The General Motors initial public offering looks as if it will be successful – and will be priced well in excess of the range first set by the underwriters. That will let the US government sell down its 61 per cent stake substantially and perhaps exit entirely next year.

So who deserves the praise for this achievement? GM’s new management (even with the revolving door at the top), the government for its act of tough love in financing GM’s purge in Chapter 11 bankruptcy, or former GM executives led by Rick Wagoner?

My money is on the government and its auto industry taskforce led by Steve Rattner for not listening to Mr Wagoner’s dire warnings about Chapter 11 and for realising that GM could only be properly restructured in bankruptcy. Read more