According to unnamed sources, the GM IPO will offer approximately 22% of the company for proceeds of about 10 billion dollars. Shares will be sold at $26 to $29 after a stock split. This puts the company's value at approximately 50 billion dollars, in the same area as Ford's market cap. Arguments can be made whether or not GM is worth more than Ford, but there are other more important facts to ponder. Why did Ed Whitacre recently disclose that the IPO would price between $20 and $25, only to see the media hype a higher figure based on leaks that no doubt came from the company itself.
Probably because today is Election Day. The auto bailout is even more unpopular than the stimulis spending or ObamaCare. The pressure is on GM to shed the "Goverment Motors" label.
Yesterday we reported that the FTC's decision to close its investigation into the Google WiSpy affair came less than a week after President Obama attended a $30,000-plate fundraiser at the California home of senior Google executive Marissa Mayer. It also came four days after Google, after months of denials, admitted for the first time that its "Street View" video cameras were intercepting emails, passwords and website addresses sent by unsuspecting Internet users.
Now we've learned that on September 28, 2009, Becky Burr, a Google lobbyist at Wilmer Hale, emailed White House officials Susan Crawford and Andrew McLaughlin asking for a meeting to request the White House's assistance in urging the Federal Trade Commission to back off on privacy. Her email reads in part:
General Motors is expected to begin soliciting for its IPO within the next few weeks. Some warning signs are surfacing regarding the risks relating to investing in New GM. These risks will be easily recognized by astute money managers and may require GM (and its owners, the US Treasury) to rely more upon the Mom and Pop investors who are less sophisticated and more susceptible to being taken advantage of.
Prior to filing for bankruptcy, General Motors funded its operations by borrowing from small investors. This funding came in the form of "baby bonds" that were traded on security exchanges and made readily available to retail buyers. Around the same time that unethical practices led to predatory lending in the mortgage industry, GM engaged in its own practice of predatory borrowing. The individuals who lent money in good faith eventually had their rights subordinated to the politically powerful labor unions.
Rep. Charles Rangel is heading into a Nov. 15 ethics trial with no lawyers, little money and a risky strategy that may turn his trial into a political showdown, rather than a legal face-off, according to sources close to the New York Democrat.
It's not even clear if the ethics trial will start on time. Rangel has asked for a delay in the proceedings, but the ethics committee - with members off running their own reelection campaigns - has not publicly ruled on the request.
Shortly after Labor Day, as polls continued to sink, the Democratic National Committee (DNC) realized it needed a cash infusion for the upcoming midterm elections. Its chairman, former Virginia Governor Tim Kaine, turned to the Bank of America to secure a $15 million revolving credit line. Then, in the middle of this month, the Democratic Congressional Campaign Committee (DCCC) got another loan from BofA for an additional $17 million.
The loans might be illegal. A key question is whether adequate collateral was posted for the loans. The DNC says it pledged its donor mailing list but:
National Public Radio's firing of Juan Williams and its acceptance of a $1.8 million gift from left-wing billionaire George Soros' foundation have put the spotlight on the NPR's taxpayer subsidy. What is less well known is that Soros' private foundations also receive millions in taxpayer funds.
Not only that, but the projects that taxpayers fund through Soros' foundations appear to violate a federal prohibition on the use of taxpayer funds to promote drug use and prostitution. Our efforts to expose this misuse of tax money in 2007 were met with hostility by the State Department and disinterest in Congress.
Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.
Google’s income shifting -- involving strategies known to lawyers as the “Double Irish” and the “Dutch Sandwich” -- helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.
Of course, Google executives were among Barack Obama largest campaign contributors. CEO Eric Schmidt stumped for candidate Obama, and he and other senior executives contributed $150,000 to help pay for the inaugural celebration.
A senior executive of the Upper Manhattan Empowerment Zone who is also a tax preparer has pleaded guilty to submitting false and fraudulent tax returns to the Internal Revenue Service and cashing approximately $250,000 in fraudulently obtained tax refund checks.
Kelvin Crucey, 41, has been employed since 1996 by the empowerment zone, most recently as senior vice president of finance and administration.
Embattled Rep. Charles Rangel (D-NY) played a key role in the creation of the Upper Manhattan Empowerment Zone (UMEZ). He exercises dominating influence over its board of directors and has secured millions in federal earmarks. Rangel directed millions in taxpayer money through UMEZ to another nonprofit known as Alianza Dominicana, which is Spanish for Dominican Alliance.