The Debates

[Martina]

George Will is a reactionary old fart. Did he really say nellies??

Nytimes fact check on the auto bailout

7:28 pm

Jeremy W. Peters
Fact-Check: 'Let Detroit Go Bankrupt'?

Mr. Obama just stated that when Mr. Romney argued in late 2008 that Detroit auto companies should be denied a government bailout and instead turn to the private marketplace, no private financing was available. This is consistent with what auto executives have said.

At the time Mr. Romney wrote his now infamous New York Times op-ed the financial markets had ground to a halt. It was November 2008, and there was little available liquidity for anyone seeking financing. There were certainly no financial institutions — not even Bain Capital, Mr. Romney’s private equity firm — looking to invest to the tune of the $80 billion the car companies needed at the time.

No private companies would come to the industry’s aid, and the only path through bankruptcy would have been Chapter 7 liquidation, not the more orderly Chapter 11 reorganization that the company ultimately followed, people inside and outside the car companies have said.

In fact, the task force asked Bain if it was interested in investing in General Motors’ European operations, according to one person with direct knowledge of the discussions.

Bain declined, this person said, speaking anonymously to discuss private negotiations.