August 2009, when the SEC finally settled the question of whether GE had manipulated its earnings. As part of the settlement, GE agreed to pay a $50 million fine for allegedly having “misled investors by reporting materially false and misleading results in its financial statements,” including using “improper accounting methods to increase its reported earnings and revenues and [to] avoid reporting negative financial results.” In other words, the SEC was alleging—and GE was agreeing to pay $50 million to settle, after incurring some $200 million in professional fees along the way—the longtime
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