GM: The Obama administration is ready to send General Motors into bankruptcy as soon as next week, The Washington Post reports. The government may provide as much as $30 billion in loans to finance the process, which would bring its total investment in the company to $45 billion. Uncle Sam would take up to a 50% share in the company, while the United Auto Workers health fund would claim 39%.
Shell: The New York Times profiles a major Alien Tort Claims Act case against Royal Dutch Shell, which is set to go on trial for its alleged role in the murder of a Nigerian author and activist. The civil suit was filed in New York federal court by the Center for Constitutional Rights (the same folks who represent many of Guantanamo's detainees). There are a handful of ongoing suits against oil companies for alleged human rights abuses abroad, but as the article points out, no corporation has ever lost an Alien Tort Claims Act case.
Procurement: The military procurement process could soon be getting revamped, according to The Wall Street Journal. In a 411-0 vote, the House of Representatives passed legislation that would rewrite many of the rules for how the Department of Defense negotiates and reviews weapons contracts. The bill would create a director of cost assessment and program evaluation within the Pentagon, new conflict of interest rules, and would require that any project that goes 25% over budget be reviewed for termination.
Pre-emption: President Barack Obama gave plaintiffs lawyers a reason to celebrate Wednesday afternoon, writes The National Law Journal's Marisa McQuilken, when he sent a memo to agency heads explaining that the administration would only rarely try to pre-empt state regulations. "Throughout our history, State and local governments have frequently protected health, safety, and the environment more aggressively than has the national Government," the memo reads. It continues, "[P]reemption of State law by executive departments and agencies should be undertaken only with full consideration of the legitimate prerogatives of the States and with a sufficient legal basis for pre-emption."
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