John Edwards Hits the (Wall) Street (Joins Investment Group)

[RamboLiberal]

http://www.businessweek.com/bwdaily/dnflash/oct2005/nf20051013_3314_db016.htm

The 2004 Democratic candidate for Vice-President joins Fortress Investment Group, where he will serve as a part-time global dealmaker

Wall Street has long provided a soft landing for out-of-work pols. But increasingly, the revolving door leads to private investment firms. The Street's latest recruit: John Edwards, the ex-North Carolina senator and Vice-Presidential standard bearer for the Democratic Party in the 2004 elections.

BusinessWeek has learned that Edwards has signed up to work for the New York-based private investment concern Fortress Investment Group as a part-time senior advisor. As such, he will be "providing support in developing investment opportunities worldwide and strategic advice on global economic issues," says Edwards spokesperson Kim Rubey. Fortress declined to comment about hiring Edwards, who teamed up with Massachusetts Senator John Kerry in a losing bid against President George Bush and Vice-President Dick Cheney last year.

<snip>

Fortress apparently has had its eye on Democratic politics and Edwards for some time. During the 2004 Presidential campaign cycle, the employees political action committee of the company contributed $143,650 to Democratic candidates for Congress and the White House, including $4,000 to Edwards. They gave just $10,500 to Republicans running for federal office.

As an Edwards supporter I'm not real thrilled about this if he is a candidate for '08. Be curious to see the reaction at DU. Am I offbase?

[TallahasseeGrannie]

1. Sigh....

I don't like this at all. I want to think he is all about altruism, but then no politician is.

Too bad.

[laureloak]

22. Wouldn't someone "all about altruism" be mentally ill? n/t

[andyhappy]

24. the point is...

that edwards is all ready totally rich and doesn't need some high paying consulting job in an industry that only serves to make rich people richer!

He went on and on about the two americas and when he doesn't win the election, rather than sticking to his guns and helping out the poor the first job he takes is in finance.

[hopein08]

27. well, actually it's the second job he's taken...

his thing at UNC-Chapel Hill for the work/poverty thing is the first part-time job he took.

[Gloria]

33. I just recently read that a call to the poverty center basically

got no connection or answer. I wish I could remember where it was, but it seemed to be just a "front" with no real staff or operation. It was definitely on one of the blogs I frequent, it wasn't in some RW paper or anything.

I didn't really take it seriously at the time so I didn't bother to post it; maybe there was actually something to what was stated after all.

[hopein08]

34. Maybe there was...

I read an article the other day, I can try and find the link again if you'd like, at a UNC site that said that Edwards is there about one day a week.

So it looks like the pieces may be falling into place on this one.

Wouldn't the average American love to have jobs (even a part-time) that require one day of work or less per week at the office?

Thanks for sharing, though, it's very interesting.

[I_am_Spartacus]

35. FWIW, I just called and got an answer.

Here's the phone number:  [phone], which I got from the website

http://www.law.unc.edu/Centers/details.aspx?ID=426&Q=3

[Giant Robot]

52. Well I would find it difficult to believe some is all about

altruism. I ackowledge its a big world out there, but that probably doesn't happen too often. And I probably wouldn't trust them :)

[ray of light]

2. How does this effect his work on poverty.

I'm afraid, gut instinct says, that it hurts his chances in 08 unless he is using it or proceeds from it to help with poverty.

[Mass]

3. Here is the web site of the firm - this should allow you to make your mind

http://www.fortressinv.com/

I have to say I do not see how this fits with fighting poverty. Except for that, the man has to feed his family, I guess.

[RamboLiberal]

6. I think I'd rather see Edwards use his law talent

and go back to fighting the good fight for individual clients against the corporations.

Of course the Repukes have managed to turn the sheeple against lawyers like Edwards with their constant bleating against trial lawyers and big settlements.

[laureloak]

36. I believe this puts him in a position to be involved in the GLOBAL

economy. Can you think of other advantages to serving PART TIME? And as for the Poverty Center lines not being answered. Who cares? The purpose is to get the issue of poverty out in the public and he's done a commendable job of that.

It never ceases to amaze me how the Dems on this site are so quick to turn against one of their own. Forget about fairness, forget about hearing the other side....just call the worst possible judgement at every opportunity. IMO that's what turned so many Dems into Repubs during the Clinton years. This sort of behavior is being "your own worst enemy".

