Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Monday, October 31, 2005

GM's 8-K Regarding SEC Subpoenas

Following is the language from the Form 8-K filed by GM on October 27 regarding the SEC's investigation into pension matters and transactions between GM and its former subsidiary, Delphi:

General Motors Corporation ("GM") has been cooperating with the U.S. Securities and Exchange Commission ("SEC") in connection with investigations reported by the media concerning pension and Other Post-Employment Benefits ("OPEB") and certain transactions between General Motors and Delphi Corporation ("Delphi"). The SEC has issued subpoenas to GM in connection with various matters involvingGM that it has under investigation. These matters include GM's financial reporting concerning pension and OPEB, certain transactions between General Motors and Delphi, GM's recovery of recall costs from suppliers and supplier price reductions or credits, and any obligation GM may have to fund pension and OPEB costs in connection with Delphi's proceedings under Chapter 11 of the U.S.Bankruptcy Code.Separately, SEC and federal grand jury subpoenas have been served on GMACentities in connection with industry wide investigations into practices in the insurance industry relating to loss mitigation insurance products such as finite risk insurance. GM and its subsidiaries are cooperating with all these investigations. GM has nofurther comment at this time.

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