GE says SEC expanding scope of ongoing accounting investigation, shares fall

Business

General Electric said the Securities and Exchange Commission was widening its probe of the accounting practices of the industrial conglomerate to include a $22 billion charge the company took in the third quarter related to acquisitions made in its power business.

“The SEC expanded the scope of its ongoing investigation to include the goodwill charge,” said GE’s Chief Financial Officer Jamie Miller on the company’s third-quarter earnings conference call. “The Department of Justice is also investigating this charge and the other areas we have previously reported are part of the SEC’s investigation. We are cooperating with the SEC and DOJ as they continue their work on these matters.”

GE’s stock fell 2.2 percent in premarket trading following the CFO’s comments. The stock initially rose after GE announced its earnings results and dividend cut.

The SEC opened an investigation of GE’s accounting practices in the wake of the company’s review a year ago of its GE Capital insurance portfolio.

This is a developing story. Check back for updates.