General Electric named John Flannery its CEO effective Aug. 1, 2017.

General Electric CEO John Flannery confirmed on Wednesday what Wall Street was already panicking about: The dividend may not be safe, even in its reduced state, sending the stock down over 7%, the biggest drop in nine years.

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Ticker Security Last Change %Chg
GE GENERAL ELECTRIC COMPANY 14.18 -1.11 -7.26%

“It is ultimately a function of the free cash of the company and that’s ultimately a function of operating performance and things we do with the portfolio” said Flannery in response to a question during the Electrical Products Group conference reported by Reuters.

On Tuesday, FOX Business was first to report that the water-downed dividend was in fact in danger. “Based on media reports (Charlie Gasparino at Fox Business), GE might be looking to again cut its dividend or eliminate it altogether,” wrote Bank of America analyst Andrew Obin in a note to clients titled “Potential divi cut volatility near-term, more stability long-term.”

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