Sorry Dan Akerson, GM Bailout is Failure

I made these remarks today at the National Press Club in Washington, DC before the luncheon speech of outgoing General Motors CEO Dan Akerson:

President Obama justified the auto bailout by predicting it would make money for the taxpayer. With Treasury now selling its remaining shares, the direct loss is about $10 billion. So on its most fundamental level, the auto bailout is a failure.

But that $10 billion figure dramatically understates the true cost. There were separate multibillion dollar bailouts of Ally Financial, formerly know as GMAC, and Delphi and other suppliers. There was cash for clunkers, the government guarantee of warrantees, accelerated fleet purchases, etc., etc.

Treasury also allowed a novel application of the tax-loss carryforward provisions of the tax code during the GM bankruptcy, shielding $30-$40 billion in GM profits from taxation.

In addition to all these costs, the bailout probably ensures future bailout costs when GM … Read More ➡ “Sorry Dan Akerson, GM Bailout is Failure”

When Will General Motors Repay Taxpayers $10 Billion?; Bailed-Out Automaker Sits on Cash Hoard

pile of cashI will hold a press conference on Monday, December 16 at 11:00am to pose key questions to General Motors leadership, including whether and when the company will repay to taxpayers the $10 billion direct cost of the auto bailout.

News that the U.S. Treasury Department has sold its remaining financial stake and that Mary Barra will take over as GM’s new CEO have put the spotlight on the company and its future. GM executives have pointed to the company’s gigantic cash position as evidence of its improved finances. Analysts have raised the possibility that the company will buy back shares or institute a dividend.

The NLPC press event will precede current Chairman and CEO Dan Akerson’s scheduled luncheon to present an update on the company’s progress before a National Press Club audience in Washington, DC.

NLPC has been a persistent critic of the auto bailout. NLPC Associate Fellow Mark Modica, … Read More ➡ “When Will General Motors Repay Taxpayers $10 Billion?; Bailed-Out Automaker Sits on Cash Hoard”

FBI Again Raids Offices of Dr. Salomon Melgen, Sen. Menendez Biggest Donor

Melgen and Menendez

As the Palm Beach Post reports, the offices of Dr. Salomon Melgen were yesterday again raided by the FBI, evidencing an ongoing investigation into what appears to be Medicare fraud. Melgen is the largest campaign donor of Senator Robert Menendez (D-NJ). In 2012, he contributed $700,000 to a super PAC affiliated with Senate Majority Leader Harry Reid (D-NV) that spent the bulk of the funds for Menendez’ re-election.

The Post notes that Menendez went to bat for Melgen on a port security deal in the Dominican Republic. These actions on Melgen’s behalf were first reported by the New York Times on February 1, 2013, based on information provided by NLPC. The Washington Post reported in March that Menendez’ advocacy on behalf of Melgen is the subject of a grand jury investigation in Miami.

New York Times reporters Ray Hernandez and Frances Robles detailed how Menendez sought to … Read More ➡ “FBI Again Raids Offices of Dr. Salomon Melgen, Sen. Menendez Biggest Donor”

Survey: Auto Bailout is Drag on GM Truck Sales

A consumer survey taken last week on behalf of the National Legal and Policy Center confirms that public disapproval of the auto bailout continues to dog General Motors, and is likely hurting pickup truck sales, a highly profitable segment of its line.

When 500 consumers in Texas were asked, “Would your decision to buy a specific brand of truck be influenced by whether that company received financial assistance from the federal government?,” 40.08% answered “absolutely.”  Another 11.75% responded “very likely,” and 10.60% responded “likely.” Thus, more than 60% said that the bailout would have some influence on their decision.

Only 23.89% responded “not too likely.”

Texas is the largest truck market in the country, with more sales than the next three states combined.

The release of the survey results comes amidst a major advertising campaign for GM’s full-size trucks – the Chevrolet Silverado and GMC Sierra – with significant visibility … Read More ➡ “Survey: Auto Bailout is Drag on GM Truck Sales”

Durbin Misrepresented Daughter’s Plight in Floor Challenge to Cruz on Obamacare

DurbinSenator Richard Durbin (D-IL) deserves credit for engaging Senator Ted Cruz (R-TX) during the Cruz’s recent marathon speech critical of ObamaCare. The only problem is he misrepresented key facts about his now-deceased daughter’s heart condition, and her ability to receive coverage under health insurance plans.

Moreover, he did not mention that the hospital that treated his daughter Christine was the recipient of huge earmarks of taxpayer money that he arranged. One can assume that Christine was treated as a Very Important Patient. With the full implementation of ObamaCare, will political connections become increasingly important to getting expensive medical treatments, which will not be available to everybody?

