Monday, September 21, 2015

LAW - Weak Manufacturer Defect Regulations

"Why the law doesn’t actually cover GM’s deadly defects" PBS NewsHour 9/17/2015

My answer?  Big-busines$ pays legislators to write laws to benefit big-business.  It's called unlimited political contributions, brought to you by 'U.S. Supreme Court Inc.' a wholly owned subsidiary.


SUMMARY:  General Motors has agreed to pay $900 million in a settlement with the U.S. government over a deadly flaw in its ignition switches, after admitting it hid the problem for over a decade.  In addition to the fine, an independent monitor will supervise GM’s compliance.  But some critics say the deal is too lenient.  Hari Sreenivasan talks to David Shepardson of The Detroit News.

GWEN IFILL (NewsHour):  General Motors and the government reached a settlement today over how the automaker handled a defect that led to deaths, injuries and the recall of millions of vehicles.  The agreement may resolve many of the cases, but some remain concerned that the government may have let GM off too lightly.

Hari Sreenivasan has the story from our New York studios.

PREET BHARARA, U.S. Attorney, Southern District of New York:  This office and GM have entered into a deferred prosecution agreement.

HARI SREENIVASAN (NewsHour):  The formal announcement from U.S. attorney Preet Bharara in New York followed years of recalls, lawsuits and congressional hearings.  GM agreed to pay $900 million over faulty ignition switches that shut off engines and disabled safety systems.  The company now admits it hid the deadly defect for more than a decade.

PREET BHARARA:  They didn’t tell the truth in the best way that they should have to the regulator and to the public about a serious safety issue that risked life and limb.

HARI SREENIVASAN:  An independent monitor will check GM’s compliance, and pending criminal charges could be dropped after three years.  But the deal does have its critics.

In a statement today, Democratic Senators Ed Markey and Richard Blumenthal said:  “The 124 families who lost loved ones deserved individual criminal accountability.  It is shameful that they will not be held fully accountable.”

Back in New York, prosecutor Bharara defended the agreement.

PREET BHARARA:  We’re not done and it remains possible that we will charge an individual, but the law doesn’t always let us do what we wish we could do.

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