Carlyle Group Sells Steel Tube Maker to Russians

Days after the Russian Army steamed deep into democratic Georgia, The Carlyle Group announced the sale of John Maneely Co. to a Russian steelmaker for $3.5 billion. Carlyle paid $550 million for the firm in 2006, then added two other tube makers, Atlas Tube Inc. and Sharon Tube Co.

Note the tube connection. Didn't we accuse Saddam Hussein of taking delivery of steel tubes capable of delivering nuclear weapons, of wanting to build a super gun?

The deal is expected to close in the fourth quarter. That is if CFIS approves yet another Carlyle sale of assets for foreign companies.

Standard Aero and Landmark Aviation went to Dubai Aerospace with nary an objection from the feds, nor a peep from the media. One might expect over 50 U.S. airport operations to create a bigger furor than a handful of ports, especially given the UAE's record of bribing Saddam.

One could conclude Carlyle's money machine is a higher priority for the Bush administration, who celebrates their Pennsylvania Avenue neighbor's potential 500% profit in two years. Don't worry that a huge American manufacturer will be under the control of a firm from a "dictatorial" country.

Russian aggression will not go unanswered according to VP Dick Cheney. Of course, it will involve the sale of more steel tubes.

Carlyle's Lord Browne Sugar Coats BP Blast

Three years after the BP refinery explosion in Texas City that killed 15 people, the CEO finally testified as to his knowledge of company operations. It turns out Lord John Browne doesn't know much, given his frequent responses of "I can't recall" and "I was not aware". Was Alberto Gonzales the inspiration for John's testimony?

One might expect a CEO who'd participated in two outside investigations to know a bit more. Consider all of John's learning opportunities and how he responded:

March 2005 An explosion at BP's Texas City refinery killed 15 people and injured 180.

September 2005 The U.S. Occupational Safety and Health Administration found BP committed more than 300 willful violations of its rules and fined the company $21.3 million.

December 2005 BP's own report blamed failures by management at the refinery, saying it didn’t make safety a priority, tolerated risks and failed to communicate. But BP added it “found no evidence of anyone consciously or intentionally taking actions or decisions that put others at risk.”

January 2007 Lord Browne announces his resignation, effective in July

January 2007 James Baker of Baker Botts releases the results of a panel's investigation into the accident. It cited the company's emphasis on personal safety, while ignoring process safety. It gave a virtual free pass to senior management, citing only a corporate blind spot. (John Browne testified that he read this report)

March 2007 The U.S. Chemical Safety Board releases its report. The investigators concluded that cost cuts mandated by the company's London headquarters contributed to the tragedy - and that bosses ignored successive warnings that an accident was imminent (According to his legal testimony, John Browne did not read this report)

August 2007 The good Lord scampered to a cushy job with The Carlyle Group, via its Riverstone Energy joint venture.

April 2008 Lord John Browne gave legal deposition on the Texas City accident and his knowledge of contributory factors.

It turns out, Mr. Browne knew the right people instead of the right answers. James Baker helped him dance out of a situation, one the Lord promised to "make right." Besides going light on John in his investigation, Baker's buddies at Carlyle provided him gainful employment, enabling him to keep his butler and chauffeur.

James A. Baker is the only the top of the Lord Browne rabbit hole. Falling further into his deposition, on page 19 one passes Condi Rice, George Bush and Dick Cheney.

The ties to James Baker are deep within BP. The politically powerful Texan performed legal work for the oil company. Also, the executive in charge of British Petroleum's refining operations, John Manzoni, served on a 21st Century Energy Task Force at the Baker Institute. Mr. Manzoni left BP shortly before his protector, Lord John.

Mr. Manzoni's testimony revealed his role in deferred maintenance at more than just the Texas City refinery. John had operational responsibilities for BP at their Prudhoe Bay, Alaska facilities. Deferred maintenance on the Alaskan oil pipeline in 1994-1996 contributed to the BP oil leak.

The depositions sounds incredibly similar to Bush minions, after they've had something blow up in their face. Consider these statements by Mr. Manzoni in regard to the accident that killed 15 people:

Q: You understand there are a number of allegations of deferred maintenance contributing to the condition of the units at Texas City and it also contributed to the failures resulting in the explosion of March 23, 2005?

A: I am not aware of any specifics of those allegations.

Q: Do you think you should?

A: I am much more concerned to assure that we have proper maintenance programs and that we are working to create the appropriate maintenance programs going forward.

Does that sound like Attorney General Michael Mukasy in response to Justice Department political hiring? Or maybe like Treasury Chief Hank Paulson on the subprime debacle?

A little deeper in Mr. Manzoni's testimony comes the familiar Bush defense, it was an unprecedented disaster! He had eight months to learn from Frances Townsend's sorry report on the White House's Katrina response. Here's John's lesson learned:

A: If we had known it had existed, we would have done, of course. We would have done more then. We simply didn't see it coming.

