GE Funding Capital Market Services Inc., a subsidiary of General Electric Capital Corp., does not agree with the Securities and Exchange Commission’s plans to file charges against it in connection with an industry-wide investigation of guaranteed investment contracts and derivatives, but is discussing the matter, including a “potential resolution,” with SEC staff.
The discussions were disclosed in a quarterly financial statement that General Electric Co. recently filed with the SEC.
The disclosure comes almost two years after the GE subsidiary received a Wells Notice advising it that the SEC staff was considering filing civil charges against the company in connection with alleged bid-rigging of GICs and other instruments in the municipal securities market.
Another subsidiary, GE Funding CMS, or Trinity Funding Co., also is under investigation and is widely believed to be one of the unnamed providers in an indictment late last year of CDR Financial Products and three current and former CDR employees.
The SEC and Justice Department are conducting parallel civil and criminal investigations of anticompetitive practices in the municipal market.