Why GE Is Seeing a Surprise $15 Billion Shortfall

The transcript discusses GE's financial challenges related to its insurance portfolio, which led to a $6.2 billion charge and $15 billion in reserves. The SEC is investigating the situation, which has roots in GE's past involvement in the long-term care insurance market. Despite annual reviews, the extent of the liabilities was only recently acknowledged. The role of former CEO Jeff Immelt and other oversight bodies is questioned. GE attributes the issues to market conditions and policyholder claims, leading to a reevaluation of assumptions.

What prompted the SEC to investigate GE's financial situation?

• A new business acquisition

• A $6.2 billion charge and $15 billion reserve for losses

• A sudden increase in stock prices

• A change in leadership

When did GE completely exit the insurance business?

• In the late 80s

• In 2010

• In the early 90s

• By 2006

What was a major reason for the delayed response to GE's insurance liabilities?

• External market conditions

• No significant changes in assumptions

• Frequent changes in leadership

• Lack of annual reviews

Who was the CEO of GE during the time of the insurance portfolio issues?

• Jeff Immelt

• Jack Welch

• Larry Culp

• John Flannery

What is GE's current explanation for the insurance portfolio issues?

• A new regulatory requirement

• A sudden increase in policyholder claims

• Regular evaluations that only recently revealed the issues

• Unexpected market conditions