Citron bought GE shares yesterday after 'reckless, dishonest' report
Andrew Left's Citron Research weighed in on Harry Markopolos' General Electric (GE) report and disclosed that it bought shares of GE yesterday. Citron wrote, "Aggressive accounting and fraud are two different animals. The SEC has allowed aggressive accounting for years, which has helped fuel a growing economy. If GE was committing fraud then it has been a grand scale conspiracy by thousands of accountants, auditors, and division CFOs who have all secretly collaborated over the past 20 years." Citron also notes, "In just the past week, four GE insiders bought stock. Most notably, GE CEO Larry Culp bought $3 million of stock earlier this week and then bought another $2 million of stock in response to the bogus short report yesterday...And yes, Citron took the opportunity to buy stock as well." The fund, best known for its short positions, concluded, "Since the founding of Citron 18 years ago, we have welcomed many new entrants into the world of activist short selling. Using full disclosures, short sellers have become an important facet of self-regulation of the markets. Unfortunately, what we have just witnessed with Mr. Markopolos is reckless, dishonest, and most importantly secretive - all which gives activist short selling a bad name." Shares of General Electric are up 6.5%, or 52c, to $8.52 in morning trading.