I don’t recognize some of the accounting practices that he describes as GAAP. “So I think that the basis on which the report was developed is questionable at best.
Ge huge writedown full#
1 objective is to ensure the market views our financial reporting as full of integrity and that we’re providing complete and accurate financial information. “I’ve been on the board for about 18 months now and I’ve been chair of the audit committee since April, and my experience of being a director at GE is that I’m working with a great team of people and a great set of director colleagues, and our No. That report does not reflect the GE that I know. “When I saw the report this morning and had a chance to just flip through it, my initial reaction was that I thought it was full of misleading, inaccurate, and inflammatory statements. Seidman, who “eats nails for breakfast,” one GE insider told Fortune magazine, did exactly what CNBC wanted her to-she put her “GAAP Expert” hat on and took a dump on the report: So later that afternoon, on its show “Closing Bell,” CNBC had Seidman on to get her take on Markopolos’ report. It’s growing exponentially and it’s going to make this company probably file for bankruptcy.” Those losses are unsustainable and growing at an exponential rate. On CNBC’s “Squawk on the Street” Thursday morning, Markopolos said, “GE is losing $5.27 for each dollar of premium income they are taking in. Its stock was down slightly this morning. But GE’s stock rebounded the following day after CEO Larry Culp bought nearly $2 million worth of the company’s stock. The report, which culminated an investigation into GE’s accounting practices in which Markopolos was paid by an unidentified hedge fund to produce and publish, sent the company’s stock plummeting 11% on Thursday, its biggest drop since April 2008.
accounting rules (the ones Seidman used to oversee) by failing to book a big writedown on its Baker Hughes GE energy unit.
Leslie SeidmanĪs we mentioned last Friday, Markopolos called GE “a bigger fraud than Enron.” In his 175-page report, he accused the company of failing to take adequate reserves to cover huge current and future losses in its long-term care insurance business and violating U.S.
15 to comment on the report from Madoff whistleblower and forensic accountant Harry Markopolos that accuses GE of committing a $38 billion accounting fraud. Remember Leslie Seidman, the former chairman of the FASB? Well, she is now, among other things, a member of General Electric’s board of directors and chairman of its audit committee.
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