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GE is cooperating with the US Department of Justice and the Securities and Exchange Commission for financial investigations

via:CnBeta     time:2019/8/18 12:30:28     readed:152

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Hayman said that "two non-cash expenses accused by (Marcopoulos) should now be reflected in GE's balance sheet. According to generally accepted accounting principles, these two expenditures totaled $18.2 billion. The allegations are not accurate. The company is already cooperating with the Justice Department and the Securities and Exchange Commission (SEC) to investigate its accounting practices.

Heyman admits that he does not have enough knowledge to judge whether Marco Polo's statement of $18.5 billion is correct. But he said that GE could easily afford the money if needed.

Hayman said, "The company currently has more than $60 billion in liquidity, including unrestricted cash, revolving loans, and commercial paper balances. That's just a check." He added that GE will pass this fall. BioPharma sold $21.4 billion and may sell its medical division for about $46 billion to sell the rest of Baker Hughs for $5.5 billion. Hayman calculates, “This will give it $133 billion in medium-term cash liquidity, which easily meets the $18.5 billion requirement.”

When talking about Marco Polos' report, Hayman said, "This is the latest incendiary bomb thrown on Wall Street." He hinted that this is a desperate attempt to depreciate GM for profit.

In a report to William Blair’s client, Hayman wrote, “We don’t think GE’s financial statements deliberately misrepresent the company’s current financial situation and potential future liabilities. We’re hard to believe that in the past two years or so GE conducted multiple regulatory reviews of its accounting and financial disclosures over time, making false statements about its financial reports."

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