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More Americans than ever are expected to click on retailers’ websites today — Cyber Monday — to grab the best deals online.

The National Retail Federation says that a survey for Shop.org‘ by BIGresearch estimates that nearly 107 million Americans plan to shop online today, which is known as Cyber Monday. That’s up significantly from an estimated 96.5 million on Cyber Monday last year.

Consumers hope to take advantage of one-day only deals and free shipping.

More Cyber Monday news:

• Nearly nine in ten retailers will have a special promotion.

• 89.5 percent will shop from home.

• A growing number (6.9 percent) will use a smart phone.

• 12 percent will shop at work.

• 44 percent plan to hit the web in the early morning.

• 37.5 percent willl shop in the late morning.

• A big spike is expected at the lunch hour.

Shop.org‘s has holiday promotions from more than 700 retailers. Another website with Cyber Monday deals is www.dealnews.com.

© Copyright The Sacramento Bee. All rights reserved.

Local gasoline prices cooled down a bit over the past week.

The average retail price of gas in the Sacramento area rose 0.2 cents to $3.12 per gallon, according to the weekly report released Monday by SactoGasPrices.com, a GasBuddy.com website. That followed a spike of 3.2 cents per gallon the previous week.

Still, area prices are now 34.8 cents higher than the same day a year ago and 2.1 cents higher than a month ago.

Analysts cited declining crude oil prices, which topped $85 last week.

– Mark Glover

© Copyright The Sacramento Bee. All rights reserved.

DETROIT — General Motors is returning to life as a public company Thursday with a stock offering worth potentially $23 billion, ending the government’s role as majority shareholder and closing a remarkable chapter in American corporate history.

The U.S. government should make about $13.6 billion when GM shares start trading on the New York Stock Exchange. The federal Treasury is unloading more than 400 million shares of GM, reducing its stake in the company from 61 percent to about 33 percent.

The IPO could wind up as the largest in history. GM set a price of $33 per common share on Wednesday, a day after it raised the number of shares it will offer to satisfy investor demand. When the U.S. government and other owners sell their shares, they’ll raise $18.2 billion. GM will raise another $5 billion by selling 100 million preferred shares at $50 each.

Together, the sale of common and preferred stock will bring the deal’s value to a record $23.2 billion.

The stock offering is the latest in a series of head-spinning developments over the past two years for an American corporate icon.

In September 2008, to mark its 100th birthday, the automaker celebrated in the grand three-story atrium on the ground floor of its Detroit headquarters.

Two months later, then-CEO Rick Wagoner found himself in front of members of Congress, begging for money to keep GM alive. Four months after that, he was ousted by President Barack Obama.

By June 2009, GM had filed for bankruptcy. It emerged relieved of most of its debt but mostly owned by the government and saddled with a damaging nickname: “Government Motors.” The value of its old stock was wiped out, along with $27 billion in bond value.

Now GM will become a publicly traded company again and revive the stock symbol “GM.” Dan Akerson, GM’s fourth CEO in two years, will ring the opening bell Thursday on the New York Stock Exchange, to celebrate the company’s rebirth.

Obama on Wednesday said GM’s IPO marks a major milestone not only in the turnaround of the company, but of the U.S. auto industry as a whole.

“Supporting the American auto industry required tough decisions and shared sacrifices, but it helped save jobs, rescue an industry at the heart of America’s manufacturing sector, and make it more competitive for the future,” he said.

Most of the new stock will go to institutional investors, not to everyday investors, following a Wall Street system that rewards investment banks’ big customers. GM will set aside 5 percent of its new stock for employees, retirees and car dealers to buy at the offering price. The deadline to sign up was Oct. 22, but the company has not revealed how many people took the offer.

Senior Obama administration officials said Wednesday that the Treasury Department sought to strike a balance between getting a return for taxpayers and exiting government ownership as soon as practical.

The government has agreed that it will not sell shares outside the IPO for six months after the sale. The officials, who spoke on condition of anonymity, said they would assess their options for selling the government’s stake further.

In the stock offering, the government stands to make $13.6 billion if it sells 412 million shares, as planned, for $33 apiece. It will still have about 500 million shares, a one-third stake. It would have to sell those shares over the next two to three years at about $53 a share for taxpayers to come out even.

The total bailout was $50 billion. GM has already paid or agreed to pay back $9.5 billion. That comes from cash and payments related to preferred stock held by the government.

