tikibarrister
Guru
- 471
Mama pajama!
GE falls the most in 11 years after Madoff whistleblower calls it a 'bigger fraud than Enron'
If you read the 175-page report, you'll see a lot of it has to do with GE's Long-Term Care (re)insurance products, for which they allegedly booked premiums without adequate reserves. Apparently GE has a lot of LTC that is from the early 2000s that is guaranteed renewable with fixed premiums, low mortality, lifetime coverage, and generally bad actuarial assumptions. The report refers to it as the "worst of the worst" LTC products from an insurer point of view.
Many other alleged shenanigans.
Still hot off the press, but Harry Markopolous is the guy who beat down the SEC door for years trying to get them to look at Madoff and was finally vindicated after the lid was blown off that scandal, so he has some credibility...and of course, a healthy short stake here. Will be interesting to see how this plays out.
GE falls the most in 11 years after Madoff whistleblower calls it a 'bigger fraud than Enron'
If you read the 175-page report, you'll see a lot of it has to do with GE's Long-Term Care (re)insurance products, for which they allegedly booked premiums without adequate reserves. Apparently GE has a lot of LTC that is from the early 2000s that is guaranteed renewable with fixed premiums, low mortality, lifetime coverage, and generally bad actuarial assumptions. The report refers to it as the "worst of the worst" LTC products from an insurer point of view.
Many other alleged shenanigans.
Still hot off the press, but Harry Markopolous is the guy who beat down the SEC door for years trying to get them to look at Madoff and was finally vindicated after the lid was blown off that scandal, so he has some credibility...and of course, a healthy short stake here. Will be interesting to see how this plays out.
