Greg Palast has a new story out about Mitt Romney’s profit from Delphi Automotive, an auto parts subsidiary of GM, during the auto rescue.
No bailout of GM—or Chrysler, for that matter—could have been successful without saving Delphi. So, in addition to making massive loans to automakers in 2009, the federal government sent, directly or indirectly, more than $12.9 billion to Delphi—and to the hedge funds that had gained control over it [...]
By the end of June 2009, with the bailout negotiations in full swing, the hedge funds, under (hedge fund manager and top Romney donor Paul) Singer’s lead, used their bonds to buy up a controlling interest in Delphi’s stock. According to SEC filings, they paid, on average, an equivalent of only 67 cents per share.
Just two years later, in November 2011, the Singer syndicate took Delphi public at $22 a share, turning an eye-popping profit of more than 3,000 percent. Singer’s fund investors scored a gain of $904 million, all courtesy of the US taxpayer. But that’s not all. In the year since Delphi began trading publicly, its stock has soared 45 percent. Loeb’s gains so far for Third Point: $390 million. The gains for Silver Point, headed by two Goldman Sachs alums: $894 million. John Paulson’s fund, which has already sold half its holdings, has a $2.6 billion gain. And Singer’s funds and partners, combining what they’ve sold and what they hold, have $1.29 billion in profits, about forty-four times their original investment [...]
Altogether, in direct and indirect payouts, the government padded these investors’ profits handsomely. The Treasury allowed GM to give Delphi at least $2.8 billion of funds from the Troubled Asset Relief Program (TARP) to keep Delphi in business. GM also forgave $2.5 billion in debt owed to it by Delphi, and $2 billion due from Singer and company upon Delphi’s exit from Chapter 11 bankruptcy. The money GM forgave was effectively owed to the Treasury, which had by then become the majority owner of GM as a result of the bailout. Then there was the big one: the government’s Pension Benefit Guaranty Corporation took over paying all of Delphi’s retiree pensions. The cost to the taxpayer: $5.6 billion. The bottom line: the hedge funds’ paydays were made possible by a generous donation of $12.9 billion from US taxpayers.
The way in which the hedge fund syndicate secured these taxpayers dollars for Delphi sounds pretty much like blackmail. For example, according to Steven Rattner, the auto czar, Delphi demanded an immediate cash infusion of $350 million or they would stop supplying to GM. Oh, and Delphi promptly fired all the unionized workers at Delphi, cut health care for all their nonunion pensioners, and took the production jobs to China. Delphi employs less then 5,000 US workers, from a high of 25,000.
How do the Romneys figure into this? They have at least $1 million invested in Paul Singer’s Elliott Management, per their 2011 and 2012 financial disclosure. Based on that investment, they made at least $15.3 million on the deal, which involved ripping off the US taxpayer, shedding US jobs in favor of China, and using leverage created by the auto bailout to do it. Most of these profits have been kept offshore to avoid US taxes, of course. The Romneys protest that these investments are all held in a blind trust, but the executor of their blind trust is Romney’s personal lawyer.
Just another day in the life of a vulture capitalist, I guess.
There is a silver lining, however: if Paul Singer becomes an influential advisor in a Romney White House, that might mean we’ll get national marriage equality after all.




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Lessee…June of 2009—November of 2011…
I make that on Barack Obama’s corporate bar tab, right?
As always, David does a great job of ratting out this shit.
The problem is, the person we NEEDED to rat it out and to act to curtail it, President Barack Obama, has sustained and enhanced it.
So Obama added to RMoney’s loot?
The Randroids must be creaming in their jeans over this tidbit. A huge WIN for Ayn’s panty-sniffing syndicate.
Well, no surprises here, are there? Mitt regularly tosses red meat to the TeaTarded base, who’ve been dutifully brainwashed by Fatty Limbaugh to HATE on the bail outs of Detroit. My gym rats go on & on & on & on & on about the despicable perfidy of bailing out – gasp! shriek! – unionized labor, but of course, bailing out the 1%ers in the Banks is: WIN! Great! Faaabulous bc of course the 1% Bankers “work so hard,” whilst the unionized Detroit 99%ers are lazy *worthless* mooching slackers with their hands out looking for “free money.”
