GE (GE) Funding Capital Settles with U.S. Regulators; Will Pay $70.35M in Fines
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Financial Fact:
Earnings (loss) from continuing operations: 26M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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GE (NYSE: GE) reports its indirect subsidiary, GE Funding Capital Market Services, Inc., has reached a settlement with the U.S. Securities and Exchange Commission (SEC), the U.S. Internal Revenue Service (IRS), the Antitrust Division of the US Department of Justice (DOJ) and a group of state attorneys general to resolve their investigations into the conduct of certain former employees from 1999 to 2004 in a business unit GE discontinued in April 2010.
GE is pleased to have resolved this matter. The investigation focused on the behavior of three employees who are no longer with the company. The settlement reflects GE’s commitment to act in the best interests of our shareholders by bringing this matter to a close on a mutually acceptable basis with the regulators. GE remains committed to the highest standards of integrity and compliance across all of its business lines. The employees’ behavior in this matter did not meet GE’s standards.
GE cooperated extensively in the inquiry that is part of an industry-wide investigation into practices by various companies involved in the marketing and sales of guaranteed investment contracts, and other financial instruments, to municipalities.
Under the terms of the settlements, GEFCMS will pay a total of $70.35 million as follows: $24.9 million to the SEC; $11.2 million to the IRS; $34.25 million to the group of state attorneys general. Of those funds, $54.9 million will be available for distribution to those municipalities and other tax-exempt issuers eligible to recover under the terms of the settlements.
The settlement amount was fully provisioned in prior quarters and is not expected to have any material impact on GE’s earnings.
GE is pleased to have resolved this matter. The investigation focused on the behavior of three employees who are no longer with the company. The settlement reflects GE’s commitment to act in the best interests of our shareholders by bringing this matter to a close on a mutually acceptable basis with the regulators. GE remains committed to the highest standards of integrity and compliance across all of its business lines. The employees’ behavior in this matter did not meet GE’s standards.
GE cooperated extensively in the inquiry that is part of an industry-wide investigation into practices by various companies involved in the marketing and sales of guaranteed investment contracts, and other financial instruments, to municipalities.
Under the terms of the settlements, GEFCMS will pay a total of $70.35 million as follows: $24.9 million to the SEC; $11.2 million to the IRS; $34.25 million to the group of state attorneys general. Of those funds, $54.9 million will be available for distribution to those municipalities and other tax-exempt issuers eligible to recover under the terms of the settlements.
The settlement amount was fully provisioned in prior quarters and is not expected to have any material impact on GE’s earnings.
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