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Harry Markopolos explains fraud accusations against GE

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General Electric is fighting back after the company was accused of fraud and its stock experienced its worst one-day percentage drop since April 2008. Harry Markopolos, who is famous for blowing the whistle on Bernie Madoff's Ponzi scheme in 2008, accused GE of orchestrating a massive fraud. #CNNBusiness
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Andy Snow (2 days ago)
He is playing with fire. Regardless of what project he was working on... He went into a company's books without permission or any actual reason. I'm thinking that he did notchave everything needed to look at GE's numbers and he is missing sone vital information. While I'm not a fan of anything GE they can't be this bad. He needs to calm down or he will find himself in trouble.
michael vo (2 days ago)
OH SHITS.... IS THIS REAL. GE? $61B in liabilities and ONLY HAS $29B. CASH FLOW? Question is How is all shares holders and other investors did not see it? Yes.... Another Enron/Worldcom Communication..... These CROOKS. did not pay any tax take money and runs.
Dennis Grant (3 days ago)
GE stock was 155. then split 3/1about 2001. I was steady buying. By 2009 it was down to around 6. a share. Lost most of what I'd put in for 20 years. Makes me sick.
Brendan A. MacWade (4 days ago)
Savage asperger ninja. He's a hero.
ygg drasil (6 days ago)
9:57 JC Could you have made a mistake? HM Yes, we are probably too low - lol! classic comeback
Jom Pop (10 days ago)
harry keeps all these bastards honest.
williemo44 (10 days ago)
I saw that suit Markopolos is wearing at Macy’s, its the new Ron Burgundy line.
Steven Gulie (12 days ago)
This guy’s estimates are based purely on speculation that claims will suddenly swell by 86% more than the 85% GE is set for. It’s a paid hatchet job.
ubique289 (16 days ago)
So, it comes out now that there was no merit to these allegations, I wonder what his motives were, maybe we should ask his Hedge Fund employers. I bet these CNN reporters feel a little sheepish.
Jom Pop (21 days ago)
i was the 1k like
rebekah prather (23 days ago)
Harry always does his homework and isn’t interested in created drama for the sake of drama. I believe Harry.
Dave C (23 days ago)
The man speak truth and is not afraid of the fallout. The press always tries to poke holes in his information but they cannot do so as they cannot refute what he puts hard numbers on. This makes the press look absolutely pathetic and shows them as stooges for the corporations.
Rob Ryan (23 days ago)
"How long can you burn cash?" Well.. Uber, Lyft, Airbnb, Peloton, WeWork (now We)... Apparently for a very, very long time.
Willard Donnovan (23 days ago)
Hmm. I've got an idea. Let's put our people into this big company run by clueless women and tall good looking doe eye'd men who play a good game of golf, make toxic investments, drive interest rates to zero by printing monopoly money, pull the plug on the economy, step in and buy all the assets created by hard working men over decades. ...tisk tisk..such a conspiracy theorist.
Tiger Steele (23 days ago)
I'LL BET THE ....MONEY GUYS AT G.E........ARE SHITTING THEIR PANTS....RIGHT NOW!!!!!
Captain Falcon (24 days ago)
Harry Markopolos has shown me what an advantage you have just being honest and a good person. And why stealing and being deceitful literally never pays off in the end, everything eventually pays its price good or bad
Leif Johnson (24 days ago)
Julia Chatterley is good.....much better than the normal stable of morons and FUD'sters on CNN. Markopolos knocked out out of the park! Make him Chairman of the SEC.
Charlie Hernandez (24 days ago)
I thought Harry Markopolos was the inspiration for the Ben Affleck novie Accountant movie.Many common similarities.
Jonas Li (24 days ago)
The lighting in the studio gives him the "Hitler" mustache.
Willard Donnovan (24 days ago)
He's pretty confident they'll be bankrupt in a year. So why is the stock trading at anything above 0? Well to take your profit on a short trade you have to buy the stock...or sell a put. Or...derivatives are being used to prop up the stock. Not sure how.
Lennart Krantz (25 days ago)
Let  Mr.  Markopolos  take  a  look  on  Mr.  Trump's  tax  returns  and  tell  us  who  the  person  actually  is  governing  America.
Willard Donnovan (24 days ago)
The international bankers.
B K (25 days ago)
Interesting GE is getting a great deal on stock buy backs because of this this guy, most companies have very little or no working capital today, because of expanding and building new manufacturing plants, most large companies are that way let’s see GM, Kmart, Sears it all comes to a end someday
Major Disappointment (25 days ago)
Yeah right has something to gain by damning a companies stock and practices. I think he has Madoff with the lying.
