DOCSLIB.ORG

2015-01-15 Consolidated Class Action Complaint

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2015-01-15 Consolidated Class Action Complaint 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!2!qh!685!!!!Ri!KF!25;3 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION NEW YORK STATE TEACHERS’ Civil Case No. 14-cv-11191 RETIREMENT SYSTEM, Individually and on Behalf of All Other Persons Honorable Linda V. Parker Similarly Situated, Jury Trial Demanded Plaintiff, v. GENERAL MOTORS COMPANY, DANIEL F. AKERSON, NICHOLAS S. CYPRUS, CHRISTOPHER P. LIDDELL, DANIEL AMMANN, CHARLES K. STEVENS, III, MARY T. BARRA, THOMAS S. TIMKO, and GAY KENT, Defendants. CONSOLIDATED CLASS ACTION COMPLAINT 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!3!qh!685!!!!Ri!KF!25;4 A. Lead Plaintiff.......................................................................................11 B. Defendants...........................................................................................12 Corporate Defendant.................................................................12 Individual Defendants...............................................................12 History Of GM ....................................................................................19 GM’s Initial Public Offering...............................................................21 Moving Shutdowns Are A Serious Safety Defect ..............................26 GM’s Obligation To Identify Safety-Related Defects And Conduct Recalls ........................................................................28 Defects Under The Safety Act Defined By Prior Litigation Involving GM And Other Manufacturers .................................30 The Obvious Danger Of Moving Shutdowns ...........................36 The Valukas Report’s Flawed Conclusions..............................87 GM And NHTSA Recognize Moving Shutdowns As A Safety Defect In 2004-2005......................................................93 The Auto Industry As A Whole Routinely Recognizes Moving Shutdowns Are A Safety Defect ...............................103 GM Recognizes Loss of Power Steering Alone As A Safety Defect In 2010 .............................................................106 i 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!4!qh!685!!!!Ri!KF!25;5 Limitations At NHTSA Exacerbate GM’s Cover-Up ............112 GM’s Obligation And Failure To Investigate And Accurately Report Liabilities To Its Shareholders And Maintain Effective Internal Controls................................................................................126 1. GM’s Obligation To Investigate And Accurately Report Liabilities ................................................................................127 2. GM’s Obligation To Maintain Effective Internal Controls Over Financial Reporting........................................................137 3. GM’s Primary Enforcement Mechanism: The Audit Committee...............................................................................139 4. GM’s Consistent Failure To Adequately Investigate Liabilities And Maintain Effective Internal Controls.............141 GM Loses Focus On Safety ..............................................................165 Mid-2000s: GM Launches New Small Car Brands In The Midst Of Massive Cost Cutting Efforts.......................................................181 GM Develops And Installs Defective Ignition Switches In Millions Of Its Vehicles ....................................................................185 GM Launches The Ion And Cobalt Car Brands, Markets Them To Very Young Drivers, And Sells Them To Rental Car Companies – Two Demographics Whose Drivers Would Be Inexperienced With The Vehicles In Emergency Situations ............195 GM Becomes Aware Of The Tendency Of Its Cars To Shut Down From Numerous Sources, But Knowingly Or Recklessly Fails To Recall Its Cars Or Record A Sufficient Financial Reserve For Over 9 Years, Exposing The Corporation To Massive Liabilities And Criminal Investigation Exposure...............199 GM Receives Hundreds Of Complaints About The Ion’s Defective Ignition Switch And Ergonomic Placement...........200 GM Launches The Cobalt And Immediately Learns Of ii 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!5!qh!685!!!!Ri!KF!25;6 Moving Shutdowns Tied To Its Defective Ignition Switch....203 Winter 2004 Through March 2005: While More Reports Of Cobalt Shutdowns Mount, GM Closes The November 