We've noted that the Treasury will soon pick a lead underwriter for its planned IPO of GM, which could generate as much as $300 million in underwriting fees. This is a huge deal, perhaps the most strategically important since the Google IPO (IPO news). FOX Business reports that JPMorgan (NYSE: JPM) and Bank of America (NYSE: BAC) have the inside track.

Apparently, the selection process is being spearheaded by both officials from GM (General Motors news) and the U.S. Treasury Department, and two firms will  be selected. Some think that Morgan Stanley's (NYSE: MS) chances are still alive. But most assume that Goldman Sachs (NYSE: GS) will not win the mandate. If so, many will seize upon the failure to win a lead management role as further evidence that the firm's business is being hit hard, something the bank has avoided admitting so far.

The political fallout from selecting Goldman Sachs would be daunting, to be sure. For Bank of America, winning the mandate would be another feather in the hat of new CEO Brian Moynihan (Brian Moynihan news), who has won plaudits for righting the ship at the big bank.

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