“In GE Probe, Ex-Staffers Say Insurance Risks Were Ignored,” by Thomas Gryta and David Benoit, Wall Street Journal (gated)
“Federal investigators are questioning former employees of General Electric Co. GE 2.58% about intricate details in a legacy insurance business that led to accounting problems at the conglomerate in the past year. The insurance business failed to internally acknowledge worsening results over the years, according to several former GE employees who said they have been interviewed by government lawyers. They described in interviews for this article examples of what they call lax managerial oversight and buried risks that ultimately kept the company from booking bigger reserves. … GE’s court filings say management mistakes, not fraud, were to blame for the company’s problems. ‘Federal securities laws provide remedies only for fraud, not for unsuccessful business strategies,’ GE’s lawyers wrote.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
This article does not mention LTC insurance until deep into the piece, but then the connection becomes clear.