Bull hockey, Mr. Browne and Manzoni! It's a country club, where those in power aren't held accountable. But they do look after one another. Thanks to the dirty duo for testifying to this fact. (It's a shame neither man had the cojones to come clean, like the executive for Imperial Sugar. Graham H. Graham called conditions in the sugar plant in Port Wentworth, Georgia "shocking" and "disgraceful.")

Bush Dons Chevron Shield for Burmese Junta

While in Thailand, President Bush heard compelling stories from Burmese refugees. Several oppressed citizens shared the stage with America's Commander in Chief.

LWAY AYE NANG: I would like to give our gratitude to the United States for the new sanctions in blocking the --

THE PRESIDENT: Right, right.

LWAY AYE NANG: -- to the United States. And this is really hitting the regime and -- the regime and their associates who have been defiling the country's natural resources for their own benefit and leaving ordinary citizens in extreme poverty.

Of course, the President confessed to Mrs. Lway that the White House and Congress gave Chevron a free pass to continue sending millions of dollars to junta. Didn't he? Nope, dishonest George continued his pattern of obfuscation and corporate worship.

Carlyle/Riverstone: Lose One, Gain Another

The Carlyle Group's energy joint venture, Riverstone Holdings, must feel a bit manic-depressive. Not long ago, they lost their investment in SemGroup to debt holders in a Chapter 11 bankruptcy. But the tough bounce back. LBO Wire stated:

"Riverstone Holdings LLC and Carlyle Group, which together manage the Riverstone/Carlyle Global Energy and Power Funds, have struck a deal to buy midstream energy company Gibson Energy Holdings Inc. from Hunting PLC for $1.1 billion."

Let's hope they don't lose billions hedging that midstream product with their new company.

Newt's "Build Now, Train More" to Lower Price of Health Care

To drive down health care costs, the U.S. should plan to build more hospitals now. It needs to accept more doctors into medical schools. At least that's the tonic according to Newt Gingrich's economic solutions for energy in his "Drill Here, Drill Now, Pay Less."

Probing deeper, Newt revealed a Princeton junior found a study showing future supply dropped prices immediately. The study by two economists was turned down for publication "because everyone already knows this." This novel discovery could well be applied to health care.

Will Newt offer "Build (New Beds) Now, Train More (MD's), Pay Less" as the tonic for health care? Doubtful, unless KKR's HCA sends big bucks to American Solutions for a Winning Solution, Gingrich's 527 group.

Newt Says Exxon Doesn't Need New Reserves

The media rushed Newt Gingrich after his formal remarks at the darkened House of Representatives. He joined the group of Capital Superman, who by their very words, dropped gasoline prices at the pump. In today's GOP Press Conference, SuperNewt offered the following on ExxonMobile, who days ago declared a nearly $12 billion quarterly profit. His remarks come near the 25:50 mark of the C-SPAN program:

"MobileExxon is going to make billions of dollars as long as supply is tight. And they already own the oil. They don't need drilling. The independents need drilling. The average American needs drilling. So the best way to take on big oil is to go to a dramatic drilling program and drive down the price of oil."

That's odd. ExxonMobile is #17 on the list of world oil companies in the size of its reserves. It is #1 on revenues and #1 on profits, but way behind on reserves. Middle East state owned oil companies stand at the top of the reserves list. Iran is #1 and Iraq #3. ExxonMobile is drooling at the bit over the prospect of Iraqi oil. Bush already cleared the table for big oil's access to the barely developed Iraqi oil fields. Will George W. do likewise with Iran in America's Contract on the Middle East?

Frances Townsend's "Patently Ridiculous" Report

Ex-White House Homeland Security Adviser Frances Townsend called the latest assertion of Bush malfeasance in building the case for war, "Patently ridiculous". She gave no consideration to author Ron Suskind's revelation that the White House ordered the CIA to fabricate a letter connecting Saddam Hussein to a 9/11 hijacker.

Fran's former associate in the White House, Tony Fratto called Suskind a nut, a conspiracy theorist. Neither spoke to the following:

Suskind noted in the acknowledgments that research assistant, Greg Jackson, “was sent to New York on a project for the book” in September 2007 and was “detained by federal agents in Manhattan. He was interrogated and his notes were confiscated, violations of his First and Fourth Amendment rights.”

It's not often crazy conspiracy theorists have anything worth taking, especially on "patently ridiculous" topics. Fran's words come full circle, given her Lessons Learned report on Hurricane Katrina. Who conducts "an investigation" and leaves out the hospital with the highest patient death toll post landfall? Mrs. Townsend omitted LifeCare Hosptials and their 24 patient deaths in her "patently ridiculous" whitewash. Weeks before landfall, the Carlyle Group closed the deal for LifeCare.