Lennart Krantz (25 days ago)
What is the S.E.C being paid for ? Waste of taxpayers money. Mr. Markopolos warned S.E.C for several years about Madoff but "No one would listen" that is the title of his book.
cyril vallantin (26 days ago)
GE IS DONE!!! Bye bye! This guy is indisputable. Like it’s not rocket science $16 billion in cash $40 billion in assets, and what did he say? $67 billion in insurance liability. 🤣🤣🤣 I mean like that’s it it’s over. It’s executive’s used the company as their own ATM it’s that simple. SHORT IT!!!
jinshuo zhang (26 days ago)
to be honest I think this guy sounds quite trustable.
OghamTheBold (26 days ago)
*HMRC* (Harry Markopolos Rattles Capitalism) over in the *UK* (Unkind 2 Kids) wee'd luv AAA *GE* (General Election)
Zombiehead (26 days ago)
I think Warren Buffett started this dumpster fire to save billions when he buys ge dirt cheap.
Goldn Messi (27 days ago)
0:50 PSYCHOPATH face... LIAR, I see all the signs of a majore LIAR in YAHOO FINANCE, CNBC Interviews.. This Markopolos is a FRAUD, he is appearing in every TV CNBC, CNN, YAHOO, he is running knocking every MEDIA doors, more proof, he is the FRAUD with PROPAGANDA GREED, hit and run peice, get PAID from Secret Hedge Fund (JPM who are last 3 years trying to undermine, damage, PREVENT GE from going up, downgrading 24/7).. GE just reported beating Earnings estimates by big margin, and RAISED future GUIDANCE, RAISED Future CASH FLOW numbers.. Perfect timing Markopolos negative hit peice, help JPM Shorts MANIPULATORS to PREVENT GE Stock from SKYROCKETTING, due to SPEEDY RECOVERY... Humm perfect timing every time from JPM, only FRAUD people have perfect timing, Markopolos SECRET Connection to Hedge Fund paying him, but he wants GE to be transparant, there by jeopardize it's competitive advantage..
H Pn (27 days ago)
I think he owned some ge options. There's more to this than a he said she said. I hope they figure it out quick.
jon snow (27 days ago)
CNN is shit hole, no one believe this libtards.
Paul Martin (28 days ago)
Diabolical-Level Corruption goes all the way back to GE's Founder - Thomas Edison!
Paul Martin (28 days ago)
Markopolos is a Straight-Arrow. Also, if he was manipulating the market for personal enrichment - this move would be FRAUD. This guy's a Nervous-Nerd who has trouble being On-Air... I'll bet you could make a good chunk-o-change betting on him!
borderlord (28 days ago)
From Markopolous's expression he's thinking ..."This English broad really know her accounting...I really want to bone her!"
borderlord (28 days ago)
How many American guys balls are aching looking at her and listening to her accent?!?😂😂😂
Uzoma Olumba, GRI (28 days ago)
TIME; only time will tell who is right. But estimates are subjective though they have to be appropriate. Let’s see how GE resolve these allegations - will future estimates be increased or will they restate? I say it will likely be addressed going forward. Let’s see. Regulators statement that “components are simplistic” does not mean without merit or dismiss ALL allegations as without merit. Also, the concern that he is compensated is simple because who undertakes the task he took on without compensation - No one but a crazy person with all the time in the world.
Joel Ruig (29 days ago)
The ‘Batman’ - of accountants
Lennart Krantz (25 days ago)
What is the S.E.C being paid for ? Waste of taxpayers money. Mr. Markopolos warned S.E.C for several years about Madoff but "No one would listen" that is the title of his book.
The Countertop Guy (29 days ago)
HARRY GONNA CLAP THEM GE CHEEKS LMAO
Menstrel (29 days ago)
Too much emphasis on his gain vs. the report contents.
Boringname (29 days ago)
10:47 Harry! Fucking savage, getting to the truth and has the balls to wink at a smoking hot lady who obviously understands the severity of the issue. Get this man an Platoon of seals to protect him 24/7. He needs to be safe at all times. This is the biggest thing to go down since the financial crisis of 07-08. It could be worse, let’s hope that’s not the case. 😥😰🤫
Shane Smyth (29 days ago)
Better call $ale
John Marston (29 days ago)
Reporter: What if you’re wrong ? Mark: Yes, losses are way higher #savage
John Marston (29 days ago)
Just like madoff everyone wrote this guy off pun intended
rmicone1 (29 days ago)
Markopolous for President!
zzzzzsleeping (29 days ago)
At least this guy is not fraud. CNN BIG TIME FRAUD!
gimble tictac (29 days ago)
Aside from this, why do they let that noise of like a street cleaner constantly whooshing. #onceyouhearit
Alexandre Palazzo (29 days ago)
- Could you have made a mistake? - Yes, my numbers are too low on loss estimates. And then her blood freezes... What a precious moment. The honesty of her reaction, the bravery of his words. Best interview of this year.
