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Subpoenas reportedly issued in GM recall; Michaels Wall Street debut; Germany drops Verizon

Hot Stock Minute

The Wall Street Journal reported that federal prosecutors are issuing grand jury subpoenas to investigate the General Motors (GM) recall of 2.6 million vehicles tied to faulty ignition switches. Delphi Automotive (DLPH) said it has turned over documents related to the production and design of ignition switches in response to a subpoena.

BNP Paribas is expected to reach a settlement with U.S. authorities over violating sanctions as soon as Monday according to the New York Times. The French bank is expected to plead guilty to criminal charges and pay an $8.9 billion fine. BNP is accused of evading American sanctions by engaging in billions of dollars in transactions with Sudan, Iran and Cuba. Meanwhile, The Wall Street Journal reported that BNP will slash its dividend and sell a multi-billion dollar bond next week.

Michaels, the arts and crafts store, will begin trading on the Nasdaq today under the symbol MIK. The company raised about $472 million in its IPO yesterday. Shares were priced at $17, at the low end of the $17-to-$19 range, valuing Michaels at $3.45 billion. Michaels went private in 2006 when it was bought by Bain Capital and the Blackstone Group for $6 billion. The two firms will continue own 80% of Michaels after the IPO.

Germany cancelled its contract with Verizon (VZ) over fears the company could be giving information to U.S. intelligence agencies. Verizon provided Internet services to several German ministries, but Edward Snowden's revelations about NSA spying on allies prompted Germany to drop the company. Verizon said the U.S. government can't compel it to turn over data stored outside the U.S. Germany is not the first country to stop using technology owned by an American company after the allegations of NSA spying were revealed. Brazil stopped using Microsoft (MSFT) Outlook after the revelations.

This brings us to today’s poll question. Will the Snowden revelations continue to affect U.S. companies doing business abroad? Vote in our poll, or leave us a comment below or on Twitter.

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