Anonymous ID: b097db May 18, 2020, 10:35 a.m. No.9226087   🗄️.is đź”—kun   >>6327 >>6691

Germany and France calls for $545 billion chinavirus recovery fund

 

In a joint statement, Germany and France called for a 500 billion euro ($545 billion) recovery fund to finance the coronavirus response in the eurozone. Both countries also proposed authorizing the European Commission to source the funds from debt markets under the European Union's name. Analysts have called for EU members to share the fiscal burden of paying for the coronavirus response. Italian government paper received a boost from the development as the country would have to take on more debt to finance its efforts to limit the economic blow of the disease without some form of jointly issued debt. The 10-year yield for the Italian government bond tmbmkit10y plunged 19 basis points to 1.67%, based on Tradeweb data. Debt prices move in the opposite direction of yields.

https://www.marketwatch.com/story/germany-and-france-calls-for-545-billion-coronavirus-recovery-fund-2020-05-18

Anonymous ID: b097db May 18, 2020, 10:57 a.m. No.9226412   🗄️.is đź”—kun

The Fed’s Chair and Vice Chair Got Rich at Carlyle Group, a Private Equity Fund with a String of Bankruptcies and Job Losses

 

According to his official bio, Fed Chairman Jerome Powell was a partner at the Carlyle Group from 1997 to 2005.

 

The man responsible for supervising the largest and crime-riddled banks on Wall Street, Fed Vice Chairman for Supervision Randal Quarles, is even richer than Powell. According to Quarles’ financial disclosure form dated June 1, 2017, he could be worth as much as $125 million. In 2017, between $10 million to $50 million of Quarles’ investments were in Carlyle Group. On just those Carlyle investments, Quarles was receiving a range of between $2 million and $10 million in annual income. (The government allows federal employees to report a preposterously broad range on asset values and income on financial disclosure forms.) Quarles was a Managing Director at Carlyle Global Financial Services Partners from 2007 to 2013. The Carlyle investments have been replaced by different investments on Quarles’ most recent financial disclosure form.

 

Carlyle Group’s current and former partners are not defensive about the string of bankruptcies and jobless workers it has left in its quest to extract riches from its buyout targets. Carlyle had several bankruptcies during the last financial crisis with more blowups in the past two years.

 

In November 2018, Peter Whoriskey and Dan Keating of the Washington Post penned a devastating critique on how Carlyle had handled its investment in a chain of nursing homes known as HCR ManorCare, which filed for bankruptcy in March of 2018. The authors wrote that there was a 29 percent rise in serious health code violations at HCR ManorCare in the years before the bankruptcy and following a 2011 financial deal that “extracted $1.3 billion from the company” for Carlyle investors while saddling the nursing home chain with debt. Under the same deal, most of the company’s real estate was sold off, forcing it to now pay rent to the new owners. Hundreds of layoffs of employees occurred soon after, leaving the vulnerable residents neglected according to the article.

 

The Washington Post reporters explained the consequences of leveraged-buyout artists running homes for the most vulnerable in society:

 

“The lack of care had devastating consequences. One man had been dosed with so many opioids that he had to be rushed to a hospital, according to the inspection reports. During an undersupervised bus trip to church — one staff member was escorting six patients who could not walk without help — a resident flipped backward on a wheelchair ramp and suffered a brain hemorrhage.

 

“When a nurse’s aide who should have had a helper was trying to lift a paraplegic woman, the woman fell and fractured her hip, her head landing on the floor beneath her roommate’s bed.”

 

In January 2018, another asset-stripped company that was owned by Carlyle Group, Philadelphia Energy Solutions (PES), filed bankruptcy. Reuters explained what happened this way: “The Carlyle-led consortium collected at least $594 million in cash distributions from PES before it collapsed, according to a Reuters review of bankruptcy filings. Carlyle paid $175 million in 2012 for its two-thirds stake in the refiner. More than half the distributions to the Carlyle-led investors were financed by loans against PES assets that the refiner now can’t pay back, the filings show.”

 

Hawaiian Telcom was launched in 2005 from assets Carlyle acquired from Verizon. Carlyle had no experience running a telephone company. Carlyle loaded it up with debt and the company filed bankruptcy less than four years later in 2008.

 

More bankruptcies and job losses are piling up as a result of the business model at Carlyle. In December of last year, Carlyle filed a prepackaged bankruptcy plan for Acosta Inc., a sales and marketing firm that it had bought for $4.75 billion in 2014. The bankruptcy deal called for Acosta’s major creditors to accept equity in exchange for extinguishing approximately $3 billion in debt. In April of this year, Apex Parks Group, with a substantial ownership interest held by Carlyle Group, filed bankruptcy. The company operates amusement parks and water parks across the U.S.

 

Many Americans will recall that the iconic Wall Street investment bank, Bear Stearns, collapsed on March 16, 2008 under the weight of toxic bets gone awry. But few Americans are likely to remember that three days before the demise of Bear Stearns, an insanely leveraged creation of Carlyle Group, Carlyle Capital Corp., also collapsed and was liquidated.

moar here

https://wallstreetonparade.com/2020/05/the-feds-chair-and-vice-chair-got-rich-at-carlyle-group-a-private-equity-fund-with-a-string-of-bankruptcies-and-job-losses/