A Government Motors two-fer

| No Comments
Two looks at the US Government owned General Motors as they are about to issue an Initial Public Offering of stock. First, from Yahoo/CNBC:
Some Average Investors May Be Shut Out of GM's IPO
Just two years after a taxpayer bailout salvaged General Motors, some of the nation's largest retail brokerage firms are apparently being shut out of what is poised to be a lucrative investment opportunity as the auto company goes public.

Charles Schwab, TD Ameritrade, and E*Trade are not accepting client orders for GM shares at the moment because they do not expect to receive stock allocations when the company goes public next week, according to investors and brokerage-firm employees.

Other big retail brokerages, such as Morgan Stanley, are expected to get shares, however, as are big institutional investors and hedge funds.

"TD Ameritrade will not be participating in the GM IPO offering, as we have been informed that we will not receive an allocation of shares," said a company spokeswoman in an e-mailed statement. "We have several relationships with various underwriting firms for various products, and in this case the underwriting firm is not allocating shares for this offering."

Schwab has taken a similar position, according to a source there and an investor who sought GM shares. And with just a few days before GM shares are expected to price on the evening of Nov. 17, a notice posted on E*Trade's investor web site states that there are no "current offerings" of IPOs available to customers at this time.

The lack of available shares is a disappointment to some potential retail investors, who are frustrated that, after federal TARP funds helped a struggling GM in the depths of the financial recession, they may not be able to participate in what is expected to be a good money-making opportunity.

"I really like the GM IPO, I think it's going to do well," says Anand Marphatia, a 51-year old father of two who in Houston who lost his job in the recession and now invests using a Schwab account. He says his requests to Schwab for GM shares have been rebuffed: "I'd like to get in, and I can't."
Second, from Manufacturing.net:
China To Take Part In GM IPO
Among the banks helping General Motors with its initial public stock offering next week are two identified by initials only: ICBC and CICC.

Americans uncomfortable with U.S. government ownership of General Motors may want to hear more: One of those banks is the Industrial and Commercial Bank of China, one of China's four big central government banks. The other, China International Capital Corp., is a joint venture run primarily by Central Huijin Investment Ltd., an arm of the state, and Morgan Stanley.

This is the first time Chinese government banks have participated in a major U.S.-issued IPO, according to IPO tracking firm Dealogic. The banks are listed as co-managers in the offering, meaning they will sell a portion of the new shares.
So not only is China holding large amounts of our national debt, they are now purchasing significant parts of our industries. This is not a good thing...

Leave a comment

August 2019

Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Environment and Climate
Cliff Mass Weather Blog
Climate Audit
Climate Depot
Green Trust
Jennifer Marohasy
Planet Gore
Science and Public Policy Institute
Solar Cycle 24
Space Weather
Space Weather - Canada
the Air Vent
Tom Nelson
Watts Up With That?

Science and Medicine
Derek Lowe
Junk Science
Life in the Fast Lane
Luboš Motl
New Scientist
Next Big Future
Ptak Science Books
Science Blog

Geek Stuff
Ars Technica
Boing Boing
Don Lancaster's Guru's Lair
Evil Mad Scientist Laboratories
Hack a Day
Kevin Kelly - Cool Tools
Slashdot: News for nerds
The Register
The Daily WTF

The Argyle Sweater
Chip Bok
Broadside Cartoons
Day by Day
Medium Large
Michael Ramirez
Prickly City
User Friendly
What The Duck

Awkward Family Photos
Cake Wrecks
Not Always Right
Sober in a Nightclub
You Drive What?

Business and Economics
The Austrian Economists
Carpe Diem
Coyote Blog

Photography and Art
Digital Photography Review
James Gurney
Joe McNally's Blog
The Online Photographer

A Western Heart
American Digest
The AnarchAngel
Anti-Idiotarian Rottweiler
Babalu Blog
Belmont Club
Bayou Renaissance Man
Classical Values
Cold Fury
David Limbaugh
Defense Technology
Doug Ross @ Journal
Grouchy Old Cripple
Irons in the Fire
James Lileks
Lowering the Bar
Maggie's Farm
Marginal Revolution
Michael J. Totten
Mostly Cajun
Power Line
Questions and Observations
Rachel Lucas
Roger L. Simon
Sense of Events
Sound Politics
The Strata-Sphere
The Smallest Minority
The Volokh Conspiracy
Tim Blair
Weasel Zippers

Gone but not Forgotten...
A Coyote at the Dog Show
Bad Eagle
Steven DenBeste
democrats give conservatives indigestion
Cox and Forkum
The Diplomad
Priorities & Frivolities
Gut Rumbles
Mean Mr. Mustard 2.0
Neptunus Lex
Other Side of Kim
Ramblings' Journal
Sgt. Stryker
shining full plate and a good broadsword
A Physicist's Perspective
The Daily Demarche
Wayne's Online Newsletter

About this Entry

This page contains a single entry by DaveH published on November 17, 2010 7:24 PM.

One year ago today was the previous entry in this blog.

A classic Johnny Carson skit is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Monthly Archives


OpenID accepted here Learn more about OpenID
Powered by Movable Type 5.2.9