Bailout Update: Taxpayers likely to face loss on GM IPO

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

• Treasury to sell first shares below break-even-sources

• 61 pct Treasury sale could take several years-sources

• Taxpayer break-even is around $70 bln GM market value

• Continue reading at Reuters

Comments

[Smack MacDougal]

This is to let big players buy low and sell high. It's a way to lock in profit, effectively. What a scam.

The right way to do it is to give every adult a few shares and then let us the shareholders decide to hold or sell GM stock in the market.

[Howard T. Lewis III]

What was the name of that company that nailed GM and made off with the loot? Black something.....