Smartest Guy in the Room

Five-terms in the Senate have made failed presidential candidate, Obama surrogate, and potential secretary of State John Kerry an amazingly prescient investor

Andrew Stiles

May 3, 2012 12:00 pm

Failed Democratic presidential nominee Sen. John Kerry’s (D., Mass.) long history of ethically dubious investments could invite controversy as he takes on a new role as a “top surrogate” for President Obama’s reelection campaign.

Kerry’s net worth as listed on his 2011 financial disclosure form is at least $193 million and likely much higher, making him the wealthiest member of the Senate. He is also a prolific investor, maintaining an array of stocks and other holdings through a mix of family trusts, marital trusts, and commingled fund accounts with his wife, Big Ketchup baroness Teresa Heinz.

The five-term Senator has a well-documented history of investing in companies that would benefit from policies he supports, as well as making conveniently timed and highly profitable trades coinciding with the passage of major legislation and, in some cases, the dissemination of privileged information.

For years, Kerry has invested millions in a number of green energy companies that have benefitted from the president’s efforts to aggressively subsidize the industry with taxpayer dollars.

These companies include Exelon, which received a $646 million taxpayer-guaranteed loan in 2011 to build a solar facility in California and created only 20 permanent jobs, as well as Fisker Automotive, the fledgling electric car company that offshored its manufacturing operation to Finland after receiving a $529 million federal loan guarantee in 2010.

The loan guarantees, approved by the Department of Energy, were made possible by funding allocated in the 2009 stimulus bill, which Kerry supported. According to Kerry’s own office, the Senator “played a key role” in crafting the portions of the legislation designed to offer federal support for green energy projects.

Additionally, Kerry co-authored the controversial cap-and-trade legislation that would have effectively imposed a tax on carbon-dioxide emissions. Though the bill ultimately failed, the New York Times noted that Exelon and companies like it “would emerge as financial winners” if the legislation was enacted.

Kerry has hundreds of thousands of dollars invested in Kleiner Perkins Caufield & Byers (KPCB), a venture capital firm run by John Doerr, a prominent Obama donor who served on the president’s Economy Recovery Advisory Board.

The firm, where former vice president Al Gore is a partner, invests heavily in alternative energy companies such as Fisker Automotive and Amonix Inc., a Nevada-based solar panel manufacturer that laid off two-thirds of its workforce earlier this year despite receiving nearly $6 million in federal tax credits.

Amonix was one of 16 companies (out of 27 overall) listed in Doerr’s “green-tech” portfolio to receive some form of federal support under Obama.

Kerry purchased—through family trusts—between $30,000 and $100,000 worth of shares in a number of KPCB investment funds, including its “Green Growth Fund,” and continued to purchase shares throughout 2010, according to the Senator’s financial disclosure forms.

Kerry is one of several lawmakers prominently featured in Throw Them All Out, Peter Schweizer’s landmark book on how elected politicians exploit their privileged positions to enhance their personal wealth.

The Massachusetts Senator’s most dubious trading activity coincided with two major political events—the financial crisis of late 2008 and the passage of President Obama’s controversial healthcare overhaul in March 2010.

Kerry was one of at least 10 Senators to trade financial stocks just days after a Sept. 16, 2008 meeting between Treasury Sec. Henry Paulson, Federal Reserve chairman Ben Bernanke, and leading members of Congress to discuss the increasingly dire state of the financial markets.

In mid-October 2008, as the Treasury was discussing which banks would be bailed out in the Trouble Asset Relief Program (TARP), Kerry bought up to $550,000 worth of Citigroup stock and up to $350,000 worth of Bank of America shares. Days later, the American public learned that Citigroup would receive $50 billion from the TARP fund and up to $277 billion in additional loan guarantees. Bank of America also received $50 billion from TARP.

During the contentious healthcare debate in 2009, Schweizer noted, Kerry loaded up on pharmaceutical stocks, purchasing close to $750,000 worth of shares in one company—Teva Pharmaceuticals—in the month of November alone.

Drug companies were viewed to be among the major beneficiaries of the Democratic healthcare legislation. Pharmaceuticals “kicked in $80 billion to help make the bill work, but stand to make 10 times that amount in revenues from added government and government-subsidized business,” liberal columnist Howard Fineman wrote in Newsweek.

