An investment firm linked to former Vice President Joe Biden’s son, Hunter, reportedly benefited from generous bailout loans during his father’s tenure in office.
Moreover, the firm, Rosemont Capital, may have purposefully been funneling its profits to a subsidiary in the Cayman Islands so as to shield itself from the Obama-Biden administration’s draconian tax laws.
These and other revelations were uncovered by the Washington Examiner after an extensive analysis of the company’s federal banking and corporate records.
The records specifically show that Rosemont Capital was among a slew of companies that benefited from the Term Asset-Backed Securities Loan Facility (TALF), a program created underneath the widely criticized Troubled Asset Relief Program (TARP) program.
Jeff Carter: “TALF, TARP are both failed programs. They kept the banks afloat, but there is no turnover of the money the Fed created.”
— Janie Johnson (@jjauthor) July 26, 2012
“One of the firms that benefited was Rosemont Capital, a company led by Hunter Biden’s business partners, Chris Heinz and Devon Archer,” the Examiner reported Thursday.
“The firm received the loans at a crucial time for Hunter Biden. The younger Biden had stepped down from his lobbying business in late 2008, reportedly due to pressure on his father’s vice presidential campaign.”
A year later, in June of 2009, Biden, Heinz, and Archer formed a separate offshoot of Rosemont Capital and called it Rosemont Seneca Partners. The original Rosemont Capital reportedly owned 50 percent of it.
Three weeks after Seneca’s formation, one of Rosemont Capital’s subsidiaries, Rosemont TALF SPV, began receiving a total of $130 million from the Obama-Biden administration’s TALF program.
Coincidence or conspiracy? If nothing else, it’s certainly a reminder of why so many Americans are disgusted by Washington, according to ethics watchdogs.
“This is a great example of the suspicion of many Americans that these bailouts were used to benefit connected insiders while ordinary Americans went broke,” Tom Anderson of the National Legal and Policy Center said in a statement to the Examiner.
The Examiner notes that under TARF, “the U.S. Treasury Department and the Federal Reserve Bank issued billions of dollars in highly favorable loans to select investors who agreed to buy bonds that banks were struggling to offload, including bundled college and auto loans.”
“For investors, there was little risk and a high chance of reward. The Federal Reserve funded as much as 90% of the investments. If the bonds were profitable, the borrowers benefited. If not, the department agreed to take over the depreciated assets with no repercussions for the borrowers.”
At the time of the program’s launch, wealth specialists reportedly noted that becoming a TALF recipient was a highly “complicated” task.” One that may very well have required that the wannabe recipient boast the right connections, wink wink.
Meanwhile, some congressional Democrats complained at the time of TARP’s overall unfairness and potential for corruption.
“How can my constituents in Vermont get some of that money? Who makes the decisions? Do you guys sit around in a room — do you make it? Are there conflicts of interest?” current Democrat presidential candidate Sen. Bernie Sanders asked then-Federal Reserve Chairman Ben Bernanke at the time.
He added, “Do you have to be a large, greedy, reckless financial institution to apply for these monies?”
(Source: Sen. Bernie Sanders)
Now fast-forward to 2010, when Sanders again entered the picture by writing a letter to Bernanke to share his concerns that some TARF/TARP recipients were possibly funneling money to the Cayman Islands to evade their tax duties.
“It has been estimated that each year corporations and wealthy individuals avoid approximately $100 billion in U.S. taxes through the use of abusive and illegal tax shelters,” he wrote. “Why would the Fed lend to material investors located in the Cayman Islands?”
Material investors such as Rosemont Capital, apparently, as it turns out that the firm established a separate offshore limited partnership, “Rosemont TALF Investment Fund LP,” just for its TALF money. More notably, it incorporated the fund in the Cayman Islands.
“The fund was incorporated in the Cayman Islands on May 14, 2009, and dissolved on Nov. 14, 2014. … The fund was managed by a Delaware-based subsidiary of Rosemont called ‘Rosemont TALF GP,'” the Examiner has confirmed.
Read Sanders’ warning letter below:
Several tax experts confirmed to the Examiner that the Cayman Islands were used by corporations in order to avoid certain taxes — up until President Donald Trump reportedly put a stop to the scheme via his 2017 tax reform bill.
“Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, said the use of an offshore company could also help investment firms reduce the tax liability for foreign or tax-exempt investors who could otherwise be subject to U.S. taxes,” the outlet reported.
“Matt Gardner, a senior fellow at the Institute on Taxation and Economic Policy, said the most likely reason for setting up a company in the Cayman Islands would be to take advantage of its tax laws.”
“As long as it was sitting there, it was not taxed. That’s why there was a lot of money sitting there in the Cayman Islands,” Didier Jacobs of Oxfam America reportedly added.
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