GE shocks keep coming, stock off 5%

General Electric shares sank after two analysts sounded more alarm bells around the company’s liquidity, and a report said former GE employees were being questioned by federal investigators about its troubled insurance business.

Once among the most respected American businesses, GE can now barely go one full week without a negative headline. In just the past one month, news about an expanded probe of the company’s accounting, credit rating downgrades, potential tax problems, and escalating liquidity con- cerns have led to a steep 27 percent erosion in the stock price.

On Friday, Deutsche Bank analyst Nicole DeBlase slashed her price target on the stock by more than a third, to $7, amid continuing questions on the beleaguered multinational’s liquidity outlook. JPMorgan’s Steve Tusa, a long-time bear on the company, said commentary from GE’s partner Safran SA supported his view that profit and cash flow growth at the aviation segment would be below consensus expectations.

The other blow came as The Wall Street Journal reported that several former GE employees have said the company’s insurance business failed to internally acknowledge worsening results over the years. The employees also said that they were interviewed by government lawyers.

GE spokeswoman Jennifer Erickson declined to comment on the specifics of the insurance business investigation.

Shares closed down 5.5 percent, to $7.50, after dropping as much as 6.4 percent earlier in the session.