The Permanent University Fund, a separate fund that manages money for the state's universities, has investments in Crescent exceeding $8.9 million. The $9 billion university fund's investments are managed by the University of Texas Investment Management Co., whose chairman is Tom Hicks, owner of the Texas Rangers.
Haddock said such investments are minor compared with some institutional investors that have bought more than $500 million in Crescent stock.
In addition to the Crescent/Crow deal, the Teacher Retirement System also was involved in another real estate transaction involving the Crows and a private investment fund managed by one of Bush 's former business associates from Harken Energy Corp., the oil company Bush helped manage.
TRS had financed the expansion of the Anatole Hotel in Dallas for one of the Crow family partnerships. TRS took possession of the hotel tower in 1991 when the Crow partnership defaulted on more than $73 million in loans for its constructions. The Loews Hotel Corp., on contract to the Crows, continued to manage the entire hotel.
After foreclosing on the hotel tower, TRS invested almost $11 million in upgrades.
A series of negotiations began in 1994 over whether the hotel should be resold to the Crows or sold on the open market. After Bush became governor, TRS sold the hotel tower without taking bids to a partnership made up of the Crow family and the Harvard Management Co.
Harvard Management is the investment arm of Harvard University. Harvard's venture capital company is headed by Michael Eisenson, who served on the board of directors of Harken Energy with Bush . Harvard had become a major investor in Harken less than 60 days after Harken bought out Bush 's oil company in 1986.
TRS sold the Anatole tower to the Crow/Harvard partnership for $27 million less than the retirement system had invested in the building. But TRS officials said the system made a profit of $54 million when the building's sale price is added to loan income before default and operating income received from the hotel after default.
Steinhart seconded the motion to sell the property to the Crow/Harvard partnership.
Steinhart became one of the state's leading bankers in the late 1980s and early 1990s through a firm called Team Bank. Team Bank grew rapidly by purchasing the assets of failed banks from the Federal Deposit Insurance Corp., which at the time was under the administration of President Bush.
Steinhart's activities with Team Bank were financed in part by a $27 million investment from the Harvard Management capital venture firm headed by Eisenson. Harvard made a $47 million profit when Steinhart merged Team Bank with Bank One in 1992.
...the SEC chairman had been appointed by President Bush in August 1989. The SEC general counsel had represented the younger Bush in the purchase of the Texas Rangers.
Texas Platform - Conduct of Public Officials
Excerpt from the 2000 Texas Republican Party Platform:
- Conduct of Public Officials -
The Party believes the president of the United States and all members of the Executive, Legislature and Judicial branches of the federal and state governments shall be held to the same standards of conduct as other law-abiding citzens. We call for the investigation and, if appropriate, prosecution of any and all members of the Clinton administration that have committed crimes, up to and including possible treason against the United States of America, without respect to the office served.
Records reveal Bush sold Harken Energy's stock during cash 'crisis'