General Electric and the Whistleblower

0
827

The story seems bizarre: A private investigator attacked an American industrial icon. The share price falls rapidly. And the investigators deserve it, because he has teamed up with a hedge Fund.

Harry Marko Polo had once uncovered the multi-billion fraud of the Fund Manager Bernard Madoff. Now the revelations of specialized private investigator pulls against the US conglomerate General Electric (GE) to the field. In a 175 pages long, the report of Marco Polo’s claims that GE concealed the possible losses in the amount of 38.1 billion US dollars and the situation of the group, fudged. And the words of the Whistleblowers have weight: The share of the Thomas Alva Edison company, which was founded then lost up to 15 percent of their value.

The industry group is fighting to forces. GE stand behind his work and true to the highest integrity in accounting, said a company spokeswoman: “Even if we can’t comment on a report that we have not seen, are the allegations that we have heard, is completely wrong and misleading.”

Harry Marko Polo, in his greatest days, when he brought in 2009, the Madoff financial system

Marko Polo had claimed in the Wall Street Journal, GE had to increase the capital in the insurance division, in addition, there were irregularities in the accounting of the share of the Oil company Baker Hughes.

Bet on the course in the fall

Finally, General Electric CEO Larry Culp went himself in the Offensive. Pointedly, he bought again to 250,000 shares of GE stock, after he had already taken on Monday, about 330,000 shares in the company from the market. Thus, the head of the group, holds a total of almost 1.2 million, group share.

The Chairman of the Board of General Electric, Larry Culp

With sharp words, Culp countered the accusation of the balance-sheet-sleight of hand. In the case of the Marco Polo’s report that it was “plain and simple market manipulation”. It contained false information. Marko polos benefit from short sales in connection with the report.

In fact, Marko Polo had told the “Wall Street Journal”, he and his colleagues worked with a hedge Fund that had bet on a decline in the price of GE stock had. The funds have obtained prior access to the report and will share the profits from the business with Marko Polo.

rb/cgn (AP, dpa, rtr)