Teva stock was trading at about $50 a share when Kerry started buying, but jumped to $62 a share after the healthcare bill was passed, an increase of nearly 25 percent. After Obama signed the bill into law, Kerry sold his Teva shares, realizing tens of thousands in capital gains.

Kerry also bought shares of ResMed, a company that makes medical devices, which surged more than 70 percent after the healthcare bill’s passage. Throughout the healthcare negotiations, Kerry consistently opposed efforts to increase taxes on companies like ResMed.

He also purchased stock in Thermo Fisher Scientific, a firm providing products and services to hospitals, at $35 a share. After passage, they were trading at $50 a share, an increase of more than 40 percent.

As Kerry was buying shares of companies certain to benefit from healthcare reform, he was selling stock in healthcare insurance providers, which were deemed big losers under the new law.

That is hardly the extent of Kerry’s questionable dealings, however. He has millions of dollars invested in funds operated by some of his largest campaign donors, including Bain Capital, Beacon Capital Partners, and the Blackstone Group, investment firms that have collectively given more than $170,000 to Kerry’s campaigns since 2007.

The Washington Free Beacon reported in February that Kerry helped secure a $3.5 billion windfall for hospitals in Massachusetts that would net tens of millions in new federal support for Partners HealthCare, another prominent campaign donor.

Kerry’s controversial financial activity could complicate his recently announced role as a top surrogate for Obama’s reelection campaign. The president has repeatedly sought to blame wealthy investors such as Kerry for precipitating the financial crisis of 2008 and has expressed sympathy for the controversial “Occupy Wall Street” movement, which has become notorious for advocating and in many cases carrying out vandalism against large banks and investment firms.

Employing Kerry as a prominent campaign spokesman could also unwittingly highlight a popular criticism of the president—that his major policy initiatives have had little impact on the struggling economy but have succeeded in enriching a small number of wealthy supporters.

kerry

John Kerry: Bill Clinton 'abuses the truth'

January 25, 2008

Kerry blasts Bill Clinton for 'abusing truth'


WASHINGTON (CNN) — John Kerry, the Democratic Party's 2004 nominee for president, took aim at Bill Clinton Friday, telling the National Journal the former president does "not have a license to abuse the truth."

The Massachusetts senator, who endorsed Barack Obama's White House bid earlier this month, said Clinton's criticisms of the Illinois senator have been "over the top," and suggested the former president is getting "frantic."

Targeting Clinton's recent spate of attacks on Obama, Kerry said, "I think you had an abuse of the truth, is what happened. …I mean, being an ex-president does not give you license to abuse the truth, and I think that over the last days it's been over the top.

"I think it's very unfortunate, but I think the voters can see through that," Kerry added. "When somebody's coming on strong and they are growing, people get a little frantic, and I think people have seen this sort of franticness in the air, if you will."

The former president has faced criticism for aggressively interjecting himself into the race between his wife and Obama of late. On Monday, Obama said he feels as if he is running against both Clintons, a charge the New York senator’s campaign said was borne out of frustration. The former president himself later dismissed Obama's comments, saying “I thought he was running against me.”

Campaigning in South Carolina Friday, Obama said the Clinton campaign has stepped up its attacks since his Iowa win, and joked that it's good practice for him, so "when I take on those Republicans I'll be accustomed to it."

Kerry formally endorsed Obama on January 10, saying then that Obama "isn't just going to break the mold….Together, we are going to shatter it into a million pieces."

The endorsement was seen as a blow to both John Edwards — Kerry's running mate in 2004 — and both Hillary and Bill Clinton, who had campaigned on behalf of Kerry's presidential bid.





Obama

AIG, McCain, Pelosi, Kerry, and Obama - Change?

In an effort to be as forthcoming as possible, I also had stock in AIG. Bought back in 2000 at about $95 a share, 100 shares.

It is now worthless - $4.00 a share. I did not receive any lobbyist funds. My mistake was an idiot and fool who should be fired from Wells Fargo Investments.

Anyway - remember Obama, different than the rest, going to kick the lobbyists out of Washington ... well, guess who has his fingers in the pots he intends to clean out?

First story -


Pelosi, in her most recent financial disclosure form, reported that her husband owned between $250,000 and $500,000 of stock in AIG, which ceded majority control to the U.S. government this week in exchange for $85 billion of loans.

