General Motors recently announced that it bought back preferred stock from the UAW Retiree Medical Benefits Trust and the Canadian government. The deal closed in December of 2014 and supposedly will result in a reduction to GM’s fourth quarter earnings to the tune of $800 million. GM had the option to redeem the shares at face value after December 31st of 2014. The timing of the deal brings into question the motivation behind the move and also leads us to reexamine a previous preferred share buyback that occurred in late 2013.
The 2013 deal seemed to have been designed to benefit the UAW rather than the shareholders that GM has an obligation to serve. Reuters reported on the deal in September of 2013 with the following:
General Motors Co (GM.N) said on Monday it would buy back just under half of its preferred shares held by the United Auto Workers
… Read More ➡
Sound the trumpets! Here comes the next best, all-new, electric wonder-car from General Motors. The dust had not even cleared from the rollout of the new and improved 2016 Chevy Volt when GM CEO Mary Barra announced the newest Tesla-killer from GM, the Chevy Bolt. Let’s hope that the engineers working on the Bolt put more thought into the design of the vehicle than the GM executives put into naming the car.
Seriously, the Bolt? The name sounds like something out of a Disney animated movie. I wonder if the names Ratchet or Socket were in contention. Whatever the case, the name may be new, but the hype is all too familiar.
Barra has touted the new Bolt as being “a real game changer” for GM, just like the previously-hyped Chevy Volt was. Anyone who has paid attention to the Volt debacle would know that the car has been … Read More ➡
President Obama traveled to Michigan this week to declare the auto bailout a success. Interestingly, he toured a Ford plant. The company did not participate in the bailout.
GM is still trying to shake the Government Motors moniker, and that was certainly the reason for Obama’s nonvisit.
Earlier this week, General Motors Company boasted that sales for December were the strongest in seven years. A review of the facts shows that this is not exactly true. You see, GM Co. has not been in existence for seven years. While GM points to this technicality when trying to weasel out of liability claims from the past, it continues to act as if the company is a stalwart 100 year-old American institution.
GM described December’s sales as follows in its press release, “General Motors Co. (NYSE: GM) dealers in the United States delivered 274,483 vehicles last month for the company’s best December … Read More ➡
As if New York City did not have enough corruption of it own, the administration of Mayor Bill di Blasio has reached into New Jersey and recruited an operative named Bill Crawley for a key post in the New York City Housing Authority (NYCHA). As pointed out by investigative reporter Gerard Flynn on the Gothamist website:
Bill Crawley is the former CEO of a controversial Newark non-profit disbanded in 2011 amid allegations of millions of dollars in graft and a pay-to-play scandal that sent Newark’s deputy mayor to federal prison.
Newark’s deputy mayor may have gone to prison, but Cory Booker, then Mayor and now U.S. Senator, skated. Booker’s political organization was thoroughly corrupt. Crawley headed an entity called the Newark Downtown Core Redevelopment Corporation (NDCRC) that offered lucrative contracts in exchange for donations to Booker’s political campaign’s and pet causes.
The nonprofit NDCRC was founded in 2005 to buy … Read More ➡
The New York Times reports in a front-page story today that Senator Robert Menendez (D-NJ) successfully pressed Cheryl Mills, Hillary Clinton’s chief of staff at the State Department, to grant a visa to an Ecuadoran woman whose family made significant donations to his campaign and other Democratic campaign groups, including the Obama Victory Fund.
The woman, Estefania Isaias, is the daughter of Roberto Isaias, a wealthy Ecuadoran who is wanted along with his brother, William Isaias, for allegedly looting a bank in their home country. Estefania was barred from entering the United State because she previously had illegally brought her maids into this country.
In January, a New York TV station first reported that the criminal investigation of Menendez had been widened to include his relationship with the brothers, who are seeking to stay in the United States in the face of extradition requests by Ecuador.
According to Times reporter … Read More ➡
“If you ask what is the single most important key to longevity, I would have to say it is avoiding worry, stress and tension” – so observed George Burns, who managed to live just past his 100th birthday. George J. Heideman apparently never got that memo. Now 102, the not-quite-retired Heideman has been doing a lot of worrying lately.
He’s come out with a new book published by NLPC called “To Restore American Liberty: A 21st Century Patriot’s Declaration of Personal Independence.” A 280-page collection of essays, observations, and letters to newspaper editors, congressmen and at least one president, the book is a credible primer in natural rights for our political class. His goal: restoring lost liberties.
George Heideman, Illinois-born and bred, served his country honorably in the Navy during World War II. He’s seen a lot in his 10-plus decades of living. But rather than fade away at … Read More ➡
The death toll for General Motors’ faulty ignition switch victims continues to rise with the last reported number being 42. There has been speculation that the death count is significantly higher, as safety advocate Clarence Ditlow has written to GM to request an expansion of efforts to uncover victims of accidents resulting from defective GM vehicles.
GM has known about the ignition switch defect for years and failed to recall the deadly vehicles for almost five years after the Obama Administration took over the company in June of 2009. President Obama’s Auto Task Force guided the company through a manipulated bankruptcy process that favored political allies like the UAW over other creditors as new management and board members were appointed by the Administration. We now must question the perceived “success” of the GM bailout and ask if a conventional bankruptcy process could have saved some of the lives that were … Read More ➡
Today, we requested that the House Committee on Oversight & Government Reform undertake an “independent” investigation of the General Motors ignition switch recall delay, in light of newly obtained emails by lawyers suing GM.
Those emails suggest that the Treasury may have timed its final sale of GM shares to precede public knowledge of the ignition switch fiasco. They also cast doubt on GM CEO Mary Barra’s previous account of what she knew and when she knew it.
Here is the text of a letter I sent today to Rep. Jason Chaffetz (R-UT), in photo, the incoming Chairman of the Oversight & Government Reform Committee:
At a February 2010 Oversight Committee hearing on the risk from Toyota gas pedals, you asked a remarkably prescient question: “Does the government treat Toyota the same as it does all other automakers?”
Then-Secretary of Transportation Ray LaHood was unable to explain why the … Read More ➡
Global warming alarmists have spent time and money that spans decades and has cost billions of dollars, yet all their tactics and messaging haven’t moved the public-concern meter above “who cares?” So-called “climate change” does not even register near the top of environmental problems that most Americans worry about – much less among all policy issues – according to Gallup polling.
That doesn’t mean the fear-mongers have given up, of course, as the latest effort by environmental pressure group Ceres illustrates. The activist group – which exerts its influence via shareholder activism (claiming $10 trillion in assets) in pursuit of their definition of a “sustainable” global economy – last week sent a letter endorsed by 223 companies to President Obama, in support of EPA’s controversial proposed standard for existing power plants to limit carbon dioxide emissions. Some of the largest and most recognized corporations signed on, including Adidas, … Read More ➡
Loretta Lynch, who has been nominated by President Obama to replace Eric Holder as Attorney General, took part in a 2007 panel discussion at Duke Law School prompted by the Duke lacrosse rape case. Lynch’s comments provide insight into her mindset and raise unsettling questions about her commitment to equal justice and the rights of the accused.
The event took place on September 28, 2007. The wounds were still raw for members of the Duke lacrosse team, their families, and in a sense, the entire nation. That same month, Michael Nifong, the former District Attorney who had knowingly pursued false rape and hate crime accusations against three teammates, had been found guilty of criminal contempt of court.
The title of the session, moderated by Duke Law Professor Thomas Metzloff, was “The Practice & Ethics of Trying Cases in the Media.” On the panel with Lynch, who was identified as Loretta … Read More ➡