Business

GE Pays out $70.4 Million to ‘Resolve’ Bid-Rigging Investigations

GE Pays out $70.4 Million to ‘Resolve Bid Rigging InvestigationsGeneral Electric has agreed to pay $70.4 million to settle a criminal probe and civil claims brought against the corporation for having allegedly conspired to rig bids on U.S. municipal bond deals, overcharging state and local governments on their investments.

GE’s settlement stems from an investigation into the conduct of three now-former GE employees between 1999 and 2004 at a unit of the finance division that was discontinued in April 2010, GE said in a statement today.

“Our in-depth investigations have uncovered pervasive corrupt practices in the municipal securities reinvestment market, and we are requiring financial firms one by one to step up and pay the price for their misconduct,” said Robert Khuzami, the director of the SEC’s Division of Enforcement.

The deal GE struck will resolve investigations by the Justice Department, the Securities and Exchange Commission, and the Internal Revenue Service, as well as the attorneys general of 25 states. GE Funding Capital Markets Services, a former unit, is the fifth company to enter into a settlement as part of a more than five-year federal investigation.

“GE Funding’s former traders entered into illegal agreements to manipulate the bidding process on municipal investment contracts,” said Sharis A. Pozen, acting assistant attorney general in charge of the Justice Department’s antitrust division. “This anticompetitive conduct harmed municipalities as well as taxpayers.”

GE, the largest U.S. conglomerate, said on Friday that it “exited the business in question in April 2010” and that the three employees who were involved in the scandal are no longer working for it.

The settlement brings the total amount so far paid by companies to end the case to $743 million. Bank of America, JPMorgan, UBS, and Wells Fargo previously settled similar cases.

(Related: Netflix Faces Barriers to European Expansion)

GE said it was “pleased” to have resolved the matter and that it had already accounted for the settlement costs in prior quarters.

Currently, there is no word as to whether the eighteen people who have been charged–and the 9 who have pleaded guilty–are “pleased.”

(h/t Huffington Post)

[Editor's note: portions of the above originally appeared on Wall St. Cheat Sheet.]

Comments (106)

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  • geo01
    Posted on December 24, 2011 at 12:35pm

    .
    THE LAWS OF OUR NATION are now enforced ON AT “At Will Basis.”
    .
    We the people . . . need to step up. It is time that ALL CITIZENS IN THIS COUNTRY are treated EQUALLY AND FAIRLY UNDER THE LAWS OF THIS LAND.
    .
    It is time to stop allowing our Politicians to abuse their office by pandering to those that GIVE MONEY TO CAMPAIGNS….that includes individuals, companies and special interest groups.
    .
    THIS IS ABSOLUTELY….AND THE ONLY WAY…..that the citizens of the United States will GET THEIR COUNTRY BACK.
    .
    Special interest groups, lobbyists and unions HAVE BOUGHT OUR POLITICAL SYSTEM and have MORTGAGED OUR FREEDOMS.
    .
    VOTE 2012……..Help get us back on track.
    .

    Report Post » geo01  
    • TomFerrari
      Posted on December 24, 2011 at 1:02pm

      This is appalling.
      So, you can rig the bids, make BILLIONS in profit, pay just millions in a settlement?
      Sounds like a very wise business decision!
      Albeit, ILLEGAL, UNETHICAL, IMMORAL, SINFUL, and just EVIL.
      This is a part of why we do not have more small businesses growing in America.
      Let’s say there is a water desalination company – like, oh, I don’t know…
      http://www.aquasonics.com
      and they have a groundbreaking desalination technology that operates on nothing more than waste heat from existing manufacturing, and has a byproduct of electricity.
      How are they to compete when a TRILLION dollar company like GE,
      RIGS THE BIDS, and swallows up all the government contracts?
      There will be NO capital available to the small guy.
      GE gets the bids, the profits, AND destroys competition and prevents future competition!

      NO, a “fine” is NOT acceptable!

