Posted on 04/17/2002 8:52:08 AM PDT by Jean S
(CNSNews.com) - Corporate giant General Electric has agreed to negotiations with Jesse Jackson after Jackson sent a letter to the company in mid-March, chastising GE for not including more minority firms in the company's multi-billion-dollar bond sale last month.
Critics see this as another effort by Jackson to get more money for members of his Wall Street Project. The Project includes minority-owned companies that pay for Jackson's organization to promote minority interests in corporate America.
After receiving Jackson's letter, GE called Jackson's complaints "legitimate," and both parties have scheduled a meeting for April 17 in New York City.
In his March letter to GE, Jackson asked the company to work with firms he referred to as "members" of his Wall Street Project. This prompted an April 2 meeting with GE Capital Services Chairman Dennis Dammerman and Jackson regarding GE's $11-billion-dollar bond offering of March 13.
A GE spokesman would not say whether the company believes minorities were underrepresented in the bond offering, but GE Capital spokesman John Oliver told CNSNews.com , "There was that view expressed by Reverend Jackson and others and we took that seriously and we are trying to find a way to address it."
Oliver confirmed that Dammerman, Jackson and others who met on April 2 decided to conduct additional meetings, including the April 17 meeting. Kathryn Cassidy, senior vice president of GE's Capital Corporation, is scheduled to host that meeting today in New York, beginning at 1:30 p.m.
Oliver said the Jackson meetings came about because "some minority bankers felt that they weren't able to participate in the debt offering to the degree they wanted, and that is legitimate."
Oliver characterized earlier discussions between Dammerman and Jackson as "upbeat," and noted, "GE Capital's desire is to make sure that everybody feels they got a fair shot at our commercial paper and debt offering."
"The meetings have been pretty upbeat with people saying, 'How about this? Well, how about that.' I think they are going through some good ideas," he added.
Earlier this month, CNSNews.com obtained a copy of Jackson's letter, which expressed his disappointment that minority financial institutions, particularly members of Jackson's Wall Street Project, were not involved in the bond sale.
The unsigned letter, which was authenticated by Jackson's staff, was addressed to GE Chairman and CEO Jeffrey R. Immelt, and dated March 14, the day after the company's $11 billion bond offering, the second largest ever by a U. S. company.
In that letter, Jackson made evident his frustration in not being able to influence GE. "We have written either you or [former GE Chairman and CEO] Jack Welch several times to address the need for GE to consider minority-owned financial services firms in all aspects of your treasury operations -- from pension fund management to investment banking advisory services," the letter stated.
"We received neither the courtesy of a telephone call nor a written response," Jackson wrote. His opinion about GE's commitment to minorities was also clear in the letter.
"It is disappointing to think that GE, one of America's most innovative and respected companies, doesn't feel that any minority-owned firms have the capability to be part of what will probably be one of the largest bond offerings in 2002," the letter stated.
Jackson's solution for GE is to hire companies with "relationships" to Jackson's Wall Street Project.
"We have established relationships with several minority owned investment banks that have qualifications and expertise to deliver excellent results and value-added products," Jackson wrote. "These firms are members of our Wall Street Project Trade Bureau. I have enclosed for your review, a list of these firms."
The Wall Street Project's aim is to promote minority participation in corporate America. The list of recommended companies Jackson included with the letter was not made available.
Deroy Murdock, a marketing and media consultant from the firm Loud & Clear Communications, believes GE is making a mistake by meeting with Jackson. "GE should stand up to Jackson and refuse to play ball with him and expose his efforts to shake them down," he said.
"If GE wants to reach out to minority partners in the areas of high finance, that is fine. But it should not be done under duress and only with Jackson supporters," Murdock said.
Ken Boehm, chairman of the National Legal and Policy Center (NLPC), warned GE to proceed cautiously. "Jackson has one standard on whether a project will work: Whether he and his friends get money," Boehm stated.
Boehm claimed that Jackson "wins when his folks get money, not when minorities get money."
The NLPC, a Washington, D.C.-based legal watchdog group, filed a formal complaint regarding Jackson's finances with the IRS last year, and Boehm believes GE may not give in to Jackson's pressure. "GE has been pretty strong willed in the past with Jackson, they have a good reputation," said Boehm.
Jackson's office did not respond to repeated requests for comment.
See Related Story:
Letter Reveals Jesse Jackson's 'Shakedown' of GE, Critic Says (Mar. 25, 2002)
E-mail a news tip to Marc Morano.
Send a Letter to the Editor about this article.
Stockholders? How about its CUSTOMERS? There's probably not a single Freeper that doesn't use some GE product. They watch NBC, they buy GE lightbulbs, etc etc. A major across-the-board anti-GE Freeper boycott campaign could actually cause them some damage, if we could stick to it and continually make a lot of noise about it.
If they cave to a Jesse Jackson shakedown, GE will go from being the biggest shark in the water to being just another piece of bloody raw meat.
Time to go short on GE. Hell, by the looks of this decision, it was probably time a year ago.
Perhaps, JJ, if you had extended the courtesy of signing your letter, GE could have determined that it was real, and circled the wagons earlier, preparing for your shakedown.
If GE gives in to the ShakedownMan, you will lose all my families business. Hold a press conference and explain that you will not be blackmailed by anyone - much less Jesse Jackson. Thank you.
"In this respect, I look forward to speaking to you soon to schedule a meeting in which we can discuss ways to work together towards this goal."
Implied last line should read:
"I am sure we can come to a mutually agreed upon resolution in which you will be offered a deal you cannot refuse. My associates will be be calling on you soon."
BTTT
(Currently own 60k worth (2) of Toyota vehicles...my last?)
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.