UAW, CREW File Ethics Charges Against Romney for Hiding Auto Bailout ProfitsPosted: November 1, 2012 Filed under: 2012 presidential campaign, Mitt Romney, open thread, U.S. Economy, U.S. Politics | Tags: Ann Romney, Bob King, conflict of interest, CREW, ethics, Greg Palast, Paul Singer, The Nation, U.S. Office of Government Ethics, United Auto Workers 39 Comments
United Auto Workers (UAW) President Bob King and the Center for Ethics and Responsibility in Washington (CREW) will hold a press conference at 2PM today to announce that they are filing formal ethics charges against Mitt Romney with the US Office of Government Ethics for
improperly hid[ing] a profit of $15.3 million to $115.0 million in Ann Romney’s so-called “blind” trust.
The union chief says, “The American people have a right to know about Gov. Romney’s potential conflicts of interest, such as the profits his family made from the auto rescue,” “It’s time for Gov. Romney to disclose or divest.”
The ethics complaint is based on investigative research by Greg Palast, published in The Nation on October 17. Briefly:
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.
According to ethics law expert Dan Curry who drafted the ethics complaint, Ann Romney does not have a federally-approved blind trust. An approved “blind” trust may not be used to hide a major investment which could be affected by Romney if he were to be elected President. Other groups joining the UAW and CREW include Public Citizen, the Service Employees International Union (SEIU), Public Campaign, People for the American Way and The Social Equity Group….
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.
Singer’s fund ended up making $1.27 billion, after which he moved all Dephi production to Mexico along with 25,000 UAW jobs. The goal of the ethics complaint is to force the Romneys to reveal how much profit the made off this sleazy deal.
Feel free to use this as an open thread.