The GM debut comes at a time when auto stocks are performing well generally. The stock of GM’s crosstown rival, Ford, has risen steadily this year, from about $10 in January to about $16.50 as the GM IPO approached. The stock traded for a dollar in November 2008, and Ford never even took bailout money.

As for GM, whether bankruptcy actually fixed the company remains an open question. Before the crisis, it was saddled with debt and had a labor contract that called for paying workers even if they weren’t working. Massive pension and health care costs kept GM’s fixed costs high, and contracts with dealers meant it would be expensive to shut underperforming brands. Combined, those problems put the automaker in a topsy-turvy world where it made more sense to run plants at full bore, even if no one was buying cars.

Bankruptcy fixed much of that. The company closed 14 of its 47 plants, shuttered or sold off its Hummer, Saturn, Saab and Pontiac brands, and slashed its debt from about $46 billion to about $8 billion. Union retiree health care costs are now the United Auto Workers’ responsibility, and the controversial jobs program that paid idled workers almost a full salary has been eliminated.

GM employs 209,000 people in the United States today, down from 324,000 in 2004. But it’s making money. Before bankruptcy, GM lost about $4,000 per car. Now it makes about $2,000 each. GM says it is poised to earn about $19 billion a year when the car market rebounds.

Still, questions remain. With this stock offering, GM doesn’t rid itself of government intervention. The government remains a big shareholder.

Financial problems that plagued the automaker for the past decade still don’t seem under control: Despite hiring Chris Liddell, a new CFO from Microsoft known for fixing problems, GM says it’s still not sure all the financial problems were fixed.

WASHINGTON, Nov. 16, 2010 — /PRNewswire-USNewswire/ — The “robo-signing” scandal that has exposed illegal practices by servicers of mortgage loans has also showed the urgent need to reform a broken system that is plagued with abuses, lacks adequate resources and has pushed countless homeowners toward foreclosure.

That’s the message that Diane Thompson, a lawyer for the National Consumer Law Center, delivered in testimony Tuesday to the Senate Committee on Banking, Housing and Urban Affairs.

“The lack of restraint on servicer abuses has created a moral hazard juggernaut that at best prolongs and deepens the current foreclosure crisis and at worst threatens our global economic security,” Thompson said.

“Recent exposures of robo-signing and lack of ownership documentation by servicers have taken the wraps off a servicing system that has failed homeowners, investors and our society,” Thompson said. Basic flaws in that system include repeated failures to service loans, account for payments, limit fees to those that are reasonable and necessary, and provide loan modifications even when they could serve investors and allow homeowners to avoid foreclosures and evictions.

“Servicing abuses cause much of the pain and losses being endured by millions of Americans in a crisis in which homeowners face foreclosures at triple the rate of 1933, at the height of the Great Depression,” Thompson said.

Thompson submitted written testimony that included 14 pages of detailed recommendations for reforms that would improve the servicing system and make loan modifications available to homeowners who might otherwise lose their homes.

Key reforms would include:

• Modifications must be available prior to setting in motion the expensive and traumatic machinery of foreclosure.
• Principal reductions must be available through bankruptcy or participation in the Making Home Affordable (HAMP) and other government programs.
• Homeowners must be able to contact and speak with a representative of their servicer with the information and authority to modify their loan, and to enforce their rights through mediation and in court with legal representation.
• Modifications should be mandatory when they can be shown to benefit investors as well as homeowners, and servicers must be required to seek waivers when investors’ rights block otherwise beneficial modifications.
• Servicing arrangements must be made more transparent, regularly reviewed by regulators and limit normal and default fees to reasonable amounts.

“The foreclosure crisis has inflicted immeasurable pain on America,” Thompson said. “Congress must provide some urgently needed relief by reforming the servicing system and clearing the way for homeowners who might otherwise lose their homes to get loan modifications.”

For more information, or to arrange an interview with Diane Thompson, contact Rick Jurgens at 617-226-0334. Thompson’s testimony is posted online at

www.nclc.org/images/pdf/foreclosure_mortgage/mortgage_servicing/testimony-senate-banking.pdf.

The National Consumer Law Center is a non-profit organization that seeks marketplace justice on behalf of vulnerable Americans. NCLC works with, and offers training to, thousands of legal-service, government and private attorneys, as well as community groups and organizations representing low-income families. Our legal manuals and consumer guides are standards of the field. Learn more on our Web site: http://www.nclc.org.

SOURCE National Consumer Law Center

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