So did Bear Stearn execs before it blew up from my reading knowledge... Culp wasn't in on it according to report, he's just a patsy playing dumb but there was one sneaky thing under his watch : GE originally structured its disastrous 2017 investment in Baker Hughes, which combined the two company’s Oil and Gas businesses into a new entity, Baker Hughes, a GE Company (BHGE). GE held a 62.5% interest in BHGE and BHGE controlled the business. GE accounted for its holdings in BHGE as a Non-Controlling Interest, which was entirely consistent with the substance of the transaction and the nature of GE’s investment in the newly formed entity. In November 2018, that accounting treatment changed when GE announced its plans to exit its investment in BHGE, and sold 101.2 million BHGE shares via a secondary offering, which left it with a 50.4% ownership interest. GE booked a $2.2 Billion pre-tax loss from that sale. GE improperly continued to account for its shares in BHGE as a Non-Controlling Interest in 2018, despite the fact that the substance of GE’s BHGE’s holdings was now strictly an investment, a clear violation of FASB Accounting Standards Codification 810-10-25-38A “Recognition – Variable Interest Entities” and FASB SFAC No. 8, BC3.26’s “Substance over Form” Concept. However, if GE had treated it as an Investment, as accounting rules require, it would have incurred a $9.1 billion loss. Maintaining a 50.4% interest (non-controlling interest threshold) in BHGE is a sham transaction with no business purpose done solely so that GE can create the false impression that GE has a reason to keep $9.1 billion in losses off of its books in 2018.
Wouldn't you, if you were long the company? Not expecting it from those whose bread is buttered on that side would be naive in the extreme. I've actually scanned the report; interesting if true. So are you buying puts, or going the synthetic route?
Don't have a position and won't... Just following market things, this fraud thing is the biggest on North American soil since Madoff, this has huge implications for the entire market, the bulls and people in control are frightened by this, everyone is trashing Harry but nobody seems to contradict the thesis with facts... GE didn't even reply yet, CFO seen it coming https://www.cnbc.com/2019/07/31/ge-...down-will-stay-in-role-during-transition.html I digged up the 50 Million fine they paid in 09 for Accounting Fraud of 3.2 Billion https://www.sec.gov/news/press/2009/2009-178.htm
LOL welcome to ET where everyone is an expert but has no positions! Show us you actually have those SPY puts @Stockolio
GE is now down only 2.6% from when that article was released - worse than Enron? That would be a real hoot. Looks like Druckenmiller still has the Midas touch. He also got into treasuries at the right time, just before they became the new FANG.
I'm relieved. Given how much conviction you were expressing, and the 30-day ATM puts at 0.25 or so, I'd have put you down for at least 100,000 of them. I thought we'd all have to jump in and beg you not to sell a kidney. Say... is this forum an extension of r/wallstreetbets, by any chance?
GE corp bonds yielding around 4.5% to 5%. Hardly seems worth the risk. Investors are desperate for any kind of yield at all these days.
I have learned from you that someone can really hold, or maybe just express, such a high conviction and belief about something but not put your money where your mouth is. You're the main guy on ET promoting this yet you don't have or don't plan to build a position....? I am so so confused. Can you explain so that I can understand people like you. I believe you don't believe the report as much as you think you believe it, otherwise you'd consider building a position. Maybe you just like the entertainment, but you talk as if this is 100% true (which it could be, but the way you're going about it is that it IS). Edit: On second thought, I am going to build a position here, for fun. He could be right, or wrong, but payoff seems nice if he is right, and if he is wrong, then it doesn't make it a bad bet anyways. An opportunity worth seizing.
I like this @Amahrix guy. There's an old joke about a man who, just for fun, decided to see if he could convince everyone in his town that someone had struck oil in hell. He was so convincing that, one after another, all the folks packed up their bags and took off to see if they could cash in. Standing alone in the empty street, he scratched his head and muttered "Well, heck. For all I know, it just might be true..." - picked up his bag and headed after the rest. Let's all pitch in and short those bastards out of existence, shall we?