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GM Admits Multiple Federal Criminal Probes Under Way

Tyler Durden's picture




 

In an SEC filing today, GM, it appears, has been forced to admit that:

  • *GM SAYS FACING RECALL INQUIRES FROM MULTIPLE GOV'T AGENCIES

As WSJ reports,  government filing that it is under investigation by federal prosecutors, the Securities and Exchange Commission, a state attorney general, Congress and the National Highway Traffic Safety Administration for its handling of a recent rash of recalls. And furthermore,

  • *60 PUTATIVE CLASS ACTIONS SUITS FILED OVER SWITCH RECALL

The company says in the filing it isn't currently able to estimate the potential costs of lawsuits or investigations tied to the ignition recall, but adds resolving the probes could have a "material adverse impact" on the company's finances.

As WSJ adds,

GM formally confirmed the existence of a federal criminal probe of the recall by the U.S. Attorney for the Southern District of New York, in its quarterly report to the SEC filed today. GM had earlier reported an 82% drop in first quarter earnings, largely because of a $1.3 billion charge related to the ignition switch and other recalls.

 

GM said it believes it is "cooperating fully" with requests for information from the various investigating agencies, although it is paying fines to NHTSA for missing an April 3 deadline to respond fully to questions from the auto-safety regulator.

 

It isn't clear from GM's filing what aspects of the ignition-switch recall matter the SEC or the unidentified state attorney general are investigating.

 

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Thu, 04/24/2014 - 15:42 | 4692157 Itchy and Scratchy
Itchy and Scratchy's picture

Woohooo ....more sweet tax payer funds going to class action litigation lawyers! Woohoo!

Thu, 04/24/2014 - 15:54 | 4692208 NOTW777
NOTW777's picture

cant be, this is obamamotors - didnt he warrant each car personally or something

Thu, 04/24/2014 - 16:01 | 4692238 Thought Processor
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Coming up next:  GM Bankruptcy Part Deux.....

 

Stay Tuned Folks!

Thu, 04/24/2014 - 16:03 | 4692246 knukles
knukles's picture

Nice fucking job running something in the private sector, Treasury...
Anybody else get a hint at this display of proficiency? 

Thu, 04/24/2014 - 16:38 | 4692391 ParkAveFlasher
ParkAveFlasher's picture

MY FELLOW COUNTRYMEN, THIS IS WHAT WE ARE PAYING FOR UNDER PENALTY OF IMPRISONMENT AND FINE.

Thu, 04/24/2014 - 16:44 | 4692409 drendebe10
drendebe10's picture

Gummint Motors makes nothing I want to own or drive....

Thu, 04/24/2014 - 19:13 | 4692999 Jumbotron
Jumbotron's picture

Nationalize that piece of shit company, pack up every tool, tool die, robot, the whole kit and kaboodle, and ship it to China for a tidy sum in return.

And dare the remaining American car company (Ford) to build another piece of shit.

Can't say much to Chrysler.....they're Fiat now.  What a fucking shame that the company that bought the Jeep brand is now owned by Italians and before that they were owned by the Germans (Daimler).  Former Fascists and Nazis have now owned a vehicle brand that help in part to defeat them in WWII.

Thu, 04/24/2014 - 15:43 | 4692166 813kml
813kml's picture

This smells like a witchhunt.  GM has made shitty deathtraps for 40 years, why make a big deal about it now?

Thu, 04/24/2014 - 15:49 | 4692188 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The government lost money on the bailout. They are going to get their pound of flesh to make up for the loss one way or the other.

Thu, 04/24/2014 - 16:10 | 4692270 ZerOhead
ZerOhead's picture

The government doesn't give a rat's ass that they lost someone elses money. They are pissed because after all they did for GM, unlike the banksters, the company simply didn't send enough 'love' back in their direction.

Thu, 04/24/2014 - 15:50 | 4692195 jay28elle
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as far as I'm concerned, with Ms. CEO-chick coming out and wanting to skirt all liability by playing the 'we're not the same GM' card the whole freaking company C & E level execs, starting with her, should lose everything they have.

But, of course, since they are 'friends of Obama' they will get most-favored status and hardly a slap on the wrist.

Thu, 04/24/2014 - 16:45 | 4692420 drendebe10
drendebe10's picture

RE: Ms. CEO-chick :   "There ain't nuthin uglier than an old white woman."   Fred Sanford.

Thu, 04/24/2014 - 18:48 | 4692904 A Nanny Moose
A Nanny Moose's picture

Yup.

Thought Experiment: How many people have died as a result of these GM defects? How many people die every year on Gummint roads?

