General Electric logo. (YASUYOSHI CHIBA/AFP/Getty Images)
BOSTON (WBZ-AM) -- General Electric says it is fully cooperating with an investigation by the Securities and Exchange Commission after taking a $6 billion write-down on an old insurance business.
Chief Financial Officer Jamie Miller said the losses stem from the company's long-term care insurance portfolio.
Former SEC enforcement lawyer Jacob Frankel told WBZ NewsRadio 1030 that, as big as the write-down is, it should not be of concern to investors.
"The price of GE stock shifted already when the company made the announcement of the fact that it was going to take the charge," he said.
He said the fact that the SEC investigation was announced today will have very little effect on the price of the stock.
"These really are routine occurrences," he said.
GE has been in belt-tightening mode since John Flannery became CEO in August of last year.
WBZ NewsRadio 1030's Lana Jones reports