Money Minute: Probe Into GM Recall Shifts Into High Gear

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The Justice Department's investigation into General Motor's ignition switch problems is kicking into high gear.

Federal prosecutors are sending out subpoenas to get to the bottom of who knew what at GM (GM) when it comes to the automaker's faulty ignition switches that killed at least 13 people and lead to massive recalls.

The subpoenas come on the heels of documents released by a House panel that reveals a top executive at GM knew about the defects in 2005. GM has already paid $35 million in fines to settle charges it broke federal auto safety regulations but a criminal investigation could lead to much higher fines. Toyota had to pay $1.2 billion to settle its recent Justice Department investigation.

U.S. companies are starting to feel the sting of the Edward Snowden scandal. The German government has just canceled its contract with Verizon (VZ). Officials cited worries about data security as the reason for the change. Snowden alleged U.S. telecom companies provided data to intelligence agencies for surveillance purposes and even tapped into German Chancellor Angela Merkel's personal phone. Telecom and Internet giants like Verizon and Google (GOOG) claim they didn't actively participate in the surveillance programs.

Here on Wall Street on Thursday, stocks fell. The Dow Jones industrial average (^DJI) dropped 21 points, the Nasdaq composite (^IXIC) fell almost 1 point and the Standard & Poor's 500 index (^GPSC) lost 2 points.

The New York Stock Exchange just received another feather to add to its cap. The exchange has been chosen as the site for Alibaba's U.S. listing which is expected to be one of the largest IPOs in U.S. history. The exchange beat out the Nasdaq, which is traditionally favored by tech companies but its reputation was sullied somewhat after Facebook's (FB) botched IPO. Alibaba will trade under the ticker "BABA" and could begin trading in August.

And finally, Amazon.com (AMZN) wants to deliver your dinner. The e-commerce king is preparing to launch a takeout app that could be a threat to Seamless, GrubHub (GRUB) and other online food delivery sites. It will initially be a part of Amazon Local, which offers coupons from merchants in your area. The service will start in Seattle and then branch out to other parts of the country and eventually go global.

-Produced by Karina Huber.


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21 Comments

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olengrumpy

The government needs to investigate itself, by far the worst sitting government in the history of this country.

June 29 2014 at 10:57 PM Report abuse rate up rate down Reply
pbalongi

theres nothing wrong with american cars i drive a 2008 saturn aura 130,000 drives as good as the day i drove it out of the showroom mostly american made with only 14% foreign parts and id put it against any so called superior foreign brand in that price range the problem is is that people get duped by these companies stating they have a us plant which maybe helps some but overall hurts the US economy,,,,your still not buying american..

June 28 2014 at 11:15 AM Report abuse rate up rate down Reply
ddstan1120

Let's see here.
According to the pro's, the hard, cold winter caused the 3% retraction in the US economy in the last reporting quarter, not Obama's EPA regulations on small businesses, and Obamacare, that limits having more than 49 employees on the payroll.
Now, it's Snowden that causes the retractions in our economy, not the 35% taxes on businesses that drive companies out of the USA.
As far as Snowden is concerned, they should let him look for Lois Lerner's "lost" emails that will certainly earn her some jail time, unless Holder and Obama issue a pardon for her. LOL

June 28 2014 at 9:19 AM Report abuse +1 rate up rate down Reply
jbrian922

It's time to make real cars again take out all of the computer crap! Also notice how all the problems with the cars started after gm moved to china!

June 28 2014 at 5:27 AM Report abuse rate up rate down Reply
1 reply to jbrian922's comment
Hi BoBo

we don/t buy cars fron china maybe one day we will , then you will see how bad they are end same brain dead americans will buy than ignorance is a bliss but stupidity is a must for same americans.

June 29 2014 at 1:14 PM Report abuse rate up rate down Reply
bbiggert

Don"t try to blame Snowden for the crap that has happened. He just exposed those that ought to be placed in jail for breaking the law.

June 28 2014 at 4:05 AM Report abuse +3 rate up rate down Reply
dorc792

make your own car......................

June 28 2014 at 1:17 AM Report abuse +2 rate up rate down Reply
dorc792

make your own car......................

June 28 2014 at 1:17 AM Report abuse +1 rate up rate down Reply
tomra1212

OBAMA READING THIS INFO LISTEN YOUR PHONE READING YOUR CREDIT CARDS

June 27 2014 at 10:36 PM Report abuse rate up rate down Reply
billy

I worked there. I know

June 27 2014 at 8:16 PM Report abuse rate up rate down Reply
alucky1128f8@aol

Use to be a chevy girl.....Now obama motors , NO THANKS.....Next auto for me will be not Union, Thats right , Unions suck.....

June 27 2014 at 5:57 PM Report abuse +4 rate up rate down Reply