Rumors have abounded for awhile now that Yarmuth has helped himself while in Congress and many have questioned his investments in Humana and GE for example. The one question that really never came up until now, was one of whether or not Rep. Yarmuth was involved with Ford.
Since rumor has persisted that there may have been a meeting between Greg Fischer, Jerry Abramson, and John Yarmuth on Friday in Washington, whether true or not, it was time to see why such a thing would be stated.
I know that Mayor Fischer kept his schedule closely guarded last week. I know Chris Poynter refused to answer my last email asking why. I know much more than I have told you so far but it was time to go further and seek an answer as to whether this one rumor was true.
When Rep. Yarmuth was elected to the House in 2006 his net worth was estimated to be up to $6 million. Today that estimate has grown exponentially up to $24 million. In just 8 years.
How does this happen for a "servant" of the people?
Simple, Congress are the ultimate insider traders. It is not a term to be used loosely but let's lay it out.
As everyone now knows Jay Morgan worked for Ford Motor Company in 2008 and became a whistle blower against a colleague for insider trading that ultimately led to the current ongoing lawsuit against Mayor Greg Fischer.
After announcing the Way Forward plan in 2006, Ford had failed to fix its business by 2008. Much was going on in 2008 within the auto industry and Ford was on the brink of bankruptcy. GM and Chrysler actually filed for it.
On June 21, 2008 Congressman Yarmuth came to Ford's Louisville Assembly Plant, along with then Speaker of the House Nancy Pelosi, for a closed door meeting with Ford to discuss federal funding. They were considering legislation that would promote green energy while at the same time aiding the auto industry.
At the time, Congressman Yarmuth was on the Education and Workforce, as well as, Government Oversight committees.
John Yarmuth was involved in every aspect of the Ford bailout from beginning to end. Every discussion and every decision he was privy to.
Remember, the allegations of insider trading alleged by Jay Morgan were based on insider information by his colleague JT Young. Information obtained from attending a confidential US Treasury briefing in October 2008, a briefing that John Yarmuth himself would know the details of thanks to the relationship that began with the private Ford meetings with Nancy Pelosi in June 2008. .
The discussion carried throughout 2008 and on September 30, 2008 appropriations were approved for the Automotive Vehicle Technical Manufacturing (ATVM) program through the Department of Energy.
What is the ATVM?
ATVM is a $25 billion direct loan program funded by Congress in fall 2008 to provide debt capital to the auto industry for the purpose of funding projects that help vehicles manufactured in the U.S. meet higher mileage requirements and lessen U.S. dependence on foreign oil. It was completely separate from the TARP bailout that we are all familiar with.
FY 2009 CONTINUING RESOLUTION LANGUAGE
“SEC. 129. (a) Notwithstanding any other provision of this joint resolution, there is appropriated $7,510,000,000 for fiscal year 2009 for “Department of Energy–Energy Programs–Advanced Technology Vehicles Manufacturing Loan Program Account ” for the cost of direct loans as authorized by section 136(d) of Energy Independence and Security Act of 2007 (Public Law 110-140; 42 U.S.C. 17013 (d)), to remain available until expended.
As of January 2015 the DOE states this:
The ATVM program is authorized to award up to $25 billion in loans; there is no deadline for completing such loan commitments. Congress funded the program in 2009, when it appropriated $7.5 billion to cover the subsidy cost for the $25 billion in loans, as well as $10 million for program implementation. Since the start of the program, DOE has awarded $8.4 billion in loans to five companies (Fisker, Ford, Nissan, Tesla, and the Vehicle Production Group). As of January 2015, ATVM has $16.6 billion in remaining loan authority. No new loans have been made since 2011.
Two companies—Fisker and the Vehicle Production Group—were unable to make payments on their loans, and DOE auctioned the loans off in the fall of 2013.
Tesla paid off all of its loan in 2013, nine years ahead of schedule.
Notice that Ford has been bragging about near record profits for several years now and yet not one dime of the $5.9 billion DOE loan has been spent paying back we the taxpayer.
While GM and Chrysler were receiving TARP bailout money, Ford was acting like they were not receiving a bailout. We now know that to be a lie.
Remember John Yarmuth was involved in closed door discussions involving Ford Motor Company and a bailout from June to December 2008 with the Department of Energy.
He cemented his known involvement with the letter above.