Kerry, the 2004 Democratic presidential nominee, disclosed that his wife, Teresa Heinz Kerry, had more than $2 million of AIG stock at the end of 2007, when shares were worth $58.30. AIG has fallen 85 percent this week to close yesterday at $2.69. The lawmakers' aides didn't respond to calls seeking comment.

Altogether, 56 senators and representatives had stakes in AIG, Lehman, Fannie Mae, Freddie Mac, Bear Stearns Cos. or IndyMac Bancorp Inc. -- some of the biggest casualties of the market bloodbath -- according to the Center for Responsive Politics. The most recent annual disclosure filings list investments as of Dec. 31, 2007, and reveal the size of holdings only within a range of values. Lawmakers may have sold shares since then.



AIG: Government Bails Out a Heavy Hitter
Published by Lindsay Renick Mayer on September 17, 2008 10:06 AM

The Federal Reserve announced today that it's coming to the rescue of American International Group (AIG) to the tune of $85 billion. The nation's largest insurer, which asked the Fed for emergency funding in the midst of financial hardships, hasn't had trouble over the years giving money to lawmakers, however. AIG is on CRP's Heavy Hitters list, which profiles the 100 all-time contributors to federal candidates and committees. Of all of the companies facing major transitions over the last week, lawmakers owned the most stock in AIG. Twenty-seven lawmakers owned stock in AIG last year, worth between $6.4 million and $20 million. Rep. Robin Hayes (R-N.C.), one of the richest members of Congress, was at the top of the list of congressional investors, owning stock worth between $2.8 million and $11.5 million, while Sen. John Kerry (D-Mass.) followed with stock valued around $2 million. Of all the companies making headlines this week, AIG has been the most nonpartisan in its contributions, splitting evenly the $9.7 million it has contributed over time. Sen. Chris Dodd, chair of the Senate banking committee, has racked up the most from AIG, with a total of $281,400, while Charles Schumer (D-N.Y.), a member of both the Senate Banking, Housing and Urban Affairs Committee and the Senate Finance Committee, takes second with $116,400. Presidential candidates John McCain and Barack Obama collected $103,000 and $82,600 from AIG, respectively.



