Union Gangster and Former “Car Czar” to Advise Retirees Facing Benefit Cuts in Detroit Bankruptcy Case
Union gangster, former “car czar” and architect of the auto bailout, Ron Bloom, is known for his communist references and admiration for Mao Tse-Tung. In 2008, Bloom was caught on tape saying he agreed with Mao that “political power comes largely from the barrel of a gun”, and that the “free market is nonsense”. In the name of social justice, Bloom’s auto bailout deal for Chrysler and GM was orchestrated to benefit the Union Auto Workers at the expense of the bondholders. Bloom attended a celebratory auto task force dinner in a D.C. restaurant, he spoke about the auto bailout and admitted he “did this all for the unions”.
Now, Detroit retirees have hired Ron Bloom to fight against benefit cuts in Detroit’s bankruptcy case.
Detroit’s retirees have bolstered their defenses against benefit cuts in the city’s bankruptcy case by hiring Ron Bloom, a chief architect of the Obama administration’s 2009 U.S. auto bailout and long-time adviser to unions in industry shake-ups.
Lazard Ltd, where Bloom is now vice chairman, said it will advise a nine-member committee that represents 23,500 public sector retirees facing cuts to their healthcare and pension benefits after Detroit’s Chapter 9 Bankruptcy filing on July 18.
Benefits consulting firm The Segal Company was also hired to assist the committee, two people familiar with the matter said, declining to be named because the details are confidential.
Detroit is the largest city in U.S. history to seek bankruptcy protection and its emergency manager, Kevyn Orr, has said retiree benefits could be cut as the city struggles to pare down more than $18 billion in debt.
Roughly half of its liabilities stem from retirement benefits, including $5.7 billion for healthcare and other obligations, and $3.5 billion involving pensions.
Unions have fought back, arguing that such benefits are protected by the Michigan and federal constitutions. The retiree committee has asked the U.S. District Court in Detroit to remove the case from bankruptcy court and determine the constitutional issues.
Previously on Gateway Pundit: