Skip to main content
×
Blacklisted Listed News Logo
Menu - Navigation
Menu - Navigation

Cited Sources

2nd Smartest Guy in the World
2nd Amendment Shirts
10th Amendment Center
Aaron Mate
Activist Post
AIER
Aletho News
Ammo.com
AmmoLand
Alliance for Natural Health, The
Alt-Market
American Free Press
Antiwar
Armstrong Economics
Art of Liberty
AUTOMATIC EARTH, The
Ben Bartee
Benny Wills
Big League Politics
Black Vault, The
BOMBTHROWER
Brandon Turbeville
Breaking Defense
Breitbart
Brownstone Institute
Burning Platform, The
Business Insider
Business Week
Caitlin Johnstone
Campus Reform
CAPITALIST EXPLOITS
Charles Hugh Smith
Children's Health Defense
CHRISTOPHE BARRAUD
Chris Wick
CIAgate
Citizen Free Press
Citizens for Legit Gov.
CNN Money
Collective Evolution
Common Dreams
Conscious Resistance Network
Corbett Report
Counter Signal, The
Cryptogon
Cryptome
Daily Bell, The
Daily Reckoning, The
Daily Veracity
DANERIC'S ELLIOTT WAVES
Dark Journalist
David Haggith
Defense Industry Daily
Defense Link
Defense One
Dennis Broe
DOLLAR COLLAPSE
DR. HOUSING BUBBLE
Dr. Robert Malone
Drs. Wolfson
Drudge Report
Economic Collapse, The
ECONOMIC POPULIST, The
Electronic Frontier Foundation
Ellen Brown
Emerald Robinson
Expose, The
F. William Engdahl
FAIR
Farm Wars
Faux Capitalist
FINANCIAL REVOLUTIONIST
Forbes
Foreign Policy Journal
FOREXLIVE
Foundation For Economic Freedom
Free Thought Project, The
From Behind Enemy Lines
From The Trenches
FUNDIST
Future of Freedom Foundation
Futurism
GAINS PAINS & CAPITAL
GEFIRA
Geopolitical Monitor
Glenn Greenwald
Global Research
Global Security
GM RESEARCH
GOLD CORE
Grayzone, The
Great Game India
Guadalajara Geopolitics
Helen Caldicott
Homeland Sec. Newswire
Human Events
I bank Coin
IEEE
IMPLODE-EXPLODE
Information Clearing House
Information Liberation
Infowars
Insider Paper
Intel News
Intercept, The
Jane's
Jay's Analysis
Jeff Rense
John Adams
John Pilger
John W. Whitehead
Jonathan Cook
Jon Rappoport
Jordan Schachtel
Just The News
Kevin Barret
Kitco
Last American Vagabond, The
Lew Rockwell
Le·gal In·sur·rec·tion
Libertarian Institute, The
Libertas Bella
LIBERTY BLITZKRIEG
LIBERTY Forcast
Liberty Unyielding
Market Oracle
Market Watch
Maryanne Demasi
Matt Taibbi
Medical Express
Media Monarchy
Mercola
Michael Snyder
Michael Tracey
Middle East Monitor
Mike "Mish" Shedlock
Military Info Tech
Mind Unleashed, The
Mint Press
MISES INSTITUTE
Mises Wire
MISH TALK
Money News
Moon of Alabama
Motherboard
My Budget 360
Naked Capitalism
Natural News
New American, The
New Eastern Outlook
News Deck
New World Next Week
Nicholas Creed
OF TWO MINDS
Off-Guardian
Oil Price
OPEN THE BOOKS
Organic Prepper, The
PANDEMIC: WAR ROOM
PETER SCHIFF
Phantom Report
Pierre Kory
Political Vigilante
Public Intelligence
Rair
Reclaim The Net
Revolver
Richard Dolan
Right Turn News
Rokfin
RTT News
Rutherford Institute
SAFEHAVEN
SAKER, The
Shadow Stats
SGT Report
Shadowproof
Slay News
Slog, The
SLOPE OF HOPE
Solari
South Front
Sovereign Man
Spacewar
spiked
SPOTGAMMA
Steve Kirsch
Steve Quayle
Strange Sounds
Strike The Root
Summit News
Survival Podcast, The
Tech Dirt
Technocracy News
Techno Fog
Terry Wahls, M.D.
TF METALS REPORT
THEMIS TRADING
Tom Renz
True Activist
unlimited hangout
UNREDACTED
Unreported Truths
Unz Review, The
VALUE WALK
Vigilant Citizen
Voltaire
Waking Times
Wall Street Journal
Wallstreet on Parade
Wayne Madsen
What Really Happened
Whitney Webb
winter oak
Wolf Street
Zero Hedge

