Newspaper logo  
 
 
  
Republican-controlled Carlyle Group

Republican-controlled Carlyle Group poses serious Ethical Questions for Bush Presidents, but Baltimore Sun ignores it

by Alice Cherbonnier

AN IMPORTANT TENET of journalism is that you should always ask, “Who benefits?”

In the case of a war, the answers to this question become of paramount importance. Suppose, for example, that profits from military contracting were to go in the pockets of a former U.S. President whose son (and a presumed future heir) is now President? Suppose further that such profits escalate in times of conflict. Wouldn’t this be of concern to the public? Wouldn’t you expect the media to be all over such an important ethical (not to mention moral, and maybe legal) angle?

Though described by the Industry Standard as “the world’s largest private equity firm,” with over $12 billion under management, chances are readers haven’t ever heard of The Carlyle Group. Isn’t that a little odd, considering it is run by a veritable who's who of former Republican political leaders. Former Defense Secretary Frank Carlucci is Carlyle’s chairman and managing director (who, by the way, was college roommate of the current Defense Secretary, Donald Rumsfeld). And that partners in this mammoth venture include former U.S. Secretary of State James A. Baker III, George Soros, Fred Malek (George H.W. Bush’s campaign manager, forced to resign when it was revealed he was Nixon’s “Jew counter”), and—presumably—George H.W. Bush?

We say “presumably” because the privately-held Carlyle doesn’t have to reveal information about its partners or investments to the SEC or to anyone else. Our former President is reported to be active in seeking investments for the Carlyle Group from the Asian market, and word is he’s paid between $80,000 to $100,000 per presentation.

All told, Carlyle has about 420 partners all over the globe, from Saudi princes to the former president of the Philippines. Its investments run heavily in the defense sector; they make money from military conflicts and weapons spending. But who in Baltimore knows about it?

A search of the Baltimore Sun’s website reveals no mentions whatsoever of The Carlyle Group, though it’s been around since 1988 and has been involved in numerous buy-outs and buy-ins, sometimes with SEC-regulated companies that have to report these things. Contrast this news blackout with the Washington Post’s 378 mentions, and the New York Times’ 332 hits. Even the Philadelphia Inquirer weighed in with 15 mentions.

Not only have some newspapers and magazines brought The Carlyle Group out of the shadows it prefers, but this enterprise has attracted the attention of The Center for Public Integrity and Judicial Watch, both of which have concerns about the ethical propriety of having high-placed former government officials—trained at taxpayer expense, too—out there reaping over 20% to 40% a year by working their connections. You have to wonder if these former public servants are just simply greedy, or if they’re telling themselves they’re true patriots by doing behind-the-scenes cloak-and-dagger stuff.

This is a big story. We were wondering if, in the wake of current events, we were the only newspaper that was asking that question, “Who benefits?” And then we found that the Wall Street Journal was asking the right questions, too, and we were vastly relieved not to be left hanging out to dry. On Sept. 27, the WSJ published a “Special Report: Aftermath of Terror” with the headline “Bin Laden Family Could Profit From a Jump In Defense Spending Due to Ties to U.S. Bank.” The “bank” is actually The Carlyle Group (and by the way, we peons can’t invest in it, and it sure isn’t taking deposits from the general public). The lead sentence reads: “If the U.S. boosts defense spending in its quest to stop Osama bin Laden’s alleged terrorist activities, there may be one unexpected beneficiary: Mr. bin Laden’s family.” And, though the WSJ curiously did not mention this, another beneficiary may be George H.W. Bush’s family.


Check for Greg Palast's article on The Carlyle Group, which is still in progress as of 10/11/01.


Copyright © 2003 The Baltimore Chronicle and The Sentinel. All rights reserved. We invite your comments, criticisms and suggestions.

Republication or redistribution of Baltimore Chronicle and Sentinel content is expressly prohibited without their prior written consent.

This story was published on October 3, 2001.
  
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

05.26 How to green the world's deserts and reverse climate change | Allan Savory [22:19 video from 6 years ago, a more recent 47:28 "Running out of Time" documentary is here.]

