This comparison looks relevantHard to say

The crisis that we are compared to that of 1929. This comparison looks relevant

Hard to say. Since the beginning of the financial crisis in August 2007, caused by the burst of the bubble in the United States, we have gone through fifteen months of shaking. The shock is severe and broadcasts to the rest of the economy, beyond the financial sphere. The financial system has lost more than 1,000 billion. Between 5,000 and 10,000 billion of leveraged funding came out of the system. You add to this an economic slowdown and a lack of liquidity, and you get actually very delicate equation. But Governments have acted and they are all now that the financial system reparte. If this is the case, the economy will leave.

Virtually nobody has predicted a crisis of such magnitude. Why

We saw the US housing bubble. But no doubt poorly measured the magnitude. Same for the "private equity". There is barely more than a year, a London Fund bragged to me to have found funding for operation $ 4 billion to 2 billion! Bubbles, was there more than one. Unfortunately, the financial tools to help us divide the risk were in fact contribute to the increase.

To avoid a new crisis, should be more regulation

We will have more control. It is inevitable and it is not necessarily negative if Governments find a good balance. If tomorrow the U.S. financial system is, for example, placed under the regulatory responsibility of a single player at the national level, if this actor is a Federal Reserve (Central Bank, Editor's note) with a qualified staff, it will be a plus. If regulators European and American financial sectors work together more, it will also be one better. What should not lose sight of, is that the "business" is to take risks. It cannot have a system in which banks refuse to lend or a system blocked too of risk aversion.

Also need to consider the compensation practices

Some in finance were too paid. This will change and it is healthy. A specialist in housing credit could Pocket 20 million per year while an engineer working in a company does no more than $ 250,000. A country can not lasting progress with this scale of remuneration. The differences are not dug overnight. It took twenty years. The situation will start to rebalance but it will take a little time.

Should we not even find and punish the culprits who have led us here

Today, the patient is on billiards. Saving the financial system. After that, once the worst of the crisis passed, we will have all the time necessary to find people to blame. There are example of financial products which are called the CDS. They represent an astounding 62 billion. It is the size of the global economy! These products are not regulated. Anyone can buy. I could quote you seven or eight financial products of this type. Need to think about all this in the future. But in the short term, the urgency, it is to deal with the financial crisis.

Do you believe in decoupling of economies, some continuing to grow while others are in a recession

Of course, there is a certain degree of decoupling. China's economy, for example, can continue to grow even if the US economy is more growth because there is a true market in China. Same thing in India. But that everyone has underestimated, this is how all of these financial products were scattered around the world. At the time, the financial system, he is completely interdependent. Decoupling theory took the lead in the wing because of this. Everywhere, the banking system is affected. When one bank to the other end of the world holds a financial product based on a California "subprime" loan, there is no decoupling!

How Warren Buffett decided to subscribe to GE capital increase

Everything is done very quickly. We decided the increase in capital Saturday. I've called him this day there. He said OK on Tuesday evening and we launched the capital increase on Wednesday. Five days. But five days at the moment, it's very long!

I know Warren for years, I have great respect for him, we do a lot of things together. We wanted to make a big capital increase. But the environment was very difficult. Have an investor of reference as it was a good thing. For we have a valuation of $ 200 billion, $ 3 billion, the amount of its investment, is not a large sum. But it is symbolic. Our action today offers a dividend of 7. We pay him a coupon of 10, so it's of 80-90 million of difference from what would be a normal shareholder. This is not a big difference. Its presence has helped us to raise from 15 to 16 billion dollars in a very difficult market. It is a

win-win operation.

Was it so urgent for GE to raise money

Non. What happened is that we saw the capital market is slow, so we reduced early September our appeals to the market, at the time of the rescue of Fannie Mae and Freddie Mac. We wanted to maintain our AAA rated, so we decided to increase the own funds of GE Capital and reduce reliance on commercial paper. Then, therefore that the market became more and more difficult, it is apparent that there was a real bonus for those who held the cash. Have more cash available was for us a strategic choice. Moreover, all the money we have lifted, we have always. It is a precautionary decision. All CEOs in the world, I think, think the same thing. The key was to act quickly.

Many said: if GE needs money, this is serious...

It is always more fun for the media to the doomsday headlines. The reality is that we will win $ 20 billion this year and that we wanted the cash to play offensive or defensive depending on the circumstances. We know what it takes to keep AAA. We never take it for granted. All our management's interest to keep this "rating".

When all values fall in the stock market, what is it withdraw you a little pressure when you look at your own course

I do not say that the fundamentals are not, but when you buy a GE action today, you have a dividend of 6 to 7. If you look at the 55 of our activity is industrial, these are activities that are number one in market share, benefit from technological leadership, displayed a strong profitability and had an average growth of 15 over the last ten to fifteen years. If you you intend in the future and you evaluate these activities, you arrive at a valuation which is superior in current scholarship. And that is without even looking at that are worth our financial activities, which themselves have better performance than their peers. Therefore the value of the company is very superior in scholarship. I want us to protect this value and the dividends. And I know that investors, on time, value.

Is the stock market unfair

You know, the Dow Jones rose from 12,000 to 11,000, then 10,000, 9,000, 8,000... Is that explained a fall of 1,000 points in a day It is necessarily fear, panic sales. It cannot be the fundamental. A company cannot lose 10 of its value in an instant. I do not say that this is unfair, or that the stock market is. I just think that people are concerned and that this concern must pass.

Can the financial collapse sound the hour of revenge for the industrial groups

It is sure that short-term finance has lost prestige. It is sure that it is no doubt hoped that we will witness a rebalancing to industry to services, with for example more investment in R & D industrial. But it is also when a sector mode to be whether its chance. Financial services will not disappear, and in the next 6 - 12 months, there may even be opportunities for external growth for a group such as GE in this area. Before the crisis, we were set a target of achieving 60 of our activity in the industry and 40 in finance. We will achieve this goal. It must see that, even if the financial services market will shrink in volume, it could improve on the front of the margins. Between 2001 and 2007, the influx of cash has weighed on the profitability of financial services. Today, the margins have already doubled in two years. Our financial activities may be smaller but more profitable.

Are you ready to revitalize merger-acquisition operations

We do not have a specific objective of operations to conduct but we always did evolve our portfolio and we will continue to do so. In the current context, it is much more interesting to be buyer than seller. Today, markets want of prudence before everything, but in the coming months things will evolve. There is a window of opportunity, a time where the liquidity will return and where the recovery will remain interesting. GE will have to seize this moment.

Criticize the sovereign wealth funds

Sovereign wealth funds are important. In General for a publicly traded company, they have even deserves to be more patient than other shareholders. And the relationship is not one-way. A group such as GE has expertise in education, management, management of projects that may be of interest to Arab countries, China and the Russia. We can be partners. In any event today, all Governments are transforming in sovereign wealth funds... They invest in the banks and the financial system. Tomorrow, the second wave will be to invest in infrastructure projects. Governments are and will be even more for us customers. I am plunged back into my books of economics that evoke Keynes. I am not the only one!