General Electric share price: what’s the latest after stock plunge?

The US-based conglomerate saw its stock plummet last week after a report by Madoff whistle-blower releases a report labelling it ‘a bigger fraud than Enron’.

General Electric saw the sharpest decline in its share price in more than a decade on Thursday last week, after Madoff whistle-blower Harry Markopolos released a new report condemning the company of issuing fraudulent financial statements to mask its problems.

A website, GEfraud.com, was created to circulate the report, where Markopolos calls the company ‘a bigger fraud than Enron’ and that its financial activities have left ‘GE on the verge of insolvency’.

GE boasts ‘long history’ of account fraud, report says

Markopolos’ allegations against GE certainly carry weight with investors. After all, he is a certified fraud examiner and the man responsible for revealing that Bernie Madoff’s wealth management business was in fact a huge ponzi scheme.

‘My team has spent the past 7 months analysing GE’s accounting and we believe the $38 billion in fraud we’ve come across is merely the tip of the iceberg,’ Markopolos said in the 175-page report.

He also claims that GE has a ‘long history’ of accounting fraud, going as far back as 1995 when the company was under the stewardship of former CEO Jack Welch.

GE labels allegations ‘meritless’

In the wake of the allegations made in the 175-page report, GE’s stock closed 11% lower on Thursday at $8.01 per share.

‘The claims made by Mr. Markopolos are meritless,’ GE said in a statement.

‘The company has never met, spoken to or had contact with Mr. Markopolos and we are extremely disappointed that an individual with no direct knowledge of GE would choose to make such serious and unsubstantiated claims,’ the company added.

Over the last 12 months, the company’s stock has lost a third of its value, though on a year-to-date basis GE is trading 4% higher.

Practise trading General Electric and other US stocks with an IG demo account

GE stock drop attracts short-seller interest

Since last week, short-held positions against GE have risen by 13.5% to $14.3 million, according to New York-based S3 Partners in report by Reuters.

‘When short sellers see something like this they tend to jump in as a pack,’ S3 Partners Managing Director of predictive analytics Ihor Dusaniwsky. ‘We’ve not seen any covering in size.’


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.