Breitbart.com posted an article yesterday revealing some interesting statistics about the auto industry bailout. Government Accountability Institute President Peter Schweizer investigated the bailout to see where the money went and how much taxpayers actually lost.
The article reports:
The government’s actions involving Chrysler resulted in a net loss to taxpayers of $2.9 billion, and the government is currently sitting on a $14.5 billion loss for its actions involving General Motors. But Mr. Schweizer says few Americans realize the backroom deals the Administration cut that created a flood of cash for well-connected Obama cronies.
For example, the GM bailout was handled not by automotive experts but by New York investment firm Evercore Partners. The firm is headed by Obama bundler and former Assistant Treasury Secretary Roger Altman and Obama mega fundraiser Ralph Schlosstein. GM paid Evercore $46 million in advising fees and billed the car company another $17.9 million for a “success fee,” despite the fact that Evercore never found GM a purchaser or funder.
Unfortunately the unions and the political bundlers were the winners in the auto industry bailout. Had the auto industry been required to follow normal bankruptcy procedures as stated in Chapter 11, those involved would have been forced to be accountable for the money they spent. The auto bailout is the poster child for crony capitalism–it is nothing to brag about.