top | item 20881928

(no title)

supsep | 6 years ago

GE is sinking because of Immelt's reckless tenure, inlcuding the purchases of Alstom and Baker Hughes.

discuss

order

H8crilA|6 years ago

> The issues outlined by Markopolos lie primarily in GE's troubled Capital unit, a financial services division often seen as a black hole in the company. The Capital unit holds commercial and personal loans, as well as insurance policies that include coverage of long-term care.

> In his report, Markopolos suggests that an accounting rule change for insurance liabilities and a significant lack of reserves to cover long-term care liabilities will push GE to take a $29 billion hit. While GE called the report meritless, an analyst said the allegations reflect "a GE culture that historically hid losses and deceived investors."