A lot of the attention over the weakness in GE's (NYSE:GE) stock has been due to the poor performance in its industrial unit and the cyclical nature of earnings at its NBC Universal entertainment business. But, like Wall Street firms, the real risks for the conglomerate's numbers could be in its financial and money divisions.

According to The Wall Street Journal, "Investors are worried about the value of assets held by GE Capital, which accounts for most of its borrowing and more than one-third of its profit."

GE shares fell to a five-and-a-half year low yesterday, bottoming at $24.60.

But, GE is an exceedingly complex company and focusing on its financial unit is only part of the story. The real engine of the firm's growth has been its infrastructure unit. This includes GE's aviation, health-care, energy, and natural resources operations. The current risk to those businesses is substantial.

GE has made a point of telling investors that the rapid improvement in its infrastructure earnings, especially due to growth in Asia, will help drive double digit revenue growth. The current damage to the world's financial markets and slowing economies in the West and Asia could undercut GE's forecasts.

GE's stock could go lower because of risks in all its units. The firm's financial businesses are only part of the picture.

Douglas A. McIntyre is an editor at 247wallst.com.

GE's future undercut by financial unit originally appeared on BloggingStocks on Tue, 16 Sep 2008 09:43:00 EST. Please see our terms for use of feeds.