9/17/2012

Obama administration lets politics influence decision to sell GM stock

Remember Obama's promise not to let politics interfere with how GM was run?  Politics entered the discussion of sales of GM stock last year.  Even the timing of the IPO was influenced by politics.  Other examples are available here, here, and here.  There were other issues such as "Obama reassured Michigan Congress members on Sunday that GM will not move its headquarters out of the Renaissance Center as part of its bankruptcy restructuring efforts" and changes in whether a plant would be closed
The Treasury Department is resisting General Motors' push for the government to sell off its stake in the auto maker, The Wall Street Journal reports. Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company's reputation and its ability to attract top talent due to pay restrictions. Earlier this year, GM presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multibillion dollar loss for the government, the newspaper noted. . . .

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