Crime Pays If You Are Rich

Capitalism originated in plunder, the primitive accumulation of wealth, its origin lay in the evolution of class of mercantile bankers who hired mercenaries to expand their markets. As Arrighi points out in the Long Twentieth Century, the transition from Catholic Feudalism to capitalism was the creation of free trade private navies with marines in the service of merchant capital who created the bourse; the modern stock exchange.

Today capitalism still engages in economic criminal activities which are socially sanctioned. It is called tax avoidance. Where the law or regulations are silent, or allow for a wide interpretation of what is allowed or not, the speculator, the CEO the venture capitalist, etc.etc. will take advantage to get around the law or regulation. Until they are caught or bankrupt the company. Then new laws are created by the state to level the playing field, and the whole process comes full circle.

The one thing criminal capitalists can count on is being welcomed back to the old boys club with open arms by their ruling class chums. Heck they are proud of their reputation as the black sheep. And their class applauds their valiant efforts.

Of the more than 1,200 wealthy individuals that have appeared on Forbes's annual list of the 400 richest Americans over the past quarter century at least 13 have been convicted of serious crimes or jailed.

They include some well-known names: Wall Street's, Ivan Boesky and Michael Milkin from the Gordon Gecko junk bond era, the silver-speculating Hunt brothers, media diva Martha Stewart and the late Leona Hemsley, the hotelier.

SEE


A Day in the Life of Corporate Criminals

It's the company you keep

Agribusiness Bad Boys

Criminal Capitalism-West-Jet

Money Laundering Canadian Style

India Is Now A Capitalist State

Too Greedy

White Collar Crime Reporter 1

Criminal Capitalism The Story of 2006

Hedge Funds, Junk Bonds, Ponzi Schemes

Bring Out Your Dead

Money Laundering Canadian Style

Criminal Capitalism Redux

Credit Card Fraud

Golden Parachutes

1666 The Creation Of The World

Dirty Laundry Business as Usual

Calgary Fraud Funds Dubai Boom

Casino Capitalism

Are Income Trusts Money Laundering

Unproductive Capital

More Criminal Capitalists

Income Trust Fraud

Criminal Capitalism: Office Romance

Yeltsin's Legacy

Contracting Out Is A Crime



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Outing BP

A scandal occurred this spring when the British CEO of BP, British Petroleum, the British petrol giant which branded itself as green; Beyond Petroleum 'its a start', Lord Browne was outed for being gay, and supposedly lying about it in court.

The reality is that his resignation had less to do with covering up his homosexuality then covering for BP. Which had not gone Beyond Petroleum as a result of Lord Browne's corporate decisions but had become a Bad Player in the oil business.

British Petroleum used the cover of a post-Hurricane Katrina refinery bill in Congress for a sneak attack on legal protections against supertankers in Puget Sound. Reps. Jay Inslee and Dave Reichert thwarted it.

You will remember that BP had faced a number of oil field scandals prior to the outing of Lord Browne by his Canadian lover and rent boy; Jeff Chevalier.

A long list of misfortunes has battered this venerable company, including an explosion at its Texas City, Texas, refinery that killed 15 workers and injured scores more, and protracted outages at other refineries. There was also an Alaskan oil spill resulting from a corroded pipeline, along with 2005 hurricane damage to its big Gulf of Mexico Thunder Horse production platform, which delayed that facility's production start-up.

As if that weren't enough, the company's longtime CEO Lord John Brown stepped down abruptly this spring amid allegations about his private life. And more recently, BP was pressured by Russian authorities to sell much of its stake in a big natural gas field to state-run gas company OAO Gazprom.

Lord Browne the ultimate company man was still that despite his lovers outing of him. The reality was that his corporate maneuvering of BP in the oil business had been less an economic success than a failure in protecting the environment and workers.


As they say here is the rest of the story.

