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US Taxpayers Likely To Lose On GM’s IPO

From a memory-free Reuters:

Dan Akerson stands with the 2011 Chevrolet Volt electric vehicle with extended range at General Motors headquarters in Detroit, Michigan.

Taxpayers likely to face initial loss on GM IPO: sources

Clare Baldwin, Soyoung Kim And Kevin Krolicki — Fri Sep 3, 2010

NEW YORK/DETROIT (Reuters) – The U.S. government is likely to take a loss on General Motors Co in the first offering of the automaker’s stock, six people familiar with preparations for the landmark IPO said.

Subsequent offerings of the government’s holdings may be profitable depending on how investors trade the newly listed stock, the sources said.

But the question of whether taxpayers are ultimately made whole on GM’s $50 billion bailout could be left open for years, the people said.

It could take more than three years for the Treasury to sell down its remaining stake in GM after the IPO, one person said. That would push a final accounting into the next presidential term…

But we were told Obama Motors General Motors paid back the taxpayers months ago.

Were we lied to?

Oh, and never mind that the original General Motors stockholders will never be made whole.

This article was posted by Steve on Saturday, September 4th, 2010. Comments are currently closed.

8 Responses to “US Taxpayers Likely To Lose On GM’s IPO”

  1. Rick Caird says:

    It is not at all clear to me why we need to have this offering of government held GM stock when the sale will be at a loss. If the government is as sure of the ultimate success of GM as they claim to be, then it would make a whole lot more sense to wait. Forgive me: government and sense is an oxymoron.

  2. proreason says:

    Just wait until the Volt begins to revolutionize the industry.

    That will change everything.

    But, fortunately, even if the Volt isn’t the resounding success CEO Obamy expects it the be, the pensions of the 5-hour a day UAW workers are safe.

    You and I have their backs.

  3. Rusty Shackleford says:

    What’s most insulting is that the original shareholders got the shaft. Those cases will be tied up in court for decades. They were owed, and they were denied payment by none other than the boy who sits in the president’s chair. So why would anyone want to risk any capital at all on a venture, that when it fails again (and it will) they will be shafted out of their earnings? It’s a real game to these government pukes who think that they can continually sucker the people.

    The first thing they should do with any and all profits is repay the shareholders of last year. Then, reorganize and dump any and all waste and government intervention. Tell them to go to hell.

    But they’re in too deep now. The only way they can get out is to let the government fail at running the place. It is the American version of FIAT now. (And they have done so well.)

  4. bill says:

    GM, a loser, who knew … So when do they go bankrupt?

    • Right of the People says:

      Never as long as the UAW and The Bamster own it. We’ll be paying for their failures for years to come.

  5. Mithrandir says:

    I HAVE THE GM MASTERCARD.

    I will never buy a GM product again in my life. I wonder if any of my fees on my card to to GM at all? Should I cut up the card and get a different one?

  6. xdannyh says:

    Well it has been said “there’s a sucker born every minute” First the gubermint screwed the original stockholders and bond holders by the same kind of hocus focas that gave us “obama care”. Now they expect the suckers to line up for another bath!!!….Well everyone knows this but still it goes forward, why? Because the 1st buyers of the IPO are the bailed out investment banks and hedge funds, retirement funds etc.
    An investigation of talks with these folks by the gubermint and any others agencies involved with this, needs to take place. Were there threats of intimidation, (ass kicker oblah blah likes to send his Chicago thugs to parade around private residences), promises of easy treatment, or IRS audits etc. etc. etc. No intelligent citizen would step up to get screwed again….even if P.T. Barnum was right.

    • proreason says:

      the sad thing is that most of the IPO will be bought by the true believers in the liberalism dream…..gubamint pension funds.

      Therefore, the true buyers will be us.

      And the next bailout will be paid for by us.

      It will be a true DP, in all its meanings.


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