Business Briefs: GM fined for missed deadline

Business Briefs: GM fined for missed deadline

April 9th, 2014 by Staff Reports and Wire Service in Business Around the Region

GM fined for missed deadline

A government safety agency is fining General Motors $7,000 a day, saying the company failed to fully respond to its requests for information about a faulty ignition switch by an April 3 deadline.

The National Highway Traffic Safety Administration said in a letter to GM on Tuesday that the company already owes $28,000 in fines, and they will accrue at $7,000 per day until it provides all the requested information.

In February, the agency began investigating whether GM was slow to provide information and respond to problems with the switch that has been linked to at least 13 deaths. GM has admitted knowing that the switch was defective at least a decade ago, but failed to start recalling 2.6 million compact cars worldwide until this year.

Big banks must raise capital

Regulators are acting to require U.S. banks to build a sturdier financial base to lessen the risk that they could collapse and cause a global meltdown.

The eight biggest banks will have to meet stricter measures for holding capital -- money that provides a cushion against unexpected losses -- under a rule that regulators adopted Tuesday. The Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury's Office of the Comptroller of the Currency voted separately to require those banks to raise their minimum ratio of capital to loans to 5 percent from the current 3 percent.