Editing General Electric (section)

====Anticipated $8 billion loss upon disposition of Baker Hughes====
In 2017, GE acquired a 62.5% interest in Baker Hughes (BHGE) when it combined its oil & gas business with Baker Hughes Incorporated.<ref>{{cite web |title=2017 Annual Report |url=https://www.ge.com/investor-relations/sites/default/files/GE_AR17.pdf |website=GE.com |access-date=August 20, 2019 |pages=21 |language=en |archive-url=https://web.archive.org/web/20180412212038/https://www.ge.com/investor-relations/sites/default/files/GE_AR17.pdf |archive-date=April 12, 2018 |url-status=dead }}</ref>
In 2018, GE reduced its interest to 50.4%, resulting in the realization of a $2.1&nbsp;billion loss.  GE is planning to divest its remaining interest and has warned that the divestment will result in an additional loss of $8.4&nbsp;billion (assuming a BHGE share price of $23.57 per share).<ref>{{cite web |author1=General Electric |title=2018 Annual Report – General Electric |url=https://www.ge.com/investor-relations/sites/default/files/GE_AR18.pdf |website=GE.com |access-date=August 20, 2019 |pages=139 |language=en |quote=As previously announced, we plan an orderly separation of our ownership interest in BHGE over time. In November 2018, BHGE completed an underwritten public offering in which we sold 101.2 million shares of BHGE Class A common stock. BHGE also repurchased 65.0 million BHGE LLC units from GE. As a result, our economic interest in BHGE reduced from 62.5% to 50.4%, and we recognized a loss of $2,169 million ($1,696 million after-tax), which decreased the Other Capital component of shareowners' equity. The sale of Class A common stock resulted in an increase in noncontrolling interests of $4,214 million. Any reduction in our ownership interest below 50% will result in us losing control of BHGE. At that point, we would de-consolidate our Oil & Gas segment, recognize any remaining interest at fair value and recognize any difference between carrying value and fair value of our interest in earnings. Depending on the form and timing of our separation, and if BHGE's stock price remains below our current carrying value, we may recognize a significant loss in earnings. Based on BHGE's share price on January 31, 2019, of $23.57 per share, the incremental loss upon deconsolidation by a sale of our interest would be approximately $8,400 million. |archive-url=https://web.archive.org/web/20190923162718/https://www.ge.com/investor-relations/sites/default/files/GE_AR18.pdf |archive-date=September 23, 2019 |url-status=dead }}</ref> In response to the fraud allegations, GE noted the amount of the loss would be $7.4&nbsp;billion if the divestment occurred on July 26, 2019.<ref>{{cite web |title=follow-up-from-last-weeks-note |url=https://www.ge.com/reports/follow-up-from-last-weeks-note/ |website=GE.com |publisher=General Electric |access-date=August 20, 2019 |language=en |archive-url=https://web.archive.org/web/20190820234938/https://www.ge.com/reports/follow-up-from-last-weeks-note/ |archive-date=August 20, 2019 |url-status=live }}</ref>  Mr. Markopolos noted that BHGE is an asset available for sale and therefore [[mark-to-market accounting]] is required.<ref>{{cite web |title=Harry Markopolos explains fraud accusations against GE |url=https://www.youtube.com/watch?v=MGvsXPY26KI |website=YouTube |publisher=CNN Business |access-date=August 21, 2019 |time=5:17 |language=en |date=August 16, 2019 |quote=They should have marked it to market |archive-url=https://web.archive.org/web/20190818074723/https://www.youtube.com/watch?v=MGvsXPY26KI |archive-date=August 18, 2019 |url-status=live }}</ref>

Markopolos noted GE's [[current ratio]] was only 0.67.<ref name="Yahoo Finance"/> He expressed concerns that GE may file for bankruptcy if there is a recession.<ref>{{cite web |title=Madoff whistleblower Harry Markopolos details fraud allegations against General Electric |url=https://www.youtube.com/watch?v=2VCtB3E0JB0 |publisher=YouTube / CNBC |access-date=August 21, 2019 |time=5:56 |date=August 15, 2019 |quote=Harry Markopolos on GE "Heading for bankruptcy" |archive-url=https://web.archive.org/web/20190820112812/https://www.youtube.com/watch?v=2VCtB3E0JB0 |archive-date=August 20, 2019 |url-status=live }}</ref>