05.24 Pretty hurts: are chemicals in beauty products making us ill?

05.23 China factories releasing thousands of tonnes of illegal CFC gases, study finds [Instead of depleting the stratospheric ozone layer, which protects us from the sun’s ultra-violet radiation, we should enhance the ozone layer to also reduce infrared radiation CO2 absorbs and heats from—in a reversible way to be safe]

05.22 Over 1,351 Climate Strikes in 110 Countries Planned for Friday as Global Revolt Escalates

05.22 Much shorter working weeks needed to tackle climate crisis – study [Less supervised internet-based work from home would be more likely]

05.22 Internal emails reveal how the chemical lobby fights regulation [Political lobbying including unlimited bribes is terribly effective, especially when politicians are immoral]

05.22 Is modern life poisoning me? I took the tests to find out

05.19 The heat is on over the climate crisis. Only radical measures will work

05.18 The selfish case for saving bees: it’s how to save ourselves

05.17 Revealed: air pollution may be damaging 'every organ in the body’

News Media Matters

05.25 Sanders, Warren, Wyden Join Free Press Advocates in Denouncing Assange Prosecution as Grave Threat—But Others Are Silent

05.25 Facebook refuses to delete fake Pelosi video spread by Trump supporters [0:37 video; several versions of the clip are circulating]

05.24 Rising sea levels could swamp major cities and displace almost 200 million people, scientists say [Its unusal for US mainstream media to mention global warming...]

05.23 Finland is winning the war on fake news. What it’s learned may be crucial to Western democracy [3:52 video]

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

05.26 In Baltimore and Beyond, a Stolen N.S.A. Tool Wreaks Havoc

05.26 Christian rightwing figures warn abortion fight could lead to civil war

05.25 'This Is Big': 76 Retired US Generals and Diplomats Warn Trump Against War With Iran

05.25 Trump Lashes Out After Pelosi Accuses Him of a "Cover-Up": A Closer Look [10:36 video]

05.24 DID STEVEN MNUCHIN HELP HIS COLLEGE ROOMMATE STEAL $2 BILLION?

05.24 If Warren and Sanders want to beat Biden, one of them will need to drop out

05.24 Boy Scout sex abuse scandal’s stunning toll: Over 12,200 reported victims [5:07 video; abuse worse than the Catholic Church]

05.24 Slowly and Persistently, Elizabeth Warren Is on the Rise

05.24 Trump’s Cover-Up Accelerates

05.24 Kushner Cos. Gets $800 Million Federally-Backed Apartment Loan

05.24 Retirement should not mean hardship – but many older Americans live in poverty

Justice Matters

05.22 Outrage as Texas Senate Passes 'Unconstitutional' Bill That Would Hit Pipeline Protestors With Up to 10 Years in Prison

05.21 Rich white men rule America. How much longer will we tolerate that?

High Crimes

05.21 Palestinians need a state, not a 'business plan' [They have slow-motion genocide now...]

Economics & Corrupt Capitalism

05.25 New Analysis Reveals Inequality Chasm Between CEOs and Workers 'Totally Out of Control'

05.22 Capitalism used to promise a better future. Can it still do that?

International & Futurism

05.26 Voters across Europe seek action over climate change

05.26 Russia launches new nuclear-powered icebreaker in bid to open up Arctic

05.26 Jews in Germany warned of risks of wearing kippah cap in public

05.26 Tory leadership race: the favourites to replace May

05.25 John Bolton’s dangerous 'obsession' with Iran

05.25 Jared Kushner Is Surprised He Can’t Get Palestinian Businessmen on Board with Promises of Prosperity

05.25 Iran tensions: 1,500 US troops head to Middle East as Trump seals $7bn Saudi arms sale [0:54 Video; Arming our most barbaric “ally”]

05.25 Boris Johnson: UK will leave EU in October, deal or no deal

05.25 Spanish socialists aim to consolidate general election win

05.24 Boris Johnson for Prime Minister, and Other Ways that the Brexit Mess Could Get Even Worse

05.24 School climate strikes expected to be largest yet – live coverage

05.24 Theresa May announces she will resign on 7 June [0:41 video]

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web

Public Service Ads: