GE to pay $50 million in fines to settle SEC fraud charges

August 4, 2009 by · Leave a Comment
Filed under: Stock Market News 

Here is my favorite quote: “GE bent the accounting rules beyond the breaking point, Overly aggressive accounting can distort a company’s true financial condition and mislead investors.” Funny how GE will get this statement made against it but nothing for many of the banks that have used off-balance sheet transactions to hide massive amounts liabilities in various derivatives.  This stuff is not even hidden, just look at the capitalization of the top 25 banks and they have a nice little line for derivative exposure (Page 22).  To be fair, GE does have a finance unit and they are treated as a bank holding company but I would like the SEC to review other institutions as well, I think many of the accounting practices used over the last 5 years needs to be seriously reviewed for there impact on investors and the financial system as a whole.

Reuters, Boston – General Electric Co will pay a $50 million civil penalty to settle charges by the U.S. Securities and Exchange Commission that it misled investors with some fraudulent accounting in 2002 and 2003.

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