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Romney's attempts to take credit for President Obama's auto-industry rescue plan takes a new twist today as an extensive investigative piece in the The Nation entitled, Mitt Romney's Bailout Bonanza, reports that Mitt Romney made at least $15.3 million profit on the rescue plan by virtue of an investment in Delphi. While Mitt Romney is quick to criticize those receiving any benefits, or insurance from government, but seems to regularly benefit greatly from government programs and tax loopholes.

This article is so long, complicated, and detailed it will take me a little time to decompose it so let me report segments from Mollie Reilly's summary in Mitt Romney Profited By At Least $15.3 Million From Auto Bailout: Report, as well.

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.

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.

And, directly from the original piece in the The Nation's Mitt Romney's Bailout Bonanza:

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.

Based on the Romney's reported $1 million invested with Elliot in 2010, and a third of that portfolio invested in Delphi, the Nation is estimating the Romney's profit in Delphi's tax-payer financed revitalization to be $15.3.

While there is nothing wrong with Romney making money on his investments, if verified, this report will contribute to the image of Mitt Romney as being part of the super wealthy elite, who seem to profit from everything no matter what happens, and often have their investment failures benefit from government help, while at the same time criticizing less fortunate people who receive assistance, or even insurance payments from the government as "entitled, irresponsible takers," rather than "makers."  

Previously, Philip Martin reported that Romney also profited from the bailout due to taxpayer funds saving Sensata which is now being shut to to transfer production to China. As President Obama pointed out during the debate.  Mitt Romney is the last person who should be touting his China intentions as potentially advantageous for American workers.

And, Mitt Romney should be the last person criticizing anyone from receiving assistance or earned insurance payments they contributed to, from the government.

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Comment Preferences

  •  Headline needs a couple more zeroes :-) nt (5+ / 0-)

    "I'm sculpting now. Landscapes mostly." ~ Yogi Bear

    by eXtina on Thu Oct 18, 2012 at 12:29:12 PM PDT

    •  or read as $15.3M (4+ / 0-)
      Recommended by:
      eXtina, HoundDog, inclusiveheart, Eddie L

      Great article...of course the Rmoney people and Ryan and other lying GOP will bet against the US and then screw the taxpayers over $$$

      What part of NO don't people understand? Usually it's the "N" that confuses them. They expect "O" as in "O yes it will be my honor to serve your ridiculous whim." h/t Bubbanomics for the answer!

      by SallyCat on Thu Oct 18, 2012 at 12:31:05 PM PDT

      [ Parent ]

      •  I guess that M makes a bit of difference. At was (3+ / 0-)
        Recommended by:
        SallyCat, eXtina, Eddie L

        supposed to have said "at least" so technically saying he made "at least $15.30 would still be correct.  But, since I agree with you and eXtina that $15.3 Million sounds a bit spicier I'll change it to match what the article says.

        Thanks, SallyCat.  

        Key Point:  Mitt Romney is the last person who should be criticizing regular folks for receiving Social Security, Medicare, Food Stamps, Veterans Pensions, School Lunches and other government programs for working class and poor people.

        Between his tax loopholes, windfalls, and boondoggles Mitt Romney has probably benefitted more from US Government financial assistance than .00001% of the population.  Maybe even more than Donald Trump.

        The means is the ends in the process of becoming. - Mahatma Gandhi

        by HoundDog on Thu Oct 18, 2012 at 12:39:24 PM PDT

        [ Parent ]

      •  $2.5 Billion in debt that was forgiven by (3+ / 0-)
        Recommended by:
        eXtina, HoundDog, Wreck Smurfy

        the US Treasury (read American people); and investors walk away with millions?  HMMMM...

        What about all that deficit cliff BS they are touting?

        Hows about Mitt puts his ill-gained profits back into the Treasury to help reduce the National Debt?

        •  And, now my understanding is that we are buying (3+ / 0-)
          Recommended by:
          smiley7, ScienceMom, Wreck Smurfy

          underwater mortgages from banks who are freezing up the financial system by refusing to write-down underwater mortgages.

          When regular people get in financial trouble, sometimes by poor choices they are labeled as irresponsible, stripped of assets in bankruptcy, and labelled for a decade in their credit reports.

          When gigantic enterprises of the super wealthy fail we bail them out, and then have to listen to them criticize us for being parasites.

          The means is the ends in the process of becoming. - Mahatma Gandhi

          by HoundDog on Thu Oct 18, 2012 at 12:57:08 PM PDT

          [ Parent ]

        •   A lot more than $2.5 Billion (0+ / 0-)

          Palast's article totals up the overall cost to us, the taxpayers, as being more like $12.9 Billion.