      This sort of behavior should be PROSECUTED FULLY, and, they should (if found guilty), be PROHIBITED FROM EVER COMPETING FOR ANY future bids!!!

      RESTORING LOVE , July 26 27 28 , Dallas, TX
      http://www.meetup.com/MercuryOneHQ
      Do you GBTV?

      Report Post » TomFerrari  
    • SANE_I think
      Posted on December 24, 2011 at 3:06pm

      SIMPLY PUT, When our laws are so complex that NO CITIZEN can understnd them, what did you expect to happen? What the heck good are laws that nobody can understand? The code needs to be simplified and condensed. JMO

      Report Post »  
    • Dumbwhiteguy
      Posted on December 24, 2011 at 10:11pm

      Heres the deal. We are being taken over by the united nations. In the mean time the progressives are using crony capitalism along with the unions to corner the markets and add in the government regulations and special interest groups like the communist who mask theirself as the green movement and the other 100 groups that are attacking our system that we don‘t know about yet are creating a we don’t know who’s doing it and blame game society to pit us against each other.

      Report Post »  
    • silentwatcher
      Posted on December 25, 2011 at 1:14am

      fired them huh? how much did they receive before they left? 20,,,30 mil???? You people are THE classic example of what is wrong with our country and you truely, truely p*ss me off.

      Report Post »  
    • silentwatcher
      Posted on December 25, 2011 at 1:17am

      and I will NEVER buy a GE product again…..promise. I hope OTHERS are mad enough to do the same. I will for years remind others of this story,,,and what they pay in taxes. Pr*cks.

      Report Post »  
    • Secret Squirrel
      Posted on December 26, 2011 at 10:36am

      .
      I’ll bet Jeffery Immelt is pissed.
      He thought Holder was in the bag 100%
      Must have been a rogue prosecutor.
      That guy will be fired .

      Report Post » Secret Squirrel  
    • smithclar3nc3
      Posted on December 27, 2011 at 4:22pm

      WOW 70 MILLION DOLLARS IN FINES AFTER MAKING 14 BILLION IN TAX FREE PROFITS. That’s one half of one percent. They should forced to pay back all profits from these rigged bids and have all other contracts re examined.

      Report Post »  
  • Maji
    Posted on December 24, 2011 at 12:33pm

    Believe what you hear about GE!!

    Report Post »  
  • Viper1
    Posted on December 24, 2011 at 12:20pm

    Why isn’t this on the front page of every paper and television in the world? Oh that’s right. They paid no taxes last year and now we find out that they are corrupt. Who could have seen that coming?

    Report Post »  
    • artistskeptic
      Posted on December 24, 2011 at 12:27pm

      Such a shame Immelt couldn’t have been sentenced to life in prison, shareholder and all citizens would have celebrated getting rid of that corrupt SOB!!

      Report Post »  
    • justangry
      Posted on December 25, 2011 at 12:53am

      Don‘t forget GE’s CEO is Obama’s job czar, and they own one of the few major networks.

      Report Post » justangry  
    • Give Me Newt Or Give Me Death
      Posted on December 26, 2011 at 3:44pm

      Yeah, only places like The Blaze will carry this.

      Report Post » Give Me Newt Or Give Me Death  
  • last frontier
    Posted on December 24, 2011 at 12:13pm

    Most people go to jail when they break the law.

    Report Post » last frontier  
  • last frontier
    Posted on December 24, 2011 at 12:06pm

    Fascism is alive and well in the Obamanation.

    Report Post » last frontier  
  • shagstar
    Posted on December 24, 2011 at 12:03pm

    alot of people seem to forget that we,have,powerful forces on our side who never sleep and are alway‘s keeping tabs on the commie leftist’s. our side simply does not advertise what they uncover until the lefties are boxed into a corner such as holder and his gang of traitors! and that is just the beginning of all the intel that is about to be dumped on the left! they should be watching what our other hand is doing.it’s gonna be a great show so,,make plenty of popcorn!

    Report Post » shagstar  
  • bill984
    Posted on December 24, 2011 at 11:48am

    and since th CEO of GE is on o-blame-a’s staff, i am sure eric “fast and furious” holder is fine with the bribe aaaah i mean payout.

    Report Post »  
    • silentwatcher
      Posted on December 25, 2011 at 1:27am

      yup,,,a crime has been committed but no one pays the real penalty. Bought the way out with money and friendship. You blind people keep voting for this clod and you will be bowing in his direction 5 times a day.

      Report Post »  
  • tobywil2
    Posted on December 24, 2011 at 11:01am

    Obama’s political cronies continue to be exposed! when will we identify the real villain? http://commonsense21c.com/

    Report Post » tobywil2  
  • Dumpa
    Posted on December 24, 2011 at 10:41am

    Ever wondered what happened at FOx? Why very gradually are the storeis are shifting? Been the their website lately? You can’t watch a video clip without GE plastered in to your head. Not only that AOL advertises heavily there also, and who is AOL? Remember Jeffy doesn’t pay any taxes, bent Rupert’s ear, and any story of them vanishes……..

    Report Post » Dumpa  
    • barber2
      Posted on December 24, 2011 at 11:02am

      New to the Blaze . Trashing Fox. Hmmm. Currently from London, the International Left is waging a war on Murdoch . They want to shut down conservative Murdoch and ALL of his media outlets. We can NOT afford to aid that typical Lefty Media Mob Propaganda Machine. Fox may not be perfect but it is one of our only protections from the Lefty Gestapo Media Machine. Please take up another topic for your efforts. Leave Fox alone…

      Report Post »  
    • Ruler4You
      Posted on December 24, 2011 at 11:31am

      I have noticed the changes at FOx. They began when a very large percentage of ownership became Saudi.

      O’Reilly is now a soft shelled crab. The news is kinder and gentler. Real issues have been supplanted with the old soft shoe.

      I can’t stand AOL! They are thieves. GE should be shut down and Immelt jailed. But that would mean putting congress there as well. And no one would support that, openly.

      This ain’t your daddies America any more.

      Report Post » Ruler4You  
    • dblaess
      Posted on December 24, 2011 at 11:31am

      Merry Christmas
      I see you became a member yesterday so you could add this comment that means nothing. You are a troll most likely paid to make this less than intelligent comment. George is this you yet again?

      How is FOX anything like GE? Let me know.

      Report Post »  
    • hillbillyinny
      Posted on December 24, 2011 at 12:25pm

      AOL and Huffington Post are now “partners”!

      Report Post »  
    • babylonvi
      Posted on December 24, 2011 at 12:51pm

      Wake up BARBER, Murdoch has as many Progressive outlets as Conservative. He is a businessman, not a Conservative activist. FOX is(IMHO) an establishment NEOCON Globalist front for the Republican establishment. Though the talent exclaim their conservatism, it is really just the establishment Republican line. You want proof, wall to wall Carl Rove, the Prince of NEOCON Globalist activism, Hannity, the spouter of establishment Republican talking points, etc. etc. etc. Other than Beck(who the got rid of) you never hear of the Globalist Banker plans to implode the US economy, alerting the public to the tyranny being solidified by unconstitutional Executive Orders and laws passed by congress, the police state being established under our feet and the complete destruction of the constitution and the bill of rights. No, because the establishment Republican AND Democrat parties are controlled and guided by the same Globalist Bankers(OK, I heard Judge Napolitano talk about the destruction of the constitution once). FOX is the establishment Republican version of MSNBC. Oh, and have you ever heard them cry out against the UN Agenda 21, being established throughout the U.S.(often by different names)? No, because Murdoch IS one of the Globalists. Just like the Republicans and Democrat parties, the NWO just wants you to THINK there is a choice. Though I really don‘t like MANY of Ron Paul’s policies and ideas, he really is the ONLY one not controlled by the Globalists.

