SEARED CERBERUS (billions in auto bailouts---plus Madoff connection)

NY POST ^ | 5/8/09 | JOSH KOSMAN

[Liz]

HURTIN' OWNER SEEKS MORE RE$CUE FOR GMAC Reclusive billionaire and Cerberus Capital Management boss Steve Feinberg wants TARP funds to bailout GMAC....the finance arm of struggling automaker General Motors. GM must raise $11.5B in fresh capital to pass the govt's stress test. Last year GMAC got $6B TARP ....but can only devote $2.4B TARP to meet GMAC's shortfall. GMAC burned through $10.2B in the first quarter...with just $11.6B cash left. Most banks were told to raise capital and are not likely to tap the feds for more help......but Uncle Sam could end up being GMAC's only option. The Obama admin might be inclined to help, b/c it's leaning heavily on GMAC in its rescue of Chrysler. As part of Chrysler going into bankruptcy last week, the WH said it would hand over Chrysler's auto-finance business to GMAC. For GMAC to make its June debt payments, it might have to rely on the FDIC issuing new bonds of a similar amount under its Temporary Liquidity Guarantee Program, created to guarantee newly-issued bank debt. Between TARP and the FDIC program, the government could be on the hook for $20 billion in new rescue cash for GMAC. Cerberus, which has about $24B in assets, at one point had a 51% stake in GMAC, but that got slashed to 15% when GMAC converted into a bank holding company.

[Liz]

HOGGING AT THE PUBLIC TROUGH In May 2004, Feinberg's "private investment group," Cerberus Capital Management, LP (Cerebrus is the three-headed dog that guards Hades), became majority owner of IAP Worldwide Services, Inc, one of the US Army’s largest contractors in Iraq. In Afghanistan, Feinberg's IAP runs a drug/addiction center" in Kunduz---Kunduz is the largest opium supplier in the world. BUSY LITTLE BEAVER IAP also provides infrastructure support for the British Ministry of Defence in Kandahar....apart from s....apart from supporting the US Army in Basra.

Chrysler/Cerebrus’ Fineberg and GMAC/ Merkin-----co-own an Israeli bank-----debark from anywhere in the world, deposit a suitcase full of case and nobody asks where your got it, or if taxes were paid on it. Stash all the loot you can carry ......out of sight of the IRS and US banking laws.

FEDERAL RESERVE A FACTOR IN BAILOUTS AND SWINDLES? Madoff swindled $65B and had financial connections to auto industry bailouts, J Ezra Merkin and Stephen Fineberg. Were the connivers stealing Federal Reserve insider info? Fineberg tapped ex-Treasury Secy John Snow to head Cerebrus. Knowing Federal Reserves moves in advance would make zillions for the thieves...........on top of the billions they were swilling elsewere. These termites were running rampant over the US government---Merkin and Feinberg's auto companies received billions in govt bailouts.

BAILOUT SWILLERS Federal Reserve's Bernanke, ex-Treasury Secy Paulson, GMAC's J. Ezra Merkin---salivating to divvy up the taxpayers' billions. Merkin and Feinberg's auto companies received billions in govt bailouts. Americans have not yet learned the full extent of official corruption, thievery, schemes and scams involving $TRILLIONS of tax dollars aided and abetted by the dupes on Capitol Hill.

TIMELINE On October 19, 2006, John W. Snow, Secretary of the Treasury under George H.W. Bush, was named head of Stephen A. Fineberg's bailed out company---Cerebrus. Feinberg's IAP also serves a broad array of federal clients including the US DOD, NASA, the US Geological Survey, the US Agency for International Development, the IRS and a variety of other federal agencies.

BAILOUT SWILLERS Stephen A. Fineberg's private equity firm---Cerberus Capital Management LP--- also owns Chrysler Motors. The US Treasury bought a $5 billion stake in GMAC, and lent $1 billion to GM. This latest loan is IN ADDITION to the $13.4 billion the US Treasury lent earlier to J Ezra Merkin's GM, and Fineberg's Chrysler.

SWILLING TIMELINE In 2006, GM sold 51% of Merkin's GMAC to Feinberg's private equity firm Cerberus Capital Management LP (which also owns Chrysler).

MERKIN'S CAYMAN ISLAND HEDGE FUND While he was GMAC chairman, J Ezra Merkin ran hedge funds as a sideline and was feeding funds into Madoff's Ponzi operation (and pocketing hundreds of $millions in fees).

Merkin was feeding funds to Madoff---connected to 1) Ariel Fund, based in the Cayman Islands (an infamous money laundering haven--a partnership between Merkin and London's Fortis Bank), (2) Ascot Partners, (3) general partner of Gabriel Capital LP, a $5 billion family of hedge funds, and, (4) managing partner of Gotham Capital.

[null and void]

[AmericanArchConservative]

bookmark for later reading.

[Liz]

Scary.

[Liz]

ping

[Erik Latranyi]

Liz, your passion on this is clear, but some of your facts are misleading.

Cerberus has no ties to Madoff and cut all ties to Merkin at the beginning of the year.

Cerberus also sold its stake in Bank Leumi (Israel).

Cerberus gave up its stake in Chrysler.

[null and void]

ummmm, I’m not Liz...

[null and void]

Fluffy is scary?

[Erik Latranyi]

ummmm, I’m not Liz...

Yes, you are not!

Sorry.

[FloridaGeezer]

It looks like a lot of these people should be twisting at the end of a hangman’s rope with buzzards eating their eyes out.

[Condor51]

*Maybe* Steve Feinberg deserves some slack.

• He attended Princeton University ... and joined the Reserve Officer Training Corps
  
• His hobbies include game hunting, chess, skiing, and riding his Harley-Davidson motorcycle.
  
• Steve and Gisela Feinberg are prolific donors to the Republican Party and related organizations.
  
• Former Republican Vice President ... Dan Quayle works for Cerberus as Chairman of Global Investments, and former United States Secretary of Defense Donald Rumsfeld was a client.

He seems to have pretty good traits: ROTC, a Hunter - Gun Owner, Chess Player, big RNC-GOP donor, 'friend' of Rummy and ...he's a Harley Rider. For sure he's not a RAT, maybe he's being set up as a fall guy?

anyone who rides a Harley, owns guns, and plays chess can't be all bad :-)

[green iguana]

Cerberus isn't all bad...

Here's a few of their brands:

[green iguana]

Meant the previous post to go to you also...

[wafflehouse]

bookmark

[Erik Latranyi]

Another of Feinberg’s traits.....he doesn’t socialize among the NYC elites.

[calcowgirl]

Look at all the donations. In 1999-2003, the couple seemed to be prolific donors to Rats and have given big bucks to Max Baucus this year. And the Republican contributions they made were to folks like McCain and Giuliani, or the NRSC/NRCC which support mostly liberal pubbies from what I’ve seen. There are a couple Stephens in the second list — ignore the one from Hastings on Hudson:

http://www.newsmeat.com/fec/bystate_detail.php?st=NY&last=Feinberg&first=gisela

http://www.newsmeat.com/fec/bystate_detail.php?st=NY&last=Feinberg&first=stephen

[calcowgirl]

"Feinberg began his career at Drexel Burnham Lambert, where he traded big pools of firm capital, then he managed separate accounts for Gruntal & Co. and a small number of other accounts. A graduate of Princeton University, where he earned a BA in politics and starred on the tennis team, he served as a paratrooper in the Army reserves."