The Securities and Exchange Commission (SEC) has notified Wal-Mart that it will not allow the company to exclude from consideration our shareholder proposal that asks for a report on the business risks of climate change. Our supporting statement criticizes the company's support for unpopular measures like Cap & Trade, and for forcing its controversial political positions on its suppliers.
Two weeks ago, we asked whether Interior Secretary Ken Salazar considered himself above the law by ignoring court orders to resume the permitting process for deepwater drilling in the Gulf of Mexico. Now we learn that Salazar may have misled Congress and the public on the number of drilling permit applications he is ignoring.
Appearing today on CNBC, Steven Rattner, the former head of President Obama's auto task force, made some surprising observations that undermine his previously articulated optimism about the future of bailed-out General Motors. Although he cleverly tried to lump Ford in with GM, he acknowledged GM's recent reliance on incentives to sell autos:
Kenneth Boehm, chairman of the National Legal and Policy Center in Falls Church, Va., was once a senior official of the Legal Services Corp., serving as counsel to its board of directors from 1991 to 1994.
Since then, Boehm has been one of the LSC's most persistent critics, urging reform and even elimination of the agency. Last year he testified before the House Judiciary Committee, asking members to reject a bill that would have, in his view, eliminated many of the beneficial reforms Congress enacted in 1996. He warned that if the bill passed, "once again Legal Services will be known as a federal program plagued with unaccountability and controversy." The bill died.
Last week, the Volt, GM's signature hybrid vehicle, turned in a lackluster performance in its first series of road tests by Consumer Reports. CR told Reuters on Monday that "when you look at the finances, [the Volt] doesn't make any sense." The publication went on to note that the Volt was "not particularly efficient as an electric vehicle and not particularly good as a gas vehicle... This is going to be a tough sell to the average consumer."
Famed investor Warren Buffett once said, "If you have to have a prayer session before raising prices by ten percent, then you've got a terrible business." So, what does it mean if your business is slashing prices month over month through discounts and other incentives? Take a look at this graph.
From the 1st quarter through the 4th quarter of 2010, GM's lobbying expenses more than doubled from $1.8 million to $3.89 million - a 113% increase. After all, when the government is your largest shareholder, your company execs will inevitably be spending an inordinate amount of time cozying up to Washington politicians.
Moreover, GM's lobbyist team reads like a who's who of the government bailout business. And why wouldn't it? When you're lobbying Washington to privatize gains for your clients and socialize their losses among taxpayers, you hire those firms with the most experience representing other notorious companies that received massive bailouts by U.S. taxpayers - Fannie Mae, Freddie Mac, Goldman Sachs, AIG and others.
News coverage of General Motors over the past few weeks has painted an increasingly glowing picture, but here's a dose of reality: GM still has not repaid taxpayers for the bailout and it's looking less and less like taxpayers will ever be made whole.