Thursday, November 13, 2014

Conflicted Governor Rauner: Rahm's Mentor

Private equity underwriter (PEU) Bruce Rauner won the Illinois Governorship and made the news for taking political donations from executives at firms that manage state pension funds.  Doing so is against the law, but when do laws apply to the greed and leverage boys or their sponsored politicians?  Pretty much never.

PEUs exploded after the new millennium, becoming ubiquitous under Presidents Bush and Obama.  Rauner mentored ex-Congressman Rahm Emanuel, steering him into investment banking.  Emanuel went on to serve as President Obama's Chief of Staff and Chicago Mayor.

Here's what the PEU virus delivers:
Illinois Governor-elect Bruce Rauner accepted more than $140,000 worth of campaign donations from executives affiliated with firms in which Illinois pension systems have investments, according to documents reviewed by the International Business Times.
  But back to public pension money and Rauner's conflict:

Financial disclosure documents show he still retains ownership stakes in 15 GTCR entities. Though Rauner said he retired from the firm in 2012, SEC documents show he retains a partnership stake in at least one GTCR subsidiary. The two state pension systems he will now oversee as governor list GTCR as managing state money.
It gets more twisted when one considers Rauner's GTCR is also a big investor in health care, which taxpayers fund through state Medicaid programs.  Rauner has layers and layers of conflicts.

President Obama's health deformer Nancy Ann DeParle retained an unknown stake in CCMP Capital Partners, receiving several distributions from CCMP affiliates while clearing the health care table for her PEU ilk.  Someone in the White House assurred the public that all of DeParle's conflicting assets had been divested.  They weren't all declared, especially her PEU residual stakes.

Add that Rauner's GTCR is running from a $110 million verdict for nursing home negligence and things get more disturbing.  Welcome to our PEU world, where politicians Red and Blue love PEU.

Update 12-19-14:  Rahm showed his addiction to financial industry contributions by exempting Chicago pensions from ethics coverage.

Update 3-15-15:  Governor Rauner was a top donor to 2014 state election campaigns, using his PEU fortune to fund/buy his election.  Polticians Red and Blue love PEU.  PEU Bruce Rauner is on the Red team.