I am quoting almost verbatim.
No doubt my gym rat pals will be pleased as punch that they were *ripped off* by Willard, but hey: WIN! Because moocher workers in Detroit lost their jobs to Chinese
slavesworkers. Serves those slackers right… nanny nanny boo boo…If you think rightwingers will see anything at wrong with this picture, guess again…
BTW I wondered what happened at Delphi, as my Dad used to have shares. I tried to tell my siblings not to sell the stock when it was nearly worthless, but they were appalled at the Detroit bail-out, so in a sign of their being brainwashed, they sold those shares cuz that’ll show ‘em!!… which played very neatly into the hands of the 1%, now didn’t it?
Figures. Guess the leftwing devil-spawn was correct once again – eh?? Baby Jeebus wept.
heh… R U surprised??
The cost of the bailout to American unions was very high.
Please quit crabbing about the “job creators” or unemployment will go up even more. If you hurt their feelings they will stop creating all these jobs.
Dude, you act like it’s the president’s JOB to enforce the laws of the country and defend the constitution and the nation from such vulture capitalists.
Hang on, I got a call,……….
Yeah, really, executive branch?…..attorney general, yes, $2.8 billion is a lot of money.
Well, tb, apparently you are right.
Wow. I hope that doesn’t get out.
Stealilng money legally from the government, for republicans, that’s the Holy Grail.
What is #2 you ask? Stealing earned entitlements from the poor, elderly and disadvantaged.
I think those people have a level 4 anti-matterm force field around their feelings. Wwell, apparently all of them but Ann Romney.
I really feel bad saying this, but she looks pretty healthy to me for being so sick.
I like the idea of rich people and actually like some rich people but in our society it has to matter HOW you became rich. Ann and Mitt should be banished now that the manner of their enrichment has been exposed. Contemptible, heartless, nefarious, etc. Mark Twain points to the beginning of the decline of America when we lionized Jay Gould for becoming mega wealthy through stock manipulations and sharp business practices and Mittens is the weak nephew standing in the shadow of his robber baron uncles of the past. So in other words DON’T feel bad about your bad thoughts concerning bad people. It’s natural.
MS is a serious disease. It can also have a form which goes into remission for some time. You should retract that statement and apologize to all who suffer from this disease.
I know, guy, but dammit, the tooth-fairy told me he won big, and I didn’t know that his administration was totally for sale to the highest bidder.
I thought he’d confront the assholes who had nearly ruined us. Silly me.
Well, now that he’s at risk of going down as THE poster boy for a failed president, he’s at least TALKING about confronting them…with his nerf-ball Thor’s-hammer-of-democracy.
I go now to guilt counselling….for biting the apple of skepticism, given to me by the wicked snake in the tree.
I don’t want to outlaw getting rich, I just want them to pay their fair share of taxes and to stop getting rich by shuffling money around and ducking the laws…what laws their are left…
Oh. I’d also like to make it illegal for them to buy our congress-turds.
Most of the rich these buy-off and game the system to very own advantage, and a lot of what they do is ROB, STEAL, CHEAT & PLUNDER in order to enrich themselves, alone.
They’ve gamed the tax code such that it makes more sense for them to enrich themselves at the expense of actually, you know, running their businesses in any way that enhances & enriches the business (eg, re-investing into the business, doing more R&D, etc). With vapid cupidity, they off-shore US worker jobs to third world countries, where our nation’s putative “frenemies” enslave their populations to enrich and enhance the top-dogs frenemies. blah blah blah
There’s nothing particularly *remarkable* about what they do, when the playing field hasn’t been anything close to “level” in well over 30 years. If you start out on third base, or even on home plate, why is it amazing when you continuously make “home runs”???
These corrupt greedy bastards think nothing of stealing from the poor, the elderly, the disabled, as well as the middle classes, to enhance their already salubrious life-styles, and frankly it’s Never Enough.
They own the media, so they use the media to brainwash and propogandize dullards in our populace to believe their hype, bullshit and spin. The recent use of idiotic Ayn Rand’s ridiculous “fiction” as some kind of “blueprint” for how we should “live” is just one example of how craven the 1% is.