Blackmail, Sex & Corporate Secrets

While much has been written in Britain about the seedier side of the scandal, the critical role that BP and its executives played in it has been largely overlooked. Company officials, for instance, reportedly encouraged the C.E.O. to out himself on one of the BBC’s most popular radio shows, a plan that fizzled when Browne lost his nerve in the studio. Before that, BP leaders were secretly enlisted to serve on the board of Chevalier’s company, which was underwritten by Browne. And in the end, the disclosure of corporate secrets was as much a concern to Browne as the revelation of his homosexuality. The threat that internal BP matters might be leaked led Browne to lie in a court statement, which in turn led to his humiliating resignation and public shaming. Among the secrets Browne wanted to protect: He was considering relocating BP overseas—a potential economic ­disaster that would have been a huge blow to Britain’s corporate psyche—and he placed a dollar value on the heads of his workers in the event that they were injured or killed in an accident. In one memo, company executives gamed out different disaster scenarios for BP, comparing them to the outcomes in The Three Little Pigs.

Now the company is trying to right ­itself under a new C.E.O., Tony Hayward, who has taken over amid a growing outcry over BP’s shoddy environmental and safety record, which Browne managed to keep as secret as his private life.
Throughout the 1990s, he made a series of acquisitions that won him enormous praise in Britain and heralded the consolidation of the major oil companies. It seemed novel then that British ­Petroleum grew not by increasing its oil exploration and development but by taking over American oil companies such as Standard Oil of Ohio and Amoco. The BP-Amoco merger was the largest of its kind and launched the company into the big leagues overnight. When Exxon bought Mobil the next year, Browne quickly retaliated by purchasing Atlantic Richfield for $32 billion.

Browne was also, like any great C.E.O., a P.R. genius. In 1997, to the horror of many of his oil-industry peers, Browne admitted in a speech that he ­believed global warming was real. He then hired a San Francisco firm to ­rebrand British Petroleum and come up with a new corporate slogan. The old BP logo was replaced with a green-and-yellow sunburst, and ads suggested that BP now stood for . . . Beyond Petroleum. It was a masterstroke: BP had only $100 million invested in solar power at the time of the renaming, compared with at least $10 billion invested in conventional energy. But thanks to BP’s green logo and green C.E.O., its reputation as a green company flourished.

Browne was not quite so popular in the U.S., where experience on the ground is more important than a taste for fine art. “They pounded their chests a lot, but they didn’t know how to run refineries,” a former Amoco employee says of the BP executives. Because refineries are among the most intricate and dangerous workplaces on the planet, the old-timers feared that the BP ­executives’ ignorance would compromise safety, especially as BP cut jobs and budgets to reduce redundancy and raise profits for shareholders. (Similar allegations would later take center stage in the Texas refinery explosion lawsuits.) Other executives were skeptical of the hierarchical management structure at BP; they particularly complained about the handpicked “turtles” (named after the mutant ninja variety), who served as interns to Browne and were supposedly fast-tracked to replace other executives. There was also something known internally as the promise: a written business plan that could be used against employees who didn’t meet their projected goals. “They would use it to cut your throat if you failed,” a former engineer explains. Gradually, the company’s culture became less about innovation than intimidation. Fearful of losing their jobs, few spoke up about deteriorating conditions at some of the refineries. Behind Browne’s back, employees nicknamed him the “elf,” an acronym for “evil little fucker.”

Browne had his critics outside the oil industry too. The company was accused of committing human rights violations while building a pipeline in Colombia, and concerns were expressed about North Sea pollution. Greenpeace selected Browne for its Best Impression of an Environmentalist award. Matt Simmons, whose Houston-based Simmons & Co. is one of the largest investment-banking businesses serving the energy sector, was deeply skeptical of Browne’s 1999 prediction that, because of a worldwide market glut, oil prices would never reach $40 a barrel. “There was a vision of unreality in John Browne’s business plan,” Simmons says. “That generally works until you slip up.”

