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by eganist 2499 days ago
> It seems to me he is being paid by hedge funds to come up with research that supports their short positions.

Regardless of whether this is true, should they successfully collect a reward, it would validate the research on merits.
1 comments
slg 2499 days ago
Not if this research is what causes the stock to drop and is what allows them to collect a reward. Then the merits of the accusations doesn't actually matter and they don't have to true for the people shorting the stock to profit from releasing them.

I have no idea if these accusations are true, but the accuser's short position on the stock has zero positive bearing on the validity of the accusations.

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eganist 2499 days ago
> Not if this research is what causes the stock to drop and is what allows them to collect a reward.

I don't understand the causative relationship you're asserting between a drop in value and a whistleblower award that's only granted after an enforcement action. How would a drop in stock value result in a whistleblower award?

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slg 2499 days ago
Sorry, I misunderstood your comment then. I though you were using "reward" generally. A financial windfall from shorting a stock and then releasing bad news about the stock is a "monetary reward" that doesn't depend on the merit of the accusations. I didn't realize you were speaking specifically about a "whistleblower reward" which wouldn't be awarded until well in the future after the report had been verified.
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shkkmo 2499 days ago
What are you talking about? There is zero whistleblowing going on here. This is an outside investigative report funded by a hedge fund. The only link to whistleblowing is the investigators biography.
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elliekelly 2499 days ago
From the disclosures section of the report:

> Prior to the initial distribution of this Report on August 15, 2019, the Company also submitted this Report to the U.S. Securities and Exchange Commission’s Whistleblower Program and the U.S. Department of Justice’s FIRREA Whistleblower Program. Both or either of those submissions may generate profits for the Company independent of the financial performance of GE and/or the securities, derivatives, and other financial instruments of, and/or relating to, GE.

I don't know how the DOJ program works but SEC Whistleblowers can be awarded 10-30% of the money recovered as a result of their information.

SEC FAQ here: https://www.sec.gov/whistleblower/frequently-asked-questions

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xbmcuser 2499 days ago
I think he came out with the report as SEC had already started investigating GE. If he had not come out with his report he might not have been able to trade in GE stock as he would have had insider information and could be dinged for insider trading. After putting the information out in the public he can short all he wants.
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fastball 2495 days ago
How can you be a whistleblower if you use entirely public information?
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