2004 PRTS With No Solution.................................................206 Spring 2005: GM Receives Requests From Consumers That The Company Buy Back Their Defective Vehicles .......211 The June 14, 2005 VAPIR Meeting........................................214 June 17, 2005 Ignition Switch Experiments at GM’s Milford Proving Grounds........................................................216 June 19, 2005: GM Receives Negative Media Coverage From The New York Times, But GM Publicly Denies Any Safety Concern........................................................................218 GM Continues To Receive Customer Complaints During 2005, And A GM Design Engineer And Two Other GM Executives Each Personally Experience The Problem ...........221 August And September 2005: GM Takes Steps To Close The May 17, 2005 PRTS And Internally Acknowledges “Inadvertent Ignition Shutoffs”...............................................223 GM Fails To Address Its Own Executives’ Experiences And Continues To Place Short Term Revenue And Costs Concerns Over Customer Safety And Long Term Financial Impact......................................................................226 GM Issues Technical Service Bulletins To Dealers Regarding “Information on Inadvertent Turning of Key Cylinder, Loss of Electric System and No DTCs” .................227 GM Abandons The “Band-Aid” Fix To The Key And Then Issues Updated Technical Service Bulletins..................230 2006: GM Learns Of Crashes And Airbag Non- Deployments In GM Vehicles Used In Rental Car Company Fleets.......................................................................232 iii 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!6!qh!685!!!!Ri!KF!25;7 May 27, 2006: GM Makes Surreptitious Changes To Its Ignition Switch Design For At Least The Second Time.........235 August 2007: GM And Delphi Settle Claims Concerning The Defective Ignition Switches In Resolving Delphi’s Bankruptcy Liabilities To GM................................................237 March 2009: GM’s CEO Wagoner Reviews Information Reflecting High Cobalt Warranty Expenses That Motivate GM To Belatedly Change The Cobalt Key Design, Returning To The “Band-aid” Solution..................................238 As A Result Of Litigation Against The Company, By 2005 Senior GM Lawyers And Engineers Knew That Turning A Vehicle To Accessory Or Off Also Turned Off Its Airbags, Increasing Safety Concerns...............................................................244 The Connection Between Airbag Failures And The Ignition Switch Is Discovered By Others Outside Of GM.....247 Numerous Accidents Involving Airbag Non-Deployments Result From The Ignition Switch Defects ..............................252 GM Is Warned In October 2010 That The Ignition Switch Defects Could Result In Punitive Damages............................255 July 2011: Senior GM Executives Meet And Acknowledge That The Ignition Switch Problems Are The “Root Cause” Of The Cobalt Airbag Non-Deployments .......256 From Late 2011 Into 2012, GM Continues To Accumulate More Information And Acknowledges The Problem But Still Fails To Take Any Action ...............................................................................260 In 2012, GM Confirms The Obvious Connection Between The Ignition Defect And Airbag Failures, But More Delays Follow ......261 In The Fall Of 2012 And 2013, GM Receives Additional Evidence That The Defective Ignition Switches Pose Serious Safety Risks.......................................................................................271 iv 5<25.ex.222;2.NXR.OMO!!!Fqe!$!73!!!Hkngf!12026026!!!Ri!7!qh!685!!!!Ri!KF!25;8 J. Defendant Akerson “Retires” Under Suspicious Circumstances And Defendant Ammann Is Effectively Removed From His Role As CFO..............................................................................................277 K. GM Urgently Orders 500,000 Replacement Ignition Switches On A Rush Basis Almost Two Months Before Publicly Announcing Its First Recall ...................................................................................280 Numerous Deaths And Mounting Litigation Pressure Must Occur Before GM Finally Announced The Recalls And Increased Its Reported Liabilities......................................................293 In February 2014, The First Recall Wave Begins And GM’s Past Conduct Comes Into Question ..........................................................302 From March 10-11, 2014, GM Comes Under Close Scrutiny