Loading
GE stock issues more detailed response to fraud investigator
CNBC
Mon, 19 Aug 2019 14:27

GE stock issues more detailed response to fraud investigator

CNBC
Mon, 19 Aug 2019 14:27

General Electrics stock continued its rebound on Monday as the conglomerates head of investor relations released a more detailed statement about accounting practices, which were under fire last week from fraud investigator Harry Markopolos.

GE stock issues more detailed response to fraud investigator


"We operate with absolute integrity and stand behind our financial reporting," wrote Steve Winoker, vice president of investor communications in Q&A for investors.
Winoker wrote that GE believes it has sufficient reserves for its long-term care insurance business and that its consolidated financial statement for its investment in Baker Hughes was proper.

Markopolos, who uncovered Bernie Madoffs scheme, accused GE of not having sufficient reserves for its long term care business and not properly accounting for losses at Baker Hughes. He called GE a bigger fraud than Enron, sending its stock down 11% on Thursday.

The stock has regained much of its losses on Friday and was up 1.25% in extended hours trading before the market opened on Monday.

Despite the stocks rapid recovery, some analysts have cautioned not to buy the bounce in GE stock.