    •  Well, it was supposed to say at least $15.30 but I (3+ / 0-)
      Recommended by:
      eXtina, SallyCat, Chitown Kev

      agree with you that it catches more attention to more accurately say $15.3 Million.  

      You are so much better at catchy titles than I am eXtina.

      I have much to learn from you.

      :-)

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Thu Oct 18, 2012 at 12:34:28 PM PDT

      [ Parent ]

      •  and your diaries are a lot better (2+ / 0-)
        Recommended by:
        SallyCat, HoundDog

        than mine

        i was very frustrated for a long time posting what i thought were really good diaries that went unnoticed

        then i studied the rec list and figured out the secret to what gets attention - but it took a while

        "I'm sculpting now. Landscapes mostly." ~ Yogi Bear

        by eXtina on Thu Oct 18, 2012 at 12:36:06 PM PDT

        [ Parent ]

        •  You are too kind, and exaggerate greatly but I (1+ / 0-)
          Recommended by:
          eXtina

          appreciate your generous encouragement.

          I'm finding it increasingly difficult to get reader response, even though I'm trying harder to upgrade my reporting, and writing.

          And, its not just me, I study the recent posts lists carefully all day long, and recently there appear to be time periods where the total number of tips and recs seems to lull substantially.  Perhaps, its just that with the new browser updating system, and over 550,000 UID the update cycles are slower, or missing some of us.  

          Or,  perhaps so many people are posting now they have less time for reading and rec'cing?

          Last Friday night there was a period where it appeared that only 60 recs were issued in an hour and a half.

          And, has anyone else noticed a curious extended lag in the update cycler adding recs received by posts to the counters in the rec list, recent post lists, and dairy list functions?  

          It seems to work fine for the first 20 minutes, but past this point I've seen post languish with backlogs with dozens of uncounted recs that can take hours to half a day to be properly added to the topline  counters for our various listings.  

          The means is the ends in the process of becoming. - Mahatma Gandhi

          by HoundDog on Thu Oct 18, 2012 at 12:51:34 PM PDT

          [ Parent ]

          •  I have not noticed that phenomenon that you (1+ / 0-)
            Recommended by:
            HoundDog

            speak of. Maybe the new site update is messing with the counter. I would link to the diary announcing it but the Search function isn't working now either [bitter, cynical laugh].
            So now diary recs aren't counter, comment recs aren't counted, you can't move from device to device to find [new] comments, and you can't find diaries either.

            "I'm sculpting now. Landscapes mostly." ~ Yogi Bear

            by eXtina on Thu Oct 18, 2012 at 12:58:03 PM PDT

            [ Parent ]

  •  It was on Democracy Now today (4+ / 0-)
    Recommended by:
    SallyCat, HoundDog, eXtina, 313to212

    the guess was a profit of 1 million to 115 million.

  •  Presumably His Let-it-Fail Scenario Would've (5+ / 0-)
    Recommended by:
    SallyCat, HoundDog, Chitown Kev, koosah, a2nite

    netted him more in some ways?

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Thu Oct 18, 2012 at 12:34:16 PM PDT

    •  Or he was just being a typical Republican (3+ / 0-)
      Recommended by:
      HoundDog, koosah, a2nite

      and trying to have his cake and eat it too.

    •  His scenario kills unions and pensions. (0+ / 0-)

      Delphi's bankruptcy was done Romney style:  All the union workers were fired.  The company refused to honor their pension commitment.  Most operations were moved to China.

      Obama's GM bankruptcy kept union workers, preserved pensions, and kept the plants here.  

      The important thing to remember was that Singer and the other vulture capitalists threatened to close down Delphi entirely if they didn't get their way, which would have made it impossible for GM and Chrysler to continue without their main parts supplier.  There's no way to quickly gear up new parts suppliers in time to start producing millions of cars.  

      Singer had the power to make Obama's GM rescue an embarrassing disaster.  We basically gave him $12.9 billion to keep him from sinking GM.  

  •  I can't get excited... (2+ / 0-)
    Recommended by:
    HoundDog, Chitown Kev

    The way it's going, his numbers will get even better.

    Greed is in in America. Or so it seems.

