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 a 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 it failed to start recalling 2.6 million compact cars worldwide until this year.
GM said in a statement that it will keep providing responses as soon as they are available. We will do so with a goal of being accurate as well as timely, the statement said, giving no indication of when GM would fully comply.
Regulators to require stricter bank 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.
The banks’ deposit-holding subsidiaries will have to achieve a ratio of 6 percent. The subsidiaries are subject to a stricter ratio requirement because the deposits are insured by the government.
The rule won’t take effect until 2018. Affected banks include JPMorgan Chase and Wells Fargo.
Takeda, Eli Lilly hit with $9 billion penalty
A U.S. jury ordered Japanese drugmaker Takeda Pharmaceutical Co. and its U.S. counterpart, Eli Lilly and Co., to pay $9 billion in punitive damages over a diabetes medicine linked to cancer. The drug companies said Tuesday they will vigorously challenge the decision.
The U.S. District Court in western Louisiana ordered a $6 billion penalty for Takeda and $3 billion for its business partner and co-defendant Eli Lilly. It also ordered $1.5 million in compensatory damages in favor of the plaintiff.
The legal fight turned on whether Actos, used to treat Type 2 diabetes, caused a patient’s bladder cancer and by implication was responsible for other cases of the cancer.
Takeda and Eli Lilly face numerous lawsuits over the drug.
Economy getting stronger, IMF says
Global economic growth should gain momentum this year, with the U.S. leading the way among developed countries and some long-depressed southern eurozone economies finally turning the corner, the International Monetary Fund predicted.
The IMF, in a new forecast ahead of its annual spring meeting this week, projected Tuesday that world economic output would rise 3.6 percent this year and 3.9 percent in 2015, from 3 percent in 2013. The projections are little changed from the fund’s January outlook.