      Report Post » babylonvi  
    • Drakkhanlord
      Posted on December 25, 2011 at 7:57pm

      fox is a govt propaganda network , just a different flavor compared to huff po or other rags…

      Report Post » Drakkhanlord  
  • historyforgotten
    Posted on December 24, 2011 at 10:19am

    Dick Cheneys ‘Haliburton’, did the same thing.
    Political Leaders should NOT Favor ANY Corporations. Including Salendra, GE, NewsCorps, Haliburton, Exxon, Koch Industries, Boeing, etc…

    Report Post »  
    • lukerw
      Posted on December 24, 2011 at 10:32am

      And… your point is?

      As long as there are Progressives in both Political Parties… people will elect those who ignore the Constitution and American Values!

      Report Post » lukerw  
    • turkey13
      Posted on December 24, 2011 at 12:00pm

      Hey – when large corporations help you raise 100 million $$$ and they say jump you ask how high. G.E. helped put obama in the White House and their CEO is one of obamas Zars. Since Emil sits by obama he should have kept the 70 million and told them to jump in a lake. Those brown racing stripes by obamas nose came from Emil’s rear postier. G. E. took obama and brown noseing to a new leval.

      Report Post »  
  • weneedrubio
    Posted on December 24, 2011 at 9:24am

    Immelt is another Corzine. Republican my a$$. What are the stockholders thinking, his moves have lost them millions. He is also in a position , like no one else, to bring about nuclear development and he goes solar instead??!!! Again, why do the stockholders support him, subsidies he gets from the government? I can’t figure it out. Fire his lying a$$ before he takes another great company down the toilet.

    Report Post »  
    • Mess23
      Posted on December 24, 2011 at 9:46am

      If we were measuring in BILLIONS, Corzine is another Immelt on a smaller scale. How many of those dollars are going for democraps re-election campaigns?

      We are being RAPED America.

      Report Post »  
  • hempstead1944
    Posted on December 24, 2011 at 8:59am

    The market is sooo rigged….wonder when the folks are going to figure it out. Immelt is only a sympton not a cause.

    Report Post »  
  • shorthanded12
    Posted on December 24, 2011 at 8:42am

    Funny how they sneak these storys out there on a Holiday weekend (OH YEA MERRY CHRISTMAS) GE the laughing stock or should I say the corrupt STOCK on Wall Street and main street. Like some one else posted I bet Corzine is taking notes on this one. Notice how Barrys campaign office (DNC) has returned $70,000.00 to Corzine in campaign funds…LOL..there throwing Corzine under the BUS…LOL… As far as GE and good ole boy Jeffery his azz should be with Bernie Madoff talking old wall street war stories.

    Report Post »  
  • Mateytwo Barreett
    Posted on December 24, 2011 at 8:34am

    Total “settlement” $743 million. Genital Electric pays $70.4 miilion. So far 5 companies have “been agreeable”. Soooo- Genital Electric which is 20% of the, dare I use the word, defendant’s (respondant is for civil stuff= right) pays 8% of the “settlement” in we
    hat is desribed as a legal and civil case. There’s that SMELL again.

    Report Post » Mateytwo Barreett  
  • Drakkhanlord
    Posted on December 24, 2011 at 8:33am

    “” The settlement brings the total amount so far paid by companies to end the case to $743 million. Bank of America, JPMorgan, UBS, and Wells Fargo previously settled similar cases.”"

    and where is that money…?

    Report Post » Drakkhanlord  
  • Drakkhanlord
    Posted on December 24, 2011 at 8:31am

    No one in prison , no nothing…

    pay a fine and on your way…bunch of BS…

    Report Post » Drakkhanlord  
  • Gonzo
    Posted on December 24, 2011 at 8:30am

    So GE gets to buy it’s way out of jail…I bet Corzine is taking notes.

