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”
