July 10 Biz Minute

A new General Motors emerged from bankruptcy protection today -- far more quickly than most industry-watchers had expected -- as a leaner automaker pledging to win back American consumers and pay back taxpayers. The whirlwind 40-day bankruptcy concluded with the closing of a deal that sold key operations to a new company that is majority-owned by the U.S. Treasury.
Chevron warned that second-quarter earnings would be hit by a sharp decline in U.S. refining margins and that any benefits from higher oil prices were largely offset by a weaker dollar.
The outlook only contributed to the gloom surrounding the country's refiners in the face of toughening regulation and a depressed fuel market.
AIG is consulting with the federal government about its plans to pay millions of dollars in retention incentives and bonuses due to employees tied to 2008 contracts. The latest round of bonus payments will include about $235 million for employees at AIG's financial products unit. AIG's near collapse was due to its risky derivatives contracts written by the financial products unit .
Today the Transportation Department granted Continental Airlines immunity from antitrust laws, allowing it to work closely with a group of other carriers, including United Airlines, on international service. The decision pushed aside some objections raised by the Justice Department, which said the airlines' cooperation on pricing and services would lead to higher fares and less competition.
The president of the University of California is proposing to furlough tens of thousands of employees to offset deep funding cuts to the 10-campus system. UC President Mark Yudof unveiled the furlough proposal today as part of his plan to address an expected 20 percent reduction in state funding.
The furloughs are expected to result in $184 million in savings.

Category:

News & Politics

Tags:

• General Motors
• GM
• bankruptcy
• Chevron
• oil price
• AIG
• bonuses
• Continental Airlines
• United Airlines
• Justice Department
• UC President Mark Yudof
• University of California