Speaking of bailing (out): "A new report running Thursday in The Nation finds that Romney and his wife, Ann, made at least $15.3 million -- and perhaps tens of millions more -- as a result of bailout funds paid to General Motors. The story, an early copy of which was provided to The Huffington Post, is written by investigative reporter Greg Palast and was backed by the The Investigative Fund at The Nation Institute.<quoted text>
The house of cards was abut to collapse & when insiders stated bailing, it started a flood. It had nothing to do with politics. At that time McCain was already losing.
Romney's windfall from the bailout is directly tied to his relationship with Paul Singer, the billionaire hedge fund manager who donated $1 million to the Republican's presidential campaign in April. As The Nation reports, the Romneys invested at least $1 million with Singer's fund, Elliott Management, which is known for investing in distressed or bankrupt companies.
One of those bankrupt companies was Delphi, an auto parts maker that hit financial trouble after being spun off from its former parent, GM. Singer's fund bought up a controlling interest in Delphi for about 67 cents a share on average, The Nation calculates. By last November, Delphi's initial public offering was priced at $22 a share, thanks in part by efforts to cut costs by moving operations overseas and employing non-union workers. Delphi's stock price has continued to take off, with shares closing around $32 as of this week.
But that profit was also greatly bolstered by Delphi's lingering ties to GM, which depended on the company for essential auto parts. The Nation reports:
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 Delphis 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 governments Pension Benefit Guaranty Corporation took over paying all of Delphis 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.
Since the Romneys had at least $1 million invested with Elliott by the end of 2010, with a third of that portfolio likely in Delphi, The Nation estimates that they made at a minimum $15.3 million off Delphi's resurgence.
As Phillip Martin has previously reported, Romney also profited heavily from the bailout thanks to Bain's investment in Sensata Technologies, which makes electronic parts for cars. He has been able to avoid paying taxes on some of those gains by transferring nearly a million dollars of Sensata stock to his own tax-sheltered nonprofit. Now that the taxpayer has helped save Bain's company, the Romney-founded private equity giant is returning the favor by shutting down an Illinois Sensata factory and shipping the production to China. Some of the 170 workers who are losing their livelihoods have been arrested in attempts to persuade Romney to use his influence to halt the outsourcing. Romney has declined to do so."