[nvliberal]

44. I think you nailed why he's taking this gig.

Most people here don't get it at all.

[gulfcoastliberal]

25. Yeah it's hard to feed the family with $20+ million already in the bank...

Wish I had that problem.

[Mass]

26. Yes, me too

I guess I should have added :sarcasm: at the end.

[andyhappy]

4. I thought he was filthy rich as it is?

I don't get it ...if I ever got a million bucks I would quit my job, live off the interest and paint.

I guess I just don't have the filthy rich greed gene ...which is why I guess I will never be filthy rich!

oiy....and yes its a conflict, but whatever. All our politicians are aristocrats anyway. When are we going to wake up and kick all these upper crustys out and elect real people to office.

I am sorry but 'career politician' just doesn't gibe with fair honest government.

[Wordie]

5. I had the exact same initial reaction...I don't think you're offbase.

Seems disappointing, somehow.

[sadiesworld]

7. Some DUers have always been a bit overly optimistic

where Edwards is concerned.

My guess is that he has just made his decision not to run.

[andyhappy]

9. two americas

I guess we know which america edwards wants to live in ...guess it WAS just a stump speech after all.

[sadiesworld]

13. He started out as a DLC moderate (read conservative)

but began moving to the left when visions of a presidential run began to dance in his head. He was Bilderberger approved prior to being chosen as Kerry's running mate. To be honest, I'm glad that he has been exposed. Unfortunately, many others, e.g., Evan Bayh, are making the same phony moves to the left in anticipation of '08.

Give me a candidate with a long, documented history of progressive votes (Kucinich, Feingold) over a johnny-come-lately smooth talker any day.

:hi:

[MGKrebs]

14. Dat's what I think too.

He tried to make the "two America's" one, but that didn't work out. So he knows which one he wants to be in.

Besides, when someone who grew up as a poor black child gets an opportunity like this, it's hard to turn it down.

:evilgrin:

[sadiesworld]

15. lol.

He laid it on a bit thick, didn't he?!

[Adelante]

21. Oh, Lordy

:rofl:

[Pithy Cherub]

40. snort.... he helped poor folks now turnabout is

fair play, help the massively rich guys too... :P

[Hobarticus]

8. He never really seemed enthusiastic about '08...

Maybe he'll spend some time in the private sector, make some connections, and come back later.

[Wordie]

10. I like Edwards, but without foreign policy experience, he didn't have much

chance in '08 anyway, imho.

And he is so bright, maybe he needs a new challenge. I'll be interested in hearing what he himself has to say about his new job.

[Hobarticus]

12. Agreed, maybe he's trying to fill out his resume...

I'd like to hear what he has to say, too. I'm not worried about him becoming a corporate stooge, as some will surely warn that this heralds. I'm confident he sees this a force for good.

[Wordie]

42. Yeah, maybe he's trying to get some further international experience...

As the article quotes someone as saying that he will be "providing support in developing investment opportunities worldwide and strategic advice on global economic issues..."

[nvliberal]

45. What crap.

Of course he's had "foreign policy experience"; it's just that he wasn't military, which some around here think is a requirement.

They're playing right into the Republicans' hands with that nonsense.

[bee]

11. interesting. I dont know why, but it doesnt really surprise me...

but I am somehow disappointed.

I was working at a multi-national VC/GPE firm in 2000 and Ill never forget how heated everyone was. People arguing from office to office and in the halls... It was a really sucky time for me and the other 2 Democrats battling with 100 die hard republicans. What a nightmare. But I learned quite a bit about how the politically minded wealthy think about about "regular" people in that time-frame. Its saddening.

[laureloak]

16. "part-time senior advisor"

Me thinks too much is being read into this. Sounds like a position to launch from to me.

[Marie26]

17. Disappointing

Edwards always seemed very idealistic & truly cared about poverty in America. Not sure how this can fit in with that. He's hired to advise on "global economic issues?" He's a personal injury att. from North Carolina! What possible expertise could he have that they'd want so badly? What they wanted was his political connections & influence. He's gone from politician to lobbyist. Which isn't unusual, but I expected (hoped?) for more from Edwards.

[choicevoice]

18. How quick they turn and judge

What some people expect of the people they look up to in politics is amazing. Working for a high powered investment firm and making tons of money does not automatically take him from "adored one" to "scum of the earth". If he is a truly compassionate concerned person his job will not stop his focus on doing good, if anything it will further allow him financial freedom to do more good.

Don't be so quick to take him from one category to the other. I think we are so used to disappointment in our political figures that we have a propensity to judge them prior to them slipping from their pedestal.

[sandnsea]

19. Advising on poverty reducing investments?

I think I'll wait until Edwards comments on this to make a judgment.

[jsamuel]

20. this sounds like they will call him up every week or two to ask a question

:shrug:

[KoKo]

23. Here's what Fortress invests in: Financial Services, Real Estate, Energy &

power, Senior Living and the Cell Tower Sector. I worry about the future health of this company given it's founders ties, and that it was put together so recently. Most of the founders were from the Dot Com Bubble days. Fortress invests in Real Estate Investment Trusts and Hedge Funds. They buy out companies that aren't doing well, they buy out real estate that's not doing well. I wonder if they will make it during the come Recession. :eyes:


-----------------------------------------------------
Fortress currently manages approximately $5.0 billion of private equity capital on behalf of prominent institutional investors and high net worth individuals.

The private equity funds primarily make control-oriented investments in asset-based businesses and asset portfolios in the United States and Western Europe. The funds target cash flowing investments that can be acquired at attractive valuations due to structural complexity, distress, or general disfavor within the capital markets. The investment objective of the funds is to generate attractive private equity returns combined with significant downside protection in the form of tangible collateral. Asset-based sectors in which the private equity funds have been active investors include financial services, real estate, energy and power, senior living and the cell tower sector.

Fortress’s core team of private equity investment professionals has worked together since 1987. The team draws upon its specialized expertise in corporate mergers and acquisitions, structured finance, real estate and bankruptcy restructuring to pursue investment opportunities outside the focus of other investment managers.

[1932]

28. They're also two months away from owning Beatles & Jackson catalog:

Michael Jackson to lose Beatles catalog?
The cash-strapped pop star on trial for child molestation finds some of his assets threatened.
May 5, 2005: 3:53 PM EDT
By Krysten Crawford, CNN/Money staff writer

Michael Jackson may lose his stake in the lucrative Beatles song catalog, as well as other assets.

NEW YORK (CNN/Money) - Michael Jackson, the legendary pop star facing child molestation charges, could lose his stake in the lucrative Beatles music catalog as well as the rights to his own platinum-selling songs.

Two loans estimated at $270 million that are tied to the Beatles catalog and other assets have been sold by Bank of America, the nation's No. 2 bank, to a private hedge fund, according to people familiar with the transaction.

http://www.cnn.com/money/2005/05/05/news/newsmakers/jackson_loan/

I'm curious why an investment group I've never heard of which is relatively small is donating 15:1 to Democrats but doesn't seem to be doing anything overtly liberal (like heavily investiment in government projects to develop public sectors -- however they seem to be interested in distressed sectors of the economy, and there's a lot of distress that's being caused by Republicans).

I'm sure there's a story here. I'd love to know what it is.

[KoKo]

31. That's fascinating about Beatles Song Catalog purchase.

This company bothers me. But, then there are other "Wealth Investment Funds" that are equally as puzzling. Thinking about the Carlyle Group and the Black Rock Group (that several of the founders of Fortress were part of.) Why name a fund "Fortress." It implies that it's hedging against something. Which is indeed part of what the fund does.

How much of our economy is manipulated by these groups? How many of us Little Guys and Small Businesses are harmed?

There's so little we know about what they "really" do.

[1932]

32. Here's one reason Edwards might like to know these guys:

access to the managing editors of small town newspapers that reach 2 million readers:

Liberty Group Publishing to be Acquired by Fortress Investment Group LLC
5/11/2005

NORTHBROOK, IL, May 11, 2005 -- Liberty Group Publishing Inc. today announced that its board of directors and its shareholders, including affiliates of Leonard Green & Partners L.P., unanimously approved a definitive agreement for Liberty Group Publishing Inc. to merge with an affiliate of Fortress Investment Group LLC. The acquisition by way of merger is expected to close during the second quarter of 2005. The terms of the transaction were not disclosed.

Dirks, Van Essen & Murray, a newspaper merger-and-acquisition firm in Santa Fe, New Mexico, acted as one of the advisors to Liberty Group Publishing Inc., in the transaction.

