Warren Buffett Ploughed $3 Billion Into General Electric During The Financial Crisis

Warren Buffett invested $US3 billion in General Electric in October 2008, handing vital cash to the industrial titan just as credit markets seized up and global demand slumped.

GE CEO Jeff Immelt had issued a profit warning in late September, citing “unprecedented weakness and volatility in the financial services markets.” The credit crunch was especially bad news for GE Capital, the group’s massive financing division that loaned money to consumers and businesses.

Immelt cut the dividend that GE Capital paid to headquarters, halted share buybacks, and put further borrowing plans on hold. He also moved up his goal to reduce GE’s reliance on financing profits to the end of 2009.

Full Story @Business Insider