WALL STREET Shake-Up - Personal for lawmakers

Wall Street's grim news has plenty of people worried about their pocketbooks. Lawmakers are among them, not only concerned with how to boost the economy but with their own personal finances tied to companies that are struggling. The richest members of Congress seem to be the most invested in the companies at the center of the Wall Street shake-up. According to the nonpartisan Center for Responsive Politics, nine lawmakers have between $785,900 and $1.8 million of their own money invested in Merrill Lynch, the brokerage firm that agreed over the weekend to sell itself to Bank of America for $50 billion after facing tens of billions of dollars in losses. Because Bank of America offered to buy the company at a 70 percent premium over the company's closing price on Friday, those who own stock in Merrill Lynch stand to gain from the transaction. Two of the richest members of Congress owned the most stock in the company. Sen. John Kerry (D-Mass.) reported holding between $500,001 and $1 million on his most recent personal financial disclosure, covering 2007, and Sen. Elizabeth Dole (R-N.C.) owned between $250,003 and $601,000 in stock. (Lawmakers disclose their finances in ranges, annually, making it difficult to determine their assets' precise values.) Merrill's white knight, Bank of America, which, comparatively, seems to be managing just fine in today's sour economy, is a far more popular investment for members of Congress. Fifty-four lawmakers who held stock in the company in 2007, worth between $1.9 million and $5 million, are probably breathing easier, knowing that Bank of America is buying--rather than having to be bought. Rep. Robin Hayes (R-N.C.), another one of the richest members of Congress, owned between $865,004 and $1.8 million in stock in the company, while Rep. Rodney Frelinghuysen (R-N.J.), yet another of the richest lawmakers, owned between $201,004 and $465,000 in stock. Seven lawmakers, led by Kerry, owned stock in both Bank of America and Merrill Lynch. The weekend's headlines also laid bare the state of investment bank Lehman Brothers, which filed for bankruptcy Monday after the federal government refused to bail it out and the company was unable to find a buyer. Eight lawmakers owned stock in Lehman Brothers at the end of 2007, valued at between $102,170 and $184,160. Rep. Jane Harman's stock in the company was worth the most at between $5,001 and $100,000. Harman, a California Democrat, was the wealthiest member of Congress in 2006.Of all of the companies facing major transitions, lawmakers owned the most stock in American International Group (AIG), the nation's largest insurer, which has asked the Federal Reserve for emergency funding as it faces financial hardships. Twenty-seven lawmakers owned stock in AIG last year, worth between $6.4 million and $20 million. Hayes was at the top of the list of congressional investors, owning stock worth between $2.8 million and $11.5 million, while Kerry followed with stock valued around $2 million. The 2007 reports are the most recent available for Congress, and they represent snapshots of members' finances at the end of that year. Lawmakers may have sold off these investments in the last eight months, as the outlook for companies darkened. In addition, CRP does not yet have the personal financial disclosure data for about 50 lawmakers who received extensions on the annual reports.Before the Fall, Companies Were Major ContributorsAs these companies struggle to stay afloat without bringing the economy crashing down around them, the government has said it won't bail them out, but will instead leave Wall Street to straighten out the mess. This is the sobering message that has been delivered to companies that are among the top contributors of all time to federal politics. Since the 1990 election, Merrill Lynch's PAC and employees have given $14.7 million to federal candidates, parties and committees. The company leans heavily Republican--64 percent of the brokerage's total donations have gone to GOP candidates and committees. All three of its top recipients have been (or still are) presidential hopefuls this election cycle. Republican John McCain received $394,300 from people associated with Merrill Lynch, making the company his top contributor. Democrat Hillary Clinton collected $290,650, and Barack Obama got $229,100. The company's favorite non-presidential candidate is Sen. Charles Schumer (D-N.Y.), a member of both the Senate Banking, Housing and Urban Affairs Committee and the Senate Finance Committee. He has received $226,150 in this election cycle. Bank of America's PAC and employees have given $16.6 million, also favoring Republicans, though less sharply. About 54 percent of the company's contributions over time have gone to the GOP. Obama is the top recipient of contributions from employees at Bank of America, with $263,500 in donations. McCain has brought in $177,500, making him the fourth-largest recipient. Sen. Chris Dodd, chair of the Senate banking committee, has collected $144,650, while congressional leaders Nancy Pelosi, Steny Hoyer (both Democrats) and John Boehner (a Republican) are all among the company's top 20 recipients over time. Lehman Brothers has given $9.2 million through employees and its PAC since 1989, with 54 percent of that going to Democrats. Clinton and Barack Obama top the list of all-time recipients for the company, collecting $410,000 and $395,600 respectively. Schumer hauled in $181,450, while Dodd has collected $165,800. The top recipient of PAC money from Lehman Brothers has been Rep. Mike Castle (R-Del.), a member of the House Financial Services Committee, which has jurisdiction over banking and the securities industry. Castle has collected $38,500 from Lehman's PAC since 1993.This election cycle, Lehman employees have given about $1.3 million to presidential candidates. Only fellow financial giants Goldman Sachs, Citigroup and Morgan Stanley have given more to the presidential hopefuls this election cycle. Lehman employees have made their firm one of the top contributors to both Obama ($370,500) and John McCain ($117,500) this election cycle. (For a full list of recipients of Lehman contributions, see this post from Friday.)Of all the companies making headlines this week, AIG has been the most nonpartisan in its contributions, splitting evenly the $9.7 million it has contributed over time. Dodd has racked up the most from AIG, with a total of $281,400, while Schumer takes second with $116,400. McCain and Obama collected $103,000 and $82,600 from AIG, respectively.

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The point is not to say - oh look, Obama took it but McCain took a few thousand more ... rather, Obama has made anti-lobbyists the center of his campaign along with anything else remotely connected to change.









Lobbyists

Obamessiah on Iraq

ST. LOUIS (Reuters) - Democratic presidential candidate Barack Obama said on Saturday his plan to end the Iraq war was unchanged and he was puzzled by the sharp reaction to his statement this week that he might "refine" his timetable for ithdrawing U.S. combat troops.

"For me to say that I'm going to refine my policies I don't think in any way is inconsistent with prior statements and doesn't change my strategic view that this war has to end and that I'm going to end it as president," Obama told reporters on his campaign plane.

Obama, who based his drive to capture the Democratic nomination on his early and ardent opposition to the war, said earlier this week he might alter his plan to bring combat troops home within 16 months of taking office if conditions on the ground changed.

