Posted on 04/11/2002 3:22:58 AM PDT by Liz
LOS ANGELES, April 10 — Former President Bill Clinton has been hired as a senior adviser at two investment funds that specialize in lower-income urban and rural communities.
The funds, the Yucaipa American Fund and the Yucaipa Corporate Initiatives Fund, were started in the last year by Ronald W. Burkle, a former grocery store magnate. Mr. Clinton is a friend of Mr. Burkle and often stays at his house.
Mr. Burkle got a start bagging groceries as a teenager and then made millions investing in grocery stores, culminating in the sale of Fred Meyer to Kroger for about $8 billion in 1999.
Mr. Clinton will act as something of an ambassador for the funds, which be invested primarily in manufacturing, distribution and retail companies, Mr. Burkle said. The former president's duties will include talking to chief executives and local political leaders, at conferences and at "mini-town halls" in communities where Yucaipa hopes to invest.
The former president's participation, Mr. Burkle said, "brings attention and focal point to the funds."
"It's a good thing for him," Mr. Burkle said. "He needs to do some business things."
Mr. Burkle would not disclose the financial arrangements he made with Mr. Clinton but conceded that pay would be based on the performance of the fund. "If the fund makes money, he makes money," Mr. Burkle said.
Mr. Clinton's staff confirmed the appointment in a statement issued this afternoon.
Mr. Burkle is among the nation's wealthiest business executives and is a frequent political donor. According to statistics compiled by the Center for Responsive Politics, Mr. Burkle and the Yucaipa Companies he founded in 1986 have contributed more than $1 million to Democrat and Republican entities and candidates in the last four years.
This is not the first such move by a former president or a top member of the Clinton administration. Last November, former Vice President Al Gore became the vice chairman of Metropolitan West Financial, a financial services company that is based in Los Angeles and is run by former Drexel Burnham executives. Industry executives say Metropolitan West, which was little known at the time, gained from that move because it helped put the company on the map.
In 1998, former President George Bush was given stock when he made a speech in Tokyo on behalf of Global Crossing, the Beverly Hills telecommunications company that is now nearly bankrupt. Mr. Bush's shares in Global Crossing, which were given to him instead of an $80,000 speaking fee, were once estimated to be worth $14 million.
"There is nothing wrong with that," said Stephen Hess, a scholar of the presidency at the Brookings Institution in Washington. "But corporate work is tricky because it does come with strings attached."
It is particularly tricky for a president as young as Mr. Clinton, who still has decades left to pursue another career, Mr. Hess said. "Most of the presidents have been old when they retire," he said. "The pay and perks for presidents is recent in American history. The country has changed its attitudes in that way."
Since leaving office, Mr. Clinton has been crisscrossing the globe, making millions on the lecture circuit, while he writes his memoirs.
The two funds started by Yucaipa first got their start last year when the California Public Employees' Retirement System, one of the nation's largest and most influential pension plans, approved a $475 million initiative to invest in blighted urban and rural communities throughout the state. Then retirement system then picked 11 investment firms as partners with the hope it would spur development in areas ignored by venture capitalists.
Yucaipa was allotted $200 million by the retirement system and set up a fund. But Mr. Burkle liked the idea enough to start another fund, the American Fund, which has raised $560 million from state and union pensions.
Mr. Burkle conceded that one reason he is interested in these types of investing is because there are now so many private equity funds that it is hard differentiate one from the next. "For us there are too many people trying to do typical leveraged buyout funds right now," he said. "We think this gives us an edge."
But Samuel Hayes, a finance professor at the Harvard School of Business, said that moving into a new direction could also bring problems.
"I would remind you this has been tried before and it has not always worked out, Professor Hayes said. "They may be doing this to profit, but they are going to have to work for it. "
People worry about Social Security in the Stock Market.
I worry about the extremely political nature of public emplyee pension plans. They invest to make social statements and reward Demoracts. They don't always invest with the best interests of the unions workers in mind.
Example, they threaten tobacco companies and they sell their stocks even as many tobacco stocks soar.
The only people who have to worry are public employees in states where the comptroller is a Democrat
Simple, Klintoo gets paid tens of millions to talk Democrat state comptrollers to invest hundreds of millions in these funds.
Politically correct #$^$&#@*$&$.
I'd keep an eye on him though. Make sure he's not sticking his thingy in the pickle cutter...whatever her name is.
ROTFLMCO. Now that's funny. Of course, this joker just might
get the urge to stick it into an onion ring.............just for kicks.
Possible Careers would include:Caddy,BlackJack Dealer or Hotel Greeter in MACAU,President of Indonesia,Chinese Statesman, Jobs like these are what I expect from #42.He's certainly most likely become the First Ex-President 'to pass on' via "SHAME" when it does eventually catch up w/ him,which it will.LOL
Good point.
Who's to say that he's ever going to visit his office there? "You scratch my back, and I'll scratch yours".
At least he isn't doing Monica's old job at Revlon...
And she sure looked cute in that supermarket deli uniform slicing bologna
How about this? Bill Clinton gets a job as spokesman for Oscar Meyer so that he can continue push baloney on an unsuspecting public!
Do they make onion rings that small?
Versimilitude.
They make all those little weenies don't they?.....LOL.
I still say McDonald's french frier or ketchup pumper.....
A cocktail weenie?
For Bill, that would be called a "strap-on".
With a little piece of dental floss to hold it on.
Yes indeed he did.
I didn't know that one.Why am I not surprised.Is it because I 'EXPECT' this after 8 years?How anyone would have their money in a fund that he has Anything influence at all,is 100% just beyond my comprehension.I suppose I'm just glad that man is a polar 180 degrees from me,and I don't have people to enable me like that.Imagine what a "Swine" you could become,but still, you'd have to live w/ yourself!---"Ketchup Pumper"?!?!?!? LOL I just told my office staff that one! LOL
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