General Motors Financial Issued Subpoena
General Motors (NYSE: GM) shares have traded higher and lower Monday morning on news of a subpoena issued July 28 to General Motors Financial Company, Inc.
The company was served with a subpoena by the U.S. Department of Justice directing it to produce certain documents relating to its and its subsidiaries' and affiliates' origination and securitization of subprime automobile loan contracts since 2007. This is in connection with an investigation by the U.S. Department of Justice in contemplation of a civil proceeding for potential violations of Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
Among other matters, the subpoena requests information relating to the underwriting criteria used to originate these automobile loan contracts and the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile loan contracts.
Shares traded recently at $33.78, up 0.99 percent.
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