From NHTSA, Congress And The DOJ ...........................................307 As Media and Governmental Scrutiny Intensify During March 2014, The Scope And Impact Of The First Recall Wave Expands .............................................................................................313 On March 31 and April 1, 2014, Governmental Pressure Increases Further And GM Updates Its Estimated Recall Costs ......315 On April 9 and 11, 2014, NHTSA Imposes Its Maximum Fine On GM And GM’s Recall Charges Increase To $1.3 Billion...........320 From April Through June 2014, GM Slowly Attempts To Clean Up Its Mess – Firings, Admissions, Fines, The Valukas Report And Compensation For Some Victims .............................................324
Load more

Recommended publications
  • Central Coca-Cola Bottling Company
    NOTES ABBREVIATIONS BL: Butler Library, Columbia University CC: Coca-Cola corporate archives CCCB: Central Coca-Cola Bottling Company records, Virginia Historical Society CCP: Papers of Charles Harvey Crutchfield, Wilson Special Collections Library, University of North Carolina CED: Committee for Economic Development CEDA: Committee for Economic Development archives CWP: Papers of Charles E. Wilson, Anderson University Archives DBP: Papers of F. Donaldson Brown, Hagley Museum and Library FFP: Papers of Franklin Florence, Department of Rare Books, Special Collections, and Preservation, River Campus Libraries, University of Rochester FPP: Papers of Frances Perkins, Rare Book & Manuscript Library, Co- lumbia University GROH: Gerard Reilly Oral History, Kheel Center for Labor-Management Documentation & Archives, Cornell University GRP: Papers of Gerard Reilly, Historical & Special Collections, Harvard Law School Library HQP: Papers of Helen Quirini, M. E. Grenander Department of Special Collections & Archives, University at Albany, State University of New York ILIR: Files from the Institute of Labor and Industrial Relations Library, University of Illinois Archives ·· 1 ·· 2 NOTes IUE: Records of the International Union of Electrical, Radio, and Ma- chine Workers, Special Collections and University Archives, Rut- gers University JBP: Papers of Joseph M. Bryan, University Archives and Manuscripts, The University of North Carolina at Greensboro JCPL: Jimmy Carter Presidential Library JSP: Papers of Joseph N. Scanlon, Archives, University of Pittsburgh KC: Kheel Center for Labor-Management Documentation & Archives, Cornell University KHC: Kodak Historical Collection, Department of Rare Books, Special Collections, and Preservation, River Campus Libraries, University of Rochester LBP: Papers of Lemuel R. Boulware, Rare Book & Manuscript Library, University of Pennsylvania MFOH: Marion Folsom Oral History, Columbia Center for Oral History, Columbia University MFP: Papers of Marion B.
    [Show full text]
  • Table of Contents EUROPE
    Michael P. Walsh 3105 N. Dinwiddie Street Arlington, Virginia 22207 USA Phone: (703) 241 1297 Fax: (703) 241 1418 E-Mail [email protected] http://walshcarlines.com ISSUE 2008 - 3 JUNE 2008 Table of Contents EUROPE ......................................................................................................................................................................... 3 1. Parliament Pushes Tougher Euro VI Limits and Deadlines ................................................................................... 3 2. New Greek Plan Would Tax Motorists Driving High-Emission Vehicles ................................................................ 3 3. EU Approves Organization to Boost Development of Advanced Technologies..................................................... 4 4. EU Commission Outlines Tire Proposals to Reduce Vehicle Carbon Emissions................................................... 5 5. EU Parliament Says Scientific Evidence Supports Urgent Action on Climate ....................................................... 5 6. EU Green Biofuels Criteria Move a Step Closer .................................................................................................... 6 7. U.K. Should Suspend Biofuels Policy Until Safeguards in Place, Audit Report Says............................................ 6 8. EEA Finds EU Ozone Levels in 2007 at Lowest Level in Last Decade ................................................................. 7 9. EU Greenhouse Gas Emissions in 2006 Close to Kyoto Target...........................................................................
