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

Article by Christian A., 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

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 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