GM said to settle ignition case with U.S.
NEW YORK -- Federal prosecutors have reached an agreement with General Motors to resolve a criminal investigation into how the Detroit automaker broke the law by concealing a deadly problem with small-car ignition switches, three people briefed on the case said Wednesday.
Under the deal, GM will pay a fine of around $900 million in a deferred prosecution agreement on a wire-fraud charge. That means any charges would be dismissed if GM complies with oversight and other terms for three years, said one of the people. All of the people asked not to be identified because the agreement isn't scheduled to be announced formally until today.
A spokesman for Manhattan U.S. Attorney Preet Bharara wouldn't comment on the case, nor would GM spokesman Patrick Morrissey.
Last year GM recalled 2.6 million older small cars worldwide such as the Chevrolet Cobalt and Saturn Ion to replace the faulty switches, which can unexpectedly slip out of the run position to off or accessory. That shuts off the engine and disables power-assisted steering, power brakes and the air bags.
The problem caused crashes that killed at least 124 people and injured 275 more, according to lawyers in charge of a fund set up by GM to compensate victims.
-- The Associated Press
Insurance deadline near for oats, wheat
Arkansas oat and wheat farmers have until Sept. 30 to purchase federal crop insurance, according to the U.S. Department of Agriculture.
Current policyholders and uninsured growers who wish to buy a policy for the 2016 crop year must make all decisions on crop insurance coverage by the sales closing date for that crop. Decisions include which crops to insure and what coverage level to choose.
Crop insurance is sold and delivered through private crop insurance agents. More information is available at the USDA's Risk Management Agency website at www.rma.usda.gov.
-- Scott Morris
Fiat Chrysler, UAW reach tentative deal
Fiat Chrysler Automobiles NV and the United Auto Workers reached a tentative agreement on a new contract that will be presented to members to vote on. The union will next seek deals with GM and Ford.
UAW President Dennis Williams and Fiat Chrysler Chief Executive Officer Sergio Marchionne hugged at a news conference Tuesday night in Detroit to celebrate the agreement, but they wouldn't give much detail about the pact before union members had a chance to see it. They said the accord addresses the rising cost of health care, creates a "path" for entry-level workers to prosper and eventually does away with the tiered-wage structure that created tension in the union.
"That issue will go away," Marchionne said. "It will go away over time."
The tentative agreement was to be presented to the union's executive board Wednesday for review before local leaders could take the details to their members and schedule votes, Williams said.
"We believe we have met the goals," he said. "But ultimately our membership will make the final decision."
The solutions the UAW and Fiat Chrysler came up with could serve "as a model for the U.S. to compete in the global economy," said Harley Shaiken, a labor professor at the University of California, Berkeley.
-- Bloomberg News
Toys R Us to reduce its seasonal hiring
Toys R Us Inc. will hire fewer seasonal employees this year as the toy-store chain relies more heavily on its payroll base and pursues a turnaround plan under a new chief executive officer.
The company is taking on 40,000 temporary workers this Christmas season, down from 45,000 last year, according to a statement Tuesday. With fewer extra employees, Toys R Us will be able to offer more hours to its staff, the Wayne, N.J.-based company said.
Improving holiday sales is key to the closely held company's comeback efforts after three years of declining revenue. Toys R Us faces tough online competition, and retailers such as Wal-Mart Stores Inc. and Target Corp. continue to take business from traditional toy stores.
-- Bloomberg News
Plaintiff class narrowed in bond dispute
NEW YORK -- A federal appeals court in New York handed Argentina a victory in its quest to relieve itself of the pressures of debt owed to American hedge funds and others, saying Wednesday that a judge went too far by letting some bondholders demand payment without proving how much they are entitled to be paid.
The 2nd U.S. Circuit Court of Appeals said a lower-court judge was oversimplifying the definition of the class of bondholders affected by his orders.
A ruling written by Circuit Judge Richard Wesley noted that defining a precise class to which Argentina owes damages for refusing to pay bondholders and calculating those damages have been "exasperating tasks."
The dispute over Argentina's debt emerged after the South American nation defaulted on $100 billion of debt in 2001. The plaintiff in Wednesday's decision held a relatively small number of bonds. The appeals court ordered an evidentiary hearing to decide damages.
-- The Associated Press
Comcast extends service to bigger firms
Comcast has begun selling high-speed Internet and phone service to large businesses, hoping to offset the decline of cable-TV subscribers by entering a market dominated by AT&T and Verizon Communications.
The biggest U.S. cable company has signed up about 40 customers so far, including several Fortune 1000 companies in the banking, retail and hospitality industries. Comcast didn't disclose customer names, but it said one of its largest contracts generates about $350,000 per month in revenue.
Since 2007, Comcast has sold Internet, TV and phone service to small and mid-size companies, many with less than 500 employees. Some of its biggest customers are hospitals. It has been one of the fastest-growing parts of Comcast's business, generating about $4 billion in revenue last year.
In the second quarter of this year, Comcast lost 69,000 TV subscribers as Americans drop their cable subscriptions for cheaper online alternatives such as Netflix Inc. Meanwhile, revenue from Comcast's business customers rose 20 percent to $1.16 billion in the quarter, or about 6 percent of its $18.7 billion revenue.
-- The Associated Press
Germany weighs easing Wi-Fi liability
German Chancellor Angela Merkel's government is supporting a proposal to remove legal quirks that hold providers of Wi-Fi hot spots liable for what users do online, a move intended to increase free Internet offerings across the country.
Merkel's Cabinet on Wednesday backed a bill that would remove the liability established by Germany's top civil court in 2010, the government said in a statement. Under the bill, providers wouldn't be held liable as long as they secured the network properly and got users to agree not to act illegally. The government also backed plans to spur venture-capital funding for startups through tax breaks.
Travelers used to checking email for free when hopping around the world often have problems when searching for Wi-Fi in Germany. Fearing lawsuits, many restaurants, cafes and hotels restrict access to their hot spots or don't offer them, meaning visitors struggle to connect or end up paying expensive roaming fees.
"Now cities, cafes, hotels and privates can open up their Wi-Fi in a legally secure way," Economy Minister Sigmar Gabriel said in a statement.
-- Bloomberg News
Business on 09/17/2015