GE's Surprise $15 Billion Shortfall Was 14 Years in Making
- Company took on long-term-care risk that worsened over time
- GE slowly built reserves while Genworth announced big charges
Why GE Is Seeing a Surprise $15 Billion Shortfall
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The trouble at General Electric Co. began decades ago when a hole started to form inside its sprawling financial unit.
The hole became a $15 billion shortfall in insurance reserves, disclosed last week. It’s prompted a Securities and Exchange Commission investigation, called into question the oversight of GE leadership, pushed down the share price, and shocked investors who were asking Wednesday how this icon of American capitalism could allow the situation to deteriorate to this point.