Harry Markopolos (the fraud finder) took GE stock down over 11% in a single day with a dizzying series of numbers and charts, but also some choice words blaming rating agencies, analysts, and GE’s panel of Enron-epoch behaviors.
A day after that, GE shares rebounded almost 10% last week after Larry Culp (GE CEO) pumped in $2 Million on the dip and analysts came to the rescue of GE, mostly dubbing as Markopolos’ claims mistaken or based on old sources that was already baked into the stock price of GE.
Markopolos, recognized for finding Bernie Madoff’s scam, blamed GE of employing fake earnings and revenues, unreadable financial statements, hidden losses and debts, accounting tricks, and misleading disclosures to pull off a $38 billion fraud. Markopolos also stated that he wrote his report for an unidentified hedge fund with a small position on GE share. The reaction of the market earlier was definitely dismissive.
gefraud.com, Markopolos’ website, fashioned GE’s income to look the same as Enron’s. “GE uses many of the similar accounting tricks as Enron did, so much so that we have taken to describing this as the ‘GEnron’ case,” he claimed. He extended his allegations to auditors, actuaries, and analysts who he states overlooked billions in liabilities in the long-term care insurance business of GE.
On a related note, GE’s series of smart microwaves can now be managed by the Google Assistant. Users can employ voice instructions to set their microwave and carry out basic features such as pausing, starting, adding, or stopping time. The microwaves also have a “scan-to-cook” functionality that sets the microwave automatically after you scan the barcode of a frozen dinner. GE’s connected microwaves are already well-matched with Alexa, so this upgrade allows users to go with the virtual assistant of their selection. Present users can add in Google Assistant with either the Google Home app or GE Kitchen Appliances app.