    [Show full text]
  • As Most Are Aware, the Past Two Years Have Been Defined by Economic Turmoil and Uncertainty
    Government Intervention in the 2008 – 2009 U.S. Automotive Crisis: Laissez-Faire Economics Abandoned A thesis submitted to the Miami University Honors Program in partial fulfillment of the requirements for Business Honors with Distinction by Michael Gershenzon May 2010 Oxford, Ohio 1 “It is the highest impertinence and presumption… in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense... They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will.” ~Adam Smith The Wealth Of Nations, Book II, Chapter III, p.346 Introduction As most are aware, 2008 and 2009 were defined by economic turmoil and uncertainty. Unemployment increased to levels not seen in decades. GDP growth stalled and dipped into the red. The NASDAQ and S&P 500 hit 20 year lows. The automotive industry was not immune to the panic, arguably feeling the wrath of the chaos more than any other industries. Its importance to the economic prosperity of the United States is unquestionable, contributing a sizable fraction to employment, boosting/dragging GDP, providing/deterring consumer confidence, and driving commodity usage. Believing the recession would persist lacking the health of the automotive sector, many experts turned to the U.S. government for a safety net. The government responded with two main tools in an effort to staunch the hemorrhaging of the auto industry: governmental loans (“bailouts” as they have come to be called) and an automotive sector specific policy, the Cash Allowance Rebate System (CARS), colloquially known as Cash for Clunkers.
    [Show full text]
  • By C. PETER GIULIANO
    WHAT BUSINESS LEADERS MUST LEARN FROM THE RECENT GENERAL MOTORS DEBACLE Crash & ® Burn By C. PETER GIULIANO IN ORDER TO SAVE THEMSELVES, THEIR COMPANIES AND THE STRUGGLING ECONOMY. he ouster of General Motors chairman and chief defensive, arrogant, and disingenuous by the executive G. Richard (Rick) Wagoner by the White national press. House a few weeks ago1 should be a clarion call to business leaders everywhere — regardless of As auto industry neophytes, Nardelli and Mulally industry — as they wrestle with the impact of a were spared the worst of the criticisms, while 31- distressed economy. year auto industry veteran Wagoner took the brunt of the blows with the Wall Street Journal claiming “To some degree … Wagoner's departure is sym- that General Motors “can’t even produce a CEO bolic,” wrote Automotive News. “But symbolism who knows how to properly beg for Washington matters — especially in Washington. The Obama bailout money. … If this is GM’s best salesman, administration is sending a message that it’s no no wonder the company can’t move cars.”4 longer business as usual.”2 Virtually overnight, what had been a global finan- “Basically, [President] Obama needed somebody cial pandemic seemed to, instead, become a to throw to the wolves,” said Peter Morici,3 the communications nightmare for Detroit. University of Maryland economist who had testified against a government bailout of the auto industry during congressional hearings in November. It was those same hearings, by the Senate banking and House financial services committees, which proved to be the culminating events that, right or wrong, transformed Wagoner into the poster child for all that was amiss with the US auto industry and, seemingly, much of the embattled American corporate leadership as a whole.
    [Show full text]
  • The Role of TARP Assistance in the Restructuring of General Motors
    The Role of TARP Assistance in the Restructuring of General Motors Bill Canis Specialist in Industrial Organization and Business Baird Webel Specialist in Financial Economics May 9, 2013 Congressional Research Service 7-5700 www.crs.gov R41978 CRS Report for Congress Prepared for Members and Committees of Congress The Role of TARP Assistance in the Restructuring of General Motors Summary In 2008 and 2009, collapsing world credit markets and a slowing global economy combined to create the worst market in decades for production and sale of motor vehicles in the United States and other industrial countries. Concern about the economic impact of a possible collapse of large parts of the U.S. automobile industry led both the Bush Administration and Members of Congress to seek legislative avenues to assist the automakers. Ultimately General Motors Corporation (Old GM) and its successor General Motors Company (New GM) together received more than $50 billion in federal assistance through the U.S. government’s Troubled Asset Relief Program (TARP). In exchange for this financial support, the U.S. Treasury received 60.8% of the new company, with the rest of New GM held by the United Auto Workers (UAW) retiree health care trust fund, the governments of Canada and Ontario, and holders of Old GM’s bonds. In its restructuring, GM closed plants, cut its hourly and salaried workforce, shed three brands, reduced debt, introduced new vehicles, and implemented changes to reduce retiree legacy costs. The federal government has sold its shares in General Motors Co. in different ways over time, including (1) a large initial public offering (IPO) in late 2010, (2) sale of stock directly to GM in December 2012, and (3) ongoing sale of stock into the public market.
