Money: General Electric fortifies defence against charges of bogus accounting - PressFrom - United Kingdom
  •   
  •   

MoneyGeneral Electric fortifies defence against charges of bogus accounting

12:10  20 august  2019
12:10  20 august  2019 Source:   reuters.com

Worst July for new car sales in UK since 2012

Worst July for new car sales in UK since 2012 Worst July for new car sales in UK since 2012

By Alwyn Scott NEW YORK (Reuters) – General Electric Co < GE .N> intensified its defence of accounting practices on Monday after investors FILE PHOTO: The General Electric Co. logo is seen on the company's corporate headquarters building in Boston, Massachusetts, U.S. July 23, 2019.

General Electric Co. further defended itself on Monday against fraud investigators who said last week the Boston-based conglomerate had failed to put aside money GE has disclosed that its accounting is being investigated by the U.S. Securities and Exchange Commission and the Department of Justice.

General Electric fortifies defence against charges of bogus accounting © Reuters/Alwyn Scott The General Electric Co. logo is seen on the company's corporate headquarters building in Boston

General Electric Co reinforced its defence of its accounting practices on Monday after investors asked more questions about an unusual research report last week that accused the jet engine and power plant maker of financial fraud.

The 175-page report, published on Thursday by Harry Markopolos, who blew the whistle on Bernard Madoff's Ponzi scheme, renewed concern about GE's finances and sent its stock tumbling.

"Some of (the) questions I've been receiving go straight to the heart of GE's culture, so let me be clear: we operate with absolute integrity and stand behind our financial reporting," Steve Winoker, GE's investor relations chief, said in a statement on Monday.

Police who investigated false VIP paedophile claims by fantasist 'Nick' should face a fresh inquiry, Defence Secretary Ben Wallace says

Police who investigated false VIP paedophile claims by fantasist 'Nick' should face a fresh inquiry, Defence Secretary Ben Wallace says Defence Secretary Ben Wallace said police officers who lied over the bungled inquiry into sex abuse claims by fantasist 'Nick', real name Carl Beech (pictured), should be 'investigated properly'.

NEW YORK (Reuters) - General Electric Co (N: GE ) further defended itself on Monday against fraud investigators who said last week the Boston-based conglomerate had failed to put aside money to cover billion in potential insurance losses and had improperly counted profit from subsidiary Baker

NEW YORK (Reuters) - General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based GE has disclosed that its accounting is being investigated by the U.S. Securities and Exchange Commission and the Department of Justice.

Investors are nervous about GE because the Boston-based conglomerate is expected to lose as much as $1 billion (£824.13 million) in cash this year, has slashed its dividend and profit forecast and taken more than $40 billion in charges and write-offs in recent years.

Among the biggest shocks to investors, GE said in 2017 that it would set aside $15 billion for long-term care insurance payouts, one of the largest such amounts ever.

General Electric fortifies defence against charges of bogus accounting © Getty Harry Markopolos Markopolos said GE would need to put aside an additional $29 billion for insurance losses, and that it had improperly counted profit from oil and gas services subsidiary Baker Hughes .

A Reuters article in March found that GE's reserves were then in line with other insurers, but some experts said GE would need to set aside $12 billion more because its estimates relied on optimistic assumptions.

Instagram begins letting users report misinformation

Instagram begins letting users report misinformation Instagram on Thursday added a way for users to easily report deceptive posts at the photo and video-oriented social network owned by Facebook. 

NEW YORK (Reuters) - General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based GE has disclosed that its accounting is being investigated by the U.S. Securities and Exchange Commission and the Department of Justice.

NEW YORK, Aug 19- General Electric Co intensified its defense of accounting practices on Monday after investors questioned it about an unusual. GE has suffered a series of financial losses and taken more than billion in charges and write-offs in recent years. Also on Monday, Steve Winoker, GE 's

GE's shares fell as much as 15% after Markopolos' report came out, recouping much of the decline on Friday. On Monday, GE shares were down 1.4% at $8.67 in afternoon trading.

In response to the concerns about insurance, Winoker said on Monday that the amount of GE's long-term care payouts would be determined "over decades, not years," and that GE uses "rigorous testing," "sound actuarial analysis" and follows "regulatory and accounting" rules.

Addressing the Baker Hughes questions, Winoker said accounting rules require GE to include the subsidiary's results in its earnings reports because it is the majority shareholder.

