Peter Schweizer reports in the Washington Times, that as bad as many believe the auto bailout was, it is likely worse than they imagine.
For all the talk of jobs saved at GM, counting the GMAC component of the bailout deal still owes the taxpayers of the United States $41.7 billion.
Even though we are on the hook for this money, many other groups made out like bandits, including the UAW and some firms on Wall Street.
Evercore Partners, for instance, was enlisted by the government to find a buyer for GM. The only “buyer” they found was the American taxpayer. But despite this failing, Evercore, after its healthy fee of $46 million, was able to secure an additional $17.9 million for a “success fee.”
The CEO of Evercore was able to return the favor (to the administration, not the taxpayers) by raising $2.1 million at a gala dinner at his home for the president’s re-election campaign.
The whole bailout just stinks. But, it has proven politically popular in vital swing states.
(From the Washington Times)
“Reports that the auto bailouts will cost taxpayers $25 billion more than previously projected have sparked the predictable political squabbles that attend an election year. Liberals claim the cost to taxpayers was worth the price of saving American car companies, while conservatives grouse about what they see as government wasting more taxpayer money.
The reality, however, is uglier than either side realizes. Those behind the wheel of the automobile bailout were not folks who build cars but cronies who successfully leveraged their highly placed connections. Indeed, lift the hood, and what you find is that the auto bailout was a classic tale of cronyism, in which the well-connected sped away with big bucks.”