Executive Suite Shuffle

Executive Suite Shuffle

Facing losses of up to $2 billion in its North American auto business this year, General Motors chief executive G. Richard Wagoner Jr. said he would run the division himself, pushing aside two trusted deputies, Robert A. Lutz and Gary L. Cowger. GM's market share in the first quarter declined, to 25.7 percent from 27 percent a year earlier. Wagoner's challenges will be to lower health costs, close unneeded plants, develop a line of cars that excite consumers, and wean the company off its dependence on rebate-induced sales.

A Shutout in Favor of IRAs

Even as Congress moved toward final passage of legislation that would make it harder for middle-class consumers to wipe out their debts through bankruptcy, the Supreme Court ruled unanimously that at least one family asset should be kept out of the reach of creditors: IRA accounts. The opinion, written by Justice Clarence Thomas, said the 10 percent penalty for early withdrawals indicated that Congress viewed IRAs primarily as savings for retirement, which the bankruptcy law explicitly shields from creditors.

Looking Into AIG Deals

Regulators looking into suspicious transactions between Maurice R. "Hank" Greenberg's AIG and Warren E. Buffett's General Re may have been originally tipped off by Buffett himself, according to published reports. It all began last year when the SEC stepped up its probe of General Re's dealings with a failed Virginia insurer that also may have involved loans disguised as insurance premiums. Buffett ordered an internal investigation that turned up evidence relating to the AIG transactions and handed it over to the SEC.

Another Round of Mergers

The M&A machine chugs on. Cable giants Comcast and Time Warner agreed to pay up to $18 billion in cash and stock for bankrupt Adelphia Communications. ChevronTexaco announced it would buy Unocal in a deal valued at about $18 billion, which some analysts said was an overly rich price. And Qwest considered launching a hostile takeover bid after MCI rejected its latest offer and reaffirmed its agreement to merge with Verizon. Qwest is looking for equity investors to help finance a takeover, which could cost nearly $9 billion.

Md. Takes On Wal-Mart

The Maryland General Assembly neared final passage of a bill aimed at Wal-Mart Stores that would require large employers to spend at least 8 percent of their payroll on health benefits for employees. Wal-Mart said it already spends between 7 and 8 percent and warned it might stop building new stores in the state if the measure becomes law. The bill is being pushed by Giant Food and the grocery workers union, which say they can't compete against the discount chain because of its lower wages and less-generous health benefits.