Economic Debacles and the Bush Brothers
The economic debacle caused by mortgage lenders and other financial institutions with help from a deregulatory, minimum of no regulation Bush administration has hit another well-known Wall Street bank.
From the NYTimes: "Lehman Brothers, seeking to ally concern that it might become the next Wall Street bank to founder, said Monday that it would raise $6 billion to shore up its weakened finances.
"The move came as the investment bank stunned Wall Street with news that it had lost $2.8 billion in the second quarter, its first loss since going public in 1994. The deficit far exceeded even the most pessimistic forecasts and reflected a triple blow of soured assets, bad trades, and hedges that were supposed to cushion losses but instead added to them.
"The developments mark a stark turnabout for the scrappy Lehman, which had repeatedly assured shareholders that it was managing its risks well. Many investors have feared for Lehman’s health since Bear Stearns collapsed, and the red ink at the bank could fuel the debate over whether Lehman, one of the smallest players on Wall Street, can survive as an independent firm.
One interesting piece of news that wasn't included in the story was Jeb Bush's relationship with Lehman Brothers.
As I wrote in April, "Lehman Brothers and Jeb Bush, now that's a pair; Jeb a "consultant" for Lehman Brothers.
"Another scandal associated with the infamous Bush brothers, George, Jeb and Neil; a trio of scam artists, trading on family name and connections, associated with con men, and leaving ruin in their wake, more often for local, state and national taxpayers to pull their chestnuts out of the fire and family name and connections keeping them out of the slammer.
"From an article in Counterpunch: "Jeb Bush left Tallahassee for Miami in January 2007, having served two terms as governor. He incorporated Jeb Bush & Co., and in June was hired as a consultant with Lehman Brothers, the Wall Street investment banking firm.
"Coleman Stipanovich, a Bush loyalist, headed the Florida State Board of Administration, responsible for investing billions of dollars of state funds. Stipanovich's brother, "Mac", is a former chief of staff in the governor's office, Jeb Bush campaign manager, and now partner in the law firm, Fowler White, Boggs-the Tallahassee lobbying whip of the Growth Machine (he is also board member of US Sugar).
"In July and August, Stipanovich approved the purchase of $842 million in securitized mortgage bonds from Lehman.
"Today the value of those bonds is practically zero, vanished in the debt crisis that is tipping the national economy into a recession."
From the Palm Beach Post via Democratic Underground last December: "Of course, the timeline doesn't prove a link. But like so many other timelines involving Bush brothers and business deals - think Neil Bush and Silverado, George W. Bush and the Texas Rangers, Jeb Bush and foreign sales of water pumps - the timelines feature Bushes in business deals that have more to do with political connections than real business acumen.
"The role of Jeb Bush and political crony Stipanovich in the Lehman Brothers deal is just one issue for the state to investigate. Another is the extent to which Lehman Brothers knowingly took advantage of what one expert called "less-sophisticated investors" to dump subprime-tainted securities. If there is grounds for a lawsuit, Florida should file it.
Democratic Underground continues: "Gov. Charlie Crist.... He said the state is aggressively pursuing how the investments "were sort of dumped on Florida. ...Who knows, there could have been fraud involved in that.''
"But he suggested that Lehman Brothers may have hired Bush to try to gain influence with the SBA.
" 'I hope that he wasn't sort of used,' Crist said.
"Jeb Bush, was used?? Hardly, Governor.
From the NYTimes: "Lehman Brothers, seeking to ally concern that it might become the next Wall Street bank to founder, said Monday that it would raise $6 billion to shore up its weakened finances.
"The move came as the investment bank stunned Wall Street with news that it had lost $2.8 billion in the second quarter, its first loss since going public in 1994. The deficit far exceeded even the most pessimistic forecasts and reflected a triple blow of soured assets, bad trades, and hedges that were supposed to cushion losses but instead added to them.
"The developments mark a stark turnabout for the scrappy Lehman, which had repeatedly assured shareholders that it was managing its risks well. Many investors have feared for Lehman’s health since Bear Stearns collapsed, and the red ink at the bank could fuel the debate over whether Lehman, one of the smallest players on Wall Street, can survive as an independent firm.
One interesting piece of news that wasn't included in the story was Jeb Bush's relationship with Lehman Brothers.
As I wrote in April, "Lehman Brothers and Jeb Bush, now that's a pair; Jeb a "consultant" for Lehman Brothers.
"Another scandal associated with the infamous Bush brothers, George, Jeb and Neil; a trio of scam artists, trading on family name and connections, associated with con men, and leaving ruin in their wake, more often for local, state and national taxpayers to pull their chestnuts out of the fire and family name and connections keeping them out of the slammer.
"From an article in Counterpunch: "Jeb Bush left Tallahassee for Miami in January 2007, having served two terms as governor. He incorporated Jeb Bush & Co., and in June was hired as a consultant with Lehman Brothers, the Wall Street investment banking firm.
"Coleman Stipanovich, a Bush loyalist, headed the Florida State Board of Administration, responsible for investing billions of dollars of state funds. Stipanovich's brother, "Mac", is a former chief of staff in the governor's office, Jeb Bush campaign manager, and now partner in the law firm, Fowler White, Boggs-the Tallahassee lobbying whip of the Growth Machine (he is also board member of US Sugar).
"In July and August, Stipanovich approved the purchase of $842 million in securitized mortgage bonds from Lehman.
"Today the value of those bonds is practically zero, vanished in the debt crisis that is tipping the national economy into a recession."
From the Palm Beach Post via Democratic Underground last December: "Of course, the timeline doesn't prove a link. But like so many other timelines involving Bush brothers and business deals - think Neil Bush and Silverado, George W. Bush and the Texas Rangers, Jeb Bush and foreign sales of water pumps - the timelines feature Bushes in business deals that have more to do with political connections than real business acumen.
"The role of Jeb Bush and political crony Stipanovich in the Lehman Brothers deal is just one issue for the state to investigate. Another is the extent to which Lehman Brothers knowingly took advantage of what one expert called "less-sophisticated investors" to dump subprime-tainted securities. If there is grounds for a lawsuit, Florida should file it.
Democratic Underground continues: "Gov. Charlie Crist.... He said the state is aggressively pursuing how the investments "were sort of dumped on Florida. ...Who knows, there could have been fraud involved in that.''
"But he suggested that Lehman Brothers may have hired Bush to try to gain influence with the SBA.
" 'I hope that he wasn't sort of used,' Crist said.
"Jeb Bush, was used?? Hardly, Governor.
"This isn't the first time SBA has faced charges of unwise investments. In 2002, the agency lost $280-million on Enron stock, some of it bought while other investors were unloading it.
"Jeb Bush was Governor in 2002.
".... said Charles Grice, a former Federal Reserve official who advises companies on financial regulatory issues. 'This is like passing out a grenade at a cocktail party, and Florida got caught holding the grenade.'
"Did someone say Jeb Bush and ENRON?
"Why, Jeb was neck deep in THAT debacle in Florida as well.
"There seems to be a troubling pattern here."
"Jeb Bush was Governor in 2002.
".... said Charles Grice, a former Federal Reserve official who advises companies on financial regulatory issues. 'This is like passing out a grenade at a cocktail party, and Florida got caught holding the grenade.'
"Did someone say Jeb Bush and ENRON?
"Why, Jeb was neck deep in THAT debacle in Florida as well.
"There seems to be a troubling pattern here."
Posted by Kaz at 6/9/2008 2:00 PM 
Categories: Opinion, Bush, Economics, Economy, Bushites, Housing Crisis
Categories: Opinion, Bush, Economics, Economy, Bushites, Housing Crisis
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