No one would dispute that Texas City, Texas, is a very long way from St. James’s Square. It is a rough-and-tumble blue-collar town on the Gulf Coast, where people know all too well that refinery work is often life threatening but just as often the only work available. On March 23, 2005, something went very wrong at BP’s Texas City refinery, the third largest in the U.S. An aging tank used to separate gas and fluid overflowed, filling the air with flammable vapor. A driver unwittingly left his truck running, igniting a fireball that by the end of the day had killed 15 people and injured more than 200. Not surprisingly, the blast led to the launch of hundreds of multimillion-dollar lawsuits and several investigations, including one by a commission that former secretary of state James Baker headed. A probe by the U.S. Chemical Safety and Hazard Investigation Board specifically blamed BP’s closed culture for the explosion. In 2006, the U.S. Occupational Safety and Health Administration fined the company $21.3 million, the largest penalty of its kind ever issued.

That wasn’t all that would befall BP. The next several months brought a cascade of problems, almost all blamed on lax oversight and poor management. In March, 200,000 gallons of crude leaked out of a BP pipeline at Prudhoe Bay, Alaska, forcing the company to partially shut down a major field. The pipe, it turned out, hadn’t been cleaned in years. In April, the U.S. Department of Labor fined BP for unsafe operations in an Ohio refinery. Also during this time, the company was unable to capitalize on its Thunder Horse offshore oil platform—the world’s largest—which was damaged during Hurricane Dennis in 2005. And in June, the government charged some of BP’s traders in Houston with trying to manipulate the price of propane in the Midwest and Northeast.

All these incidents inevitably prompted this question: How could a company that was supposed to be a model of corporate citizenship have gone so wrong? The answer that emerged was simple, and the weakness of Browne’s highly praised policy of acquiring big companies and instituting massive cost cuts was suddenly, fatally exposed. Instead of putting excess cash into maintenance and safety, the executives in London had ordered the company to “bank the savings.” But as plaintiffs’ attorneys have alleged, a rubber band can be stretched only so far before it breaks. BP led the industry in refinery deaths from 1995 to 2005. For 10 years, there was a fire a week at the Texas City plant, and many were afraid to work there, fearing that disaster was imminent. As an employee explained in a survey, “No one here in management cares. . . . We have been very lucky so far with this.” At the same time, the arrogance of BP executives was easily recognizable. One memo, prepared for a meeting held before the Texas City explosion, insisted on cost cuts, a familiar refrain at the plant: “Which bit of 25 percent don’t you understand??? We are going to be wasting our time on Monday unless you come prepared to commit to a 25 percent cut.”

In the end, Browne lied less to save his image than to save the image of his company. It’s notable, for instance, that there was no talk of resignation when word first emerged that the press had its hands on Chevalier’s story. Only after Browne learned that the corporate secrets could leak did he finally decide to step down.

Browne’s early departure will not prevent continued legal battles for BP, but it is perhaps as close to a sacrificial act of love as Browne is capable of, and it has allowed the company to start fresh. Though Browne also resigned from the board of Goldman Sachs, he still works for Apax Partners, a global private equity firm, and goes to his office when it suits him.

And as usual in the corporate world despite his fall from grace Lord Browne has landed on his feet.

FORMER BP boss Lord Browne has walked away with a pension worth just over £1million a year.The disgraced peer tops the list of 100 leading execs who look forward to pensions of £200,000 a year or more.

The former chief executive of BP PLC Lord Browne of Madingley has resigned as non-executive chairman of the advisory board of private equity firm Apax Partners to join energy and power private equity specialists Riverstone Holdings LLC.

His appointment at Riverstone Holdings, which specialises in the energy sector, comes almost four months after he quit oil giant BP when it emerged he lied to the High Court during a battle to block stories about his private life.

Lord Browne takes on the post of managing director and managing partner of Riverstone’s European business and will be based in London, where the group is soon to open an office.

Tags:

BP, Kyoto, environmentalism, homosexual, scandal, Lord Browne, John Browne,

Beyond Petroleum, British Petroleum, oil, Jeff Chevalier,

Made In The U.S. Air Disaster

While the focus on China lately has been on product safety, of products outsourced to U.S. companies, it's a two way street.

As Taiwan based Air China found out yesterday when its commercial airliner burst into flames upon landing in Okinawa.

The Boeing aircraft and its engine co-produced by a unit of General Electric Co., were involved in a handful of fires on U.S. flights before Monday's dramatic China Airlines explosion.

Minutes after all 165 people aboard evacuated, the China Airlines plane burst into a fireball on the tarmac at Naha Airport in Okinawa, Japan.

The 737-800 had CFM 56 engines, made by CFM International, a joint venture between GE Aviation and France's Snecma.

A preliminary search of the U.S. Federal Aviation Administration's accident/incident database found four cases involving fires with similar Boeing planes or engines between July 1998 and July 2005.

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Big Tobacco

While I defend a persons choice to smoke, I recognize it is a health problem and an addiction, and that the corporate cartels behind it are of course making a killing off of killing.

But so are the corporations that make weapons and weapons systems.And funny thing like Big Tobacco they use bribery, illegal trading practices, smuggling etc.



"Diamond (reference services, Louisiana State U.) describes the world (literally) of US Big Tobacco and Nicotiana tobacum from 1990 to 2004 as it expanded into new world markets in Asia, Eastern Europe and Russia, often with the assistance of the US government, and kept the more mature US market puffing along. The topics for his annotated bibliography include economic aspects such as advertising and marketing (including philanthropy and sponsorship of arts and sporting events), distribution channels (including duty-free, illegal trade, and the market of prisons and jails), and political aspects (such as the various relationships of the industry with politicians, lobbyists, litigators and the State of California). Topics of the statistical tables include cash receipts, exports and advertising expenditures (page numbers would be recommended in this section) and other appendices include company profiles, court cases and tobacco websites."



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Same Old Olympics

So what else is new.

Chinese activists and intellectuals have published an open letter to "Chinese and World Leaders" on numerous dissident websites demanding that China honor its commitment to respect human rights at the 2008 Olympic Games in Beijing.

For this reason they cannot share in any “pride” in China’s glory as the Games’ host country; for them, “these glories are built on the ruins of the lives of ordinary people, on the forced removal of urban migrants, and on the sufferings of victims of brutal land grabbing, forced eviction, exploitation of labour, and arbitrary detention.”

Regardless of where they are held, urban poor are displaced, developers rule and it's all glossed over in the name of Sport.

The Olympics are the ultimate reflection of the Society of the Spectacle.



SEE:

Scabs Cause Olympic Cost Overruns

The Curse of Bruce McNall

Pro Sports and Criminal Capitalism

Criminal Capitalism-Sports-Soccer

SKYDOME: THE POLITICAL ECONOMY OF SPORTS

NFL IN TORONTO

As American As Apple Pie

The End Of The Leisure Society

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No Justice In Canada

There is no justice in Canada when it comes to war crimes or white collar crimes.

No charges to be laid in friendly-fire death of Canadian soldier

Bre-X case an "embarrassment" for Canadian law, says expert

Judge sets aside Mulroney ruling on $470000

Also See:

Friendly Fire

Scandal in the Alberta Stock Exchange

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Surge Blackout

With bad news like this;

An Iraqi power plant rebuilt with tens of millions of U.S. dollars fell into disrepair once transferred to the Baghdad government, according to the U.S. office that tracks reconstruction spending.

The Iraqis' failure to maintain the 320-megawatt Dora plant, considered an important source of power for electricity-starved Baghdad, is just one of the issues hindering attempts to rebuild the country, the latest audit report to Congress concludes.

The U.S. Government has decided to do this; US drops Baghdad electricity reports

While the Iraqi government points fingers elsewhere.Iraq Electricity Ministry blames provinces

This proves George Bush was right the U.S. is not capable of nation building. Or even maintaining infrastructure in Iraq or at home.

