Senator's husband cashes in on crisis

[Parkbandit]

On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband's real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.

Mrs. Feinstein's intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn't a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments - not direct federal dollars.

Documents reviewed by The Washington Times show Mrs. Feinstein first offered Oct. 30 to help the FDIC secure money for its effort to stem the rise of home foreclosures. Her letter was sent just days before the agency determined that CB Richard Ellis Group (CBRE) - the commercial real estate firm that her husband Richard Blum heads as board chairman - had won the competitive bidding for a contract to sell foreclosed properties that FDIC had inherited from failed banks.

About the same time of the contract award, Mr. Blum's private investment firm reported to the Securities and Exchange Commission that it and related affiliates had purchased more than 10 million new shares in CBRE. The shares were purchased for the going price of $3.77; CBRE's stock closed Monday at $5.14.

Spokesmen for the FDIC, Mrs. Feinstein and Mr. Blum's firm told The Times that there was no connection between the legislation and the contract signed Nov. 13, and that the couple didn't even know about CBRE's business with FDIC until after it was awarded.

http://washingtontimes.com/news/2009/apr/21/senate-husbands-firm-cashes-in-on-crisis/


Suuure there was no connection. It's just one big coincidence....

Two words: TERM LIMITS

[Kuyuk]

yeah. maybe theyre one of the people that are being investigated for abuse of bailout cash?


K.

[Seizer]

Shocker corrupt democrats! I find that hard to believe. They are always for the little man, how could it be possible that she would be out for her or her husband's self interests?

[Parkbandit]

yeah. maybe theyre one of the people that are being investigated for abuse of bailout cash?


K.

Where in the article did it say that Feinstein is under any investigation?

[Parkbandit]

Shocker corrupt democrats! I find that hard to believe. They are always for the little man, how could it be possible that she would be out for her or her husband's self interests?

This is less about Democrat corruptness and more about career politician corruptness.

[Kuyuk]

<Where in the article did it say that Feinstein is under any investigation?
>

There was another news article yesterday or the day before saying theres some group that is opening 10 investigations on misuse of the bailout money...

While it didnt name anyone specifically that i recall, this seems like a good one to investigate?


K

[Apotheosis]

C'mon PB, these are our fearless politicans who are helping bring change to America, give them a break.

[Gan]

I'd like to see an SEC investigation for insider trading.

If jailtime is good enough for Martha Stewart, its good enough for Feinstein...

[Kuyuk]

i bet martha is pretty pissed that she got jailtime for like 40k, and the people who (might be) doing illegal shit with the billions of dollars wont get touched..

K

[Rocktar]

Martha wasn't jailed for insider trading. She was technically jailed for lying to a Federal Agent. She was really jailed because she is a rich, powerful woman that is mean and acts like a man in business. Martha wasn’t guilty of insider trading; she got a tip from her broker to sell. That is what you pay a broker for in the first place. She didn’t have any inside information, her broker did and HE could be guilty of insider trading.

In this case, it may be true; I don’t know the specifics of the company organization and so on so I can’t say. I can tell you that it is 100% scummy and at least worthy of an investigation. But then again, what do you expect from that venomous hose-beast and her ilk?

Here is what the SEC says the insider trading is.

http://www.sec.gov/answers/insider.htm

[Gan]

Based on SEC definitions, both Feinstein and her husband need investigating for illegal insider trading.

[Clove]

Martha wasn't jailed for insider trading. She was technically jailed for lying to a Federal Agent. She was really jailed because she is a rich, powerful woman that is mean and acts like a man in business. Martha wasn’t guilty of insider trading; she got a tip from her broker to sell. That is what you pay a broker for in the first place. She didn’t have any inside information, her broker did and HE could be guilty of insider trading.

In this case, it may be true; I don’t know the specifics of the company organization and so on so I can’t say. I can tell you that it is 100% scummy and at least worthy of an investigation. But then again, what do you expect from that venomous hose-beast and her ilk?

