General Electric Co. tumbled the most since 2008 after a prominent financial examiner working with a short seller accused the company of “accounting fraud.” GE Chief Executive Officer Larry Culp called the claims “market manipulation—pure and simple.”...
These impending losses will destroy GE's balance sheet, debt ratios and likely also violate debt covenants.
The short report accurately depicts a GE culture that historically hid losses and deceived investors.
The fact that he wrote a 170-page paper but never talked to company officials goes to show that he is not interested in accurate financial analysis, but solely in generating downward volatility in GE stock so that he and his undisclosed hedge fund partner can personally profit.
GE is a deeply problematic company.
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