The Bush administration has shown little progress - and in some cases backtracked - on its pledge to do a better job in awarding contracts to small, Gulf Coast businesses for Hurricane Katrina work, a congressional analysis shows.

The review of federal contracts from five government agencies, conducted by the House Small Business Committee, is the latest to document missteps in the award of billions of dollars of lucrative government work since the 2005 storm.

See:

What He Didn't Say

Iraq; The War For Oil

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Turning Lead into Gold

Alchemy has long been misinterpreted as being about turning Lead in to Gold. In fact it is a mythological allegory about the transcendence from feudalism to capitalism. In that sense the 2oth Century discovery of Nuclear power was the ultimate philosophers stone.

In post WWII America lead based paint was cheap and applied everywhere. It was banned in the seventies. Today in the Global Economy the same lead based culture is once again being revived, in China. And of course its all about making gold, that is cold hard cash.

And think of the workers who applied this paint to the toys, if the danger is there for the consumer it is even worse for the workers.

Fisher-Price recalls almost one million toys

Toy-maker Fisher-Price is recalling 83 types of toys — including the popular Big Bird, Elmo, Dora and Diego characters — because their paint contains excessive amounts of lead.

The worldwide recall being announced Thursday involves 967,000 plastic preschool toys made by a Chinese vendor and sold in the United States between May and August. It is the latest in a wave of recalls that has heightened global concern about the safety of Chinese-made products.

The recall is the first for Fisher-Price Inc. and parent company Mattel Inc. involving lead paint. It is the largest for Mattel since 1998 when Fisher-Price had to yank about 10 million Power Wheels from toy stores.

Chinese authorities are now daily rounding up companies suspected of faulty products. The safety crackdown on domestic producers has been accompanied by a public relations campaign aimed at international traders.

"The Chinese government pays great attention to addressing flaws in product quality, especially the quality of food products," Li Changjiang, minister in charge of the General Administration of Quality Supervision, Inspection and Quarantine, said at a specially convened press conference.

The government's acknowledgement of existing problems makes a remarkable departure for a bureaucratic system prone to cover-ups.

When a pet-food ingredient produced in China was linked to the deaths of cats and dogs in North America in April, Beijing's first reaction was to deny it. "The poisoning of American pets has nothing to do with China," claimed a report in the Communist Party's flagship newspaper, the People's Daily.

Export-control officials argued that food contamination occurred both within the United States and with US exports to China. "No food-inspection system is foolproof," Li Yuanping, director general of the Import and Export Food Safety Bureau, countered at the time.

But international worries about China's exports have continued to mount with more and more reports about substandard and fake products coming to light. Since April, a slew of exports - including toothpaste, tires, seafood and toys - have been recalled or rejected around the world. What is worse, mislabeled drug ingredients in Chinese exports have been blamed for killing and injuring people in Panama and Haiti.

As a result, China has come under political pressure from the US and the European Union, where politicians are demanding assurances about the quality and safety of Chinese exports.

The decline in New York City's violent crime rate can be tied into the theory of a Fairfax, Va. economist, who believes lead poisoning accounts for most of the violent crime in the United States, according to an article in today's Washington Post.

Economist Rick Nevin has argued in a series of papers that the "New York miracle" was caused by local and federal efforts decades earlier to reduce exposure to lead poisoning.

Nevin has spent more than a decade researching and writing about the relationship between early childhood lead exposure and criminal behavior later in life. His theory offers a unifying new neurochemical explanation for fluctuations in the crime rate.

"It is stunning how strong the association is," Nevin told the Washington Post. "Sixty-five to ninety percent or more of the substantial variation in violent crime in all these countries was explained by lead."

