This is what’s in the news for Wednesday February 29, 2012. The Wall Street Journal reports GM (NYSE:GM) will invest $335M for a 7% stake in struggling automaker PSA Peugeot Citroen (PINK:PEUGY) as part of a deal that each hopes will help turnarounds at their troubled European car operations. The Wall Street Journal also reports Goldman Sachs Group (NYSE:GS), JPMorgan Chase (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC) have been told U.S. securities regulators may sue them in civil court over allegedly shoddy disclosures of the risks of subprime mortgage bonds tied to the financial crisis. Bloomberg reports oil prices increased as it heads for its best month since October in New York, up 8.8% in February, as signs of economic recovery and concerns over Iran threatens crude supplies worldwide. Finally, Reuters reports Belgian drug firm Galapagos signed a deal valued at up to $1.35B with Abbott Laboratories (NYSE:ABT) for the development and production of an oral drug to treat arthritis and other auto-immune diseases.