The comment drew heavy coverage and sharp criticism from some on the left and the right, with Republicans saying it showed he was vacillating on Iraq.

"I was a little puzzled by the frenzy that I set off with what I thought was a pretty innocuous statement," he said on a flight from Montana to St. Louis. "I am absolutely committed to ending the war. I will call my joint chiefs of staff in and give them a new assignment and that is to end the war."

The full Reuters article

Reuters, July 6, 2008

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Obamessiah Fanatics: He argued throughout the primary that He would end the war and bring the troops home NOW. Hillary argued that she may have to leave troops in Iraq for some time, but she would bring most home, soon. Obamessiah attacked her for not pledging to end the war. So which is it lunatics? Is He ending it or back pedaling and lying to you? The Republicans say one thing you claim, Hillary says one thing you argued, and always did another. What is He doing?


Senator: You are puzzled by the furor? Then you really need to spend another 10 years in Congress and grow up. Read the above Senator. Did you or did you not attack Hillary over and over again during the primary on Iraq? Did you or did you not attack her on grounds that she would not pledge to end the war in Iraq and bring the troops home? You did Senator. You wanted every soldier out of Iraq and were not about to listen to any excuse, and you attacked Bush and McCain over their excuses to keep troops in Iraq. The tapes exist Senator, and you will soon see and hear the tapes, again and again. Do you routinely make promises and break them before you even get a chance to vote on something?

Perhaps Senator you are so unsure of yourself, unable to articulate policy without a teleprompter, unable to develop a coherent policy - perhaps senator, you are simply in over your head and you are making up policy at every campaign stop regardless if it contradicts earlier statements. After all, earlier statements were to the party faithful in primaries and you have that all sewn up, they can't go anywhere - now you abandon them and move to the center (for the election only). You know you are not moderate. You are not interested in foreign issues other than to jawbone everyone to death.

Iraq is far more complicated than you presented during the primaries, but back then you were as dumb on that subject as you are on foreign policy today, yet you have somehow seen the light and realize the Bush plan has worked and is working. Now you change your position and Senator it is a change. You can pretend it isn't. You can be amazed that anyone thinks differently, but that is because those who are questioning you, actually can think.

Despite John Kerry claiming McCain shows poor judgment, Senator Obama, you are not experienced enough, and you show little to poor judgment, again demonstrated by this fiasco. Mr. Kerry has no judgment to question.



Obama





Feckless policies




Iraq

John Kerry and Scott McClellan

Kerry: On September 11, we were at peace

Sen. John Kerry (D-Mass.) believes that on September 11 "we were basically at peace."
Asked to clarify his remarks, specifically asking about the attacks on the U.S.S. Cole during Barack Obama campaign conference call, Kerry said, "well, we hadn't declared war," The Hill's Sam Youngman reports.

Asked if al Qaeda was a threat at the time, the 2004 Democratic presidential nominee said, "well yes, obviously they were a threat. But, fundamentally we were not at war at that point in time."
Kerry also called John McCain "out of step with history and facts."

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Maybe he was at peace. maybe he was thinking of his own life - at peace with Theresa. At peace - perhaps he had reconciled himself to the fact he would run in 2004 and was at peace with that decision. But as for the US at peace - what a clumsy, foolish, moronic, idiot.

1993 - attack on the World Trade Center

1994-1998 - Attacks on US embassy's and government personnel from Saudi Arabia to Africa to Pakistan and Afghanistan where bin Laden went in to hiding. Bin Laden declared war on the US long before 2001 and he made it public, and said it many times.

The USS Cole.

By 2001, the United States had been under attack for years by bin Laden and his band of evil doers.

Kerry was so clueless, and remains clueless.

Fool.

Dangerous fool.

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DNC Uses McClellan to Attack McCain

The Democratic National Committee (DNC) is asking "Where was John McCain" while the White House was spreading war propaganda, as former White House Press Secretary Scott McClellan has alleged.

A new DNC web ad shows McClellan accusing the White House of spreading propaganda leading up to the U.S. invasion of Iraq, then shows McCain speaking in 2002 in support of the invasion.

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What is curious about this is - when Scott McClellan was the spokesman, no one believed him anyway. In fact, he was the least sought after person in the White House - NO ONE BELIEVED A WORD HE SAID ... now suddenly the Democrats believe every word he has 'written'.

Interesting.

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