The GM-dominated news week started off with the company gaining approval to sell its most viable assets to a new company, creatively referred to as “New GM,” which is backed by the government. The auto maker continued considering bidders, naming Chinese Automotive Industry Holding Co. as a “formidable buyer” for its Opel unit.
Meanwhile, the Justice Department is reportedly taking a close look at large telecom companies, like AT&T (T) and Verizon (VZ), to see if they’re abusing their market power. Wireless companies have been under fire for setting up exclusive agreements with phone makers to sell certain models, like Apple’s (AAPL) iPhone. Some say this hurts smaller rivals who are unable to obtain such deals.
Oil, which has recently been on the rise, fell 4% Monday to $64 a barrel due to doubts over a recovery in the global economy. The price hit a five-week low of $63.40 at one point during the day.
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Judge Approves GM's Asset Sale
CA Budget Crisis' Impact on Cities
Torre: Players Were Entitled to Privacy
Nationwide Average
$2.57 a gallonTuesday
President Obama was in Moscow, Russia Tuesday, urging Russians to cut out corruption. He spoke about the possible passage of a second stimulus package here in the U.S. as well: “I don't take anything off the table when unemployment is close to 10% and a lot of Americans are hurting out there.”
The Commodity Futures Trading Commission, which regulates the futures markets, is considering tighter controls for trading of commodities and will be holding public hearings on the topic to get input from consumers and businesses.
Second Economic Stimulus Dept.: There’s been a lot of chatter about a potential second economic stimulus, as some say the first didn’t work and others say it wasn’t enough. The House Majority Leader, Steny Hoyer (D-Md.), said leaders should consider it as an option as job losses are still high, though he said it’s too soon to know whether the first $787 billion stimulus pushed by the Obama Administration is helping.
Meanwhile, the lawyer for accused fraudster Robert Allen Stanford requested that funds be released to pay for Stanford’s defense or that the charges against him be dismissed.
Little Support for Second Stimulus
Paying for Stanford's Legal Defense
Kobe Bryant on Michael Jackson
Former MTV VJ on Jackson’s Legacy
Wednesday
Toxic Asset Dept.: The Treasury named nine firms that will manage the Private-Public Investment Program, or PPIP, for those nasty, toxic assets that were involved in the mortgage meltdown. The list includes BlackRock, Invesco, Wellington Management, Oaktree Capital, TCW Group and a joint venture between Angelo, Gordon & Co. and GE Capital Real Estate. Part of the TARP program, PPIP will combine up to $100 billion from TARP money along with money from these private investors to buy toxic assets from banks.
Meanwhile, Bloomberg News reported that the SEC is probing Apple’s public disclosures of the health of its CEO Steve Jobs, who recently came back to work after taking a leave of absence for some time. The commission is looking at whether the company mislead investors when, in a matter of just nine days, it said the CEO’s condition went from “relatively simple” to “more complex.”
And Google (GOOG) threw its hat into the operating system ring, announcing it’s working on an open source OS that will initially be targeted toward netbooks. It will be called Chrome, like the search engine company's Web browser. Whether it will be a serious competitor to Microsoft’s (MSFT) Windows remains to be seen until the software is released next year.
Google Preps to Take on Microsoft
Solis: Recovery to Take a While
Solis: I Applaud Big Business
Manage Your Money for Free With MintThursday
With the creation of the Troubled Asset Relief Program and other federal rescue programs, the power of the Federal Reserve has grown substantially, prompting some lawmakers to question the expansion of the bank’s authority. Now a proposal from Congressman Ron Paul has been introduced that would redirect some of that power to the legislative branch and it’s gained the support of a majority in the House of Representatives. This comes amid public anger over the massive amount of cash the Fed has put toward stabilizing the country’s financial system.
Meanwhile, beneficiary of several federal bailouts American International Group (AIG) has resumed talks to sell its American Life Insurance Co. to MetLife (MET), another insurer. According to the Financial Times , which reported this, the sale could bring in over $15 billion to AIG.
Congressman Barney Frank (D-Mass.), chairman of the House Financial Services Committee, introduced a bill Wednesday to create a consumer financial regulator. The Obama Administration had proposed something similar recently, but the efforts are opposed by the financial services industry, which would be overseen by the regulator. The idea is to protect consumers from misleading credit card agreements and mortgages and the agency that would be created would have the ability to charge providers of financial services in order to fund itself.
Concerns Over Twitter's Business Model
Social Security Gone Wild
$150B in Health Care Cuts
Murdoch on State of Media, Economy
Friday
GM exited Chapter 11 bankruptcy protection on Friday morning, emerging as a slimmer, government-owned auto maker. The process was similar to what Chrysler went through recently during its deal with Fiat. The company is known officially as General Motors Co.
Geithner was back in front of Congress again Friday, calling for congress to regulate all over-the-counter derivatives and that they should be traded on an exchange like the New York Stock Exchange. This is to lessen the risk these products pose to the economy in the future.
How 'New' is the New GM?
Government Motors, No More?
GM CEO: We Build Where We Sell
CEO: May Not Need All Gov't Money
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Market Winners & Losers: AIG, CIT