SEE:

Criminal Capitalism: Pet Food Scandal

China Burps Greenspan Farts Dow Hiccups

China Dolphin Free

Business As Usual

Temporary Workers Exploitation

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Contracting Out Is A Crime

Once again the attempt by the Liberals to Reinvent government, the mantra of the neo-con revolution of the nineties, ends up costing Canadians millions. Whether it was the P3 Boondoggle with the Firearms registry, the RCMP pension fund fraud or this case where the Department of National Defense was bilked for millions. It all has to do with contracting out and outsourcing IT functions of the State.

Ex-federal employee guilty of huge fraud

A former defence bureaucrat, who led a jet-set lifestyle, pleaded guilty today to two charges in a phoney contract billing scheme that bilked $146-million out of the federal government before it was stopped.

Paul Champagne, who had been an $80,000-a-year contract manager with the department, pleaded guilty to one count of fraud and one count of breach of trust in an Ottawa courtroom.

He was fired from his job in 2003 after billing irregularities were revealed involving a contract with U.S. computer giant Hewlett-Packard.

After a lengthy RCMP investigation, Champagne, 49, was charged with seven fraud-related crimes. After he pleaded guilty today to two charges, the Crown dropped the remaining five counts.

He will be sentenced in January.

In the late 1990s, the Defence Department issued a series of contracts to Hewlett-Packard (Canada) Inc., eventually paying $159 million for computer maintenance services. The government later discovered it got little or nothing for its money.

The Public Works Department red-flagged the contracts over the four years prior to Champagne's dismissal, but did nothing. A scathing report in 2003 found that managers at the federal government's tendering department failed to appreciate the significance of at least three audits that warned something was terribly wrong with the computer contracts.

After the scandal became public, Hewlett-Packard said it was told by the department to pay a group of subcontractors and their work was deemed secret.

In May 2004, the computer giant repaid $145 million to the federal government, and said its employees did nothing wrong.

Two Ottawa businessmen, Peter Mellon and Ignatius Manso, were also charged, but the Crown said Monday only one case remains to be resolved. A spokesman for the RCMP couldn't say what the status of the cases might be.

Over 10 years, starting in 1993, five contracts worth a total of $250 million were signed with the Compaq Computer Corp., Digital Equipment and Hewlett-Packard, which eventually bought Compaq.

Audits conducted by Public Works in 1999 and 2000 raised concerns about three of the contracts, but in 2001 a further review found unauthorized billing and "evidence of contractual funding appropriated for other purposes."

After Champagne was fired, National Defence did its own internal review of contracts and discovered problems with two dozen other projects. Today, the Defence Department did not respond to requests for comment about what safeguards have been put in place to prevent a repeat of the fiasco.

At the time of his arrest Champagne was a multimillionaire, who insisted his wealth and homes in exclusive districts of Ottawa, Florida and the Turks and Caicos were the results of shrewd investment in high-tech stocks during the tech boom of the late 1990s.

SEE:

Defense Lobbyist Now Minister

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And Justice For All

Shareholders rights upheld in Lord Blacks trial which has conservatives all in a tizzy. Since they favored the aristocratic pretensions of robber baron Black rather than the rights of the 'little guy and gal'.

For Prince, 58, Black's fate was sealed in a 2002 shareholders' meeting.

As prosecutors played the recording, and she heard angry investors lambasting Black about why he and other high-ranking Hollinger executives were receiving millions in non-compete payments, Prince decided she would do everything she could to convict him of fraud.

In fact, if it were up to her, Black would also be going down on an additional fraud count. Had that happened, she said, it might have shown the pattern of criminal activity jurors needed to convict the fallen media baron of the most serious charge of all – racketeering.

Despite efforts to avoid media during the trial, jurors overheard in an elevator one day that some Canadian media had called them a "blue collar" jury and critiqued their appearance. "When we were deadlocked, one of the jurors, she's a teacher, gave us a pep talk," said Prince. "She said, 'They're calling us country bumpkins. They think we're too stupid to figure out this case.' And it brought us all together. We were going back in there with a unanimous verdict," she said.

