In blaming the reserving issues on management, the employees are in effect, protecting themselves and their families. They put the issue back into Immelt’s bailiwick. It will almost be impossible for Immelt to say he didn’t know when several employees have already accused management of cooking the books. Immelt led the share repurchases, the ballooning debt and the ill-timed acquisitions. He exited stage left before GE crumbled.
Ralph Baker’s Shock Exchange: How Inner-City Kids From Brooklyn Predicted The Great Recession and the Pain Ahead predicted GE’s demise years ago. According to Shock Exchange, Jack Welch’s decision to tap Immelt instead of GECC CEO Gary Wendt as his successor was the beginning of the end for the industrial conglomerate.
Immelt left a $20 billion unfunded pension liability for current CEO Larry Culp to wrestle with. A run on the bank at GECC occurred last month. Immelt definitely will not win any legal battle in the court of public opinion, assuming he ever testifies in court or in front of regulators at all.