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INDEX
Vol. 177, Number 285
© 2008
Detroit Free Press Inc.
Printed in the U.S.
TIGERS’ PROGNOSISSheffield ready;
Zumaya determined
SPORTS,
1D
Despite a historic new labor agree-
ment, a garage full of new products and
$9 billion in cost-cutting over the last
two years, General Motors Corp.’s re-
lease of its worst-ever annual financial
results Tuesday shows that its North
America division is still struggling to
posttheprofitsthatWallStreetexpects.
GM Chief Financial Officer Fritz
Henderson acknowledged “there are
still a number of near-term challenges,”
but overall he seemed positive about the
progress GM has been making.
GM, which celebrates its 100th anni-
versary this year, on Tuesday reported
the worst loss in automotive history —
$38.7 billion, compared with $2 billion in
2006 — and quickly got back to the busi-
ness of cutting costs with a buyout or re-
tirement offer for every UAW-repre-
sented employee.
The world’s largest automaker is
forecasting improved sales and pretax
earnings this year, mostly because of
strengthinemergingmarkets.Non-U.S.
sales now make up about 60% of GM’s
GM’s strides not enough
By SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
See GM, 11A
Record loss is
posted despite
cost cuts; new
buyouts offered
WASHINGTON — Six of the
nation’s largest mortgage com-
panies promised Tuesday to of-
fer struggling homeowners a
month’s protection from fore-
closure, a pause the companies
say will give them
time to renegoti-
ateloansandslow
the rising tide of
home losses.
Metro Detroit
has been among
areas hardest hit
bytheforeclosure
crisis, suggesting
the plan could be
of great help
there — if it’s not too late.
Wayne County’s foreclosure
rate, in fact, was the nation’s
worst in 2007, according to a re-
portbeingreleasedtodaybyRe-
altyTrac Inc., which tracks fore-
Mortgage
firms to
cut many
a break
Month of relief not
enough, some say
By TODD SPANGLER
FREE PRESS WASHINGTON STAFF
T 3,000 get help at Cobo on how to
avoid foreclosure. 1B
T Wayne Co. leads the nation. 1B
See CRISIS, 7A
Wayne
County had
the nation’s
highest
foreclosure
rate in ’07,
according to
RealtyTrac.
for and what to look for.”
Goodman will advise the council on
its investigation of the scandal. The
council is seeking a financial audit of
the mayor’s office and a look at the ci-
ty’s Law Department. It called on the
mayor’s office Tuesday to release all
documents related to the settlement.
Goodman told council members
cooperation from the Kilpatrick ad-
ministration would be key to his job.
“That will be the most difficult
problem here — getting all the infor-
mation,” he said during his interview.
The Detroit City Council chose one
of the city’s most accomplished civil
rights attorneys, Bill Goodman, on
Tuesday to serve as its independent
counsel in the text message scandal
engulfing Mayor Kwame Kilpatrick.
Goodman, 67, comes to the post
with a background in some of the ci-
ty’s most celebrated legal cases, in-
cluding being part of the team of at-
torneys whose lawsuit led to the dis-
banding of the police department’s
controversial STRESS undercover
squads in the 1970s.
“He’s got a tremendous amount of
experience, and I think he’ll bring a lot
of integrity to the position,” council
President Ken Cockrel Jr. said. “I
think he’ll know exactly what to ask
COUNCIL’S PICK
SEES TOUGH JOB
Photos by ERIC SEALS/Detroit Free Press
Detroit City Council President Ken Cockrel Jr. conducts an interview Tuesday of former U.S. Attorney Jeffrey Collins, who got two
votes for the job of independent counsel. Bill Goodman got the position with four votes. David A. Robinson received three.
Detroit civil rights lawyer Bill
Goodman will serve as the City
Council’s independent counsel.
Goodman to advise probe of mayor
Civil rights lawyer is
praised for integrityBy ZACHARY GORCHOW
FREE PRESS STAFF WRITER
See COUNCIL, 9A
An intricately coordinated raid 18
months in the making resulted in the
arrests Tuesday of more than two doz-
en business owners and employees in-
volved in a fraud that costs the state
about $55 million annually.
At least 25 people were arrested
when about 200 state, federal and local
officials descended on the stores,
mostly in Dearborn and Detroit.
The fraud focused on Bridge Cards,
the electronic debit cards that re-
placed government-issued food
stamps in 2001.
Instead of using the cards to buy
food, State Police said some card own-
ers collaborated with store owners to
trade them in for cash at the stores —
25 arrests made
in raid targeting
food card fraud
By DAN CORTEZ
FREE PRESS STAFF WRITER
See FRAUD, 6A
KEY 2007 RESULTS
IN GM’S RECORD
ANNUAL LOSS
Pretax income by region and
the year’s tax expense
LATIN AMERICA, AFRICA
AND THE MIDDLE EAST
$1.35
billion
ASIA/PACIFIC
$681
million
GMAC
-$1.15
billion
INCOME TAX EXPENSE
-$37
billion
EUROPE
-$524
million
NORTH AMERICA
-$3.3
billion
Bill Goodman
T Age 67.
T Partner at Goodman & Hurwitz, a
Detroit law firm specializing in civil
rights litigation.
T Grew up in Detroit, graduated
from Mumford High School. Son of
the late Ernest Goodman, a legend-
ary civil rights and labor lawyer in
Detroit.
T Undergraduate and law degrees
from the University of Chicago.
T Worked in New York City from
1998 to 2007, including two stints
at the Center for Constitutional
Rights, which represented Guanta´-
namo Bay detainees and victims of
NYPD racial profiling.
T Partner from 1970 to 1998 in the
Detroit firm of Goodman, Eden,
Millender and Bedrosian. It was the
nation’s first racially integrated law
firm, founded by Ernest Goodman
and George Crockett, the late judge
and congressman.
T Profile of Bill Goodman, 9A
Check out complete coverage on
the text message scandal and
share your thoughts at freep.com
/Kilpatrick.
T No ruling yet on appeal. 9A
Tom Walsh
on what the
numbers
really mean.
1E
T A Q&A on the buyouts. 11A
T Looking into GM’s balance sheet. 11A
Sen. Barack Obama took
Maryland, Virginia and Wash-
ington, D.C., in primaries
Tuesday. His victories gave
him the lead in delegates over
Sen. Hillary Clinton. On the
Republican side, Arizona Sen.
John McCain also won those
three contests, adding to his
lead. But his win in Virginia
was close with Mike Huckabee.
REPORTS, PAGE 4A
Sen. John McCain, left, and Sen.
Barack Obama continue on a roll
over their campaign rivals.
POTOMAC PRIMARIES
Obama and
McCain win
3 contests
Writers vote
to end strike
STORY, 7A