Saturday, March 1, 2008

Evan Rides to Carlyle's Rescue

Senator Evan Bayh spoke on CNBC regarding the issue of sovereign wealth funds investing in American companies. Why would he suggest this is a good thing, at least in the short run? One SWF recently purchased 7.5% of a huge private equity underwriter (PEU), The Carlyle Group. Abu Dhabi's government owned investment company plopped down $1.35 billion for a chunk of America's secretive and politically connected PEU.

Why was Evan dispatched to the United Arab Emirates, which houses the aforementioned Abu Dhabi? Mr. Bayh's lifetime donor record shows The Carlyle Group at number 7, having given over $75,000 to support the Senator's political career.

In the video the Senator stressed such foreign firms must follow guidelines, which they seem willing to support. Note the SEC's recently proposed requirements for foreign firms. They shed American accounting standards for the robust requirement of publishing their financial statements in English on their web site. Yes Evan, I can see how foreign PEU's would be happy to do that. Follow the money...