By December 31, 2008 the DOE had received 34 applications for the existing funds and made the announcement public on January 5, 2009.
In January of 2009 Yarmuth was not only on the Budget Committee, he added the House Ways and Means Committee which oversees the U.S.Treasury itself.
On February 11, 2009 with all of this and the insider information in hand, John Yarmuth, according to his own financial disclosures, purchased Ford stock for the first time at a cost of $1.85 per share.
By 2011 he was not only on the Budget Committee but had also added the Ethics Committee, irony cannot be lost here, as well as the Committee On Oversight and Government Reform.
By 2013 Yarmuth was on the Budget Committee and the Energy and Commerce Committee.
Following any logical conclusion, there is simply no way this is not insider trading in my opinion.
In June of 2009, the DOE announced the $5.9 Billion award to Ford, along with the others who received basically nothing in comparison.
Additionally, in June 2009, Rep. Yarmuth sent out a press release bragging about his help with the legislation while knowing for months that the deal had been made and Ford would profit from it. There was no mention that he had purchased Ford stock at $1.85 for the first, and last time apparently, in February 2009 based on his insider information.
John Yarmuth had lobbied for, bragged about being part of the legislation, and was in charge of oversight for the U.S Treasury during all of this time and miraculously, based on a "hunch" somehow, bought Ford stock for the first time at its lowest sale price of $1.85?
It defies any logic whatsoever.
Yarmuth had information and KNEW that Ford would receive $5.9 Billion of DOE funds at 1/2 of 1% interest with no repayment plan in place. He KNEW that it would most certainly improve Ford's financial prospects going forward, which of course leads to a rebounding share price. He KNEW on February 11, 2009 that Ford was not going to fail because the U.S. would not allow them to.
The funds were released in September of 2009 to Ford. By October 1, 2009 Ford stock was already rebounding because of the government bailout and the DOE funds and closed at $6.97 per share.
It continued to go up.
Ford was the primary benefactor of the funds and Rep. John Yarmuth KNEW it when he bought the stock.
John Yarmuth did not purchase another share of stock for Ford after February 11, 2009 according to his public financial disclosures. It was a one time buy.
Yarmuth then sold off the stock at the height of the worker training facility debacle in Louisville in 2012 when Ford and Greg Fischer were already working against Jay Morgan.
Yarmuth sold off his Ford stock in 3 different stages and currently has no Ford stock ownership on his records. At a price of $12 on average per share. After buying it on inside information at $1.85.
Not a bad payday is it?
I have mentioned before that Martha Stewart went to jail over $45,000 for five months based on one phone call from her friend at ImClone. Martha Stewart received a phone call. That was the extent of her involvement.
John Yarmuth worked on, helped craft the legislation from beginning to end, lobbied for it with the DOE, and oversaw the U.S. Treasury at the same time. He was involved in every aspect from beginning to end and there is simply no way to say he didn't know when he bought Ford stock.
All insider information and all illegal based on available records.
Why would he not be held to the same standards as Martha Stewart or anyone else?
How long should he be allowed to serve we the people?
In 8 years Representative John Yarmuth has seen an increase in his wealth of up to 400%. As an elected official and as we have shown based on believed insider information. Wonder how a Congressman makes money while "serving" we the people?
This is but one example. Many more have and are doing the same thing. It is time to hold at least one of them accountable.
Wonder why Greg Fischer is stalling?
Much more to come folks. Wait until you see the rest.............
The timeline:
June 2008 Yarmuth with Nancy Pelosi has private meeting with Ford at Louisville Assembly Plant to discuss federal funding.
September 2008 Appropriations approved for ATVM program for $7.51 billion
October 2008 Yarmuth and McConnell sends letters to DOE.
October 2008 JT Young brags about insider trading after US Treasury and DOE meeting.
November 12, 2008 DOE issues interim final rule for the program.
December 1, 2008 public meetings held to announce access for applicants.
December 31, 2008 closed window for first round applicants.
January 5, 2009 DOE press release announcing 34 applicants.
February 2009 Yarmuth buys Ford stock for first time.
June 2009 DOE announces award to Ford and others.
June 2009 Yarmuth announcing his help with legislation.
September 2009 DOE funds released.
2012 Yarmuth sells his Ford stock at a 600% profit.
Thank you Ed for the outstanding article. The new administration seems reluctant to hold liberals accountable as we were promised.
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