Here is what the SEC says the insider trading is.

http://www.sec.gov/answers/insider.htmTechnically true, Martha served a jail sentence for obstruction of justice (lying to Federal agents). She was also fined $30,000 and the SEC banned her from serving as a CEO or CFO of a public company for 5 years.

Martha's broker had his assistant inform her that the CEO of ImClone was selling his shares because of an FDA ruling (that wasn't public at the time).

This qualifies as illegal insider trading per your own source.


Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information.Martha received inside information from her broker who received it from the CEO of ImClone and she acted on it (to her financial benefit).

Martha earned her (fairly lenient) penalties.

The Feinsteins also need their pee-pee's slapped- hard.

[Rocktar]

Well, since a Federal Prosecutor couldn't manage to produce enough evidence to convict her of insider trading, then I would have to say that your assertion that she was guilty of it is tenuous at best. I would be pretty sure that if it was even remotely possible that they could have charged her and gotten a conviction, then they would have. It would be a major career coup for the prosecutor and I can’t see them passing that up. This isn’t like the OJ case where there was clearly a mountain of evidence that supported the prosecution. Here, there was like a small sugar ant hill of suspicion and hearsay that could not be applied in court to a reasonable degree.

The fact remains; she was convicted because she is mean and acts like a man in business.

[Keller]

The fact remains; she was convicted because she is mean and acts like a man in business.

Given your track record with "facts", I'm going to bet the house on "she is the sweetest person in the world and acts like Rupaul on 1000mg of estrogen."

[Clove]

Well, since a Federal Prosecutor couldn't manage to produce enough evidence to convict her of insider tradingThe SEC settled the case with her by banning her from acting as an officer in a public company with any access to financials preparation for 5 years. When you settle a case it doesn't mean, or imply that you are innocent. It also doesn't imply that the prosecution can't prove your guilt.

The prosecution did prove that she received inside information from her stock broker and rather than report her broker she used that information to trade. It really doesn't get any simpler than that.


The fact remains; she was convicted because she is mean and acts like a man in business.There's nothing factual about your statement. She was convicted because she was found guilty of obstructing justice by lying to Federal agents. This is a fact.

[Rocktar]

This is the woman that hit her neighbor with her car over an argument about landscaping. Wow Keller, you have dug down to a whole new level of retarded. I didn't think that you could get lower on the expectation scale than nothing, but you succeeded. Oh, and did you see her on her show Martha's Apprentice" or whatever it was called? Yeah, not exactly what most people would call “nice.”

[Keller]

This is the woman that hit her neighbor with her car over an argument about landscaping. Wow Keller, you have dug down to a whole new level of retarded. I didn't think that you could get lower on the expectation scale than nothing, but you succeeded. Oh, and did you see her on her show Martha's Apprentice" or whatever it was called? Yeah, not exactly what most people would call “nice.”

If "retarded" is recognizing a person's penchant for claiming "facts" and being 100% wrong about the claimed "facts", then I am a regular Trig-Palin.

[Rocktar]

It also doesn't imply that the prosecution can't prove your guilt.

In this case, I believe that it does. I do not believe that the prosecutor would have passed up the chance to actually convict her if there was any hope in hell that they could have won in court. You can think (if you can call what you actually do "thinking") what you want, the social ramifications came into play and because she was a rich white woman that was mean, they went after her. Literally hundreds of other people did and do the same things daily and because they lack notoriety, they are not prosecuted, even when associated with high profile cases. The only reason this case was even looked twice at was because of her popularity/notoriety.

Just as in sports, you cannot ignore the home team crowd advantage, you cannot, in this case, ignore the popularity/notoriety effect. Oh, wait, sorry, you can.

[Rocktar]

Gee Keller, cyber stalk much? Better watch out or your mom is going to turn the basement light on and you might see the reality of your pathetic existance.

[Keller]

Literally hundreds of other people did and do the same things daily and because they lack notoriety, they are not prosecuted, even when associated with high profile cases. The only reason this case was even looked twice at was because of her popularity/notoriety.

This is too good.

Continue. :popcorn:

[Ignot]

The only reason this case was even looked twice at was because of her popularity/notoriety.



