The first is a travesty, and there are many fine and outstanding labs out there that are going through similar situations, due to stagnant funding for years followed by the current sequestration. This is irreparably damaging US scientific research, as once a lab closes and all the specialized reagents are gone, it's going to take years to get back to the same starting point.
The second is puzzling, if true. The only thing that I can think of that would cause UCB to act that way is I they feel that this professor will prevent them from getting commercial finding for other professors. That seems tenuous at best, but I can't imagine any other reason for administrators to blackball a prominent professor. And this would be impossible for the administrators to do at all if the professor was getting grant support for his research.