"The Obama administration now will sell 412 million of its 912 million shares, raising around $13.6 billion that will help the government get back some of the $50 billion it loaned GM to save the company from ruin last year."If this 13.6B is just returned to the Treasury, it may provide fiscal drag this month, as the average monthly flow of fiscal (which is probably all that is holding everything together) is around $110B/month. This $13.6B would represent a bit above a 10% hit to this flow this month, and may be significant.
Wednesday, November 17, 2010
GM IPO: Fiscal Drag?
GM is going to do an IPO tomorrow to raise some capital. Yahoo! has a story here. Excerpt: