REVEALED: Romney's Top Funders Made Billions on Auto BailoutJust a reminder, Obama was in charge during all this. John Pilger discusses his bankster backing.
Published: Thursday 23 February 2012
“John Paulson of Paulson & Co and Paul Singer of Elliott International, known on Wall Street as ‘vulture’ investors, have each written checks for one million dollars to Restore Our Future, the Super PAC supporting Romney’s candidacy.”
Republican Presidential candidate Mitt Romney called the federal government’s 2009 bail-out of the auto industry, “nothing more than crony capitalism, Obama style... a reward for his big donors to his campaign." In fact, the biggest rewards – a windfall of more than two billion dollars care of U.S. taxpayers –– went to Romney's two top contributors.
John Paulson of Paulson & Co and Paul Singer of Elliott International, known on Wall Street as “vulture” investors, have each written checks for one million dollars to Restore Our Future, the Super PAC supporting Romney’s candidacy.
Gov. Romney last week asserted that the Obama Administration’s support for General Motors was a, “payoff for the auto workers union.” However, union workers in GM’s former auto parts division, Delphi, the unit taken over by Romney’s funders, did not fair so well. The speculators eliminated every single union job from the parts factories once manned by 25,200 UAW members.
The two hedge fund operators turned a breathtaking three-thousand percent profit on a relatively negligible investment by using hardball tactics against the U.S. Treasury and their own employees.
Under the control of the speculators, Delphi, which had 45 plants in the U.S. and Canada, is now reduced to just four factories with only 1,500 hourly workers, none of them UAW members, despite the union agreeing to cut contract wages by two thirds.
It wasn’t supposed to be quite so bad. The Obama Administration and GM had arranged for a private equity investor to provide half a billion dollars in new capital for Delphi, but that would have cut the pay-out to Singer and Paulson. The speculators blocked the Obama-GM plan, taking the entire government bail-out hostage. Even the Wall Street Journal’s Dealmaker column was outraged, accusing Paul Singer of treating the auto company, “like a third world country.”
But it worked. Singer and Paulson got what they demanded. Using U.S. Treasury funds:
If those plants had been closed, GM factories would have shut down cold for lack of parts.
- GM agreed to pay off $1.1 billion of Delphi’s debts,
- Forgave $2.15 billion owed GM by Delphi (which had been spun off as an independent company)
- Pumped $1.75 billion into Delphi operations, and
- Took over four money-losing plants that the speculators didn’t want.
Then there was the big one: The U.S. government agreed to take over $6.2 billion in pension benefits due Delphi workers under U.S. labor law. more
Sunday, March 4, 2012
Being a quintessential Producer Class business, automaking has been a target of the Predators since day one. So when the GM and Chrysler got into trouble during the economic meltdown of 2008, the vultures smelled blood. For example, John Paulson stole more money during the months that followed than a 1000 "bailed-out" line workers could make during their entire working lives. Naturally, the "investors" are trying to get Bain Raider Mitt Romney elected so their rackets will be blessed from above.