Obama administration wants to fast track GM IPO

The Obama administration wants General Motors to expedite their IPO as the government had wanted to “err on the side of getting out (of their investment) a little faster”. “Private markets would like to see us exit this investment, and I think they will be more comfortable if we’re on a sustained path out the door than if they think we’re going to try to market time it to maximize return,” Ron Bloom, head of U.S. government’s autos task force told Reuters.

GM is expected to provide a ‘fresh start’ accounting of the company’s assets and liabilities, a necessary step toward an IPO, by March. CEO Fritz Henderson has said that the IPO could come as early as the second half of 2010, while Bloom would be happy to see it offered in Q4 2010.

The U.S. government intends to shed all of its stake in GM and the 8% stake it acquired in Chrysler Group LLC.

– By: Stephen Calogera

Source: Reuters