Washington Post (April 24)
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Later sales might as well, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Perhaps later sales could too, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
Tags: AIG, Bailout, GM, Share sale, U.S.
