Thursday, May 9, 2019

Milken History for Younger Generations

Zerohedge reported on the interview with an interesting question:

Q:  "Why do younger generations seem to be losing faith in the free enterprise system?" -- Host Michael Milken
A:  "This is an entire (group of people) that don't know history." --  Ken Griffin
They may not know Cold War history but they lived through a significant financial event.  The young adult generation were children during the 2008 economic crisis.  They could sense the stress their parents, family, community and our society experienced during that crisis.  President George W. Bush and his advisors were clearly rattled and mobilized trillions ($) to save Wall Street. 

Conference host Michael Milken was part of an earlier economic crisis, one handled by President George H. W. Bush.  Before we enter that period of history consider Milken's bio which states:

Between 1969 and 1989, he revolutionized capital markets by pricing and rewarding risk more efficiently and democratizing access to capital. He financed thousands of companies that collectively created millions of jobs.
Had Mr. Milken achieved his claim he would not have gone to jail nor would the federal government have to bail out the Savings and Loan industry.  Consider his history:

The NYTimes reported in 1990:

Savings and loans played a central role in the development of the junk bond market, and many of Mr. Milken's largest clients were savings institutions that invested heavily in junk bonds underwritten by Drexel. In the rescue legislation signed by President Bush last summer, savings and loans were required to sell their junk bond holdings by 1994. The junk bond market has since collapsed, and institutions are having trouble unloading their holdings.

Last fall Drexel pleaded guilty to six criminal charges that described Mr. Milken as being at the crux of schemes which allowed the firm to cheat a client, trick a corporation into being taken over and manipulate the marketplace. In early February, faced with mounting financial pressure, Drexel collapsed and is now liquidating.

The move that led to Mr. Milken's downfall was his decision to provide hundreds of millions of dollars in financing to Mr. Boesky's stock trading corporation. Because Mr. Boesky was betting on takeovers, many of which Drexel put together, the relationship was viewed on Wall Street as questionable if not a clear conflict-of-interest.

According to the Government charges against Mr. Milken, Mr. Boesky was frequently called by the financier and instructed on investments to make. Those instructions were intended to benefit Drexel, sometimes to the disadvantage of the firm's clients.
That does not sound like pricing risk more efficiently or democratizing access to capital.  For his criminal deeds Milken paid a $600 million fine and was sentenced to ten years in jail.

Judge Wood said the former financier had to be sentenced to a long jail term to send a message to the financial community, and also because he chose to break the law despite his advantages of position and intelligence.\
"When a man of your power in the financial world, at the head of the most important department of one of the most important investment banking houses in this country, repeatedly conspires to violate, and violates, securities and tax laws in order to achieve more power and wealth for himself and his wealthy clients, and commits financial crimes that are particularly hard to detect, a significant prison term is required," she said.
Milken served 22 months.   Congress estimated in 1992 a $215 billion cost to clean up the Savings and Loan Crisis.  The report said this amounted to $800 for every man, woman and child in the U.S.  

The full extent of Mr. Milken's wealth has never been publicly disclosed. But he is expected to remain a very rich man despite the fine,
Reformed crook Michael Milken helped democratize government bailouts for the financial industry while maintaining his ill begotten gains.  He is the poster child for the private equity underwriter (PEU) class.  The greed and leverage boys believe unconstrained free markets (with significant government subsidies) are the solutions to all of America's ills.

The younger generations know this not to be true.  It's in their lived childhood experience.  The older generation should know better but greed is an tantalizing, unrelenting taskmaster.    

Sunday, April 28, 2019

Carlyle to Pull $1.35 Billion Out of PPD

Arabian reported:

Hellman & Friedman LLC and Carlyle Group LP are seeking to take as much as $1.35 billion of cash out of drug research company Pharmaceutical Product Development LLC. 

The firm’s private equity owners are seeking approval from some of PPD’s creditors for the dividend plan, according to people familiar with the matter. To fund the payment, PPD is mulling the sale of a risky type of junk bond called PIK toggle that allows a borrower to delay interest payments, said the people, asking not to be identified discussing a private matter. 

The plan to take cash out of PPD - one of the largest providers of outsourced clinical research whose clients have included GlaxoSmithKline Plc and Pfizer  - comes at a particularly turbulent time for the health care sector.  

In this case, the debt would be issued by PPD’s holding company, ranking it below most of PPD’s existing borrowings and one step further removed from the company’s assets, the people familiar said. 
Affordable healthcare is the public's biggest worry and has been for decades.  Private equity underwriters are ubiquitous in healthcare and have added significant costs to the system. 

Carlyle Group and Hellman & Friedman acquired PPD in 2011, in a deal valued at $3.9 billion. The Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC joined as minority investors in 2017 as part of a recapitalisation that valued the company at more than $9 billion
Greed lives and elected officials cater to the PEU boys and their insatiable longing for more money, power and influence. What's another $1 billion among friends?

Update 4-30-19:  Pitchbook ran a piece on the proposed $1.4 billion dividend Carlyle plans to suck out of PPD.

(PEU Report noted Carlyle's original purchase of PPD and it's strange 2017 deal.  Other PEU PPD pieces can be found here.)

Wednesday, April 24, 2019

Apollo Crammed Down CEVA Executives It Required to Buy Stock in Affiliate

Apollo Global Management LLC purchased CEVA for $1.9 billion in November 2006.  The deal required CEVA executives to invest in their private company's stock.  Bloomberg reported:

Shortly after the CEVA purchase, Apollo acquired another logistics company, EGL Inc., for $2.1 billion, doubling the debt on the books of the merged company.

Apollo says that in 2006 and 2007 managers were given the opportunity to invest since it would give them “skin in the game.”

By 2007, CEVA’s bonds had started tumbling and Apollo began buying. From 2007 to 2011, Apollo purchased CEVA bonds for an average price of 50 cents on the dollar, according to an Apollo document.
In 2013 Apollo forced a recapitalization of CEVA as the major holder of the company's debt.  The move made CEVA's nonpublic stock worthless, including company stock executives had been forced to purchase.

CEVA rolled out a new share plan in 2013 that offered managers the possibility of recouping losses -- if they gave up the right to sue. 
CEVA went public in May 2018. In November, Apollo sold its remaining stake. Taking into account management and transaction fees, the buyout firm made a profit on the deal.
To sum up, Apollo bought two companies, CEVA and EGL, and loaded them with debt.  Shortly after completing the deal investors deemed the company a poor risk and the price of its bonds cratered.  Apollo took advantage and bought back the debt at a 50% discount.  They used that debt to zero out the companies nonpublic stock.  Apollo and other debt holders received the new equity for the firm.

In 2013, when Apollo’s debt-for-equity swap rendered CEVA executives’ shares worthless, current and former managers say they were shocked.
There is nothing shocking about the PEU boys and what they will do to fulfill their ceaseless greed.  Apollo had their sticky fingers in on every side of the deal. 

Tuesday, April 23, 2019

Carlyle's AsiaSat Pipe Full of Smoke

WSJ reported:

Orbiting 22,000 miles above Earth, a fleet of American-built satellites is serving the Chinese government in ways that challenge the U.S.
TechCrunch added:

The Chinese government has been using a private company jointly owned by a U.S. investment firm and its Chinese counterpart to expand its surveillance and telecommunications capabilities using American technology,

At the center of the Journal’s reporting is a company called Asia Satellite Telecommunications (AsiaSat). It’s a satellite operating company acquired back in 2015 by U.S. private equity firm The Carlyle Group and Chinese private equity firm CITIC Group. Both Carlyle and CITIC are known for their ties to government in their respective home nations.

Carlyle pretended to be hand's off regarding uses of AsiaSat's satellites.

In statements to The Wall Street Journal, Carlyle said that AsiaSat’s equipment supports internet and phone communications for Chinese telecommunications carriers.

“It is effectively a pipe,” Carlyle said in a statement to the Journal, “and AsiaSat, because of privacy issues, doesn’t monitor or regulate the content that flows through it.”
Carlyle has long read U.S government tea leaves and profited handsomely.  The politically connected private equity underwriter (PEU) went global some time ago.  It promotes Carlyle as creating opportunities in virtually every market around the world.

Before Carlyle laid any pipe it was well aware of the market for what could flow through it

Carlyle has two managing directors on AsiaSat's board of directors. 

I'm sure they are well aware of the market opportunities available to AsiaSat from a repressive Chinese government.  Carlyle demands it as well as grand returns.  The greed and leverage boys will obfuscate when their mendacity is revealed.  It's like blowing smoke from a pipe....

Tuesday, March 26, 2019

Healthcare Nonprofits Go PEU

Over 40,000 players attended the J.P. Morgan healthcare conference for 2019.  Becker's Hospital Review reported:

Over the last decade, there has been a massive level of consolidation with hundreds of hospitals and thousands of physician practices being acquired every year. While more mergers and acquisitions will still happen, this stunning and fundamental restructuring of healthcare delivery has taken place and there is no turning back. This is likely the single biggest shift relative to how healthcare is structured in this country that will take place during our lifetime, and it barely gets mentioned.  
Private equity underwriters (PEU), great acquirers, barely get mentioned as a cancer on our economy and workplace.  Becker's noted how nonprofit hospitals act like PEUs:

Spectrum Health has a $100 million venture fund. Providence St. Joseph's Health announced a second $150 million venture capital and growth equity fund. Mayo Clinic Ventures has returned over $700 million to their organization. Jefferson Health has a 120-person innovation team focused on digital innovation and the consumer experience, partnering with companies to build solutions.
My consumer experience has been that I pay more each year for less healthcare coverage.  I've paid out of pocket for the few health services I've consumed.  Friends work for large healthcare companies, nonprofit and for-profit, and many feel abandoned by executives misplaced priorities. 

Bad managers only know how to act with data and often do so without an understanding of variation.  Thus they made decisions that waste time, money and harm people.

... the lifeline for every health and healthcare hub will be actionable data. Applied analytics is a boring term that is actually gaining traction and starting to dislodge buzzwords like big data, machine learning and artificial intelligence relative to its importance to healthcare providers.
What happens when healthcare leaders are unable to tell the difference between correlation and causation?  How much harm will they cause?

Employees did not show up in the future of healthcare.  I predict healthcare will get much worse under these PEU management practices.  Nonprofit healthcare systems have downed the language/strategies of the greed and leverage boys.  This is most concerning.  A dark future awaits. 

Update 3-27-19:  Two large government health insurers, Centene and WellCare, announced a deal today.  An activist with ALS offered "... this is how they do business—deny, deny, delay, and then people give up."  So much for platforms and big data.

Friday, February 8, 2019

Carlyle Promotes Lobbyist Stacey Dion

GovConWire reported:

Stacey Dion, a managing director of The Carlyle Group (Nasdaq: CG), has been promoted to global head of government affairs at the Washington, D.C.-based private equity firm.

In her new role, she will work with the company’s senior executives and investment professionals in efforts to drive its legislative and regulatory efforts, Carlyle said Wednesday.

Before she joined the investment firm in 2016, she was vice president of corporate public policy at Boeing (NYSE: BA).
Dion was Policy Advisor and Counsel to Republican House Leader John Boehner from 2007-2008.
That's the period of the Financial Crisis that produced TARP and multiple government programs that enriched Carlyle (BankUnited, Boston Private Financial).

Dion served as Carlyle's lobbyist since 2016.  Carlyle spent $590,000 on lobbying in 2018 and $390,000 in 2017.  Last year Dion lobbied for Carlyle on the following issues:

  • Issues related to corporate tax reform (H.R. 1 - Tax Cuts and Jobs Act); issues related to Opportunity Zones; TCJA (H.R. 1) Regulations
  • Issues related to infrastructure and public-private partnerships (P3s)
  • Issues related to EPA administered program; H.R.8 - Water Resources Development Act of 2018, provisions related to the use of Army Corps data by non-federal interests
  • H.R. 4267 - Small Business Credit Availability Act, provisions related to leverage ratio
A similar era as the Fall 2008 Financial Crisis may be nearing.  At risk is corporate junk debt issued by the likes of Carlyle and its PEU brethren.  

I'm sure GHGA Dion has many willing listeners on Capital Hill.  America's Red and Blue political teams love PEU.  Add that Fed Chair Jerome Powell and Vice Chair Randall Quarles have Carlyle Group pedigrees.  Dion, Congress and the Fed to the PEU rescue?

Sunday, February 3, 2019

PEU Greed Behind Weath Inequality

Private equity underwriters (PEU) are behind the rise of financialization, debt-fueled speculation and globalization that has enriched the rich since 1984.   Bain Capital was established that very year.  Pete Peterson and Stephen Schwarzman started Blackstone in 1985.  The Carlyle Group began in 1987.  Leon Black founded Apollo in 1990 while David Bonderman started TPG in 1992.

