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Taxpayers likely to face initial loss on GM IPO

Reuters -- NEW YORK/DETROIT, Sept 3 (Reuters) - The U.S. government is likely to take a loss on General Motors Co [GM.UL] 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.

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Submitted Sep 04, 2010 By: FranklinGasGuy

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gs7101 Champion Author San Antonio Posts:3,198 Points:245,030 Joined:Jun 2009	Message Posted: Sep 7, 2010 5:51:05 AM Ignore gs7101 Report Abuse No surprise here.
Bussman Champion Author Dallas Posts:3,857 Points:990,630 Joined:Nov 2008	Message Posted: Sep 6, 2010 8:07:00 PM Ignore Bussman Report Abuse We've already taken a bath!
Sneakers55 Champion Author Houston Posts:43,317 Points:1,711,030 Joined:Nov 2005	Message Posted: Sep 5, 2010 9:47:50 PM Ignore Sneakers55 Report Abuse OHMS wrote: >His final accounting won't be at the hands of man. Bailing out a failing company is hardly one of the seven deadly sins.
52MPG Champion Author Dayton Posts:4,904 Points:1,275,680 Joined:Apr 2006	Message Posted: Sep 5, 2010 8:37:01 PM Ignore 52MPG Report Abuse No surprise.
Bussman Champion Author Dallas Posts:3,857 Points:990,630 Joined:Nov 2008	Message Posted: Sep 5, 2010 6:22:54 PM Ignore Bussman Report Abuse Taxpayers likely to replace the current administration as soon as possible.
POLELANE Champion Author Ohio Posts:7,148 Points:828,370 Joined:Mar 2008	Message Posted: Sep 5, 2010 2:35:40 PM Ignore POLELANE Report Abuse Taxpayers faced their initial loss when the feds' executive branch decided to BAIL OUT or nationalize GM
Night Owl Champion Author Toronto Posts:5,260 Points:1,332,650 Joined:Jul 2004	Message Posted: Sep 5, 2010 11:11:18 AM Ignore Night Owl Report Abuse You think that GM would be grateful to taxpayers for saving the company from extinction.
ScottTee Champion Author Detroit Posts:2,083 Points:601,200 Joined:Mar 2010	Message Posted: Sep 5, 2010 10:40:52 AM Ignore ScottTee Report Abuse I will never buy GM stock after the last stockholders & bondholders were screwed
bluehawk43 All-Star Author Arkansas Posts:679 Points:503,890 Joined:May 2009	Message Posted: Sep 5, 2010 10:39:13 AM Ignore bluehawk43 Report Abuse The main ones to lose are the ones that buy into the IPO.
OHMS Champion Author Orange County Posts:10,791 Points:1,249,445 Joined:May 2005	Message Posted: Sep 5, 2010 9:49:32 AM Ignore OHMS Report Abuse ""That would push a final accounting into the next presidential term."" His final accounting won't be at the hands of man.
Sneakers55 Champion Author Houston Posts:43,317 Points:1,711,030 Joined:Nov 2005	Message Posted: Sep 5, 2010 9:47:34 AM Ignore Sneakers55 Report Abuse PathfinderSC wrote: >It was a mistake to bail GM in the first place. Not only would a GM failure bring GM down, it would have brought down suppliers to GM. Since the auto industry uses a lot of suppliers in common, it would have brought down Ford. Honda and Toyota are in better shape, but they would have taken a hit. I have no love for Government Motors (if I buy domestic it will be Ford), but they are too big to let fail.
ENORMS Champion Author Colorado Posts:3,014 Points:1,171,335 Joined:Sep 2006	Message Posted: Sep 5, 2010 9:40:59 AM Ignore ENORMS Report Abuse Buy low...Sell high!!
