Government Integrity Project

General Motors to Remain Government Motors?

Geithner photoAccording to a WSJ report, "people familiar with the situation" said on Tuesday that the Obama Administration has put on hold its decision to sell the taxpayers' stake in General Motors. The article also states that "Treasury officials had anticipated GM's share price would increase following its public stock offering last November at $33 a share." It would seem that Treasury anticipated wrong.

Bigger Role Seen for CEO James Rogers in Duke Energy Scandal

Jim Rogers photoDuke Energy’s business approach has been to reap favors, tax breaks and advantages by virtue of its cozy relationship with government, with benefits that have redounded to them in the form of subsidies, tax shelters, government grants and mandates for wind farms (despite its failure to provide energy on a broad scale, even though it has been around forever) and other unproven cockamamie ideas.

Ethics Committee to Probe Fraudster's Loan to Meeks

Meeks photoOn August 5, the House Ethics Committee announced that it has accepted a recommendation by the Office of Congressional Ethics (OCE) to "further review an allegation that Representative (Gregory) Meeks failed to disclose a payment he received in 2007 in a timely manner."

The payment was an unsecured $40,000 "loan" from Edul Ahmad, a Guyanese businessman who was last month arrested in a massive mortgage-fraud scheme. On July 22, the FBI reportedly removed Ahmad in handcuffs from a Guyana-bound aircraft on the tarmac at JFK International Airport.

GM’s 'Crown Jewel' Losing Luster as China Sales Fall

A few months back General Motors CEO, Dan Akerson, made claims that future profits at GM would be driven by China sales and the Chevy Volt. It has become apparent that the Volt is a non-issue, so let's take a look at the performance of what Akerson described as the "crown jewel" of GM.

China sales in July for GM actually fell 1.8% year over year. GM and its "joint ventures" sold 173,398 vehicles in China for the month of July. Of this number, 77,944 units were sold by SAIC-GM-Wuling. It is another overlooked half-truth by GM that they count these as GM sales, even though GM is a minority owner of the division.

Taxpayers To Get Hosed as GM Shares Hit New Low

Today's drop in GM's share price to a new low represents a one-day, half-billion dollar loss for taxpayers. From the time that Treasury could first file to sell the taxpayers' stake in GM, the losses have reached about 2.5 billion dollars. Of course the total cost of the bailout was well above this, but the Obama Administration does not seem to want to cut its losses.

GM announced earnings this morning and the numbers appeared to be good on the surface. Media friends of GM trumpeted the good news but the celebration did not last long. The festive mood was replaced with GM apologists trying to explain the negative share price reaction.

Taxpayers Get Hosed on Duke Energy's Wind Farm Buying Spree

Jim Rogers photoDuke Energy, along with General Electric and General Motors, are three of the major companies that are often criticized for their rent-seeking ways by free-market minded people, because their corporate earnings focus seems to depend more on subsidies and tax breaks from government rather than sales of their products. That all three support cap-and-trade policies (although it appears GM has left the US Climate Action Partnership) – as long as the gaming of the credit-trading system falls in their favor – is one example of this.

GM Confirms Slow Chevy Volt Sales

Chevy Volt photoSales of the much-hyped Chevy Volt fell to new lows as did GM share price as July auto sales figures came in. Only 125 Volts were sold during the month of July. Recent reports attributed the slump to supply constraints as GM spokeswoman, Michelle Bunker, was quoted as saying that the Volt was "virtually sold out" and only a "few" were available nationwide. I have confirmed that this statement is not entirely truthful and have gotten clarification from GM through Director of Communications, Greg Martin.

GE's Immelt Blames at Home, Employs Abroad

Immelt Obama photoGeneral Electric announced this week it will relocate its X-ray business to Beijing in order to capitalize on the burgeoning Chinese health care market.

Bravo for them. Kudos. I’m sure it’s a smart business move for the company – just like not paying taxes in the U.S., rent seeking for “Green” subsidies and mandates, and reducing American jobs are also bottom-line wise.

Treasury Losing Taxpayer Money on GM Market Timing Gamble

Wall Street casino photoThe latest reports from Reuters state that the US Treasury Department will wait until after September to sell its GM stake. Just why is Treasury gambling taxpayer money by trying to market time its exit of General Motors' shares? The lock-up period for GM expired at the end of May. This was the earliest time that insiders (such as Treasury) involved in the GM IPO would be allowed to file to sell shares. At that time, GM shares were hovering around $31. Today's price is closer to $28. Calculating the loss from late May to now on the taxpayers' approximate 500 million shares, we come up with a loss of about $1.5 billion. What is leading the executive branch of our government to believe it has the right to play investment adviser and market timer for taxpayers on the GM gamble?

Rep. Wu to Resign After Debt-Ceiling Resolution

David Wu photoRep. David Wu, D-Ore., announced his resignation following accusations that he engaged in an unwanted sexual encounter with a young woman.

Moments after Oregon's two United States Senators, Jeff Merkley and Ron Wyden, asked the congressman to step down, Wu addressed the House and said his resignation would go into effect after the resolution of the debt-ceiling crisis.

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