Read that headline fast and you'll get at the core of what's happening with this brain trust.
Reuters has a story over the weekend that suggests taxpayers may actually lose money (ahem, MORE money) when the GM IPO happens. Whenever that is.
I thought it was interesting that nothing was going to happen before the election in November. No kidding? Maybe I have a future as a weatherman.
I've written about these guys before, but the gist that GM stole from bondholders and the taxpayer simultaneously to hand money to the UAW and its pension liabilities, in the process starting a NEW GM that has actually paid back US Treasury TARP monies from a slush fund made up from, you got it, US Treasury TARP monies.
So now the NEW GM is going to IPO.
The real question that Dr. Williams and I are asking is: what fiduciary in their right mind would buy anything from this NEW company? How can asset managers purchase this stuff, doesn't it violate the "prudent man" rule? Maybe if you discount the value of government largess and stimulus back to the present, exclusive contracts, etc. then I could see it being worth it.
Wesley Mouch would be proud.
UPDATE:
Article today that says the special IG for TARP reports that the IPO will have to be at least $134 per share for the US to be repaid. I haven't check the number here, so I don't know if that means the NEW GM will repay or EVERYTHING will repay. I bet it's just the NEW GM.
Reuters has a story over the weekend that suggests taxpayers may actually lose money (ahem, MORE money) when the GM IPO happens. Whenever that is.
I thought it was interesting that nothing was going to happen before the election in November. No kidding? Maybe I have a future as a weatherman.
I've written about these guys before, but the gist that GM stole from bondholders and the taxpayer simultaneously to hand money to the UAW and its pension liabilities, in the process starting a NEW GM that has actually paid back US Treasury TARP monies from a slush fund made up from, you got it, US Treasury TARP monies.
So now the NEW GM is going to IPO.
The real question that Dr. Williams and I are asking is: what fiduciary in their right mind would buy anything from this NEW company? How can asset managers purchase this stuff, doesn't it violate the "prudent man" rule? Maybe if you discount the value of government largess and stimulus back to the present, exclusive contracts, etc. then I could see it being worth it.
Wesley Mouch would be proud.
UPDATE:
Article today that says the special IG for TARP reports that the IPO will have to be at least $134 per share for the US to be repaid. I haven't check the number here, so I don't know if that means the NEW GM will repay or EVERYTHING will repay. I bet it's just the NEW GM.