    Report Post » Gonzo  
  • barber2
    Posted on December 24, 2011 at 8:27am

    I would like to know who gets this $70.4 million dollar settlement and how it is divided. Any chance the Blaze can follow up on this ? ( could this be another government crony deal to reward some favored group ?)

    Report Post »  
  • Darla_K
    Posted on December 24, 2011 at 8:24am

    I started boycotting GE years ago and will continue to do so. They are crooked in my books and I will not help them by giving them my money.

    Report Post » Darla_K  
    • Drakkhanlord
      Posted on December 24, 2011 at 8:34am

      Have not bought anything knowingly from GE in 30+ years…will not buy anything from them ever.

      Report Post » Drakkhanlord  
    • mrfunn
      Posted on December 24, 2011 at 8:39am

      ditto
      The lib significant other wanted a GE microwave.
      We have an LG.

      Report Post »  
    • Give Me Newt Or Give Me Death
      Posted on December 26, 2011 at 3:45pm

      It‘s a shame too because they have the potential to be one of America’s great companies.

      Report Post » Give Me Newt Or Give Me Death  
  • mrfunn
    Posted on December 24, 2011 at 8:22am

    Well timed?
    The Bloomberg article’s date is Fri Dec 23 12:59:19 2011

    Friday afternoon before the long Christmas weekend.

    Hmmm

    Report Post »  
  • lukerw
    Posted on December 24, 2011 at 8:02am

    Why can this be… settled with a Payment?

    Report Post » lukerw  
  • Snowleopard {gallery of cat folks}
    Posted on December 24, 2011 at 8:02am

    Notice once again how a cronie company of the admin gets away not only with no taxes being paid, they now pay a pitance for admitting rigging messes, while anyone else would be thrown down the river for life by now…one more reason Obama needs to be impeached.

    Report Post » Snowleopard {gallery of cat folks}  
    • loriann12
      Posted on December 24, 2011 at 8:26am

      A 5 year investigation? That means it was started under Bush. Why didn’t it take just a year or possibly 2? They obviously weren’t cooperating, and now the Justice Department is just saying, “Oh well?” I‘m surprised they didn’t just come out and say Bush had it in for them, and there were no grounds.

      Report Post »  
    • 1776freedomofspeech
      Posted on December 24, 2011 at 9:10am

      @SNOWLEOPARD {GALLERY OF CAT FOLKS}

      You hit the bullseye!

      Report Post » 1776freedomofspeech  
    • starman70
      Posted on December 24, 2011 at 10:01am

      @LORIANN12

      You know it‘s all Bush’s fault.The economy, the wars, world hunger, “Global warming”, unemployment, political infighting, all Bush’s fault!

      Remember the POTUS’ statement: “I inherited this mess and I will fix it.”, of course fixed by using Socialism and Communist tactics.

      Report Post »  
    • Give Me Newt Or Give Me Death
      Posted on December 26, 2011 at 3:46pm

      Kinda makes you wonder why in the world Martha Stewart had to do time.

      Report Post » Give Me Newt Or Give Me Death  
  • Lesterp
    Posted on December 24, 2011 at 8:01am

    Well I am SHOCKED, shocked I tell ya!

    Report Post » Lesterp  
  • teddrunk
    Posted on December 24, 2011 at 8:00am

    Is that $70.4 a business expense? Then it’s tax deductible. Oh that’s right, GE is a Communist/Democrat company. Those dirty traitors don’t pay any income tax.

    Report Post »  
  • AZwoodman
    Posted on December 24, 2011 at 7:58am

    LOL yet GE with get millions in tax breaks and end up getting this 70 Mil PLUS Millions more back next year from our taxes~!

    Report Post » AZwoodman  
    • shorthanded12
      Posted on December 24, 2011 at 8:44am

      when GE has 10,000 ppl alone that work on tax laws and lobbys down on K street they can do anything with out remorse.

      Report Post »  
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