Skip to comments.Gingrich also profited from private equity firm
Posted on 01/11/2012 1:42:51 PM PST by freespirited
Although Former Speaker of the House Newt Gingrich has been in the news of late for attacking former Massachusetts Gov. Mitt Romney for his role at Bain Capital, it seems that Gingrich also had a paid role at a major private equity firm.
From 1999 to 2001, Gingrich served on an advisory board for Forstmann Little, according to a New York Times report. Former Sen. Bob Dole and former Secretary of State Henry Kissenger also served Forstmann Little in similar capacities, a Gingrich campaign spokesperson told the Times.
The Forstmann Little advisory board that Gingrich served on met twice a year in Manhattan at either the 21″ Club or at the Four Seasons. Discussions at these meetings revolved around potential investments, principally in the health care industry.
The Times also reported that Gingrich made actual investments in some of the companies held by Forstmann Little.
Forstmann Little has a history of close ties with Washington insiders. The investment company employed former Secretary of Defense Donald Rumsfeld as chief executive of General Instrument when it held the company in its portfolio.
Forstmann Little earned billions of dollars in profits from its investments in companies, including General Instrument and Gulfstream Aerospace. But the firm shut down most of its operations a decade ago after suffering losses from ill-timed bets on high-flying telecommunications companies at the height of that industrys bubble, the Times reported.
Mitt Romneys Bain Capital, Henry R. Kraviss Kohlberg Kravis & Roberts and Forstmann Little were three of the top private investment companies of the 1980s and 1990s. Forstmann Little and Kraviss Kohlberg Kravis & Roberts struggle for RJR Nabisco, which KKR eventually won, is profiled in the book and later movie Barbarians at the Gate.
And anyone should care, why ?
That’s just a LITTLE bit different than actually founding and running Bain, which is what Romney did.
Unless something is against a law, go for it.
Fair/unfair (whiney brats) is being touted as legal/illegal.
We have GOT to bring the McGuffey readers and Civics back into schools.
Frankly my dear, I don’t give a damn.
I want a strong leader, with a proven record of accomplishments and a clear vision of the future. I want a president that will turn this country around intelligently and quickly.
I will continue to support the one man that I believe in my heart and head can turn this country around and set the right course for my children and grandchildren to have a better future........ that man is Newt Gingrich.
GO NEWT GO.........
Who’d knew that being on an advisory board meant the same as running the show?
Is this one of those headlines designed to plant an idea in people’s mind. The message being, “see they all do it” ?
Oh, it is? If all you do is use a venture capitalist firm youre inured from having to explain why youre criticising venture capitalists ? No hypocricy there, eh?
IMO, Gingrich is such an anger head he'd throw his grandmother under Romney's bus if it would make him slow down.
I’m sure Newt’s work amply justified whatever he earned, just as with Fannie Mae.
Wow! Newt profited from capitalism. Yawn. GO NEWT!
There is nothing wrong with private equity firms, and Gingrich never said there was. Investing is fine, and buying unprofitable businesses and restructuring them is fine, even though it may mean spinning off part of a company or folding it into another firm.
But Romney was involved in deals where Bain bought companies simply to strip them of their assets (cash, for example) and where he also relied on the government to cover his losses (to the tune of millions of dollars). He needs to explain this and stop pretending he was just a simple little businessman who dabbled in investments.
This was the kind of thing that gave capitalism a bad name back in the 80s or 90s, when companies like Bain bought firms just to strip them of their pension funds, leaving thousands of former employees without any pensions or any return on their investment in their companies.
If Romney’s the candidate, Obama is certainly going to bring it up. I think that may be why Romney made a preemptive strike yesterday, declaring that his position (on bailouts and buyouts) and Obama’s were very similar.
Thats your spin on it, but are you telling me Frostmann Little didn't behave in similar fashion? I call bulspit to that.
But of course, Newt is on a roll, so don't stop him now.
Advisory Board members are paid megabucks for very little time spent around the table. They can get big benefits like stock options, vacations at homes, access to clubs and private air transportation.
Advisory Board members do have a say in the running of the company, but they normally aren't exposed to taking any of the responsibility for a deal gone bad.
Been there and seen it! Newt played the game for $$$$ just like everyone else. Those high cost Tiffany jewels, $1,000 suits and personal hairdresser that Wife #3 is showing on the campaign trail weren't bought on a middle class American’s salary. The trips overseas, the cruises and the upscale vacations were first class all the way as well. Newt has led the good life and his fortunes were fees collected by serving as Advisory Board Member; Fannie/Freddie Consultant and peddling mandated health care programs and speaking fees for same to various States throughout the USA.
Obamanomics = Romneynomics
Obamacare = Romneycare
So how is he going to make any case that he will be different?
Did Gingrich’s firm get $44 million from the government and rob its productive employees of pensions?
Actually I was remarking to the headline regarding Gingrich.
I am SO guilty of replying to a headline without reading the content.
Romney doesn't sit well with me for the simple fact that he has never known want nor dirty fingered labor.
My eyes and body have deteriorated into starting to attend church without a tie 'cause I can't fold the collar back down properly ... but I dearly miss the arrogance of jumping into an engine at 11PM on a snowy night and getting it ready for work tomorrow at 6AM ... I'll bathe when I get home, thanx for the coffee, honey ... see ya'
I don’t know whether Gingrich’s firms offer pensions.