Add to Qs drop from last night, family members of Politicians Dianne Fenstein’s husbands firm win deal to sell US Post Offices
Check is in the mail: Sen. Feinstein's husband to cash in selling old post offices
By Phillip Swarts, Washington guardian, June 13, 2013
The real estate giant chaired by Richard Blum, the husband of California Sen. Dianne Feinstein, is cashing in on a new federal crisis.
Just a few years after the firm now known as CBRE Group collected more than $108 million from a contract to help the FDIC sell foreclosed properties, the company owned in part by Blumis selling off old post offices under an exclusive contract with the financially struggling U.S. Postal Service, records show.
Officials for the Postal Service, Feinstein’s office and Blum’s company say the contract signed in 2011 with CBRE involved no political influence and was awarded to CBRE after a competitive process that involved six other firms.
Nonetheless, the deal is the latest example of how relatives of powerful politicians and federal officials routinely benefit from the largesse of a government overseen or run by their loved ones.
Blum and Feinstein, a California Democrat and one of the Senate’s most powerful members as chairwoman of the Intelligence Committee, likewise have faced questions about overlapping business interests previously.
In late 2008, the real estate firm then-known as CB Richard Ellis senate-husbands-firm-cashes-in-on-crisis/?page=all”>won a contract from FDICto sell off properties the government inherited during the mortgage crisis at generous commission rates that ran as high as 8 percent to 30 percent.
Around the same time, Feinstein took the unusual action of introducing legislation to route $25 billion in taxpayer money to the agency that had just awarded the contract.
Ethics experts raised concerns about the appearance of a conflict of interest, though all parties involved denied any wrongdoing. A subsequent review by FDIC’s internal watchdog found no irregularities in the real estate firm’s work for the FDIC and declared that it charged the government fair prices.
But the 2012 inspector general’s report also divulged just how handsomely CB Richard Ellis and its chairman of the board were rewarded: the firm between 2009 and 2011 collected a whopping $108,319,000 in fees and compensation under the deal, the report showed.
The Postal Service lost $15.9 billion last year and is liquidating the buildings in an effort to raise cash.
https://m.washingtontimes.com/news/2013/jun/12/firm-chaired-by-sen-feinsteins-husband-cashes-in-o/