Thu, 04/24/2014 - 15:43 | 4692167 HaroldWang
HaroldWang's picture

No big deal. Phil LeBeau told us they're doing great and had amazing earnings.

Thu, 04/24/2014 - 16:28 | 4692343 NotApplicable
NotApplicable's picture

He's an expert, you know.

Thu, 04/24/2014 - 15:47 | 4692181 Make_Mine_A_Double
Make_Mine_A_Double's picture

Even the .gov can't protect them from their own failings.

My 85 year old father for the first time in his life bought a Ford product (Lincoln MZK - (POS) LED). Having been a GM guy all his life - I was astounded and when I asked him why the change, he said 'that's not the GM I know anymore'.

Just one guy, but when they start losing that demo who the hell is going to buy the GM crap, other than highly questionable sub prime Ally loaners who have no intention of ever paying in full.

 

Thu, 04/24/2014 - 16:09 | 4692269 Fedaykinx
Fedaykinx's picture

I used to drive nothing but GM vehicles if for no other reason than my uncle ran a dealership.  My last two vehicles have been Fords.

Thu, 04/24/2014 - 16:29 | 4692349 NotApplicable
NotApplicable's picture

Given all of that Ally shit is securitzed, they could give a fuck. My local CU probably repos a dozen per week.

Thu, 04/24/2014 - 17:03 | 4692502 alangreedspank
alangreedspank's picture

The rot hasn't reach their full size trucks lines yet, they aren't that bad.

Thu, 04/24/2014 - 15:51 | 4692182 SmilinJoeFizzion
SmilinJoeFizzion's picture

the guy on my corner is using his Chevy Volt as a chicken rotisserie

Thu, 04/24/2014 - 16:11 | 4692274 knukles
knukles's picture

There is one (as in 1 only) white Chevy Volt in the village near which we reside.
It used to have a Massive Obama/Biden 2012 sticker on the back
The sticker has now suspiciously absent. 

And there's some (crazy, likely) lady in the area that drives a crappy old Japmobile with stickers all over it.
ABout 3/4 are about no more wars, peace, why can't we all just get along, Kumbayah, etc.
The other 25% are pro Obama 

I mean, WTF?  And people like this get to vote!?!?!?!?! 

Anyway...
It's cathcing on, fellow rigth wing conspiracy lunatics...

http://www.rasmussenreports.com/public_content/politics/general_politics...

Thu, 04/24/2014 - 16:32 | 4692354 NotApplicable
NotApplicable's picture

I find the number of bumper stickers on a vehicle to be directly proportional to the overall ignorance of the owner (regardless of position).

Thu, 04/24/2014 - 16:36 | 4692377 RafterManFMJ
RafterManFMJ's picture

I see no reason you cannot buy a supply of 0blam0 bumper stickers and super glue one to his car when you get the chance.

If you see his car again, parked at the local Planned Parenthood say, and the sticker is gone - reapply another one.

This would really be a fun summer project.

Thu, 04/24/2014 - 17:38 | 4692648 666
666's picture

"There is one (as in 1 only) white Chevy Volt in the village near which we reside."

You mean GM actually sold one? It's actually in production? Well, golly gee, ain't that a kicker! I never saw one in my life and never expected to.

Thu, 04/24/2014 - 15:48 | 4692187 yochananmichael
yochananmichael's picture

GM is alive and it's customers are dead!

Thu, 04/24/2014 - 15:53 | 4692203 Bangin7GramRocks
Bangin7GramRocks's picture

Admit no wrongdoing, sell $60 billion in bonds and pay for the deaths. No problem! Record profits again in 2018.

Thu, 04/24/2014 - 15:53 | 4692204 Eagle Keeper
Eagle Keeper's picture

Why don't we sue the automakers because cars kill people everyday....  well, so do guns...

Thu, 04/24/2014 - 16:43 | 4692406 ParkAveFlasher
ParkAveFlasher's picture

Why don't I sue the Federal Government for interest?

Thu, 04/24/2014 - 16:45 | 4692415 RafterManFMJ
RafterManFMJ's picture

^wow

Thu, 04/24/2014 - 18:06 | 4692732 Pure Evil
Pure Evil's picture

If guns kill people every day then why do they keep putting the people pulling the trigger into prison?

If guns kill people, then the guns should be put in jail.

Goes for knives, bats, etc., etc.

Thu, 04/24/2014 - 19:13 | 4693002 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You forgot the /sarc tag,

But to be a contrarian on this point a defect in manufacturing of the car killed people a defect that was purposely left unattended to not that a car can kill people. We just ban things we don't like, like guns so why don't we ban cars...

