We’ve already discussed the unique challenge facing Chrysler, as it begs for cash, since it’s under the control of a private equity firm. The basic thinking by politicians: Private equity means a few rich guys controlling the company, so why should we help them out?
Here’s another way to put some leverage on the firm: Dealbook
Dealbook: Cerberus Capital Management‘s vast web of investments is becoming an issue in the battle to bail out Chrysler.
Steve Kagen, a Democrat lawmaker from Wisconsin, said on Monday that he would not support any taxpayer money for Chrysler until two paper mills in his state are re-opened.
The mills are owned by NewPage, which is controlled by Cerberus, the same investment firm that controls Chrysler and GMAC, the financing arm of General Motors.
Memo to lawmakers: Here’s the link for the rest of the companies in Cerberus portfolio. Surely quite a number of them have laid off employees or shuttered factories.