Posted on 08/11/2002 10:21:25 PM PDT by pittsburgh gop guy
Edited on 04/22/2004 11:46:53 PM PDT by Jim Robinson. [history]
Who does Democratic National Chairman Terry McAuliffe think he is? Bill Clinton?
Only a man of Mr. Clinton's, er, self-confidence, could believe that he could get away with what Mr. McAuliffe is trying, to lead his party's charge against President Bush on the issue of business ethics. In the sermon he delivered to the Democratic National Committee summer meeting in Las Vegas Saturday, Mr. McAuliffe was so busy attacking the President for manipulating markets and exploiting September 11 that somehow he never mentioned the words Global Crossing.
(Excerpt) Read more at online.wsj.com ...
MUD
Evident to the General Public, maybe, but folks with insider knowledge--like Winnick and McAuliffe--knew enough to cash out before Global Crossings' criminal behavior became public knowledge. That is a felony, and both Winnick and McAuliffe deserve to spend a long stint in prison for it!!
MUD
See, TMP, I disagree that "In 1997, at the invitation of CEO Gary Winnick, Mr. McAuliffe made an investment of $100,000 in Global Crossing shortly before it went public. Two years later he sold it for $18 million. Shortly thereafter, Global Crossing made a public announcement of decline in profits and the share price plummeted. It declared bankruptcy last January..." is slanting the situation.
BTW...the situation is even worse than described because that $100,000 McAuliffe invested was given to McAuliffe by Winnick/Global Crossing as a "speaking fee." A $100,000 speaking fee fer Terry McAuliffe back in 1997?!! How many folks had even heard of McAuliffe back in 1997, let alone be willing to pay him $100,000 to talk to their employees?!
MUD
I would argue that Global Crossing started have noticeable problems when their stock started its long slide from its peak, which you note is only months after McAuliffe cashed in. It was two years before the company's FRAUD became public knowledge, but it's laughable to think T-Mac and Winnick didn't know this long before you and I did.
MUD
Please bump me up once you find this, and we'll continue our debate...MUD
CIBC netted over $1 billion in profit.
The hedging was done by Dean C. Kehler, Andrew R. Heyer, and Jay R. Bloom--all of whom had worked with Global Crossing CEO Gary Winnick under Milliken at Drexel in the 1980s.
Had CIBCO sold outright, the stock would have tanked. By using derivatives, other stockholders were not aware insiders were bailing out.
But did MacAuliffe know? Was he told CIBC members were resigning from the board of Global Crossings because they were about to hedge?
If they're gonna bust Martha Stewart's chops for a few hundred thousand dollars, they ought to do the same fer T-Mac.
FReegards...MUD
Martha's situation is a horse(trade) of a different color - she allegedly sold out 1 day before bad news of a very specific nature (denial of FDA approval) was announced.
Acting on prior knowledge of a specific negative earnings release would qualify as insider trading in GX' case, but there has to be a close proximity time-wise. It's not enough to suggest that T-Mac 'knew' that GX' earning would eventually decline.
I sold my GX in late Fall, 1999, cuz I thought it was overpriced, had peaked, and I'd made enough.
"In 1997, Winnick hired Terry McAuliffe, Clinton's chief fundraiser, as a consultant. According to the New York Times, the $100,000 he paid McAuliffe turned into an $18 million windfall as McAuliffe's contacts helped Global Crossing's stock climb. In 1999, McAullife set up a golf gave between Clinton and Winnick, which ended with Winnick pledging $1 million for Clinton's presidential library."
I'm not a big fan of using "Mother Jones" as a referenced source, but I do believe it's pertinent that the $100,000 McAuliffe allegedly invested wasn't even his own but was a payoff by Global Crossing and Winnick!!
FReegards...MUD
Flag Telecom gets subpoenas on Global Crossing, Qwest (Rubin's Citigroup hit too)
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