  •  Not sure this hurts (2+ / 0-)
    Recommended by:
    Gooserock, HoundDog

    Romney

    1) It suggests that part of the benefit to the bailout was to the already wealthy
    2) He "selflessly" opposed something he ended up making money from

    Happy to hear why this could hurt him, but I don't initially see it

    •  Exactly. The Only Way it Hurts is If We Can (2+ / 0-)
      Recommended by:
      HoundDog, ballerina X

      discover that his free market preference would've won him a whole lot more, if he was betting against the companies in various ways.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Thu Oct 18, 2012 at 12:41:06 PM PDT

      [ Parent ]

    •  Read this bit again and consider the (2+ / 0-)
      Recommended by:
      HoundDog, shevas01

      ramifications:

      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.
      YOU (and all the other taxpayers) paid for that 15 million $ in Romney's pocket.  

      If he truly were opposed to these things, why didn't he plow that money back into the struggling business (Delphi) the way REAL businessmen do?

      Because he is as much a businessman as a butcher is a veterinarian.    

      Metaphors be with you.

      by koosah on Thu Oct 18, 2012 at 01:00:15 PM PDT

      [ Parent ]

      •  Thanks for this excellent highlight koosah. (1+ / 0-)
        Recommended by:
        koosah

        I welcome help from anyone else who can scrutinize the long Nation Article as I'm being tied up by some errands I need to finish before banks and my pharmacy close their daily cycles by 5:00 pm.  

        The means is the ends in the process of becoming. - Mahatma Gandhi

        by HoundDog on Thu Oct 18, 2012 at 01:03:13 PM PDT

        [ Parent ]

    •  Too me the angle is that he too benefits from (2+ / 0-)
      Recommended by:
      koosah, shevas01

      government programs and tax loophole benefits so is hypocritical for castigating the 47% as irresponsible parasites.

      We need an "hook" to get the 47% back in the headlines and top of discussion, or folks will start to orient around Mitt Romney's "I'm the friend and guardian of the 100% BS."

      I had to listen to Paul Ryan this morning claim that he and Romney were the defenders of Medicare from plundering Democrats. If they keep this up, I might just say something about it. It's starting to be galling..  

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Thu Oct 18, 2012 at 01:00:42 PM PDT

      [ Parent ]

    •  It does hurt (1+ / 0-)
      Recommended by:
      HoundDog

      But it's all too complex to boil down to an ad or a talking point.

      I applaud The Nation for trying to pack a lot of complexity into that article, but as someone who's spent time in Chapter 11 land, I can see where they had to leave details out.  (That's also why I cringe at the misuse of "vulture capitalism" to describe Bain going into a healthy company and sucking out the value.)

      If this can be spun for the election, it seems to me the focus has to be on how economic royalists like Romney treat American businesses as nothing more than a resource to be extracted for their own benefit.  Wilbur Ross did this for years, amassing a huge fortune by buying up whole sectors like coal and steel at fire sale prices, busting unions, cutting wages, and dumping benefits every step of the way.

      The economic royalists have Too Much Money.  They want to invest it, which by itself is okay, but they've turned their investment into a game where maybe they'll win, maybe they'll lose, but the rest of us are sure to get completely fucked over no matter the outcome.

  •  I don't think this is a good talking point (0+ / 0-)

    it goes AGAINST the "greedy" tag that's been hung on him, if he stood to make a ton of money on it and STILL opposed it.

  •  As Cenk would say "Of course!" (2+ / 0-)
    Recommended by:
    HoundDog, eXtina

    "It strikes me as gruesome and comical that in our culture we have an expectation that a man can always solve his problems" - Kurt Vonnegut

    by jazzence on Thu Oct 18, 2012 at 12:50:24 PM PDT

  •  This is pretty good... (2+ / 0-)
    Recommended by:
    eXtina, HoundDog

    This does muddy the waters a bit for the "Romney is a greedy bastard" meme but it does show you that whether or not a company or corporation or industry succeeds, Romney was ready to make money. It didn't matter if the bailout helped workers. For all Romney cared, those workers could still be out of a job right now because he would have made money anyway. The rich play by a different set of rules and that's the meme that is strengthened with this news.

    The most dangerous... programs, from a movement conservative's point of view, are the ones that work the best and thereby legitimize the welfare state. Krugman

    by BasharH on Thu Oct 18, 2012 at 12:52:24 PM PDT

  •  If this isn't in an Obama ad.... (1+ / 0-)
    Recommended by:
    HoundDog

    ....in the next several days, even this Obama supporter is going to be PISSED.  

  •  Added Greg Palast to tags (0+ / 0-)

    After all, he's the author of the original referenced article.  And also the author of Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps.  I have no affiliation with him, just a fan of good journalism.

    "I believe in an America where the separation of church and state is absolute..." JFK 9/12/60

    by sonorelli on Fri Oct 19, 2012 at 08:21:48 AM PDT

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