RedEyedJedii (29 days ago)
Ok good ridence GE but can we talk about that fine woman? Looks ✔ hot accent ✔ perfect sized rack ✔
Jason Robertson (29 days ago)
Fuck em. They are all but a Chinese company now anyway.
Jason Bourne (29 days ago)
Basically, they are. They insource their turbines. They have plants in Singapore, etc. They're playing the same Game as all the rest. Walmart, et al. The allegations really don't surprise me.. Management has probably been corrupt for a long time now.
Stan Starygin (29 days ago)
Read the guy's report. It is somewhat convoluted but it is not long (it is 175 pages of slides, not tight text). You need to be reasonably qualified to understand his claims. If you are, you will see that those claims are nothing more than a combination of meritless (garbage is right word for that) arguments, this guy's opinions on the actuarial models of Long-Term Care (there is an open secret in the industry: with the high-rocketing costs of healthcare and the high-rocketing life expectancy in the US no one knows what the liabilities on those policies are going to end up being) with regard to which he has no qualifications, his dubious argument on whether GE is allowed to book Baker Hughes' cash flows under the GAAP Rules as they presently stand, accusations that GE is now non-compliance with the accounting rules that, by the guy's own admission, are not going to come into force until Jan, 2021 and just good ole sensationalism of the rankest variety, e.g. banner and inlets in the "report" that scream 'GE is headed to bankruptcy' and calling it 'GEnron' -- really, really tacky stuff. The guy is douchebag who is looking for a payday on the short side. But, don't take my word for it -- read the report and if you are sufficiently qualified to understand, have someone who is explain it to you. GE has a lot of problems and we all know that but there is no evidence that at the present moment they are running on fraudulent accounting.
ColeTime! 360 (29 days ago)
WSJ outlines these problems months back. Long article citing ex GE management. The fact that Harry is specifically pointing out the real issues should give GE management pause.
Brent Fleetwood (29 days ago)
Harry is using GE's motto against them ""Brings Good Thing To Light!
Ben Rivera (29 days ago)
I know what Book im going to read Next. 😁
aarinteich (29 days ago)
GE = Gory Ending
Tomasz Antosiewicz (29 days ago)
Now finally we know who is the "New Lehman" this time to drag the market down the well. Obviously everyone is going to say noone could have possibly seen in advance. We did everything right, if not for GE there would be no recession and so on..
kendrablake (30 days ago)
He should be the head of the SEC
Jman (30 days ago)
"Could you have made a mistake?". Harry: "Yes we are probably too low in our loss estimates" LOL!
Lennart Krantz (25 days ago)
What is the S.E.C being paid for ? Waste of taxpayers money. Mr. Markopolos warned S.E.C for several years about Madoff but "No one would listen" that is the title of his book.
Tconcept 2001 (30 days ago)
When auditors came to my works, the new guy on that team said there are huge discrepancies in the books, and the old guy said well this is where your career starts, you can choose to ignore it or bring it to attention, bankrupt the company and end your career. True first hand story, this is how business works. And yes he chose to turn a blind eye, I'm sure his career is doing well.
joseph prosser (30 days ago)
Proof, if proof were needed, that people, especially investors with ‘skin in the game’, would prefer to believe a comforting lie than in an uncomfortable truth. The next few months will reveal just how uncomfortable Markopolos’ truth is for GE. Many the other business channels have sought to undermine Markopolos’ motives as if they were fully paid shills of GE but Julia Chatterley does a fine job of asking searching questions without any hidden agenda.
fgfgfgf drtduud (30 days ago)
that's just the tip of the iceberg, you have companies betting against their customers
Tim Drumm (30 days ago)
Is GE ...the tip of the ICEBERG?
Jeff H (30 days ago)
better call saul
Nicholas B (30 days ago)
Fake News Network is covering this? wow.......
run2daylite73 (30 days ago)
who's the hot little piece of ass?
Kbs Ltd (30 days ago)
That reporter is part of the problem lol but she didnt know what hit her! Oh man. No doubt she will use the tricks of the trade to peddle some bullshit further to this point.
Daniel Young (30 days ago)
GE now , who else doing fraud? Oh right everyone, sad in America huh :(
Dawn Edwards (30 days ago)
Harry is an accounting beast!!! If he claims a fraud, you can bet they are screwing with their books. Prayers and love for Harry Markopolos!! Ken Lay claimed Enron was doing well also. CEO’s, CFO’s, etc lie through their teeth. Watch your money!!
