An investment firm linked to Joe Biden’s ne’er-do-well son Hunter was bailed out to the tune of $130 million in federal loans while Joe was vice president.
Following the bailout, the firm rerouted its profits to a subsidiary in the Cayman Islands.
The Washington Examiner reports:
Rosemont Capital, an investment firm at the center of Hunter Biden’s much-scrutinized financial network, was one of the companies approved to participate in the 2009 federal loan program known as the Term Asset-Backed Securities Loan Facility, or TALF.
Under the program, 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.
According to federal records, 177 firms participated in TALF, many of them well connected in Washington or on Wall Street. 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.
“It’s very complicated to become qualified as a TALF borrower or as a TALF fund, if you will,” Carol Pepper, a wealth management specialist, told Forbes in 2009. “But that’s an example of where, if you can get into a TALF fund, you can benefit from this government program.”
Under TALF, any U.S. company could apply for government loans. But the Treasury Department and Federal Reserve had the right to reject prospective borrowers for any reason.
Multiple lawmakers criticized the opaque selection process for being susceptible to corruption.