US Goverment Comfortable with Losing $9 BILLION on taxpayers' original investment in GM

http://www.reuters.com/article/idUSN1827687520101118
UPDATE 1-US comfortable with GM IPO pricing, investors
Thu Nov 18, 2010 8:45am EST
WASHINGTON Nov 18 (Reuters) - The U.S. government is satisfied with pricing
and the investor lineup in the General Motors Co [GM.UL] (GM.N) public offering, a senior Obama administration official said.
Ron Bloom, the administration's point man on auto restructuring, told Reuters Insider ahead of GM trading on Thursday that the government wants a fair return for taxpayers on its $50 billion investment, but also wants to "get out of this thing as soon as we can."
Treasury is reducing its stake in GM through the initial share sale from 61 percent to 37 percent at minimum. It could sell more shares initially to bring down taxpayer exposure to 33 percent, depending on whether an overallotment option is exercised.
Bloom said GM has done the right thing and pricing of $33 per share is a "fair deal" even though the partial sale represents a loss of roughly $9 billion on taxpayers' original investment. "We're very comfortable with the way this went," Bloom said.
Treasury is bound by an agreement preventing new sales of its stock for six months, Bloom said. (For more on GM's IPO see [ID:nN11173673] ) (Reporting by John Crawley, editing by Matthew Lewis)
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C. E. White wrote:

Taxpayer rape continues, stealth $45 Billion tax cut included.
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"I have tried to live my life so that my family would love me and my
friends respect me. The others can do whatever they please."
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On 18/11/2010 8:47 AM, Jim_Higgins wrote:

And notice how the politicians polish the turd. They don't include Bush bailout for GM, nor the unpaid suppleirs, nor the poluted plant cleanup and other GM.old issues. And the biggie, GMAC which is on its 4th bailout and still in trouble for lending to poor credit, high risk GM buyers.
Question is how long will AmeriCredit last with these practices? GM didn't want GMAC/Ally back as taxpayers bought AmeriCredit which was in better shape. More room to pack dysfunctional debt for round two.
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Socialism is a great ideal as long as someone else pays for it. And when
no one is left to pay for it, they all can share nothing.
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In a way it is right to get out of this investment.
It was a mistake to but in but after doing so the best thing to do is get out again.
Will be interesting to see what happens when GM needs more money again.
It is like having a drug addict coming for money and if you give they come back and want more and more and more and...
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