As it sells GM shares in the company’s IPO this week, the United States Treasury isn’t acting like a hedge fund—and it doesn’t want to.
For Treasury, according to senior officials I’ve talked to, the key priority in the IPO isn’t the share price—although that’s important—it’s the speed with which the government can sell its shares.
Inside Treasury headquarters on Pennsylvania Avenue, getting rid of the moniker “Government Motors” is more important than wringing every last nickel out of the sale.
“This company should never have been owned by the taxpayers,” said a senior administration official. “This is a strange period in American history where the government is acting like a sovereign wealth fund. But we’re not Warren Buffet here.”