    [Show full text]
  • Examining the State of the Domestic Automobile Industry—Part I
    S. HRG. 110–876 EXAMINING THE STATE OF THE DOMESTIC AUTOMOBILE INDUSTRY—PART I HEARING BEFORE THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED TENTH CONGRESS SECOND SESSION ON EXAMINING THE STATE OF THE U.S. DOMESTIC AUTOMOTIVE INDUS- TRY AND ITS OVERALL IMPACT ON THE NATION’S ECONOMY, THE AUTOMOTIVE WORKERS, AND THE COMPANIES INVOLVED IN THE SUPPLY CHAIN AND THEIR EMPLOYEES NOVEMBER 18, 2008 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html U.S. GOVERNMENT PRINTING OFFICE 50–418 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 11:12 Sep 22, 2009 Jkt 048080 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 L:\HEARINGS 2008\11-18 EXAMINING THE STATE OF THE DOMESTIC AUTOMOBILE IND COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York WAYNE ALLARD, Colorado EVAN BAYH, Indiana MICHAEL B. ENZI, Wyoming THOMAS R. CARPER, Delaware CHUCK HAGEL, Nebraska ROBERT MENENDEZ, New Jersey JIM BUNNING, Kentucky DANIEL K. AKAKA, Hawaii MIKE CRAPO, Idaho SHERROD BROWN, Ohio ELIZABETH DOLE, North Carolina ROBERT P. CASEY, Pennsylvania MEL MARTINEZ, Florida JON TESTER, Montana BOB CORKER, Tennessee SHAWN MAHER, Staff Director WILLIAM D.
    [Show full text]
  • Corp Social Responsibility - Prevalent Form of Philanthropy
    Corp social responsibility - prevalent form of philanthropy Dec 26, 2010, 01.41am IST In November 18, 2008, Rick Wagoner of General Motors, Alan Mulally of Ford and Robert Nardelli of Chrysler used their luxurious corporate jets to fly down to Washington DC for a common cause—seek $25 billion of taxpayer's money to avoid bankruptcy in the auto industry. The media coverage was immense, making the auto majors a butt of ridicule and widespread dressing down. A little more than two years later, President Obama hosted a meeting with Warren Buffett and Bill and Melinda Gates at his Oval Office to discuss the 'Giving Pledge' project, national economy and creation of jobs. The meeting, despite being a private affair, found ample space in the US media, punctuated with all-round applause and appreciation. The difference between the two meetings is evident: while the former trio is unabashedly self-serving, the latter humbly self- effacing. And no other times were more appropriate to bring out this contrast to public opinion than the last few weeks of 2010—an year for which Time magazine considers Mark Zuckerberg as the person of the year for changing "how we all live our lives". Incidentally, Zuckerberg, the creator of Facebook, has also signed the 'Giving Pledge', a commitment to give a majority of one's wealth for philanthropic efforts. He has pledged half his wealth. Social responsibility is more than just a cause; it's an inherent sense of responsibility to the society. 'Giving back to society' is no longer just the realm of non-government organizations who struggle to fulfill their cause.
