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Violation Tracker Individual Record

Company: General Electric
Current Parent Company: General Electric
Penalty: $1,500,000,000
Year: 2019
Date: April 12, 2019
Offense Group: financial offenses
Primary Offense: toxic securities abuses
Secondary Offense: investor protection violation
Mega-Scandal: Toxic Securities
Violation Description: General Electric agreed to pay a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to resolve claims involving subprime residential mortgage loans originated by WMC Mortgage, a GE subsidiary. WMC, GE, and their affiliates allegedly misrepresented the quality of WMC's loans and the extent of WMC's internal quality and fraud controls in connection with the marketing and sale of residential mortgage-backed securities.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Massachusetts
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: diversified
Specific Industry of Current Parent: diversified
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.