GE Pays $74 Million for Bond-Rigging

[The Straight Story]

GE Pays $74 Million for Bond-Rigging


(CN) - A General Electric finance division will pay $70 million to resolve allegations of rigging municipal bond markets.

GE Funding Capital Market Services acknowledged illegal, anticompetitive conduct by its former traders, the Department of Justice said in a statement announcing the settlement.

According to the nonprosecution agreement, from 1999 through 2004, GE Funding traders made unlawful agreements to manipulate the bidding process on municipal investment contracts, causing GE Funding to make payments through at least 2006. The contracts were used to invest the proceeds of or manage the risks associated with bonds issued by municipalities and other public entities.

A Justice Department spokeswoman said the "anticompetitive conduct harmed municipalities, as well as taxpayers," and that the settlement "requires GE Funding to pay penalties, disgorgement and restitution to the victims of its illegal activity."

http://www.courthousenews.com/2011/12/27/42540.htm

[SixthSense]

1. How much profit did they make from it?

I bet it was well north of $70 million, if the pattern to date is being followed.

More criminal activity by financiers, paid off with a modest fine - which could arguably be described as a "kickback" to the government for the wink and nod to continue such practices.

Just to twist the dagger a little bit, guess what the guy who was CEO of the company at the time is doing today?

[sarcasmo]

8. The fine is usually 10% of what they stole.

Which seems to be the norm when these big corporations and hedge funds get fines.

[SixthSense]

9. just like the Church used to

10% tithe

like buying indulgences

[Ian David]

2. Now they will have to serve DOMESTIC caviar at their annual banquet. n/t

[msongs]

3. yet again no jail time! cost of business will be passed on to customers as usual nt

[donco]

4. WOW

Look at that stock drop like a rock...down $.18C at 2.50 pm central time.

[FreakinDJ]

5. They'll just pass on the Cost to the Consumer

Thanks SEC - you just Fined Working Class Americans (again) and let the crooks off the hook "Scott Free"

[Wilms]

6. .

[spanone]

7. General Electric Paid No Federal Taxes in 2010

The top tax bracket for U.S. corporations stands at 35 percent, one of the highest rates in the world. So how is it possible that a giant of American business, General Electric, paid nothing in federal taxes last year, even as it made billions in profit?

And should the CEO of GE, Jeffrey Immelt, be advising the president on business?

For two years, President Obama has been talking about the need for corporate tax reform, declaring that the system is too complicated and that companies pay too much.

"Simplify, eliminate loopholes, treat everybody fairly," Obama said in February.

http://abcnews.go.com/Politics/general-electric-paid-federal-taxes-2010/story?id=13224558#.TvplJJjtjf8

[SixthSense]

10. hmm what to believe

Which do you think has more policy impact, this statement, or Jeff Immelt talking in his ear advising on policy on a daily basis?