Grassley Wonders When the Socialism Will End
Tailpipe emissions are hardly the only concerns to pop up amid Washington’s debate over an automaker bailout. Sen. Charles Grassley (R-Iowa) wondered yesterday why taxpayers should pump billions of dollars into Chrysler if its private owner, Cerberus, isn’t willing to do so. From Grassley’s Dec. 9 to Democratic leaders:
I do not support Chrysler Corporation receiving any federal dollars until its owner, Cerberus Capital Management L.P. (“Cerberus”), explains why it cannot provide the $8 billion loan Chrysler has requested. Cerberus’ public statement about its fiduciary duty to other investors is not sufficient. It is public knowledge that Cerberus is one of the largest private equity firms in the country.
Of course, being one of the largest private equity firms in the country means something much different today than it did before Wall Street’s collapse. Still, as Grassley points out, Cerberus-controlled GMAC has applied for help under the Wall Street bailout as well.
The firm might soon give new meaning to the term double-dipping.