Lennart Krantz (25 days ago)
Without bodyguards Mr. Markopolos might end up like Epstein , where the public is left with a lousy public "explanation" about a 20 inch high bed and a stripe of cotton sheet being used as gallows. Mr. Barr , we are not that stupid.
Mack Man (30 days ago)
For a man who is so smart in math and tax rules he is able to speak in a language that the average person can understand even when he isn't talking about hundreds of dollars but tens of Billion's of dollars. Even if GE doesn't go into chapter 11 or some form of protection there will be a reckoning and this company if it survives will be very different a year from now. When you grow by aquisition and continue to buy companies with borrowed money no matter how cheap the rates if all you do is increase dividends to drive share price so that you can borrow more money to buy more companies when the market turns down your assets are devalued, credit rating downgraded, cost of borrowing increased with high debt and not enough money to pay down to improve ratios. Same thing happened on a smaller scale to YRCW who I worked for because we were aquired and they went on a spending spree in the early 2000's with the banks money until 2008 and then about 40000 people lost jobs, UPS and FED EX engaged in a pricing war to bankrupt us but couldn't but it drove our profitability into the ground. The company wiped out shareholder equity a few times and even did a reverse split for 300 for 1 to stop from being a penny stock and being delisted and get share price over $9 a share. At one point before all the trouble the market cap in 2007 or 2008 was over 10 Billion and we were told everything was fine and the analysts on the stock market were fear mongering about our high debt, pension liability, old equipment and low margin freight which included Fitch agencies. Today my former company has a share price of $2.45 and a market cap of less than $90 million and still lots of old equipment some new but a big pension liability which on several occasions prevented anyone buying us out. When the company downsized and shuttered hundreds of terminals they never got lean and efficient with best practices just the same amount of chaos and internal infighting between management and unions as well as company vs company.
Mark Pettem (30 days ago)
Next stop, the Big Data boys.
JethroTClampet (30 days ago)
This is like the shares of Browndo crashing... https://youtu.be/7THG28GprSM
Sergio Muniz (30 days ago)
Harry Markopolos is Bad Ass!
Jordan Sheppherd (30 days ago)
I'd believe Mr. Markopolos over GE any day of the week. This is the guy that turned Bernie Madoff into the SEC about eight or nine years before Madoff's scheme finally popped. He knows what he's doing. For those who want to see more of this guy, watch the documentary Chasing Madoff. Worth the watch.
EMM MOO (30 days ago)
USED CAR ALEMAN COMES UP WITH PAID AGENDA TO CRASH USA STOCKS IE GE ELECTRIC MOT IMPORTANT USA COMPANY SAYS IT ALL
trickshotmonkey (30 days ago)
I’ve seen the future, GE survived.
Andre Williams (30 days ago)
My concern is the Aerospace division will that be able to survive?
FrostedLens (30 days ago)
I wonder if Warren Buffet knew about this and sold his shares in 2017...tats why ppl follow him.....tat old ojiisan is invincible
Edwin Park (30 days ago)
“Could you have made a mistake? “ 9:50 wow. LOL
zeppirl (1 month ago)
GE will try silence him. The money and legalities GE with pump into trying to silence this man will be shocking. Question is who will the government back ? Is GE too big to fail ?.
Mike (1 month ago)
Didn’t J.P. Morgan of General Electric confiscate all of Nikola Tesla’s 80 something suitcases of research material when he died in the hotel. Perhaps those research notes can save GE from becoming a dinosaur? 🦖 🦕
jc2557 (1 month ago)
I think G.E will be fine it's well documented that G.E is part of US weapons Industry Branch of Mitre, and I'm sure funds will keep it mysteriously solvent.
moakley (30 days ago)
No wonder the hedge fund want to keep off the radar. Honestly people have been killed for less not to mention ge is also a military contractor
HLP (1 month ago)
He reminds me of Walt Disney here.
Wayne Atwell (1 month ago)
Love Harry but had to downvote because CNN is garbage
kabramble (27 days ago)
Weak
Commenter McCommentFace (1 month ago)
GE is running scared. Their CFO just resigned and the CEO is scrambling to buy its valueless stock to try to feign stability. It’s a total shit show and Harry’s a stone cold killer.
Elliott Mak (1 month ago)
A Batman in the accounting world, a Saul Goodman in the sartorial world.
BootlegFightVideo (1 month ago)
Oh Larry Culp spent 10% of his annual compensation 1% of his worth for PR defense.
