Monday, November 05, 2012

Mitt profited from the auto bailout

It has been known for a while that Mitt Romney made some shady personal profits from the auto industry bailout, even though he famously wrote an op-ed piece advising Washington to let Detroit go bankrupt. Now, the UAW and CREW want an investigation...
At a press conference in Toledo, Bob King, President of the United Automobile Workers, will announce that his union and Citizens for Responsibility and Ethics in Washington (CREW)  have filed a formal complaint with the US Office of Government Ethics in Washington stating that Gov. Romney improperly hid a profit of $15.3 million to $115.0 million in Ann Romney's so-called "blind" trust.
“While Romney was opposing the rescue of one of the nation’s most important manufacturing sectors, he was building his fortunes with his Delphi investor group, making his fortunes off the misfortunes of others,” King added.

The Romneys' gigantic windfall was hidden inside an offshore corporation inside a limited partnership inside a trust which both concealed the gain and reduces taxes on it.
In 2009, Ann Romney partnered with her husband's key donor, billionaire Paul Singer, who secretly bought a controlling interest in Delphi Auto, the former GM auto parts division.  Singer's hedge fund, Elliott Management, threatened to cut off GM's supply of steering columns unless GM and the government's TARP auto bailout fund provided Delphi with huge payments.  While the US treasury complained this was "extortion," the hedge funds received, ultimately, $12.9 billion in taxpayer subsidies.

As a result, the shares Singer and Romney bought for just 67 cents are today worth over $30, a 4,000% gain.  Singer's hedge fund made a profit of $1.27 billion and the Romney's tens of millions.

The UAW complaint calls for Romney to reveal exactly how much he made off Delphi -- and continues to make.  The Singer syndicate, once in control of Delphi, eliminated every single UAW job --25,000-- and moved almost all auto parts production to Mexico and China where Delphi now employs 25,000 auto parts workers.
Emphasis added. To sign a petition calling for an official investigation, go here.
Comments:
Went to sign and the site keeps trying to make me join Facebook, what's up with that?
 
I have no idea if the story is true or not but in 2009 Mitt Romney was a private citizen. So how could he have had an ethical conflict of interest?

He doesn't have to put his assets into a blind trust unless he is elected.
 
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