GM’s IPO is seen as a victory for Obama on auto bailout, report says

Article by Christian Andrei, on August 27, 2010

Both the supporters and critics of President Barack Obama will be focused on how successful General Motors Co.'s public offering will be. If GM would be able to stand on its own again in the capital markets, Obama will consider it a victory since he has been citing its progress as proof of the success of the auto bailouts.

Obama is banking heavily on the public offering as November elections near.The US Treasury is closely involved in the process of selling its 60% federal stake in GM.

However, the White House has asserted that it plays no role in the offering that will land on Wall Street this fall.

By recovering a sufficient amount of the $43 billion still owed by GM in a first stock sale, taxpayers become the minority investors.

If this milestone is reached, Obama and the Democrats will be able to put up a strong case against the Republicans who have been aiming to illustrate the 2009 bailouts of GM and Chrysler Group as government intervention in the private sector.

If the public offering proves to be a failure, Obama would be placed in a bad light as he had approved much of the $50 billion GM bailout and bankruptcy.

As a result, the taxpayers became the largest shareholder in an uncertain market. [via autonews]

Topics: gm, ipo, united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries