><BR/>Michael @ nCompassAnonymousnoreply@blogger.com