of American capitalism over the past few decades.
It is rather soon to tell whether GE’s retreat from finance is harbinger of a more structural and long-term transformation in the American economy. After all, the logic that seems to be driving the company’s retreat is the same logic that once drove it into finance: increasing its stock price.
Still, this development suggests that times are changing, however slowly, and Dodd-Frank deserves some credit for altering the incentives and calculations of the investment community. Let’s hope more companies join this trend.