Posted on 03/08/2007 5:17:15 AM PST by Chi-townChief
WASHINGTON -- White House hopeful Barack Obama was on the defensive Wednesday over stock purchases from companies whose investors included his political donors.
And Obama revealed that he terminated a "quasi-blind" trust he created for the stock purchases -- called the "Freedom Trust" -- after realizing that it wasn't blind after all.
Obama's campaign team ramped up a rapid reaction defense after a story about his portfolio hit the front page of Wednesday's New York Times and was the subject of scrutiny Monday on thestreet.com.
Denies any connection The political damage potential is high because one of the firms Obama bought stock in was developing medicine to treat avian flu -- with the purchase coming as Obama started to champion more federal funding to fight the disease. Obama, who has made ethics one of his signature issues, took questions at a news conference in the Capitol called originally to tout an immigration bill. He denied any connection between his investments and legislation. Meanwhile, Obama's research team -- aware that every part of his life is under a microscope -- turned up unpaid parking tickets from his days as a Harvard law student. In January, an Obama representative paid $400 in fines and penalties, according to the Somerville News.
Here's the situation:
Investing the book windfall: "This was not a lot of money," Obama said.
Obama had about $100,000 he wanted to invest in 2005. The money was a portion of the $1.2 million he got from a book contract. He said Wednesday he decided the $100,000 could be put into something "more high risk" and asked a friend to recommend a stock broker. That friend was donor George W. Haywood, who held what the New York Times called "major" positions in the two stocks Obama ended up owning, Skyterra and AVI BioPharma.
Another Obama donor who invested in the same stocks -- which were characterized as "obscure" in thestreet.com story -- was Jared Abbruzzese. He was also a donor to the anti-John Kerry Swift Boat Veterans for Truth and is being investigated by the FBI in New York for public corruption. Obama declined to name the UBS broker. Net loss on the investments: $13,000.
"I thought about going to Warren Buffett, but I decided it would be embarrassing with only $100,000 to invest to ask for his advice," Obama quipped.
The 'quasi-blind' trust: "Now obviously the thing didn't work the way I wanted it to," Obama said.
The Senate Ethics manual has detailed rules about blind trusts and qualified blind trusts. Obama did not want to sign on to either of those options because he did not want to wash his hands of the responsibility of investments made in his name, attorney Robert Bauer said.
Because the off-the-shelf trusts were not satisfactory, "We tried to see if we could jigger it to make it work better," Obama said. He signed papers on May 31, 2005, for the custom trust designed to shield him from knowing how his money was invested -- but let him respond to media inquiries about potential conflicts. Obama realized his system was not working when he received some sort of shareholder letter in fall 2005.
Katten Muchin Rosenman attorney Michael Hartz in Chicago drew up the papers for and was the trustee of the "Freedom Trust." Bauer said this particular kind of trust did not require any clearance from the Senate Ethics Committee because he did not ask to be relieved from any reporting rule. Bill Allison, a senior fellow at the Sunlight Foundation, said that if any kind of blind trust was created, "you should have the Ethics Committee sign off on it."
The trust was revoked on Dec. 31, 2005. Obama put his money in cash and mutual funds.
mailto:lsweet3022@aol.com
I don't think its about the polls so much as the money - Hildbeast is seeing some large pots of money which should be "hers" going to Obama. Gotta nip that in the bud ...
No, he didn't... Can he even say that in public?
"...What's the real story of how he was plucked from obscurity and placed on the national stage without having accomplished much of anything..."
Sort of like jimmy carter and bill clinton, yes? Perhaps hilliary was never in their game plan, and they consider her a wildcat....
There's a Ross Perot factor or two that will be in play for 2008, as well as plenty of ringers wearing republican costumes with a few pieces of conservative glittery costume jewelery, IMO A real gong show on both dem and rep sides, LOL
Is there any bigger jigger rigger?
His current stature sure gives credence to the conspiracy theory that just a handful of men hidden away somewhere actually run the world.
He's drying up the money pool.
$100,000 is not a lot of money?
"Even if you're poor, you've got 5 dollars (to give me)"
Notice a pattern here?
I too am scared of Obama Al Husseini. There is no doubt in my mind he would RE-convert to Islam in his first term as President.
I thought we no longer could use the "J" word!
lmao
It beats getting sick.
But but but the culture of corruption applies only to republicans.
I just spoke with Lynn Sweet. She apparently has no interest in Hillary's campaign finance fraud.
Of course, they're scared to death. They moved up their announcement way too soon. Now she's got to be out there exposing the country to her lowdown campaign tactics and stupid commentary.
She has no interest in ending her career.
Does anyone believe that the klinton's don't still have access to current FBI files?
Whatever the truth (which could be a combination of both, or an unknown alternative), two things are clear: First, Obama was chosen for this role because he's part black...a surefire way to lock up a sizeable percentage of the Democrat vote, both black and non-black. Second, some powerful, wealthy force(s) is behind him, because his overnight rise did not happen by magic. In other words, he's a front man for someone or some group. Maybe the stock shennanigans that are the subject of this thread, are the tip of the iceberg as regards Obama's payoff.
Although his story will be portrayed as the stuff of fairy tales and Hollywood script writers, it isn't. No one wakes up one morning, says, "Gee, I think I'll run for the Senate, spend half a term there and then run for president," then just walks in off the street and it happens for him.
What ties does his church have to radical Muslims.
This still pales in comparison to Her Thighness' Futures Dealings. Did anyone think Sen. Rotten would play nice?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.