GM's scam ipo.
I follow GM and the union and the government are really playing a scam here. Beyond the criminal bailout.
First, they spit off GMAC. So there is not link between GMAC and GM anymore. But what they have been doing is having GMAC eat the a portion of the incentives offered on GM cars. And the government bailed out GMAC twice and I would bet that this had something to do with it.
So they inflated the profit of GM so they could get that IPO back on track.
But the real rush for the IPO lies in the UAW contract, which is up soon. The UAW cannot strike against itself, and they own a nice chunk of stock. And the Government can't be holding it large stake either. They need wall street to be holding the bag so the union can soak them when the contract comes up. And since the profits were inflated, they will use that as the basis for a reset to the old wages, plus whatever they were not paid in the last year.
Of course the investment bankers want to take it public at any cost, so they can make their nice percentage of the holdings.