Thu, 04/24/2014 - 15:55 | 4692209 iamtheeggman wh...
iamtheeggman whooooooooooooo's picture

Will they be recalling everything built since about 1973?

Thu, 04/24/2014 - 15:59 | 4692213 Laughinggrizzley
Laughinggrizzley's picture

Remember kids, this use to be a goobermint enity, where they fucked all the bond holders for the good of the unions, I mean "middle class". Karma is the worst bitch you can fuck with.

Thu, 04/24/2014 - 16:00 | 4692237 Eagle Keeper
Eagle Keeper's picture

When you and I bailed out GM & Chrysler, I told my wife we could never buy another GM or Chrysler. At that time we owned one of both. Now we own neither and tried Japanese & German cars instead....

Thu, 04/24/2014 - 16:06 | 4692252 Joebloinvestor
Joebloinvestor's picture

GM was scared shitless in the 70's they were gonna be broken up like Ma Bell.

They didn't listen to the "smart guy" (Ross Perot) and got rid of him with a big payoff.

Now they have engineers hiding the fixes for their engineering malfeasance and the CEO LYING about what she knew and when.

Things have certainly improved, haven't they?

Thu, 04/24/2014 - 16:05 | 4692253 Caveman93
Caveman93's picture

Oh Goodie! Government Motors is investigating themselves! Should be very fucking fruitful. 

Quick example of how this works:

"Hey Honey! I investigated myself and found I did not fuck that other woman so no, I did in no way shape or form have sex with her or cheat on you."

Case Closed!

Thu, 04/24/2014 - 16:12 | 4692282 Itchy and Scratchy
Itchy and Scratchy's picture

moar rich lawyers ... moar rich lawyers ... moar rich lawyers ... moar rich lawyers ... moar rich lawyers

Thu, 04/24/2014 - 16:16 | 4692293 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

How about a big FUCK YOU Garbage Motors

Thu, 04/24/2014 - 16:29 | 4692348 jay28elle
jay28elle's picture

Hats off to Staples for wanting to save the US Postal Service.  Whether or not the unions will ever really let that happen is another story.

Thu, 04/24/2014 - 16:32 | 4692361 kchrisc
kchrisc's picture

Corzine works at GM?!

Thu, 04/24/2014 - 16:49 | 4692445 dlfield
dlfield's picture

Insert probe here ^^^

Thu, 04/24/2014 - 17:04 | 4692504 Miss Expectations
Miss Expectations's picture

OFF topic...but 3 and counting:

1.  Hillary cancels San Diego appearance (An organization called "The Difference Matters" was going to show up) http://libertyunyielding.com/2014/04/05/hillary-cancels-san-diego-appearance-benghazi-protest-planned/

2.  Michelle cancels Kansas graduation speech (Petition with 2,800 signatures/logistical nightmare) http://www.upi.com/Top_News/US/2014/04/24/Michelle-Obama-cancels-Kansas-graduation-speech/1171398366746/

3.  Eric Holder cancels policy academy graduation speech (Seven Oklahoma legislators were preparing to lead a crowd of hundreds in protests across the street, most calling for Holders impeachment.)  http://www.dailymail.co.uk/news/article-2612500/It-PR-disaster-president-Eric-Holder-cancels-police-academy-graduation-speech-lawmaker-planned-protest-demanding-impeachment.html

Thu, 04/24/2014 - 17:29 | 4692607 kchrisc
kchrisc's picture

Alternative headline: Guillotine sightings cause scare in pol and crat ranks.

 

The Internet, the ultimate glass-house.

Thu, 04/24/2014 - 20:27 | 4693283 SDShack
SDShack's picture

double post

Thu, 04/24/2014 - 20:27 | 4693291 SDShack
SDShack's picture

The winds of change in the form of civil disobedience are starting to blow. Lots of little breezes like these can be found lately. And it runs across the political spectrum. That tells me TPTB have to be getting a little nervous that some vocal masses that they count as their base are getting restless.

Thu, 04/24/2014 - 17:09 | 4692525 Spungo
Spungo's picture

We need some kind of global war to spur innovation. Remember that RADAR was invented during war, and war brought tremendous improvements in aviation.If we go to war with China and Russia at the same time, we might discover a way to make GM not suck so hard.

Thu, 04/24/2014 - 17:29 | 4692609 brunoaa
brunoaa's picture

GM is one of Kyle Basse's current heavy bets, along with Argentina debt ....

Still waiting for Japan Interest rate to blow up (Though this one  will probably happen in due time)...

But worrying, has the guy lost its touch?

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