While defending the government bailout of America's auto industry, Herb Allison (above), the Treasury Department's assistant secretary for financial stability, said that a General Motors initial public offering is still a go for next year. While Allison still believes it was essential to safeguard the security of our financial system, he claims that the deal to bail out the auto industry has always been seen as a temporary situation:
"Our investments in the automobile industry and other companies that have received exceptional assistance are limited and temporary. Chrysler Financial has already repaid its assistance, and an initial public offering for GM is expected next year," Allison said.According to The Detroit News, the Treasury is getting things in place to begin selling off their 60.8% equity stake in GM. It will take several years to divest themselves of GM stock, but the IPO should happen sometime in 2010. An initial public offering for Chrysler is still a ways off.
[Source: The Detroit News | Image: Mandel Ngan/AFP/Getty Images]