GE Is Still Haunted by a ‘$15 Billion Problem’
The government hasn’t officially accused GE of wrongdoing. Tuesday’s update is more procedural in nature, and the company now has the opportunity to respond to issues raised by SEC staff before the agency formally decides to pursue an enforcement action. What that might ultimately look like ranges from monetary penalties to restated financials or even added governance and operational guardrails meant to prevent future violations. In a statement, GE said it “has fully cooperated with the SEC’s investigation related to past reserve practices at our run-off insurance subsidiary, as we have disclosed since 2018. We strongly disagree with the recommendation of the SEC staff and will provide a response through the Wells notice process.”
GE CEO Larry Culp has now been in his job for two years. It’s been a difficult slog, made only more so by a global pandemic that crippled the company’s crown-jewel aviation unit and stilted progress
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