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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Itchy and Scratchy's picture

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

NOTW777's picture

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

Thought Processor's picture

 

 

Coming up next:  GM Bankruptcy Part Deux.....

 

Stay Tuned Folks!

knukles's picture

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

ParkAveFlasher's picture

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

drendebe10's picture

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

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.

813kml's picture

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

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.

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.

jay28elle's picture

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.

drendebe10's picture

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

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?

HaroldWang's picture

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

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.

 

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.

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.

alangreedspank's picture

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

SmilinJoeFizzion's picture

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

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...

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).

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.

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.

yochananmichael's picture

GM is alive and it's customers are dead!

Bangin7GramRocks's picture

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

Eagle Keeper's picture

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

ParkAveFlasher's picture

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

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.

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...

iamtheeggman whooooooooooooo's picture

Will they be recalling everything built since about 1973?

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.

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....

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?

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!

Itchy and Scratchy's picture

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

The_Ungrateful_Yid's picture

How about a big FUCK YOU Garbage Motors

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.

kchrisc's picture

Corzine works at GM?!

dlfield's picture

Insert probe here ^^^

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

kchrisc's picture

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

 

The Internet, the ultimate glass-house.

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.

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.

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?