Hero (1 month ago)
Straight savage 9:50 interviewer "Could you make a mistake?" Harry "Yes, we're probably too low" dangff
joe b (1 month ago)
jeff immelt flying ina jet with a second jet 30 minutes behind him for security and support,, I remember the days, he claimed he didn't know the second jet was on the tarmac and why is this jet following me,, basic ego-crazied maniac
joe b (1 month ago)
date or prediction when GE hits 2 dollars a share?,, will there be a government bailout,, yes!!! there will be,,
joe b (1 month ago)
second thought ,, ge paid too much tax,, if the profits were not trutly there they should be reimbursed the yrs in tax,,
Jojew (1 month ago)
Take off her top
Janet McDonald (1 month ago)
https://www.cbc.ca/cbcdocspov/episodes/town-of-widows
Prof. M. Otto Zeee JCD ECS (1 month ago)
If shareholders (owners) of any company are getting dividends from cooked books, they have to give it back, PERIOD! As in, if you or I buy something that turns out to be stolen, we get in trouble!😎 AMERICA is a corrupt country!
Prof. M. Otto Zeee JCD ECS (1 month ago)
I thank Harry Markopolos for his work, trying to clean up the immoral and often illegal activities of those in the ivory towers of business. The SEC is just another government agency not earning their funding. The SEC is corrupt, the US business practices are corrupt... all that is part of ongoing efforts to defraud the US public.
Travis (30 days ago)
The USA is a corporation. The SEC is a subsidiary of that corporation. They work to benefit the corporation. Turns out We The People are enemies of this corporation. No exaggeration or joke. #MeetYourStrawman, you know it when you see it, your name in all caps.
bait clicker (1 month ago)
See Harry finally found a reason to wear that suit he bought in the 70's :)
Umar Saeed (24 days ago)
Haha Good one
Bella’s Mom (27 days ago)
bait clicker and the tie!
Chris P (1 month ago)
Lockheed martin next
bait clicker (1 month ago)
1. Deny, deny, deny! 2. Announce an internal investigation. 3. Admit to some, small wrongdoing. 4. Find your scapegoat.
Texas Owl (1 month ago)
bait clicker lol the guy they just dumped from ge aviation
GoldBeard The Thirteenth (1 month ago)
The problem is Long Term Care's unexpected hyper growth in expenses and low interest rates. A smart company would have looked for a way to use regulation to minimize the costs associated with Long Term care and plan to implement strategies to where the claims either get lower. GE and others got into a pickle and GE especially kind of forced themselves into corrupt behavior because of the bad market and pricing of LTC. Any policy that is like whole life insurance would seem like a bad policy unless you have plans in place to hedge against higher than normal claims or to have claims become better. Things such as pushing for reducing strokes or recognizing early signs that your heart health is bad could reduce the amount of claims needed and could hedge against a spike in claims and reduce the risk of any long term care claims. There is no reason to not do so as pricing of policies come from the historical data and are projected without the new potential idea of lowering the risk through making it illegal to use your phone in your car (Auto insurance). Automatically when a potential legal push happens, that data could be under represented for the future of claims going forward so there would be a drop in claims and when the policy ends, that becomes profit for the company. GE and others in the LTC market didn't do this and it failed miserably because they didn't focus on hedging the claims by focusing on strategies to reduce the causes of why people need long term care and how to minimize the need for it. Insurance is about high frequency and low risk. The best practice for an insurance company is to focus on reducing the frequency of it since that is where the claims come from. That is how you profit in an industry like insurance. Create policies that reduce the claims like going after smoking and ending smoking for life insurance companies because that means that the life policy claims would go down.
Kevin Dinh (1 month ago)
All accountants should be aspiring to be like Harry!
Steven Armstrong (1 month ago)
I worked for the company in the 80's. The whole culture is pathological. The disease started with Jack.
Paul Martin (28 days ago)
The disease started with Thomas Edison, actually.
M. Adams (1 month ago)
Daaaaaaammmn, this dude might be JFKd the way he's going. Says he has a bucket load of fraudulent companies worth 50, 100 billion. Whooooaa
Taylor Craig Newbold (1 month ago)
"No direct knowledge of GE" motherfuckers he used YOUR OWN DATA and found this shit. Anyone who is a GE shareholder should be shitting their pants now. Markopolos has never been wrong. Never.
fitnesspoint2006 (1 month ago)
"could you have made a mistake", yes, "we are probably too low in our loss estimates" SAVAGE!!!
Lennart Krantz (25 days ago)
He is professional and honest. Sharp contrast to Mr. Trump
kabramble (27 days ago)
She backed up. He is impressive