The Fed’s Chair and Vice Chair Got Rich at Carlyle Group, a Private Equity Fund with a String of Bankruptcies and Job Losses

Published: May 18, 2020 | Print Friendly and PDF
  Gab
Share

By Pam Martens and Russ Martens: May 18, 2020 ~

Private equity funds have been variously called “merchants of debt,” “vultures,” or “corporate raiders.” What a private equity fund typically does is to buy up companies by piling debt on the balance sheet, selling off valuable assets like real estate, extracting giant dividends for the private equity partners to the detriment of workers and customers, and then, frequently, letting the company collapse into bankruptcy while laying off thousands of workers or liquidating the whole company.

It should give pause to every American that the two top men at the Federal Reserve who are implementing a new $4.54 trillion bailout fund for Wall Street, using $454 billion from taxpayers to absorb the losses, both got rich working for one of the world’s largest such private equity firms: the Carlyle Group.

According to his official bio, Fed Chairman Jerome Powell was a partner at the Carlyle Group from 1997 to 2005. In November 2017, Stephen Gandel, writing for Bloomberg News, calculated that Powell’s wealth could be as much as $112 million. 

The man responsible for supervising the largest and crime-riddled banks on Wall Street, Fed Vice Chairman for Supervision Randal Quarles, is even richer than Powell. According to Quarles’ financial disclosure form dated June 1, 2017, he could be worth as much as $125 million. In 2017, between $10 million to $50 million of Quarles’ investments were in Carlyle Group. On just those Carlyle investments, Quarles was receiving a range of between $2 million and $10 million in annual income. (The government allows federal employees to report a preposterously broad range on asset values and income on financial disclosure forms.) Quarles was a Managing Director at Carlyle Global Financial Services Partners from 2007 to 2013. The Carlyle investments have been replaced by different investments on Quarles’ most recent financial disclosure form.

Carlyle Group’s current and former partners are not defensive about the string of bankruptcies and jobless workers it has left in its quest to extract riches from its buyout targets. Carlyle had several bankruptcies during the last financial crisis with more blowups in the past two years.

In November 2018, Peter Whoriskey and Dan Keating of the Washington Post penned a devastating critique on how Carlyle had handled its investment in a chain of nursing homes known as HCR ManorCare, which filed for bankruptcy in March of 2018. The authors wrote that there was a 29 percent rise in serious health code violations at HCR ManorCare in the years before the bankruptcy and following a 2011 financial deal that “extracted $1.3 billion from the company” for Carlyle investors while saddling the nursing home chain with debt. Under the same deal, most of the company’s real estate was sold off, forcing it to now pay rent to the new owners. Hundreds of layoffs of employees occurred soon after, leaving the vulnerable residents neglected according to the article.

The Washington Post reporters explained the consequences of leveraged-buyout artists running homes for the most vulnerable in society:

“The lack of care had devastating consequences. One man had been dosed with so many opioids that he had to be rushed to a hospital, according to the inspection reports. During an undersupervised bus trip to church — one staff member was escorting six patients who could not walk without help — a resident flipped backward on a wheelchair ramp and suffered a brain hemorrhage.

“When a nurse’s aide who should have had a helper was trying to lift a paraplegic woman, the woman fell and fractured her hip, her head landing on the floor beneath her roommate’s bed.”

In January 2018, another asset-stripped company that was owned by Carlyle Group, Philadelphia Energy Solutions (PES), filed bankruptcy. Reuters explained what happened this way: “The Carlyle-led consortium collected at least $594 million in cash distributions from PES before it collapsed, according to a Reuters review of bankruptcy filings. Carlyle paid $175 million in 2012 for its two-thirds stake in the refiner. More than half the distributions to the Carlyle-led investors were financed by loans against PES assets that the refiner now can’t pay back, the filings show.”

Read More...

TOP TRENDING ARTICLES


PLEASE DISABLE AD BLOCKER TO VIEW DISQUS COMMENTS

Ad Blocking software disables some of the functionality of our website, including our comments section for some browsers.


Trending Now



BlackListed News 2006-2023
Privacy Policy
Terms of Service