Liberty Group Publishing Inc., headquartered in Northbrook, Illinois, is a leading U.S. publisher of local newspapers and related publications that are the dominant source of local news and print advertising in their markets. Liberty Group Publishing owns and operates 274 publications located in 15 states that reach approximately 2.1 million people on a weekly basis. The majority of the company's paid daily newspapers have been published for more than 100 years and are typically the only paid daily newspapers of general circulation in their respective non-metropolitan markets.

Fortress Investment Group LLC is a global alternative investment and asset management firm founded in 1998 with approximately $15 billion in equity capital currently under management. Through its private equity funds, Fortress Investment Group LLC manages approximately $6.9 billion of capital on behalf of prominent institutional investors and high net worth individuals. The firm’s private equity activities focus on investing in asset-based and cash flowing businesses in the financial services, real estate, media and telecommunications, transportation, healthcare, and energy and power industries.

http://www.dirksvanessen.com/article.asp?newsId=130&categoryId=2

Parallels to Carlyle: Fortress is interested in media as is Carlyle. However, Carlyle has interests in TV stations, whereas Fortress's interests seem to be in small town newspapers and music publishing rights. Carlyle has overseas investments in China and Korea, among other places. Fortress has overseas investments in the UK health and real estate sectors and in Germany. Carlyle is about the same size, maybe a little bigger.

Name notwithstanding, Fortress doesn't seem to do any defense (or "homeland security") business, and the members who used to work at Black Rock and Goldman Sachs seem to have been, generally speaking, in the their real elstate investment departments.

[KoKo]

38. Ahhh....you are thinking "Left Wing Strike Back" Beat the Repugs at their

OWN Game? It would be my hope.

BUT! ...doesn't this "Clash of Titans" in the Investment World, leave out all the rest of us?

And, how do we know that our "Left Wing Media Supporters, Hedge Funds, Asset Managers, etc., will not end up working against the "average American" just as the Right Wing has?

I don't know the answer...it's worrysome. So much "Globilization, and Consolidation" and it seems BOTH PARTY's are really "heavy into this."

Cut US LOOSE! We don't have unlimited "assets, either financially or speculatively to participate in these "high roller ambitions."

Thanks for you post continuing this thread for folks who are seriously questioning what these "FUNDS" for the "WELL FUNDED" are all about.

:toast:

[chalky]

48. Hmmmm....THAT combined with this paragraph from the article:

"Fortress apparently has had its eye on Democratic politics and Edwards for some time. During the 2004 Presidential campaign cycle, the employees political action committee of the company contributed $143,650 to Democratic candidates for Congress and the White House, including $4,000 to Edwards. They gave just $10,500 to Republicans running for federal office."

Gives me some hope. I'll be keeping a close eye on his comments re: this new job.

[FrenchieCat]

41. Could you find out?

I'd love to know what it is too! :hi:

Thanks!

[Catchawave]

29. Is this worse than being a pundit for Fox News ?

So, no, I don't think you're offbase rambo. This could be RW spin, as Business Week is attached to the RW hip. Am I close?

If so, good sign for JRE, if the RW is *attacking* now, here in late 2005 :snork:, we have a potential candidate for 2008.

Silly as it sounds, I like to follow RW attacks, always a good sign this early in the 2008 game!

[FrenchieCat]

43. Is this worse than being a pundit for Fox News ?

Why?

News Hounds "likes" some of those "Analysts" on Fox News....
Bill O'lielly doesn't!

:shrug:

[hopein08]

30. I'm not thrilled either, RamboLiberal...

And I am an Edwards' supporter through and through. But, if things keep going the way they are going...I can only hope that I'll still be one in the next few months. I think you are right on base.

I only found out about Edwards in the '04 campaigns so I don't know about the theories that he was DLC moderate at first and then switched in hopes of being POTUS. But the more I hear since the campaign ended, the progessively more shaky my support is getting.

Even if this part-time job is a phone call or two a week and a trip a month, I don't really see how it'll look good on a campaign resume.

It's funny, and probably quite telling, that the other politicians named who have got into private equity are all Repukes (Quayle, Guiliani, and Weld). Regardless of who the company contributes to, it will still be painted as a Repuke-like corporate firm.

But I'll withhold complete judgement until Edwards comments on this. It just doesn't feel right to me. But maybe he has decided not to run in 2008. My list of 2008 possibilities that I actually WANT to vote for is dwindling quickly.

[tx_dem41]

37. I see no problem with this.

Please tell me that DU is not anti-investment. If so, good luck with the retirement!