    [Show full text]
  • Master Transaction Agreement,45 Were As Follows
    Congressional Oversight Panel September 9, 2009 SEPTEMBER OVERSIGHT REPORT* The Use of TARP Funds in the Support and REPORTReorganization of the* Domestic Automotive Industry *Submitted under Section 125(b)(1) of Title 1 of the Emergency Economic Stabilization Act of 2008, Pub. L. No. 110-343 Table of Contents Executive Summary .............................................................................................................3 Section One: The Use of TARP Funds in the Support and Reorganization of the Domestic Automotive Industry..........................................................6 A. Introduction ..............................................................................................................6 B. What Happened? The Sequence of Events .............................................................7 C. The Impact of the Reorganizations: Who Got What? ............................................23 D. Treasury‟s Objectives: What was Treasury Trying to Achieve? ...........................32 E. Bankruptcy Law Aspects of the Automotive Company Rescues ..........................40 F. Following the Money .............................................................................................53 G. Issues Raised ..........................................................................................................70 H. Conclusion and Recommendations ......................................................................110 Annexes: A. Professor Adler ....................................................................................................116
    [Show full text]
  • Execution.Pdf
    ex-e-cu-tion (ek si kyoo shun), n. 1. The missing link. 2. The main reason companies fall short of their promises. 3. The gap between what a company’s leaders want to achieve and the ability of their organizations to deliver it. 4. Not simply tactics, but a system of getting things done through questioning, analysis, and follow-through. A discipline for meshing strategy with reality, aligning people with goals, and achieving the results promised. 5. A central part of a company’s strategy and its goals and the major job of any leader in business. 6. A discipline requiring a comprehensive understanding of a business, its people, and its environment. 7. The way to link the three core processes of any business—the people process, the strategy, and the operating plan—together to get things done on time. 8. A method for success discovered and revealed in 2002 by Larry Bossidy and Ram Charan in Execution: The Discipline of Getting Things Done. Previous books by Ram Charan What the CEO Wants You to Know Boards That Work Every Business Is a Growth Business (coauthor) The Leadership Pipeline (coauthor) E-Board Strategies (coauthor) Strategic Management: A Casebook in Policy and Planning (coauthor) To the hundreds of people who touched our business lives and influenced the thoughts articulated in this book. A special recognition to Jack Welch, who in our time was the predominant practitioner of “getting things done.” Larry Bossidy Ram Charan CONTENTS Resetting Execution for a Time of Crisis Introduction PART I: WHY EXECUTION IS NEEDED 1: The Gap
    [Show full text]
  • Retooling General Motors: Defending an Innovative Use of the Bankruptcy Code to Save America's Auto Industry Joseph H
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Brooklyn Law School: BrooklynWorks Brooklyn Journal of Corporate, Financial & Commercial Law Volume 6 | Issue 1 Article 4 2011 Retooling General Motors: Defending an Innovative Use of the Bankruptcy Code to Save America's Auto Industry Joseph H. Smolinsky Follow this and additional works at: https://brooklynworks.brooklaw.edu/bjcfcl Recommended Citation Joseph H. Smolinsky, Retooling General Motors: Defending an Innovative Use of the Bankruptcy Code to Save America's Auto Industry, 6 Brook. J. Corp. Fin. & Com. L. (2011). Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol6/iss1/4 This Article is brought to you for free and open access by the Law Journals at BrooklynWorks. It has been accepted for inclusion in Brooklyn Journal of Corporate, Financial & Commercial Law by an authorized editor of BrooklynWorks. RETOOLING GENERAL MOTORS: DEFENDING AN INNOVATIVE USE OF THE BANKRUPTCY CODE TO SAVE AMERICA’S AUTO INDUSTRY Joseph H. Smolinsky* INTRODUCTION It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming[.] President Theodore Roosevelt 1 The “bailout” of General Motors Corporation (GM) has been criticized in many circles as the pursuit of a socialist agenda, the perpetuation of an ongoing problem of moral hazard, or simply an example of a bad business blunder that would never be replicated in the private sector.
