Gizmodo: California Congressman Says Tech Utopia Developer 'Sold a Fairy Tale’ to Silicon Valley Elite https://gizmodo.com/california-forever-development-fairy-tale-garamendi-sf-1850809669?utm_source=regular #universityofcaliforniaregents #sanfranciscobayarea #travisairforcebase #californiaforever #marcandreessen #siliconvalley #johngaramendi #michaelmoritz #charlesschwab #mikethompson #goldmansachs #reidhoffman #timflannery #donaldtrump #california #janshramek #linkedin #solano #kgo

“Time and again, Garamendi’s “fire sale approach” would have the same result: enriching Apollo at the expense of Executive Life’s policyholders. ”

Excerpt From
These Are the Plunderers
Gretchen Morgenson & Joshua Rosner
#johnGaramendi #privateEquity #leonblack #predatoryCapitalism

I hadn't considered John Garamendi all too much but, I do now. Wow:.
“Explaining the situation years later, Cogut recalled that Aurora was “profitable, very profitable from the beginning,” a clear sign that Garamendi had sold the company too cheaply. But even as Aurora recorded these gains, Executive Life’s policyholders were receiving significantly reduced benefits under the deal.”

These Are the Plunderers
Gretchen Morgenson & Joshua Rosner #privateEquity #johnGaramendi #bookstodon

Honestly. What the hell? How did/does John Garamendi have an office of public responsibility --after all of this?
What the hell?

Excerpt From
These Are the Plunderers
Gretchen Morgenson & Joshua Rosner p. 108

#leonblack #bookstodon #privateEquity #nonfiction #johnGaramendi @johngaramendi

Late 1991, John Garamendi as then-Insurance Commissioner for California handed ex-Drexel managers, Leon Black et al, a huge payday:
“The Apollo partners [Leon Black et al] were the elated ones. Under the terms of the sale [Executive Life] , Altus would ultimately receive almost $6 billion worth of bonds for around $3 billion.”

Excerpt From
These Are the Plunderers
Gretchen Morgenson & Joshua Rosner p. 103 #leonblack #bookstodon #privateEquity #nonfiction #johnGaramendi

Excerpt From
These Are the Plunderers
Gretchen Morgenson & Joshua Rosner p. 97
#leonblack #bookstodon #privateEquity #theseAreThePlunderers #apollo #gretchenmorgenson #joshuaRosner #nonfiction #apolloGroup #johnGaramendi

What’s more, whether the insurer needed to be taken over at all was questioned in a 1994 article published in the Journal of Financial Economics, which concluded that, thanks to the rebounding junk bond market, Executive Life would have been solvent again within a year of its takeover.
Garamendi had sold at the bottom of the market. That was pretty much exactly where the ex-Drexelites had hoped to buy, propelling Apollo to its start.

#leonblack #bookstodon #privateEquity #johnGaramendi

John Garamendi. -- man, you did policy holders 'dirty' as California Insurance Commissioner in 1991:
"In any case, the advantage given to [Leon] Black’s partners by [John] Garamendi led to a terrible outcome for Executive Life’s policyholders. He’d allow assets needed to fulfill Executive Life’s promises to be sold off for far less than they were really worth. ..

#leonblack #bookstodon #privateEquity #theseAreThePlunderers #apollo #gretchenmorgenson #joshuaRosner #nonfiction #johnGaramendi

Among the businesses he destroyed was #Samsonite, "a bankrupt-but-healthy company he subjected to 12 humiliating years of repeated fee extractions, debt-funded dividend payments, brutal plant closings, and hideous schemes to induce employees to buy its worthless stock."

The money to buy Samsonite - and many other businesses - came through a shadowy deal between Black and #JohnGaramendi, then a California insurance commissioner, now a California congressman.

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