Drudge Retort: The Other Side of the News
Saturday, August 17, 2019

General Electric shares fell more than 13% Thursday after Madoff whistleblower Harry Markopolos targeted the conglomerate in a new report, accusing it of issuing fraudulent financial statements to hide the extent of its problems.

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FTA:

"My team has spent the past 7 months analyzing GE's accounting and we believe the $38 Billion in fraud we've come across is merely the tip of the iceberg," Markopolos said in the 175-page report. Markopolos alleges that GE has a "long history" of accounting fraud, dating to as early as 1995, when it was run by Jack Welch.

"It's going to make this company probably file for bankruptcy," Markopolos told CNBC's "Squawk on the Street. " "WorldCom and Enron lasted about four months. ... We'll see how GE does."

Wow. Somebody's going to prison.

#1 | Posted by SheepleSchism at 2019-08-15 11:41 AM | Reply

GE has fallen.

I'm trying to look back to the point where GE's mission apparently changed?

At what point did the CEO and executive suite start using GE for their own gain, sucking the money and life out of a once great corporation?

For example, was Jack Welch the last of the great CEOs, or the first of the ones to change GE's course?

#2 | Posted by LampLighter at 2019-08-15 11:46 AM | Reply

Modern day heroes. Takes some big stones to make such claims when the easy thing to do would be to let it go

#3 | Posted by GOnoles92 at 2019-08-15 11:49 AM | Reply

Jeffrey Immelt was a key figure in the Obama administration.

This kind of alleged corruption isn't surprising.

#4 | Posted by JeffJ at 2019-08-15 11:50 AM | Reply | Funny: 1

This would be a historical collapse.

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, lighting, and oil and gas.[2][3]

In 2018, GE ranked among the Fortune 500 as the 18th-largest firm in the U.S. by gross revenue.[4] In 2011, GE ranked among the Fortune 20 as the 14th-most profitable company but has since very severely underperformed the market (by about 75%) as its profitability collapsed.[5][6][7]

283,000 employees
60% asset wipeout since 2008

en.wikipedia.org

#5 | Posted by SheepleSchism at 2019-08-15 12:05 PM | Reply

@#5 ... This would be a historical collapse. ...

It's am example of what happens when a corporation's executive management is more concerned about stock buybacks instead of investing in the company, about their bonuses instead of workers' benefits, about extracting money from the corporation instead of building the corporation's future.

In a prior life, when I worked for GE, I worked in their Schenectady, NY complex.

The building I worked in was, when it was built, the horse stables at the time when Thomas Edison was running GE.

I'm a graduate of GE's management training program back in the day. What I saw happening to GE in the 90's and onward ran 100% counter to what I learned during that training.

#6 | Posted by LampLighter at 2019-08-15 12:19 PM | Reply | Newsworthy 1

#6 | POSTED BY LAMPLIGHTER

I ran into the same thing with the phone company. My dad retired from C&P Telephone Company w/33 years. I joined in '92. Then they merged with NY Tel and became Bell Atlantic, then bought up GTE property and became Verizon.

Verizon is a whore of a company. They changed the entire culture and family aspect of the Baby Bells I grew up in. They grinded the employees into the ground, especially the employees like myself who held grandfathered retirement and benefits. When they finally offered me a buyout, I jumped on it and never looked back.

Worst company ever. I'll never spend a penny with those bastards.

#7 | Posted by SheepleSchism at 2019-08-15 02:25 PM | Reply

T minus blame it on the unions...5.4.3.2.

#8 | Posted by lfthndthrds at 2019-08-16 05:01 PM | Reply | Funny: 1

Jeffrey Immelt was a key figure in the Obama administration.

This kind of alleged corruption isn't surprising.

#4 | POSTED BY JEFFJ

Tax cuts in the trillions,

Republicans,

Which tax bracket are you in, again?

#9 | Posted by PinchALoaf at 2019-08-17 07:45 PM | Reply

For example, was Jack Welch the last of the great CEOs, or the first of the ones to change GE's course?

Was he laying off employees to make GE lean and mean...?

Or was he just getting rid of witnesses...?

hmmmmmmmm

#10 | Posted by Pegasus at 2019-08-17 07:47 PM | Reply

I deal with GE quite a bit. Very compartmentalized company.

#11 | Posted by REDIAL at 2019-08-17 07:59 PM | Reply

According to the whistleblower GE has not accounted for the costs of goods sold in 25+ years and has been using accounting gimmicks to hide the losses

#12 | Posted by hatter5183 at 2019-08-19 09:33 AM | Reply

#6 | Posted by LampLighter
#7 | Posted by SheepleSchism

This is exactly what Hedrick Smith talks about in "Who Stole the American Dream?" the shift in capitalism. Stakeholder Capitalism to Shareholder Capitalism.

And I credit Pinch for reviving this today: youtu.be - Who Stole the American Dream?

#13 | Posted by GalaxiePete at 2019-08-19 04:34 PM | Reply

I deal with GE quite a bit. Very compartmentalized company.

#11 | Posted by REDIAL

Better hope they don't owe you a lot...

#14 | Posted by GalaxiePete at 2019-08-19 04:35 PM | Reply

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