I would agree that it was in the news because of her popularity and notoriety but she was not targeted because of it. Insider trading is taken very seriously, there are processes in place to catch people doing it, and there are plenty of people who get in trouble for it regardless of there popularity. Her penalty for insider trading would not have been nearly as bad had she not lied and tried to cover it up. Once she tried to cover it up she got hit with a whole bunch of other charges if I remember correctly.

[Clove]

In this case, I believe that it does. I do not believe that the prosecutor would have passed up the chance to actually convict her if there was any hope in hell that they could have won in court.Given what the prosecution already proved, and the definition of illegal insider trading, your opinion is weaker than mine on whether or not they "could have won". They settled because she was willing to accept the SEC's suggested punishment without further litagation, plain and simple. Given all the buzz about her "persecution" I think it was an excellent solution by the prosecution; they avoided a pyrrhic victory without letting her walk away scott-free.


The only reason this case was even looked twice at was because of her popularity/notoriety.Nobody is "entitled" to grace. It's a contradiction in terms. I could claim that the only reason my speed was checked was because I was driving a red Mustang but IF I was actually speeding (whether or not my claim was true) THEN I deserve my ticket. Martha earned her conviction by breaking the law and claiming "that someone else could have gotten away with it" isn't a defense.

If what you write here is considered "thoughtful" then I'm happy to be excluded from the definition.

[Parkbandit]

I have no doubt that Martha Stewart broke the law.. much like I have no doubt that the Government wanted and succeeded in making an example out of Martha Stewart

[Clove]

I have no doubt that Martha Stewart broke the law.. much like I have no doubt that the Government wanted and succeeded in making an example out of Martha StewartYup. The distinction is that they made an example out of a guilty person. She isn't the fucking Hurricane and hearing some of her supporters spin it, you'd think she was.

[Warriorbird]

This is too good.

Continue. :popcorn:

I need him to take my exams for me.

[Parkbandit]

California Sen. Dianne Feinstein Tuesday dismissed as "nonsense" allegations that her efforts to bolster funding for the Federal Deposit Insurance Corp., which protects bank depositors, aided her husband Richard Blum's real estate firm.

The story by the conservative Washington Times, which appeared Tuesday, said Feinstein's bill to increase FDIC funding by $25 billion arrived shortly after the agency awarded CB Richard Ellis Group, where Blum is chairman of the board, a contract to sell foreclosed houses.

Blum's firm won the contract through competitive bidding. The purpose of the contract was to help the FDIC dispose of foreclosed properties it received as a result of taking over failed banks.

Feinstein issued a statement saying that the story "makes inaccurate and unfair suggestions of impropriety that are simply not supported by facts."

The statement said Feinstein had no knowledge of the company's FDIC contract before being contacted by the Washington Times reporter on Jan. 21.

"There is no evidence of any conflict of interest - or any connection - between the Senator's foreclosure relief bill and CB Richard Ellis winning a competitively-bid contract, which was awarded - unbeknownst to her - by nonpolitical career staff," the statement said.

Feinstein's interest in increasing FDIC funding was driven by California's high number of foreclosures, her office said, citing the foreclosure bill as "only one of many actions" she has taken to address it.

"Sen. Feinstein learned of FDIC Chairman Sheila Bair's proposal for foreclosure relief for homeowners from news reports, expressed her support in a letter, and introduced legislation to allocate $25 billion from the Troubled Assets Relief Program (TARP) to implement it," the statement said.

Since then, President Obama ordered that $75 billion in TARP funds go toward a foreclosure relief program along the lines Bair suggested, obviating the need for legislation, Feinstein's office stated.

Blum's wealth and his wife's power have attracted scrutiny many times in the past, particularly over Blum's business dealings in China and with government defense contracts, but have never resulted in evidence of wrongdoing.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/21/MNTQ176KBD.DTL&type=politics

Where there is soooo much smoke, there's usually fire. I have very little faith in anyone in Congress going after her because they all have skeletons in their closets.

[Clove]

Luckily, it's the FBI that investigates corruption.