Regnat Populus

The people rule.

Feinstein’s Financial… Conformity?

Posted by Max Barron on April 21, 2009

Senator Dianne Feinstein (D-CA) "I am not a crook!"

Senator Dianne Feinstein (D-CA) "I am not a crook!"

Senator Dianne Feinstein (D-CA) may have been caught with her hand in the federal cookie jar.  An obvious conflict of interest occurred when Feinstein  approached the FDIC on Oct. 30, 2008 offering to get them federal tax dollars to help with home foreclosures.  “Coincidentally” only a few days before the FDIC awarded her husband’s firm, CBRE, with a lucrative contract to sell off foreclosed properties.  Apparently the FDIC accepted her offer, as during the first session of the new congress this year, Feinstein introduced a piece of legislation that would pour $25 billion into the FDIC coffers. 

Documents reviewed by The Washington Times show Mrs. Feinstein first offered Oct. 30 to help the FDIC secure money for its effort to stem the rise of home foreclosures. Her letter was sent just days before the agency determined that CB Richard Ellis Group (CBRE) – the commercial real estate firm that her husband Richard Blum heads as board chairman – had won the competitive bidding for a contract to sell foreclosed properties that FDIC had inherited from failed banks.

About the same time of the contract award, Mr. Blum’s private investment firm reported to the Securities and Exchange Commission that it and related affiliates had purchased more than 10 million new shares in CBRE. The shares were purchased for the going price of $3.77; CBRE’s stock closed Monday at $5.14.

Is it just me, or is there a smell of conflicted interests present?  How about out right corruption?  Naturally FDIC spokesmen as well as Feinstein and Blum have all claimed that there is no connection between the contract award and the $25 billion payday.  A full chorus line of “nothing to see here, folks.  Move along.”  Keep in mind that Feinstein has no official business with the FDIC as she sits on neither of the boards that oversee it.  Not to mention that the FDIC is supposed to only operate off of monies paid from bank insurance payments.  Yet Feinstein had the benevolent forethought to “help” the FDIC and it has nothing to do with the CBRE award?  I’m just not buying it.

BUSTED

BUSTED

CBRE bid for the gig.  A few days before the contract is to be awarded and the wife of the Chairman of the Board offers a $25 billion dollar pay out.  FDIC goes on to award the contract and during the contract award window, Mr. Blum and affiliates purchase 10 million new shares in CBRE (that’s a lot of shares… and a lot of confidence.  $37.7 million worth of confidence.)  Dropping $37.7 million on a commercial real estate broker during a tough economic recession that was fueled by torment in the real estate market?  That takes a set of massive stones, a Midas touch, or knowledge that you are about to receive a lucrative boon to business in the form of a major government contract.  This in turn produced a nice $13.7 million profit from the stocks alone (as of Monday Apr. 21 — with potential to be much more), not to mention the compensation from sales.  Those compensation rates were reportedly above industry average as well.

I know, it’s shocking.  Who wants to bet that this will never see a Senate Ethics Comittee hearing?  Any takers? No?  What if I told you that a Republican had done this?  Who wants to bet that the Republican Senator would be in an emergency Ethics hearing as I type this?

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One Response to “Feinstein’s Financial… Conformity?”

  1. pvgroup said

    This administration are the most corrupt we had in decades. They mascarade as saviours, they are going to save America- they pronounce. They are very similar to a 1933 regime- disquised as patriots who only want the best for the country. This regime are made up of modern day socialists- a cross between fascism and communism. They need to be stopped and soon, before we are plundered into an abyss. The clown from Harvard in a three piece suit hides behind his smile. is it not obvious he is such an angry, racist, man. Growing up basically fatherless and listening to white hating preachers- the man is dangerous and anti-American.

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