GE disclosed in 2018 that its accounting was being investigated by the U.S. Securities and Exchange Commission and the Department of Justice. It also is the subject of a class-action shareholder lawsuit that alleges fraud in GE's insurance and other accounting.

GE pushes back after whistle-blower calls it ‘a bigger fraud than Enron’

GE pushes back after whistle-blower calls it ‘a bigger fraud than Enron’ After Harry Markopolos’s claims, the stock plummeted 11 percent on Thursday. Boston-based General Electric returned fire, with its CEO claiming that the report was “market manipulation — pure and simple.” (Markopolos has declined to name the hedge fund that will compensate him for the GE research.) Culp castigated Markopolos for not checking with GE first, saying the failure shows Markopolos is not interested in accurate analysis and instead motivated by pushing the stock price down “so that he and his undisclosed hedge fund partner can personally profit.

General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based conglomerate had failed to put aside money to cover billion in potential insurance losses and had improperly counted profit from subsidiary Baker Hughes as its own. "Our future.

NEW YORK, Aug 19 (Reuters) - General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based GE has disclosed that its accounting is being investigated by the U.S. Securities and Exchange Commission and the Department of Justice.

Winoker, who covered GE as an analyst at UBS before taking his current job in January, said investors' questions about Markopolos' report prompted GE to comment on Monday, but did not say how many questions GE received or characterize them.

SHORT PROFITS

Markopolos said in the report that he stood to share in profits from a hedge fund that sold GE shares short before the report came out, a bet that the share price would fall.

Short sales of GE shares rose by about $995 million in the month before Markopolos' report came out, according to S3 Partners, a New York financial analytics firm.

General Electric fortifies defence against charges of bogus accounting © Reuters General Electric Co. Chief Executive Officer Larry Culp

GE Chief Executive Officer Larry Culp said last week that Markopolos' report was "market manipulation - pure and simple" - a reference to Markopolos' potential to profit from short-selling timed to the report.

Culp and Leslie Seidman, chair of GE's audit committee, said Markopolos did not talk with GE before issuing his report. GE said Culp, Seidman and other GE directors and executives bought shares after the report came out.

EV range anxiety still a concern for most UK company car drivers

EV range anxiety still a concern for most UK company car drivers Electric cars offer tax advantages, but drivers still fear running out of juice. Range anxiety is still the biggest stumbling block for six in 10 company car drivers who might otherwise consider an electric car, according to new research. A study by fleet management firm Venson Automotive Solutions found that 57 percent of the 200 respondents surveyed said they saw battery ranges as a “barrier” to electric vehicle (EV) uptake. Seven in 10 (69 percent), meanwhile, said they were concerned about the UK’s charging infrastructure. © Motor1.

General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based conglomerate had failed to put aside money to cover billion in potential insurance losses and had improperly counted profit from subsidiary Baker Hughes as its own. "Our future.

NEW YORK (Reuters) - General Electric Co further defended itself on Monday against fraud investigators who said last week the Boston-based GE has disclosed that its accounting is being investigated by the U.S. Securities and Exchange Commission and the Department of Justice.

GE said in the statement on Monday that it has not under-provisioned for long-term care insurance, which pays for assisted living and nursing home care for policy holders. Such policies have pushed some insurers into financial trouble, and even bankruptcy, because the costs have turned out to be much higher than were assumed when the policies were written in the late 1990s and early 2000s.

GE is now only a reinsurer of such coverage and says it has not written new long-term care policies since 2006.

Markopolos' report said GE needs to add $18.5 billion to reserves now because it has underestimated its potential claims, and will need to add a further $10.5 billion when new accounting rules take effect in 2021 or 2022.

Gallery: The least and most corrupt countries in the world revealed (Love Money)

The Kansas Insurance Department, GE's primary insurance regulator, said in a statement http://bit.ly/2Z7V4jp on Monday that after an initial review of the Markopolos report, it appeared to be "fairly simplistic" and did not seem to include some reserve considerations that were part of the department's latest financial examination as of Dec. 31, 2017.

Regarding Baker Hughes, GE said on Monday that the company's assets and income are correctly included in GE's financial reports because GE owns 50.2%, down from 50.4% last year.

Markopolos said GE is double-counting because it does not in practice direct activities at Baker Hughes.

Explore the issues faced by the UK’s most vulnerable children and young people this summer and discover what you can do to help.


Man to appear in court after being caught with weapon at Electric Picnic.
Man to appear in court after being caught with weapon at Electric Picnic

—   Share news in the SOC. Networks

Topical videos:

usr: 3
This is interesting!