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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:3,743 Points:276,855 Joined:Jun 2009	Message Posted: Sep 7, 2010 8:51:05 AM Ignore gs7101 Report Abuse No surprise here.
Bussman Champion Author Dallas Posts:4,138 Points:1,068,510 Joined:Nov 2008	Message Posted: Sep 6, 2010 11:07:00 PM Ignore Bussman Report Abuse We've already taken a bath!
Sneakers55 Champion Author Houston Posts:44,887 Points:1,811,950 Joined:Nov 2005	Message Posted: Sep 6, 2010 12:47:50 AM 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:5,445 Points:1,383,330 Joined:Apr 2006	Message Posted: Sep 5, 2010 11:37:01 PM Ignore 52MPG Report Abuse No surprise.
Bussman Champion Author Dallas Posts:4,138 Points:1,068,510 Joined:Nov 2008	Message Posted: Sep 5, 2010 9:22:54 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 5:35:40 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:5,785 Points:1,435,650 Joined:Jul 2004	Message Posted: Sep 5, 2010 2:11:18 PM 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:2,584 Points:705,830 Joined:Mar 2010	Message Posted: Sep 5, 2010 1:40:52 PM Ignore ScottTee Report Abuse I will never buy GM stock after the last stockholders & bondholders were screwed
bluehawk43 All-Star Author Arkansas Posts:681 Points:506,805 Joined:May 2009	Message Posted: Sep 5, 2010 1:39:13 PM Ignore bluehawk43 Report Abuse The main ones to lose are the ones that buy into the IPO.
OHMS Champion Author Orange County Posts:11,293 Points:1,339,275 Joined:May 2005	Message Posted: Sep 5, 2010 12:49:32 PM 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:44,887 Points:1,811,950 Joined:Nov 2005	Message Posted: Sep 5, 2010 12:47:34 PM 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:1,268,310 Joined:Sep 2006	Message Posted: Sep 5, 2010 12:40:59 PM Ignore ENORMS Report Abuse Buy low...Sell high!!
Sneakers55 Champion Author Houston Posts:44,887 Points:1,811,950 Joined:Nov 2005	Message Posted: Sep 5, 2010 12:36:53 PM 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:5,350 Points:1,174,275 Joined:May 2008	Message Posted: Sep 5, 2010 12:29:40 PM 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:3,848 Points:856,675 Joined:Sep 2009	Message Posted: Sep 5, 2010 10:55:15 AM Ignore coughlin Report Abuse These guys know NOTHING more than you and I. NOTHING.
PathfinderSC Champion Author South Carolina Posts:7,712 Points:1,472,740 Joined:Mar 2008	Message Posted: Sep 5, 2010 10:13:45 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:3,480 Points:713,980 Joined:May 2010	Message Posted: Sep 5, 2010 8:34:43 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:3,743 Points:276,855 Joined:Jun 2009	Message Posted: Sep 5, 2010 7:39:22 AM Ignore gs7101 Report Abuse More speculation -- no one knows this for sure.
APlus Champion Author San Antonio Posts:2,539 Points:694,755 Joined:Apr 2007	Message Posted: Sep 5, 2010 6:51:07 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 6:06:18 AM Ignore BMW2014 Report Abuse Bad news.
ArmydudeNC Champion Author North Carolina Posts:6,328 Points:1,019,275 Joined:Jul 2009	Message Posted: Sep 5, 2010 4:54:18 AM Ignore ArmydudeNC Report Abuse Right now is a bad time to go public with this offering.
Gnusman53 Champion Author San Diego Posts:4,742 Points:760,040 Joined:Feb 2004	Message Posted: Sep 5, 2010 2:01:58 AM Ignore Gnusman53 Report Abuse That question will be answered by the new group of owners....
Gnusman53 Champion Author San Diego Posts:4,742 Points:760,040 Joined:Feb 2004	Message Posted: Sep 5, 2010 1:57:41 AM Ignore Gnusman53 Report Abuse or getting a business off life support
Gnusman53 Champion Author San Diego Posts:4,742 Points:760,040 Joined:Feb 2004	Message Posted: Sep 5, 2010 1:57:03 AM Ignore Gnusman53 Report Abuse even profits...
Gnusman53 Champion Author San Diego Posts:4,742 Points:760,040 Joined:Feb 2004	Message Posted: Sep 5, 2010 1:56:34 AM Ignore Gnusman53 Report Abuse Everything takes some time
VLegardeu Champion Author Montreal Posts:2,534 Points:571,625 Joined:Apr 2010	Message Posted: Sep 4, 2010 11:28:03 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 11:25:41 PM Ignore BMW2014 Report Abuse Bad news
granitestater Champion Author New Hampshire Posts:6,875 Points:1,101,870 Joined:Oct 2008	Message Posted: Sep 4, 2010 11:08:26 PM Ignore granitestater Report Abuse Needs to be done so the automakers are back on an even compertitive basis.
ss70 Champion Author Detroit Posts:7,393 Points:1,523,370 Joined:Sep 2005	Message Posted: Sep 4, 2010 10:14:17 PM Ignore ss70 Report Abuse still better than last year