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To prevent his hedge fund from suffering a possible huge loss, billionaire hedge fund manager and known Mitt Romney supporter Paul Singer has turned to the Obama administration for help.The loss at stake concerns near-bankrupt mortgage lender Residential Capital, a subsidiary of Ally Financial. Singer, whose fund Elliot Associates owns a portion of ResCap debt, has reportedly been meeting with Obama officials in hopes of using the government’s 74% stake in Ally Financial to push for an alternative to bankruptcy, according to the New York Post.
The irony lies in the fact that Singer is a very public supporter of Mitt Romney, who in all likelihood will be the Republican nominee to challenge President Obama in the upcoming election.
Singer has been described as a “passionate defender of the 1% and a rising Republican power broker” who is influential on both Wall Street and Capitol Hill, according to a recent Fortune profile of him. His hedge fund has about $19 billion in assets under management.
Despite Singer’s partisanship, it seems like the ResCap issue is one where he and Obama’s administration can agree on. The Post reported that Treasury Secretary Geithner also wants to pursue alternatives to bankruptcy, but doesn’t want it to be viewed as an over-extension of federal power.