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GE stock has worst day in 11 years after Madoff whistleblower calls it a bigger fraud than Enron
General Electric shares plunged more than 11% Thursday after Harry Markopolos, who is famous for blowing the whistle on Bernie Madoff's Ponzi scheme in 2008, accused GE of orchestrating a massive fraud.
GE CEO Larry Culp on Thursday bought 252,200 shares at $7.93 per share, a purchase worth almost $2 million, according to an SEC filing. The buy helped bump GE's share price around 2% in after-hours trading. Culp's ownership of GE stock nearly doubled this week after an earlier purchase Tuesday. GE Board Director Leslie Seidman called the fraud allegations "baseless" and "inflammatory" in an interview on CNBC's "Closing Bell" Thursday evening. She said Markopolos' claims do not "reflect the GE I know." Seidman chairs of the board's audit committee.
Markopolos said in a report released Thursday that GE was hiding nearly $40 billion of losses in its insurance business. He said this is the largest case of accounting fraud he and his team have investigated. "In fact, GE's $38 billion in accounting fraud amounts to over 40% of GE's market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds," Markopolos wrote in the report, referring to the scandals that eventually helped bankrupt energy giant Enron in 2001 and long-distance telco WorldCom in 2002. GE strongly denied Markopolos' allegations.
(Score: 0) by Anonymous Coward on Saturday August 17 2019, @01:06PM (1 child)
no idea what's going on with GE.
however somethings wrong with this sentence:
"The buy helped bump GE's share price around 2% in after-hours trading."
"after-hours" implies trades don't go on continuesly?
if market is closed, then there's no trading? if there's no trading, how does something change its price?
or should we just ignore the word "after-hours" and assume it's a "fancy ribbon word" with no meaning and acctually GE stocks are traded 24/7?
or is "after-hours" something real, stocks stop trading and no price changes can happen, in which case why just ignore the 200 godzbillion % price increase ... after-hours?
ooooorrrr is "after-hours" trading something for ... the select few?
(Score: 0) by Anonymous Coward on Saturday August 17 2019, @02:19PM
After hours the stock market is closed. Of course two people could still come together, but the market makers and other professionals have already left for home. You may not get the best price, nor the quantity you want, ie liquidity is lower than usual. That's why they use the qualifier "after hours".