GM IPO For Insiders Only

The federal government used the public coffers to bail-out General Motors. Regardless of one's feelings about that government action, the fact is "we" all bailed-out GM, but only some of "us" are going to benefit directly from the Initial Public Offering of the newly-revitalized GM.

Ordinarily, this is fine. A company wants to issue publicly traded shares of its stock, hires a brokerage firm or investment bank to advise them and handle the sale of those shares. The folks who get to invest in the IPO shares are the bigger, more active clients of the companies running the IPO.

But this is not a private deal between firms. This is the resurrection of a company that, but for the help of the taxpayers, would not have even survived bankruptcy.

The US Treasury should have run this IPO the same way it issues bonds--buy allowing an auction. Big the right amount, ya get shares. Too little, you miss out. Too much and you overpay. But everyone who wants In on the deal would have a fair shot.

Now, though, you're only shot at the IPO is to be a big client of a big firm that the government and GM have selected. Nice if you are a zillionaire, I reckon.