Friday, February 6, 2009

Carlyle Group Knotted to U.S. Government

The U.S. and the Carlyle Group are intertwined in a massive Gordian knot. The latest bulge in that tangle is Louis J. Giuliano's election to Vice Chairman of the U.S. Postal Service Board. Mr. Guiliano is a Senior Advisor to The Carlyle Group. He sits alongside Arthur Leavitt (SEC), Mack McLarty (Clinton Chief of Staff), John Jumper (Air Force Chief), and Charles Rossotti (IRS). One level down sits William Kennard (FCC), David Marchick (Clinton White House), Olivier Sarkozy (half brother of French President), and Randall Quarles (Treasury).

And Carlyle co-founder David Rubenstein whined at the SuperReturn conference that he might have to do more lobbying. I bet Carlyle's $16,000 to Representative Rahm Emanuel and their $28,000 speaking fee to Leon Panetta get them phone access. Emanuel is Obama's Chief of Staff and Panetta the CIA nominee. Huge intelligence provider Booz, Allen, Hamilton needs to service billions in debt. BAH can't join the Carlyle fallen.

Carlyle Capital Corporation
Blue Wave Partners
Hawaiian Telecom

Will President Obama save the private equity underwriters (PEU's) and their SuperReturns? Stay tuned.