As Charles Johnson in the Daily Caller writes:

Sen. Dick Durbin movingly described his sick child’s preexisting condition as a reason to support Obamacare last week, but the Illinois Democrat neglected to mention that his late daughter was easily covered by existing insurance, and that he

Read More ➡ “Durbin Misrepresented Daughter’s Plight in Floor Challenge to Cruz on Obamacare”

Who Paid for Weiner’s Wedding?

Weiner and HumaCharles Johnson of the Daily Caller reports:

Anthony Weiner may have violated federal law when he failed to disclose his lavish six-figure wedding in his financial disclosure forms, says a government accountability group.

Ethics watchdog group National Legal and Policy Center examined the federal Financial Disclosure Reports for both Weiner and long-suffering wife Huma Abedin for 2010, the year of their wedding.

The cost for the ceremony was at least $100,000 but probably ran closer to $250,000 including all accommodations, clothing and extras. Neither Weiner nor Abedin had the resources to pay for the ultra-expensive wedding, yet neither recorded gifts on their Financial Disclosure Reports for that year.

Click here to read the entire article.

 … Read More ➡ “Who Paid for Weiner’s Wedding?”

NY Senator Sampson’s Missing Money

Isabel Vincent and Michael Gartland report in the New York Post today:

Embattled state Sen. John Sampson’s campaign filings are peppered with missing cash and phantom refunds, The Post has found.

In three cases, money paid by political action committees to Sampson’s re-election campaign from 2009 to 2012 does not show up on his records.

From the story:

“Since New York state Senator John Sampson was indicted last month on multiple federal charges of embezzlement, obstruction of justice, and making false statements to the FBI, the media is justified in taking a very close look at Sampson’s finances,” said Ken Boehm, chairman of the National Legal and Policy Center, a political watchdog group.”

“If Sampson’s political bookkeeping is off by tens of thousands of dollars, the public deserves an explanation.”

 

Related:

John Sampson Busted; He Also Got Loan From Fraudster Ed Ahmad

Queens Politics Paralyzed Amid Reports Read More ➡ “NY Senator Sampson’s Missing Money”

IRS Expedited Tax Exemption for Obama Foundation While Stiffing Tea Party

In May 2011, the National Legal and Policy Center (NLPC) asked the Internal Revenue Service (IRS) to investigate the Barack H. Obama Foundation, which was soliciting tax-deductible contributions from the public although it was not tax exempt. The Foundation is named for Obama’s father and is based in Kenya. Its founder and chairman is Abon’go Malik Obama, whose father is also the father of President Obama.

The IRS not only failed to investigate, but in June 2011 it retroactively granted the Obama Foundation tax-exempt status. Click here to see the letter from Lois Lerner (in photo), Director of the Exempt Organizations division.

It appears that the Obama Foundation was treated quite differently from Tea Party and conservative groups seeking nonprofit status. Soliciting tax-deductible contributions before applying for tax-exempt status is against the law, and should have been an impediment, if not an outright disqualification, from being granted such status.… Read More ➡ “IRS Expedited Tax Exemption for Obama Foundation While Stiffing Tea Party”

I’ve Had My Last Cup of Starbucks Coffee

Starbucks coffee cupAt the Starbucks annual meeting on March 20, CEO Howard Schultz told a shareholder named Tom Strobhar to sell his stock if he disagreed with the company’s embrace of gay marriage.

Shareholders do have this prerogative. That is the beauty of securities markets. But the issue is not so simple. Institutional investors now own the majority of shares of publicly-held companies traded on U.S. exchanges. Many people own stock through mutual and pension funds, overseen by professional managers. As a practical matter, lots of Starbucks shareholders do not have the opportunity to easily sell their stock.

But there is a larger issue. Why is one of the world’s biggest and most widely admired companies taking sides on such a controversial issue? If Schultz can tell shareholders who disagree with him to take a hike, doesn’t this necessarily extend to customers, partners and employees? After all, these relationships are voluntary, too.… Read More ➡ “I’ve Had My Last Cup of Starbucks Coffee”

New York Times Came to Us For Info on Menendez, Not The Other Way Around

Lipton photoThe New York Times has an article today titled, “Inquiry of Democratic Senator Started With Partisan Push.” The story by Eric Lipton describes our success in getting media coverage for our original research about Senator Robert Menendez (D-NJ) and his relationship with a major donor, Dr. Salomon Melgen. Lipton then states that to Menendez and his staff our work is “proof that the news media frenzy focusing on his actions to help a Florida eye doctor is at least in part a political smear.”

The only problem with this story line is that the New York Times approached us shortly before the January 29 FBI raid on Melgen’s eye practice in Florida and asked us if we had any information on Melgen. We did not seek to place it with any news organization because there was (and is) even more to the story, and we were (and are) still researching it.… Read More ➡ “New York Times Came to Us For Info on Menendez, Not The Other Way Around”