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Breakingviews: GM's Lehman lawyer

Tuesday, March 11, 2014 - 03:27

March 11 - Jeffrey Goldfarb and Antony Currie discuss the big recall test for new boss Mary Barra and whether a new investigator of Lehman Brothers fame can do for GM what bankruptcy didn't.

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Very Paris getting her first real test the General Motors congress is now looking into a massive recall that happened over years. And they've got a new investigator in who was working in Lehman Brothers with the -- suddenly. Out of almost always seemed to -- it's huge recall. Which you write to ten years on what's happened basically is that several of the James holocaust and this is no -- Tim excelled. In the past. Hating nation switches which what is somehow to suddenly just unannounced set themselves off and ten years ago it some of the test is Jim decided actually. This does it is doesn't quite qualify as a safety issue because everything else to work it turns out. The bills itself -- airing the power brakes the the at backs they would think that the CEO she just became CEO so what is really have to do with -- turn up though she was what really amounts for a couple of years before she was global head of product development such. This may well have and probably should have had a desk at some point. Coaches and that's from 2011. I think closers in touch that. But yet this is a great indication of how GM needs to work Lisa seems everything. Why how could you have this -- for so you could happen as buck passing in his two layers of management. You know this I immediately was all -- -- 42 -- -- -- -- thank you and all of sent a signed 2000 full structure and they just never -- got around to fixing thinking wasn't the biggest issue -- doesn't even some of the some of the the machine makers. That Delphi which used them to GM spun out but Sylvia's who was excited. They might not even have the machines anymore sensitive to remain cool remodeled some of these pop such a -- this is an episode on that at some of these things look like this of. So now -- -- who have brought an end of the Lucas yes who was the examiner and Lehman brothers' case yet and you make the point that maybe this full. Bring about the restructuring that generally from -- may -- -- punitive. What's happened GM in bankruptcy at a -- dispose of bankruptcy in 2009 it had tens of billions of dollars of debt and and not that it is likely. I'd say it was nine a much better position with a bit more strict as -- wage is that institutions and union. And a -- able to a much more inside support and -- to be -- management to go back in and do a better job of making cosmic in profitably. And it is basically done that but what wasn't -- happening. Was face of that's season they'll reorganization of how the company was thinking exactly exactly whether it's culture and whether it's bureaucratic process these. Mary -- commence at that we need given some anyway. It's it's. One caveat is Lucas really came in and and really lead on pretty hard with Lehman the one caveat here is their biggest liar in a lot of ways lieutenant champ and -- Jenner and block the law firm which is one of GM's preferred outside counsel's. But if you look at what the blacklisted during the Lehman Brothers hopeful that you are offered at bankruptcy he went through everything he found incompetent managers incompetent regulators. The fact he was only discovered this reprint what I find very much he funnies. He broke one of the principles on the crisis bomb on. He's doing -- great -- -- so clearly what he putted for potential conflicts of interest aside he actually may -- some of the big a long term problems this company still suffering -- are able to keep an eye on that we will be back with more breaking news tomorrow.

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Breakingviews: GM's Lehman lawyer

Tuesday, March 11, 2014 - 03:27