    [Show full text]
  • Bob O'donnell
    Fall 2011 Profs. Wolfram and Davis Weigh in on Nuclear Power University of California, Berkeley Nonprofit Organization Haas School of Business US Postage 545 Student Services #1900 PAID Berkeley, CA 94720–1900 Portland, OR Permit NO. 2917 CThe Magazinea ofl theB Haas Schoolu of Businesss ati then Universitye of California,ss Berkeley 2011 BUSINESS LEADER OF THE YEAR Bob O’Donnell, BS 65, MBA 66: Lifelong Learning, Lifelong Giving Join your class group on Facebook • Alum Bob Lutz: The Ultimate Car Guy p. 14 • Haas Connections Save a Baby’s Life p. 8 • Dean Rich Lyons’ Twitter Tips p. 5 The Magazine of Fall 2011 CalBusiness the Haas School of Business at the University of California, Berkeley Senior Editor Features Richard Kurovsky On the Cover: Contents Editor Business Leader of the Year Ute S. Frey Bob O’Donnell, BS 65, MBA 66, has 11 Managing Editor THE PREMIER CONFERENCE ON BUSINESS AND THE ENVIRONMENT been recognized for his commitment to public Ronna Kelly, BS 92 education, including Berkeley-Haas, and his leadership in the mutual fund industry. Staff Writers Hosted by the editors of The Wall Street Journal Valerie Gilbert Jennifer Ruppert Life Saver Pamela Tom Heard from past participants: 8 Haas connections in the MBA class of 2008 help prevent the death of a baby boy. Contributing Writers Diane Anderson, Laurie Burkitt, In 10 years, you’re going Investments that are The Ultimate Car Guy Laura Counts, Mandy Erickson, Christine Fundak Rohan, Judy to see a major portion carbon heavy are poor 14 Bob Lutz, BS 61, MBA 62, has been honored Jacobs, Caroline Killmer, Bill Snyder, with the school’s Leading Through Innovation Kim Underwood of our portfolio bets.
    [Show full text]
  • Bankruptcy of General Motors
    Preliminary YPFS Discussion Draft | March 2020 Bankruptcy of General Motors Kaleb B. Nygaard1 March 20, 2019 Abstract As the Global Financial Crisis unfolded, credit markets tightened and a broader economic downturn developed; the auto industry was hit particularly hard (Auto Employment). The crisis intensified a decade-long decline of the largest U.S. auto manufacturers (Klier1, p36 figure). Because of its size and importance to the economy, the US Government decided to provide assistance to General Motors (GM) to sustain it while it developed plans for its long- term viability. Congress declined to authorize funding for the auto manufacturers, but in December 2008, Treasury provided a bridge loan to GM under the Troubled Asset Relief Program to sustain the company until the Obama administration was in place in January 2009 (see Bridge Loan case). Six months later the administration provided DIP financing as GM went through an expedited bankruptcy process as the culminating event in GM’s restructuring. The government’s intervention in and $50 billion assistance to GM began in December of 2008 and wasn’t completely wound down until December of 2013, resulting in an $10.5 billion loss (Bridge, pdf1; TARP Trans7, p34; Timeline). This case discusses the bankruptcy, Treasury’s DIP financing (Path2), and Treasury’s unwinding of its equity stake in GM acquired as part of the restructuring (Timeline, p2). Keywords: General Motors, Bankruptcy, Restructuring, TARP, AIFP, Auto Team 1 Research Associate, New Bagehot Project. Yale Program on Financial Stability. [email protected] 1 Preliminary YPFS Discussion Draft | March 2020 Bankruptcy of General Motors At a Glance Summary of Key Terms As the Global Financial Crisis unfolded, credit Purpose: Prevent the collapse of the American markets tightened and a broader economic downturn auto industry and retool GM to be viable for the 21st developed; the auto industry was hit particularly century (Obama3) hard (Auto Employment).
    [Show full text]