Sneakers55 Champion Author Houston Posts:43,317 Points:1,711,030 Joined:Nov 2005	Message Posted: Sep 5, 2010 9:36:53 AM Ignore Sneakers55 Report Abuse APlus wrote: >Why isn't this like an other loan - where the amount loaned plus interest must >be paid back to the US government by a certain defined date with all amounts >fixed and in writing? Because it was "stock for cash" like every other TARP deal done by Bush-43 and Obama.
BlueVanGroup Champion Author Colorado Posts:4,781 Points:1,069,325 Joined:May 2008	Message Posted: Sep 5, 2010 9:29:40 AM Ignore BlueVanGroup Report Abuse Everything this administration does screws over us taxpayers, so this is just more of the same.
coughlin Champion Author San Jose Posts:3,331 Points:754,075 Joined:Sep 2009	Message Posted: Sep 5, 2010 7:55:15 AM Ignore coughlin Report Abuse These guys know NOTHING more than you and I. NOTHING.
PathfinderSC Champion Author South Carolina Posts:7,160 Points:1,364,905 Joined:Mar 2008	Message Posted: Sep 5, 2010 7:13:45 AM Ignore PathfinderSC Report Abuse The Taxpayers always takes the lost. It was a mistake to bail GM in the first place.
mynt Champion Author Ottawa Posts:2,940 Points:606,205 Joined:May 2010	Message Posted: Sep 5, 2010 5:34:43 AM Ignore mynt Report Abuse Yeah, I personally don't foresee any mad rush to buy the new GM shares!
gs7101 Champion Author San Antonio Posts:3,198 Points:245,030 Joined:Jun 2009	Message Posted: Sep 5, 2010 4:39:22 AM Ignore gs7101 Report Abuse More speculation -- no one knows this for sure.
APlus Champion Author San Antonio Posts:2,217 Points:609,145 Joined:Apr 2007	Message Posted: Sep 5, 2010 3:51:07 AM Ignore APlus Report Abuse Why isn't this like an other loan - where the amount loaned plus interest must be paid back to the US government by a certain defined date with all amounts fixed and in writing?
BMW2014 Champion Author Toronto Posts:1,794 Points:364,300 Joined:Jun 2010	Message Posted: Sep 5, 2010 3:06:18 AM Ignore BMW2014 Report Abuse Bad news.
ArmydudeNC Champion Author North Carolina Posts:5,781 Points:911,400 Joined:Jul 2009	Message Posted: Sep 5, 2010 1:54:18 AM Ignore ArmydudeNC Report Abuse Right now is a bad time to go public with this offering.
Gnusman53 Champion Author San Diego Posts:3,843 Points:654,230 Joined:Feb 2004	Message Posted: Sep 4, 2010 11:01:58 PM Ignore Gnusman53 Report Abuse That question will be answered by the new group of owners....
Gnusman53 Champion Author San Diego Posts:3,843 Points:654,230 Joined:Feb 2004	Message Posted: Sep 4, 2010 10:57:41 PM Ignore Gnusman53 Report Abuse or getting a business off life support
Gnusman53 Champion Author San Diego Posts:3,843 Points:654,230 Joined:Feb 2004	Message Posted: Sep 4, 2010 10:57:03 PM Ignore Gnusman53 Report Abuse even profits...
Gnusman53 Champion Author San Diego Posts:3,843 Points:654,230 Joined:Feb 2004	Message Posted: Sep 4, 2010 10:56:34 PM Ignore Gnusman53 Report Abuse Everything takes some time
VLegardeu Champion Author Montreal Posts:2,534 Points:571,525 Joined:Apr 2010	Message Posted: Sep 4, 2010 8:28:03 PM Ignore VLegardeu Report Abuse Always losing money, now losing money from taxpayers' pocket.
BMW2014 Champion Author Toronto Posts:1,794 Points:364,300 Joined:Jun 2010	Message Posted: Sep 4, 2010 8:25:41 PM Ignore BMW2014 Report Abuse Bad news
granitestater Champion Author New Hampshire Posts:6,309 Points:1,017,395 Joined:Oct 2008	Message Posted: Sep 4, 2010 8:08:26 PM Ignore granitestater Report Abuse Needs to be done so the automakers are back on an even compertitive basis.
ss70 Champion Author Detroit Posts:6,920 Points:1,424,930 Joined:Sep 2005	Message Posted: Sep 4, 2010 7:14:17 PM Ignore ss70 Report Abuse still better than last year