The lower the fee, the more money raised by the IPO that actually goes to pay back the taxpayer.
Doesn’t change that Michael Moore’s analysis of GM is likely much more true than not (especially the likely reasons for the abrupt sidelining of Ed Whitacre), but every little bit helps.
*I don’t believe Andrew was the only economist gulled by Niedermayer’s tripe. For instance, Brad DeLong also linked to it, and was an early detractor of the plan for it. But it should be noted that Niedermayer’s ignorant review was thoroughly dissected by “melly mel” long before Andrew discovered that he had “missed” it.