.
The U.S. government bailout of, and acquisition of a majority share in, General Motors was an exceptional action, taken in response to exceptional circumstances. The U.S. stake in GM obviously poses novel managerial challenges to the government. The appropriate response to those challenges, however, is not to run from the responsibility through passive ownership and premature sale at a loss to taxpayers.
We write as GM prepares to undertake an Initial Public Offering (IPO) of stock that will reduce the government stake in the company to 43 percent. We urge that the government as primary owner arrange for the suspension of the IPO and then begin exercising the responsibilities attendant to ownership. We would like to highlight some of the numerous reasons for, and applications of, these recommendations.
via Nader and Associates Letter to President Obama on GM’s IPO – The Nader Page.
Filed under: Ecology, economy, Global Warming, politics, Ralph Nader, reform, US Politics
Leave a Reply