Sunday, June 9, 2013

Carlyle Group's Good Name Tainted?

How might the Snowden affair impact Booz Allen Hamilton's stock price Monday morning?  The Carlyle Group holds nearly 92 million shares of Booz, worth over $1.6 billion.

The Carlyle Group is renowned for keeping its good name, even when it and its affiliates behave in questionable ways.  The public is unaware of the many situations Carlyle survived:

1.  Pension pay to play investigations
2.  Twenty five LifeCare hospital deaths post Hurricane Katrina
3.  Landmark Aviation's providing rendition flights
4.  The implosion of Carlyle Capital Corporation
5.  SemGroup's bad energy bets which led to bankruptcy
6.  Oriental Trading's selling toxic jewelry to children 
7.  Yashili selling melamine-tainted infant milk to Chinese mothers
8.  Synagro Technologies' bribing of public officials,
9.  Church Street Management's performing unnecessary and poor quality dental procedures on low-income children to bilk Medicaid

Corporate leaders hate leakers as much as President Obama and Congress.  Their "light shining" damages reputations and cost money.  How much will Snowden cost the Carlyle brand?   Remember Carlyle will do anything to maintain their good name.

Update 6-10-13:  BAH's stock fell 46 cents a share. Carlyle's Booz holdings fell by $42.2 million.  With the Government Corporate Monstrosity duly enraged, Snowden will need help.  Whistleblowers, government and corporate, face a daunting road once they pull the curtain on unethical behavior.  We live in a time when might makes right.     

Update 6-12-13:  Carlyle's BAH stock holdings fell by $134 million thanks to Snowden's revelations.  That simply won't do for a politically connected PEU.