courseofhistory
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- Aug 7, 2012
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Mitt Romney Benefitted from the auto bailout...
Mitt Romneys opposition to the auto bailout has haunted him on the campaign trail, especially in Rust Belt states like Ohio. There, in September, the Obama campaign launched television ads blasting Romneys November 2008 New York Times op-ed, Let Detroit Go Bankrupt. But Romney has done a good job of concealing, until now, the fact that he and his wife, Ann, personally gained at least $15.3 million from the bailoutand a few of Romneys most important Wall Street donors made more than $4 billion. Their gains, and the Romneys, were astronomicalmore than 3,000 percent on their investment.
It all starts with Delphi Automotive, a former General Motors subsidiary whose auto parts remain essential to GMs production lines. No bailout of GMor Chrysler, for that mattercould 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 Delphiand to the hedge funds that had gained control over it. One of the hedge funds profiting from that bailout
$1.28 billion so faris Elliott Management, directed by 
Paul Singer. According to The Wall Street Journal, Singer has given more to support GOP candidates$2.3 millionthan anyone else on Wall Street this election season. His personal giving is matched by that of his colleagues at Elliott; collectively, they have donated $3.4 million to help elect Republicans this season, while giving only $1,650 to Democrats. And Singer is influential with the GOP presidential candidate; hes not only an informal adviser but, according to the Journal, his support was critical in helping push Representative Paul Ryan onto the ticket.
Singer, whom Fortune magazine calls a passionate defender of the 1%, has carved out a specialty investing in distressed firms and distressed nations, which he does by buying up their debt for pennies on the dollar and then demanding payment in full. This so-called vulture investor received $58 million on Peruvian debt that he snapped up for $11.4 million, and $90 million on Congolese debt that he bought for a mere $20 million. In the process, hes built one of the largest private equity firms in the nation, and over decades hes racked up an unusually high average return on investments of 14 percent.
Mitt Romneys opposition to the auto bailout has haunted him on the campaign trail, especially in Rust Belt states like Ohio. There, in September, the Obama campaign launched television ads blasting Romneys November 2008 New York Times op-ed, Let Detroit Go Bankrupt. But Romney has done a good job of concealing, until now, the fact that he and his wife, Ann, personally gained at least $15.3 million from the bailoutand a few of Romneys most important Wall Street donors made more than $4 billion. Their gains, and the Romneys, were astronomicalmore than 3,000 percent on their investment.
It all starts with Delphi Automotive, a former General Motors subsidiary whose auto parts remain essential to GMs production lines. No bailout of GMor Chrysler, for that mattercould 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 Delphiand to the hedge funds that had gained control over it. One of the hedge funds profiting from that bailout
$1.28 billion so faris Elliott Management, directed by 
Paul Singer. According to The Wall Street Journal, Singer has given more to support GOP candidates$2.3 millionthan anyone else on Wall Street this election season. His personal giving is matched by that of his colleagues at Elliott; collectively, they have donated $3.4 million to help elect Republicans this season, while giving only $1,650 to Democrats. And Singer is influential with the GOP presidential candidate; hes not only an informal adviser but, according to the Journal, his support was critical in helping push Representative Paul Ryan onto the ticket.
Singer, whom Fortune magazine calls a passionate defender of the 1%, has carved out a specialty investing in distressed firms and distressed nations, which he does by buying up their debt for pennies on the dollar and then demanding payment in full. This so-called vulture investor received $58 million on Peruvian debt that he snapped up for $11.4 million, and $90 million on Congolese debt that he bought for a mere $20 million. In the process, hes built one of the largest private equity firms in the nation, and over decades hes racked up an unusually high average return on investments of 14 percent.
