“GE shares tank more than 13% after Madoff whistleblower calls it a ‘bigger fraud than Enron’,” by John Melloy and Kate Rooney, CNBC
“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. … One area of Markopolos’ case focuses on GE’s long-term care insurance unit, for which the company had to boost reserves by $15 billion last year. By examining the filings of GE’s counterparties in this business, he alleges that GE is hiding massive losses that will only increase as policyholders grow older.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Another black eye?