GE Says Justice Department, SEC Are Probing Power-Unit Charge
GE Says Justice Department, SEC Are Probing Power-Unit Charge
(Bloomberg) -- General Electric Co. said the Securities and Exchange Commission is expanding its probe of the company’s accounting to look at a $22 billion charge in the company’s power unit.
The Justice Department is also examining the writedown from goodwill impairment, GE Chief Financial Officer Jamie Miller said Tuesday on a conference call. The company confirmed the charge in its earnings report, four weeks after flagging the issue to investors.
The expanded probe adds to the pressure on GE, which is contending with one of the deepest slumps in its 126-year history amid cash-flow shortfalls and declining demand for its gas turbines. The company had previously said the SEC was looking at accounting in the power division and an old insurance portfolio.
“We are cooperating with the SEC and DOJ as they work on these matters,’’ Miller said.
The shares fell 3.4 percent to $10.78 ahead of regular trading in New York.
To contact the reporter on this story: Brendan Case in Dallas at bcase4@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan Warren
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