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GE Finally Forced to Pay 1.5 Billion Fine – Past Lending Practices

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Background:

  • GE’s defective subprime mortgage offerings occurred before the 2008 global financial crises.
  • GE has been in a long running U.S. investigation by the U.S. Dept. of Justice.
  • GE concealed the poor quality of the loans and their poor tax fraud controls when packaging loans for investors.
  • GE generated more than $65 billion of mortgage loans.

Outcome:

  • GE never admitted any wrongdoing but reached a settlement but had set aside $1.5 billion in advance in expectations of reaching a settlement.

We all know the results of these subprime offerings on the economy as a whole.

Let’s hope they think twice now that they “put this behind them”