Fox News contributor Tucker Carlson spoke on America's mercenary leaders who don't bother to understand our problems.

Romney spent the bulk of his business career at a firm called Bain Capital. Bain Capital all but invented what is now a familiar business strategy: take over an existing company for a short period of time, cut costs by firing employees, run up the debt, extract the wealth, and move on, sometimes leaving retirees without their earned pensions. Romney became fantastically rich doing this. Meanwhile, a remarkable number of those companies are now bankrupt or extinct. This is the private equity model. Our ruling class sees nothing wrong with it. It’s how they run the country.
Both of America"s political teams cater to the PEU class.  Tucker's Red Team has long served the greed and leverage boys.  The Blue Team began its PEU lean-in under President Bill Clinton.  For decades both parties grovelled to the Billionaire boys club which recently met in Davos, Switzerland.

PEUs paid ex-U.S. Presidents hefty sums for an hour long talk at their annual accredited investor meeting.  Publicly traded PEU unit holders were not invited.

Carlyle Group co-founder Daniel D'Aniello wants every citizen to have a PEU investment.  He recently said:

“You’re talking about retail investors coming into the asset class, and that could eventually occur; everybody’s working on the formula for it."  
The article called it "democratizing private equity."  That statement is patently laughable.  It's made even more so by PEUs not giving unitholders a vote, as Carlyle did after it went public..

The PEU model infected our country.  It will take strong medicine to drive that toxin away.  Neither party is able to address toxic PEUs. 

Saturday, February 2, 2019

Rubenstein Reminds Davos of Dubai Ports World

CNBC interviewed Carlyle Group cofounder David Rubenstein from the World Economic Forum meeting in Davos, Switzerland.

Reporter Becky Quick referred to Rubenstein as "deeply sourced in Washington, D.C."  Later she remarked  how comfortable Fed Chair Powell felt with Rubenstein, but failed to mention Powell once worked for The Carlyle Group.

Rubenstein talked about political risk in the United States.  He said:

"Remember the famous Dubai Ports case?" 

Salesman Rubenstein knows Carlyle sold affiliates Landmark Aviation and Standard Aero to Dubai Aerospace just months after the Dubai Ports World debacle.  Fifty airports vs. six ports, which is worthy of greater outcry?  Deeply connected Rubenstein's deal went through without a peep.  He reminded the Davos crowd and CNBC anchors of this accomplishment ever so indirectly

The annual meeting of the billionaire boys club is over.  The world still aims to serve them.  Slap your bootstraps on and enjoy being ridden.  It's the PEU way.

Thursday, January 31, 2019

Tax Talk Will Get Davos Speaker Uninvited

The Guardian reported:

A discussion panel at the Davos World Economic Forum has become a sensation after a Dutch historian took billionaires to task for not paying taxes.

In a video shared tens of thousands of times, Rutger Bregman, author of the book Utopia for Realists, bemoans the failure of attendees at the recent gathering in Switzerland to address the key issue in the battle for greater equality: the failure of rich people to pay their fair share of taxes.

Noting that 1,500 people had travelled to Davos by private jet to hear David Attenborough talk about climate change, he said he was bewildered that no one was talking about raising taxes on the rich.
Private equity underwriters (PEU) retain preferred carried interest taxation twelve years after Congress' first attempt at removal.

No one talks about raising taxes on the rich at Davos because the rich are Davos. However, they do care about the common person being able to invest in private equity.

Sunday, January 27, 2019

Some Davos Men Ready to Move on with Saudi Arabia

FT reported:

,,, the Khashoggi affair had been relegated to the past. Saudi officials highlighted recent deals as proof, including infrastructure projects with international companies. They also pointed to $7.5bn of new government debt that was raised this month with the help of banks including JPMorgan Chase, HSBC, Citigroup and BNP Paribas.
JP Morgan targeted Saudi Arabia for business before the kingdom exterminated journalist Jamal Khashoggi.  Others Davos attendees weren't so sure.

Some senior western financiers said re-engaging with the kingdom so soon after Khashoggi’s grisly killing would be too controversial. Several people attending Davos this week told the FT that the country remained in the “penalty box” and urged Riyadh to offer bolder gestures of reassurance.
Last year Crown Prince Mohammed bin Salman was a star attraction at the Billionaire Boys Club which includes purchased politicians. The Crown Prince released his Uncle from prison last year as Davos neared its close and the Saudis sponsored a luncheon touting private investment in the Kingdom.

Imprisoning Prince Alaweed bin Talal and killing journalist Jamal Khashoggi, what won't the Davos man forgive on behalf of their billionaire brethren? Deals have to be done.

Thursday, January 24, 2019

Workers Need to Take Out Private Sector Loans for Welshing Federal Employer

From Davos CNBC's Andrew Ross Sorkin interviewed U.S. Commerce Chief Wilbur Ross.  Sorkin asked about unpaid federal workers and their worsening financial plight.  Ross referred to their situation as "not a good excuse why there should be a liquidity crisis."  Liquidity crisis is the language of the greed and leverage boys who gather annually in Davos and infect the highest levels of Western government (like PEU Wilbur Ross).

Contrast Ross with George Bailey and his newlywed wife when a bank run hit Beford Falls in It's a Wonderful Life.  Their response to scared and hurting customers, "What do you need?"  Leaders would ask that question and loan working employees the money needed to ride out a management created crisis.

Wilbur Ross' Invesco has huge money to invest in bank loans.  One might consider 800,000 federal employees needing credit a unique market opportunity.

Commerce Secretary Ross did not steer credit seeking employees to Invesco but to public sector credit unions.  A WEF website article quoted Ross on bank complexity in 2012.

I think that the real purpose and the real need that we have in this country for banks is to make loans particularly to small business and to individuals. I think that’s the hard part to fill.
Which Ross is right, the "easy to obtain a loan" public servant or the "hard to get a loan" private financier?  The Ross CNBC transcript is below:

ANDREW ROSS SORKIN: Mr. Secretary, but they're – but many of these people need -- Mr. Secretary, many of these workers clearly need the paycheck on a week-by-week basis. They're not, frankly, in my shoes, nor in yours. Nor in yours.


ANDREW ROSS SORKIN: So the question is, is this battle and fight at this point in the ball game worth it? Meaning, is the debate over everything else that the administration is fighting for worth more than the risk that's being taken on at the moment and the affect it's having on families of federal workers?

WILBUR ROSS: Well first of all, the banks and credit unions should be making credit available to them. When you think about it, these are basically government-guaranteed loans because the government has committed these folks will get back pay once this whole thing gets settled down. So there really is not a good excuse why there should be a liquidity crisis. Now, true, the people might have to pay a little bit of interest. But the idea that it's paycheck or zero is not a really valid idea. There's no reason why some institution wouldn't be willing to lend. And indeed we've heard tales of some of the –

ANDREW ROSS SORKIN: So it should be put on the private sector? The private sector needs to step up where the public sector can't?

WILBUR ROSS: No. What I'm saying is there have been ads run by a number of the public-sector credit unions, which are member organizations of the people who work in the departments. Those have announced very, very low interest rate loans to bridge people over the gap. That's the kind of cooperation between financial community and employee that really is warranted. It's a totally safe loan because at the end of the day it's 100% government guarantee.
Ross offered his version of TARP:  Too Arrogant for Real People on CNBC.  Workers are but serfs today and their masters are riding them hard.

Sunday, January 20, 2019

Greed, Leverage Boys Epitomize Davos

The Independent reported:

This year, hedge fund (and private equity) billionaires will fly to Davos in private jets to discuss the threat of climate change, and millionaire CEOs will discuss inequality at lavish drinks events.

...Davos provides a rare opportunity for world leaders and corporate executives to discuss global issues quietly in public and private meetings.

“Judging by the state of the world right now, 10 years on from the financial crisis and the dysfunctional state of global politics, I would suggest that these annual events have achieved the sum total of diddly squat,” says Michael Hewson, chief market analyst at CMC Markets UK.
Hardly, the annual gathering benefited the pocketbooks of the greed and leverage boys. Three years ago OXFAM called the Davos gathering a "busload of billionaires."  Four years ago the WEF identified inequality as the most significant trend.  It identified severe income disparity as a global risk starting in 2012.

While high earners experienced rising wages for the last decade middle income and low wage workers suffered.

The greed and leverage boys continue to have access to preferred carried interest taxation.

Their numbers reached an all time high in 2018.  FT reported:

As of January 2018, a record 2,296 private equity funds were active in the market, seeking to raise an aggregate $744bn, representing a 25 per cent increase compared with a year earlier.
I have experienced the impact of private equity ownership more than once in my career.  After the latest PEU takeover coworkers lost jobs, employees received reduced benefits and management bullying escalated.