That some significant portion of the populace buys into being ripped off over and over and over by the 1% is only topped by how they gladly say: yessir and how far would you like me to bend over this time, Massah???
Most rich are shitty bastards who aren’t worth the time of day. They contribute nothing to our nation, our national security, or anything remotely cultural, except contributing to much misery and highway robbery of most of the populace.
ptoui!
I’d like the wealthy to stop gaming the system. It’s corrupt and only works on their behalf.
Then they belittle everyone else for not “making it” they way that they do. Not everyone can be in the 1%, and the vast majority of the 1% are there now because they used corruption, gangsterism, thievery and robbery to get there. Almost none of them did it via anything remotely honest or via real “hard work.”
The Willard’s profitted immensely from the auto bailout.
And he did it with somone who wants to make gay marriage legal thruout US.
This is just ONE of the transfers of money that happened.
Probably multiply it by at least one hundred, to get to the actual amount handed over.
None of these people looked worried, when the shit hit the fan. they actually kind of laughed their way through it.
Cause they knew crisis=money for them.
It’s astounding. This is who runs the United States, and much of the world.
At some point, the people paying the bills will have had enough of this.
I doubt that Willard gives a shit whether gays marry or not. He just tosses red meat to the base, and that’s it. I doubt even his Mormon “beliefs” matter that much to him. It’s all about gaming the system with whatever tools he has handy.
Oh really? I’d love to believe that, but somehow I don’t see it happening anytime soon. More’s the pity…
So,to make long history short,president Obama throws money to Government Motors,Delphi belongs to GM,Romney has money invested in Delphi,Romney makes money out of Delphi,so due to transitive property president Obama gives money to Romney, i don’t see nothing rare or strange there,usually ,politicians throw money to each other.
Then as far as i’m concerned Romney didn’t like GM bail out,but anyway did money out of it.
p.S. –Tune up for my car, i went to store autopart bought a part, opened the package, surprise!!!the package says Delphi,the parts says made in China.
So both, Obama and Romney outsourced manufacturing jobs.Good job.!!!
you are probably right.
See Greek and Spanish people.
Break time…http://www.youtube.com/watch?v=ZbWRfBZY-ng
Right, in truth Willard prolly could give a two bits about gay marriage.
But what does all this say about his character and principles. Here’s Willard directly profitting from the auto bailout yet he says he was agin it.
To wit: Willard is characterless and has no principles.
The two main qualifications to be a CEO or Politician these days.
The redistribution of wealth from the 99% to the 1% has risen to 92% over Obama’s term, eclipsing the mark set by Dubya.
(FunMe post at America blog under story about Mitt’s and Tagg’s ties to Ponzi scheme. Another Bain Capital, hide-the-money, pay-no-taxes, horror story).
“”To give you an idea of some other shenanigans Romney and his BAIN company have been involved in, check this story from a friend. And I quote:
“I stumbled on this … I was checking on something from Hartmann Luggage … once a family owned business outside of Nashville. I discovered that the family had sold the company to a Private Equity (PE) firm several years ago. In spring 2012, the PE firm sold the firm to Samonsite, SA. I notices some strange citations on Samonsite … like traded on HK Exchange … and the SA designation. So I decided to check what happened to Samsonite. Well, a simple Google search and: In 2003, Samsonite was acquired by Bain Capital, several other similar firms and individual investors who also were affiliated with the acquiring capital firms … one of whom was Mitt Romney. US employment was reduced to 203 people … and they were moved to Boston … and Mitt claimed he brought Samsonite to Boston. An operational company was created and based in Hong Kong. The company was delisted from NYSE, London Stock Exchange, and is only traded in Hong Kong. In short, the company is no longer subject to US or European securities regulation…””"
No wonder Mitt Romney is too scared to release over a decade of his federal income tax returns, and cherry-picks the couple of years he did. Romney doesn’t belong anywhere near the White House, nor any other elected office ever again. And yet, some Republicans are obsessed with getting him elected president, specifically all the conservative billionaires backing him, even though Romney, if elected, would make the Bush/Cheney years look tame in comparison, with Romney eventually destroying our democracy, our economy, the lives of tens of millions of American citizens and their families. But what does he care?