Corporate Governance

A nationwide poll from Quinnipiac found that 79 percent of respondents disapprove of the recent Supreme Court ruling on the Citizens United v. the Federal Election Commission case.

The Court essentially ruled that corporations and unions are entitled to free speech and, therefore, could contribute funds directly to a political candidate. Opposition to this decision was strong across the political spectrum, according to the poll.

The poll also found that 78 percent of voters think the Court allows political views to enter into their decisions.  Read more...

The Obama administration launched a media blitz Wednesday to promote the early repayment of billions of dollars in loans to General Motors.

GM repaid $5.8 billion in outstanding loans to the U.S. that it had received last year during a government-supervised bankruptcy that significantly restructured the beleaguered automaker. The repayment came five years ahead of schedule.

Larry Summers, President Barack Obama's chief economic adviser, said the repayment and better-than-expected operating profit were the direct results of decisions made by the administration.

"The prospect of a faster-than-anticipated exit from government involvement and a return of most of the taxpayers’ investment in these companies has materially improved," Summers said.

"This turnaround wasn’t an accident of history," Summers added in a White House blog posting. "It was the result of considered and politically difficult decisions made by President Obama to provide GM and Chrysler — and indeed the auto industry — a lifeline, if they could demonstrate the will to reshape their businesses and chart a path toward long-term viability without ongoing government assistance."

Chrysler, which was acquired by the Italian automaker Fiat after its own bankruptcy, announced Wednesday that it had lost $4 billion over the past year, but said that it had posted a net operating profit for the first quarter of this year. Its chief executive, Fiat's Sergio Marchionne, said Chrysler was on track to break even this year.

White House press secretary Robert Gibbs said that while the administration doesn't believe that GM and Chrysler have escaped danger of another collapse, the news represents a validation of the president's decision to get involved with the automakers.

"I'm making the case that, looking back, almost a year later from the president making a very difficult and unpopular decision to loan money to GM and Chrysler, in order to go through a structured bankruptcy, and save 1 million to 3 million jobs," Gibbs said, "I think we could all agree that the depth of our economic downturn would hardly have been helped with those million or so people additionally out of work."

Republicans have long derided the bailouts, and have included the matter in election-year talking points to decry the administration's handling of the economy.

The company hailed the repayment, saying it showed the company was turning itself around.

"Our plan is working," said Edward Whitacre Jr., chairman and CEO of the company.

The government is still on the hook to GM for billions, as it owns 61 percent of GM after converting $43 billion of the $50 billion in help into equity.

The Treasury can't start selling its stock until GM has an initial public offering. Selling off those shares could take up to two years, analysts have estimated.

GM also repaid an additional $1.1 billion to the governments of Canada and Ontario. The loans will be repaid from unused Treasury funds being held in escrow.

GM reported better-than-expected earnings for the final three months of 2009, and analysts predict the company could make a profit as early as the second quarter of 2010. 

GM officials are aiming to go public again, possibly sometime this year or early in 2011.

Whitacre is expected to make his first visit to Capitol Hill on Wednesday to meet with Speaker Nancy Pelosi (D-Calif.) and the Michigan delegation.

He also announced a $250 million investment in the Chevrolet Malibu sedan for plants in Fairfax, Kan., where he made Wednesday's announcement, and Hamtramck, Mich., which is expected to create jobs. 

This story was posted at 10:46 a.m. and updated at 12:28 and 1:03 p.m.

New York Democrat Sen. Charles Schumer plans to tell the head of Spirit Airlines that its new carry-on bag fee goes too far and could lead to additional charges for in-flight services. 

Schumer, who plans to meet with Spirit Airlines chief Ben Baldanza sometime Tuesday, has introduced legislation and called on the Treasury Department to craft a rule that would prohibit fees for carry-on bags. 

"This steps over the line because a carry-on is part and parcel of flying," Schumer said this morning on Fox News. "People need it -- parents need it to feed their children, business people need it to do work on the plane. You also often need it if you're quickly running to make a stop."

Reps. Mike Castle (R-Del.) and Chris Van Hollen (D-Ma.) will soon introduce legislation that responds to the Supreme Court's ruling on Citizens United v. the Federal Election Commission. 

The Court ruling essentially said that corporations are entitled to free speech and, therefore, could contribute funds directly to a political candidate. Van Hollen and Castle view the ruling to mean that companies can spend unlimited amounts of money to either support or defeat a certain candidate. 

In a joint statement, the lawmakers said, "This decision enables larger financial interests to drown out the voices of ordinary citizens, allows foreign corporations to spend money through their domestic subsidiaries, and permits major recipients of taxpayer dollars to funnel these funds into political activities."

Transportation Department Secretary Ray LaHood said he is pleased Toyota has accepted responsibility for its safety issues while an investigation into the automakers disclosure practices continues. 

Toyota has agreed to pay a nearly $16.4 million fine for failing to report "sticky" gas pedal problems and "slow to return" defects, leading to a recall of 2.3 million vehicles in January. 

"By failing to report known safety problems as it is required to do under the law, Toyota put consumers at risk," LaHood said Monday in a statement. "I am pleased that Toyota has accepted responsibility for violating its legal obligations to report any defects promptly. We are continuing to investigate whether the company has lived up to all of its disclosure obligations." 

With a Monday deadline looming, Toyota is expected to agree to pay a $16.4 million fine for failing to inform the government about a defective gas pedal. 

The automaker could accept or contest the fine for waiting four months to notify federal transportation officials about a problem with "sticky" gas pedals, according to a Transportation Department official who was not authorized to speak publicly and spoke only on the condition of anonymity, The Associated Press reported late Sunday. 

Toyota is expected to pay the full fine, the largest civil penalty levied against an automaker by the National Highway Traffic Safety Administration, rather than contest it in court. 

There has been talk of a second fine for Toyota but no decisions have been announced. 

A Democratic aide predicted lawmakers could vote on a motion to proceed as soon as Wednesday and as late as Friday.

New York Sen. Charles Schumer said Sunday he has gotten commitments from American, Delta, JetBlue, United and US Air.

“We want banks to be banks," the Massachusetts senator said Sunday. "We don’t want them to be casinos.”

Taking direct aim at his Republican critics, President Barack Obama promised Saturday there would be no additional bailouts.