Our executives have an equity stake in the company, workers do not.  C Suiters look after their interests to the detriment of customers and employees.  Busloads of billionaires have long set a self-serving agenda at Davos and for that the world has suffered.

Update 1-21-19:   ZeroHedge reported  "... no less than 1,500 private jet flights will land in Davos over the five days of its duration: a 50% increase in both private jets and toxic environmental emissions compared to last year, when roughly 1,000 private jets descended upon Davos."  The billionaire boys club begins in earnest.

Update 1-22-19:  At Davos Prince William will challenge business leaders to improve emotional and mental wellbeing in their workplaces.  I can attest to the damage done by PEU practices to employee mental health.  Greed is distinctly uninsightful, one-sided and creates many losers.

Update 1-23-19:  Jesse'sCafeAmerican wrote:  "The news of the day from Davos was almost unbelievably scripted and vacuous behind the headlines, while at the same time mildly nauseating.   Much like so many modern reality TV shows."

Update 1-24-19:  The Davos boys met to solve the very problems they created in vastly enriching themselves.  Bono had a big day for a PEU.  He called capitalism a wild beast.

Update 1-25-19:  Solving the world's problems while further enriching billionaires.  The game is rigged against common people.

Update 1-26-19:   One member of the super rich stated "the ordinary people who drive a prosperous economy are instead impoverished in favour of the bank accounts of billionaires."

Update 1-27-19:  LATimes reported on the massive increase in PEU founder wealth. "The fortunes of a dozen 2009 Davos attendees have soared by a combined $175 billion, even as median U.S. household wealth has stagnated."  Davos worked for the billionaire boys club for the last decade, not for the common person. "Compensation for chief executives in America’s largest firms is now 312 times the annual average pay of the typical worker, compared with about 200 times in 2009, 58 times in 1989 and 20 times in 1965."

Monday, January 14, 2019

Fed Chair Jay Powell Interviewed by PEU Boss

The interview can be seen on CNBC.  Fed Chair Jay Powell worked for President George H. W. Bush's Treasury Department and at The Carlyle Group for eight years.

The interview mentions another former Carlyle PEU now at the Federal Reserve Bank, Randall Quarles.  Quarles worked for President George W. Bush's Treasury Department overseeing all the stuff that blew up in the Fall 2008 financial crisis.

Carlyle is renowned for its political connections and the Fed is no exception.  What might the Fed do should leveraged loans fail on a widespread basis?  Mr. Rubenstein did not ask that question.

Sunday, January 13, 2019

Davos 2019 Looms

Western greed and excess are symbolized by the annual gathering of the World Economic Forum in Davos, Switzerland.  The WEF catered to the billionaire class and coddled private equity founders as their outsized influence displaced the basic needs of common citizens.  What does the WEF have in store for 2019?  It's globalization 4.0

To draft a blueprint for a shared global-governance architecture, we must avoid becoming mired in the current moment of crisis management.

Specifically, this task will require two things of the international community: wider engagement and heightened imagination. The engagement of all stakeholders in sustained dialogue will be crucial, as will the imagination to think systemically, and beyond one’s own short-term institutional and national considerations.
These will be the two organizing principles of the World Economic Forum’s upcoming Annual Meeting in Davos-Klosters, which will convene under the theme of “Globalization 4.0: Shaping a New Architecture in the Age of the Fourth Industrial Revolution”. Ready or not, a new world is upon us.
Globalization 1.0-3.0 ended up with economic gains going to the Davos class.  Average people have been living under a new world where our voices do not matter and our pay does not go up.

Our elected officials cater to the David Rubensteins (Carlyle Group), the Stephen Schwarzmans (Blackstone Group), the David Bondermans (TPG Capital) and Leon Blacks (Apollo Global).  The PEU boys have spoken at Davos for at least ten years.    Six years ago Rubenstein, Schwarzman and Bonderman attended.  Nine years ago the group held off the removal of preferred carried interest taxation by U.S. elected officials.

The global governance architecture is led by the greed/leverage boys and a reformed Saudi Prince who jailed his relatives and ordered the execution of a U.S. based journalist.  The World Economic Forum highlighted Saudi Crown Prince Mohammed bin Salman at their 2018 gathering.

No one should trust this group.  Their desire for more power and money is clear.