General Motors will likely begin repaying of its federal bailout loans early, but that might not be good enough for the Obama administration. The White House is pressing General Motors to speed up its first public stock offering.
GM will likely make its first loan payment on December 31st, but auto task force head Ron Bloom wants even more progress. Bloom revealed to Reuters earlier this week that the government is pushing for a GM IPO during the fourth quarter of 2010.
“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,” he said. Bloom added the Obama administration wants to “err on the side of getting out a little faster”.
The U.S. government currently owns more than 60 percent of General Motors.
GM CEO Fritz Henderson has previously stated the company was on track for an initial public offering during the second half of 2010. The subject will be revisited in June, but a final decision could be pushed back to the latter portion of 2010.
