Government Electric and its secret bailout

Published December 3, 2010 5:00am ET



No company is more cozy with government, in my opinion, than General Electric. GE spends more on lobbying than any other corporation. So many of its businesses thrive on — or even depend on — Big Government: defense systems, embryonic stem-cells, smart meters, greenhouse gas offsets, wind mills, electric car components, high-tech batteries, health-care products, and more.

GE was a huge stimulus booster and benefactor. It’s no surprise, then, to learn from the Federal Reserve’s congressionally mandated audit that GE received $16.1 billion in aid from the Fed in the panic of 2008. Specifically, the Fed on more than a dozen occasions bought GE commercial paper — another way of saying the Fed loaned billions to GE to keep GE from collapsing.

Yet another chapter in GE’s long record of dependency on government.