General Motors Co agreed to pay $900 million and admit to misleading the government and the public about the safety of its vehicles to end a U.S. criminal investigation into its handling of defective ignition switches linked to 124 deaths.
Federal prosecutors are weighing criminal wire fraud charges against General Motors Co over the company's failure to recall vehicles equipped with faulty ignition switches, the Wall Street Journal reported on Tuesday.
Despite an uncomfortable ride for GM stock, which is higher by 10¢ at $34.45 as of the time of this writing, the weight of evidence suggests investors expect better times for the company once the interruption has passed.
U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a record, and the yen strengthened as concern American lawmakers will fail to reach a budget deal overshadowed better-than-estimated economic data. Oil, gold and coffee led commodity gains as the dollar weakened.
A profitable General Motors Co. is poised to shake off a half decade of U.S. government oversight next month, underscoring the comeback of a once-moribund industry and gaining leeway over a $26.8 billion cash pile that it can use to lure talent while weighing a dividend.