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Comeuppance

The irony here is that Lord Black of Crossharbour left Canada to buy his Lordship from the Mother Country, because he thought we were too liberal for his pro-American conservative values.

Say it loud: Lord Black is too proud

Now that democracy of the common man; America, has given the Lord his comeuppance.

Conrad Black found guilty of obstruction and could face decades in prison

Just like his Her0 that other Crime Lord from Chicago.




Also See:

Conrad Black

Criminal Capitalism: Black Lord Dodges Tax Man

Criminal Capitalism: Black & Radler,Thick as Thieves

Criminal Capitalism: Lord Black Fugitive

Criminal Capitalism: Black gets his comeuppance

Criminal Capitalism: Hollinger's Black Eye

Criminal Capitalism: Black Out


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Blackstone Hi-jinx

Having appointed former PM the RH Brian Mulroney to the board, Blackstone the private equity hedge fund went public with an IPO. In the two weeks it has made no money on its posting in the stock market, but had paid off its CEO handsomely. This week it offered to buy out Hilton Hotels, with a bid that led to cries of insider trading. If any fallout occurs then Blackstone can always call on Mulroney to bail them out as he did with ADM.

Since the close on its first full day of trading on June 22nd, Blackstone Group (BX) has not finished a single session in positive territory.

Blackstone, whose founder Stephen Schwarzman pocketed $677 million from his IPO's proceeds.

Shares of Hilton Hotels Corp. rose 6.44% to close at $36.05 Tuesday -- ahead of the announcement of the company's sale to the Blackstone Group for approximately $20 billion in cash. After the close, Blackstone said it would pay $47.50 per share for Hilton, a 32% premium. The pre-news rise -- the shares' strongest surge since 2005 -- has prompted calls of insider trading.

Although much of the attention on Blackstone has centered on CEO and co-founder Stephen Schwarzman, it is Hamilton "Tony" James who runs the firm, his hand on everything from private equity deals to real estate transactions to advisory work.

As Blackstone's No. 2, the pressure is on James to lead the firm through its new chapter as a public company and steer the massive money machine through the rough waters facing private equity firms.

With the private equity industry booming, James earned more than the CEOs of Goldman Sachs (GS.N: Quote, Profile, Research) and JPMorgan (JPM.N: Quote, Profile, Research) combined last year and his stake in the firm is currently worth $1.55 billion after its June IPO -- a huge amount considering his riches have come neither as a chief executive nor a company founder.

The billions Blackstone's top executives raked in through the $4 billion IPO however, attracted the scrutiny of lawmakers, who proposed legislation to jack up the firm's tax bill.

"I'm worried about the fact that private equity has grown so quickly and so fast that it's made itself a natural target for speculation and resentment," James said at the Reuters Investment Banking Summit in November. "It has made a lot of money."

Also worrying are investor doubts about Blackstone's high valuation and a pullback in the credit markets, factors that have sent shares of the company lower since their debut.

See:

The Ethanol Scam: ADM and Brian Mulroney

Criminal Capitalism Business As Usual

Gambling On Your Future

Criminal Capitalism Redux

Golden Parachutes

Rich Getting Richer

CEO Cream Sour Milk for Workers

Criminal Capitalism The Story of 2006

White Collar Crime Reporter 1

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A Captain of Industry

I see my post here has caused some comments from the rightwhingnuts. It is amazing to see the folks who line up behind Lord Black of Cumuppance Harbour, a would be aristocrat and ruthless tyrant over his press empire. Folks like Sun writer and right wing bon vivant Peter Worthington who have been bemoaning his trial as class war.

They all praise Lord Black for being a hard working Captain of Industry. Except they seem to over look that he sunk his ship, leaving the women and children (shareholders, the little people, etc.) to fend for themselves as he and his wife made off like bandits.

Those on the right love their aristocrats. So much so that they create their own little family compacts. Damn shame about the end of feudalism.

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Conrad Black

Criminal Capitalism

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