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GE Sinks to 2009 Low After Accounting Probe Adds to CEO’s Woes

  • Justice Department joins SEC in investigation of writedown
  • Disclosure mars first earnings report under company’s new boss
Bloomberg business news
Bloomberg Intelligence’s Karen Ubelhart examines GE’s results.Source: Bloomberg
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General Electric Co. plunged the most in nine years after the company disclosed an expanded federal accounting probe and worsening troubles at its ailing power business.

The Securities and Exchange Commission is widening its investigation of the company’s accounting to look at a $22 billion charge in the power-equipment unit, the company said Tuesday as it reported earnings for the first time since Chief Executive Officer Larry Culp took over. The Justice Department is also examining the writedown, which GE revealed on Oct. 1, when it announced that Culp would replace John Flannery.