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BY DANIEL HOWES - As desperately as General Motors Co. wants to shed its "Government Motors" rap and quash any appearance of political meddling from official channels, the walk up to an initial public offering of the new GM looks like anything but.

Consider:

In his first visit to Detroit since his administration pushed GM through bankruptcy and infused it with taxpayer dollars, President Barack Obama a couple of weeks ago touts GM's revival as a job well done -- even as poll numbers for him and his party continue to sink. Less than three weeks later, GM files for its long-awaited IPO and experts duly report that the Securities and Exchange Commission typically takes 30 to 60 days to green-light an IPO which, natch, would reach deep into October. As in, a bare few weeks before the mid-term elections.

Second, no matter how desperately management might want it and political calculations might demand it, the mounting evidence -- a slowing economy, slumping consumer confidence, jittery stock markets, just two profitable quarters, management turmoil and even a warning from the president's former auto czar, Steven Rattner -- suggest this fall might be precisely the wrong time to begin to unwind a massive government stake in GM.

Thursday, the Dow Jones Industrial Average tanked 144 points to 10,271 after first-time jobless claims jumped higher than expected, manufacturing showed signs of slowing and the Conference Board's index of leading indicators pointed to slower growth for the balance of the year. IPOs in the auto space -- Tesla Motors, for one -- are trading closer to their offering prices than their 52-week highs.

Auto sales keep tracking in the mid-11 million-unit range, suggesting the kind of anemic consumer demand that spooks investors. Dealers report slowing showroom traffic despite some positive signs from big-box retailers. Home sales are weak, housing starts are slow, property values are slipping again and talk of a double-dip recession continues, unfortunately. But GM's IPO, essentially approved or not by the Treasury Department, is moving ahead anyway. Trouble is, the less enthusiastic would-be investors are about GM and the less willing they are to buy shares, the less the feds can legitimately crow about paying back the taxpayers' billions if they make less money on the deal.

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Cases against unit in bankruptcy could be worth billions of dollars

BY TIFFANY KARY / Bloomberg News - Creditors of General Motors Corp.'s bankruptcy estate have won permission to seek data from new General Motors and other parties to estimate what could be billions of dollars in asbestos claims.

Bankruptcy Judge Robert Gerber in New York this week granted unsecured creditors permission to request documents, after they agreed to keep sensitive information confidential.

"This isn't like the formula for Coke or nuclear launch codes," Gerber said, after hours of testimony about the risks that the information could be misused if disclosed.

Motors Liquidation Co., the remains of General Motors still in bankruptcy, plans to create a trust, allowing it to exit bankruptcy with some funds set aside to pay future tort claims. While the estate recorded an estimate of $648 million for asbestos liability, a committee of creditors said in a court filing the estate may face claims for five to 10 times as much.

Pinning down the liabilities of GM's bankrupt remains is key to exiting bankruptcy. In May, Gerber extended the bankrupt estate's exclusive control over its liquidation until fall, citing the need to resolve asbestos and environmental liabilities.

Brake linings used in Old GM's automobiles incorporated small amounts of encapsulated asbestos, creditors said in court documents. Under Gerber's order, creditors can demand documents from trusts that are processing asbestos claims on behalf of other bankrupt companies.

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