There is no committment for years and years...it keeps him in contact with big money, which like it or not is necessary to run a winning campaign. And, if you didn't notice its a BLUE investment firm. Perhaps he can be influential in steering investments to places that need it.

[KoKo]

39. When does the BIG MONEY that CONTROLS ALL...start to listen to the

little folks...though. Edwards seemed to be going "Populist America."

We are all still hoping he will give some "clarification" on his role.

[LTR]

46. John Edwards Hits the Street (joins investment group)

Wall Street has long provided a soft landing for out-of-work pols. But increasingly, the revolving door leads to private investment firms. The Street's latest recruit: John Edwards, the ex-North Carolina senator and Vice-Presidential standard bearer for the Democratic Party in the 2004 elections.

BusinessWeek has learned that Edwards has signed up to work for the New York-based private investment concern Fortress Investment Group as a part-time senior advisor. As such, he will be "providing support in developing investment opportunities worldwide and strategic advice on global economic issues," says Edwards spokesperson Kim Rubey. Fortress declined to comment about hiring Edwards, who teamed up with Massachusetts Senator John Kerry in a losing bid against President George Bush and Vice-President Dick Cheney last year.

(more)

http://www.businessweek.com/bwdaily/dnflash/oct2005/nf20051013_3314_db016.htm

[saltpoint]

47. Deft move by John Edwards.

He heads a center to fight poverty and joins the big-money boys on Wall Street, allowing maximum range over the economic grid.

Poverty is probably more effectively addressed across that grid, and not just from the populist/ground-up angle.

One America, is Edwards' theme here -- not a few powerful fatcats in corporate suites running the rules for millions of impoverished U.S. citizens.

I trust this move. I think Edwards will manage the range beautifully. And I believe he will be the next president.

[laureloak]

49. Hear! Hear!

or is that Here! Here! ???

[Vox_Reason]

50. I trust his decision too.

Though I admit it's a bit troubling, I don't think there's any way that he would do something hypocritical. If he's made this decision, I'm sure there's a good reason for it, and that it's in line with his philosophy and priorities.

I get the feeling that making a bunch of money is not too high on his priority list--I think he knows he's pretty much set in that department. But if being in that position will do something to help those in poverty, then I'm not surprised at all that he would jump on it.

[Orsino]

55. If anything's gonna be done about poverty...

...Big Money will have to be involved. It doesn't follow, though, that this is what Edwards is up to; I presume that he's just following the usual path of the rich white politician.

It's depressing.

[Catchawave]

51. I think this is good Rambo....

you posted:

"Fortress apparently has had its eye on Democratic politics and Edwards for some time. During the 2004 Presidential campaign cycle, the employees political action committee of the company contributed $143,650 to Democratic candidates for Congress and the White House, including $4,000 to Edwards. They gave just $10,500 to Republicans running for federal office.

As an Edwards supporter I'm not real thrilled about this if he is a candidate for '08. Be curious to see the reaction at DU. Am I offbase?"

Sounds like a nice Blue company and JRE gets global financial experience. Definitely a plus for the war on poverty :)

[fujiyama]

53. I'm not really bothered by this

I suppose it would have been nice if Edwards just decided to go and teach at a small college somewere, but I don't see why this move troubles people. After all, even Al Gore has joined the board of Apple Computers (also a blue company but still a corporate position).

Granted, I would hope he can influence its investments. At the minimum I hope he can convince them to stop giving ANY money to pukes! I also hope that he can guide their investments in progressive companies and projects that seek to lift living standards. That would certainly be a positive. Also as another poster stated, it's a very difficult job to address poverty from the bottom in a purely populist manner. Whether we like it or not, we need corporate America's help in fighting it as well.

[depakid]

54. People forget that he voted for the bankruptcy bill the first time

it came around.

His rhetoric about the 2 America's and that stupid millworker story that he told til it made even his supporters sick was just a cheap southern politician's ploy.

The fact that he got so much mileage out of it just goes to show that the party (and the voters- or what's left of them) are more than ready for honest progressive candidates. As long as the Dems keep putting up Republican lites, they're going to continue to lose- and end up even less relevant than they are today (though that's tough to imagine- seeing as how they're utterly impotent at the moment).

I guess it's the difference between Daschle, who was occassionally effective- and Harry Reid- who has the worst record of any minority leader EVER... as in- he's lost every single battle and has shown no signs at all of having any leaderhip skills.