Shares of industrial conglomerate GE bounced back, up nearly 10% after a brutal 11% sell-off yesterday that was triggered by
allegations of accounting fraud. In a regulatory filing, CEO Larry Culp disclosed that he purchased 252,200 shares of GE in the open market at an average price of $7.93, putting $2 million of his money where his mouth is. The company had vociferously denied the claims made by Harry Markopolos, who helped uncover Bernie Madoff's Ponzi scheme and argues that GE is a "bigger fraud than Enron." Culp's purchases were made near Thursday's low, suggesting the transactions were done in response to the sell-off. Separately, director Paula Reynolds also scooped up 5,000 shares at a price of $8.01 yesterday. The insider buys helped assuage investor fears sparked by the allegations.