Mystery of Harvard's "rescue" of Harken Energy

The Boston Globe via SMH ^ | July 19 2002

[dead]

Washington: As a congressional candidate in the Texas oil patch in the late 1970s, the last thing George Bush wanted to mention to the rural electorate was his postgraduate degree from Harvard.

But when Mr Bush was later involved in the struggling company Harken Energy, it was his alma mater's endowment that came to the rescue. The Harvard Management Co poured about $US30million into Harken, keeping it afloat and helping to sustain Mr Bush's career.

Harvard Management's investment in Harken, which began in 1986, has received far less notice than the controversy about whether Mr Bush used inside knowledge in 1990 to sell shares in the firm at a profit. But the money from Harvard was crucial, at one point giving the endowment one-third control of Harken. That was such a large stake that a key member of Harvard Management's investment team acquired his own shares in Harken and joined Mr Bush on its board.

All these years later, the question remains: what did the most prestigious university in the United States see in a troubled little oil company from Texas that justified such attention and a $US30million investment?

Harvard Management officials, citing confidentiality and the difficulty of retrieving old documents, refused to release records about the purchase or discuss it in any detail. Its chief executive, Jack Meyer, discounted but did not entirely reject the suggestion that it made the investment because Mr Bush - then the son of the US vice-president - was on the board.

"I would be surprised that George Bush had anything to do with the investment decision, but I don't know that," said Mr Meyer, who was not at Harvard Management when the decision was made.

Still, questions linger because of the decision to keep the matter confidential.

Harvard Management is a famously profitable enterprise, where fund managers have made as much as $US10million a year. The endowment fund, which had $US18.3billion under management as of June 2001 and is one of the nation's largest, does not issue an annual report, although its holdings are disclosed in federal filings.

[rdavis84]

"The fact that the information was public makes the charge of “insider trading” asinine."

Depends on the Dates of the information, doesn't it?

[dead]

Depends on the Dates of the information, doesn't it?

Yes. And all of that was reviewed by the SEC. They found no evidence that Bush acted on priviledged information.

All statements to the contrary are based on unsubstantiated speculation, from everything I've seen so far.

[rdavis84]

Then there's all of the ties of these "connected people" to BCCI, Arabs, Pakistanis, Asia, the CIA and Poppy Bush as CIA Director that go to the Clinton legacy ---http://www.alamo-girl.com/0336.htm

It's all just one big Happy Family, isn't it? (You'd need to read a LOT at that listing)

• The relationship of important BCCI figures and important intelligence figures to the collapse of the Hong Kong Deposit and Guaranty Bank and Tetra Finance (HK) in 1983. The circumstances surrounding the collapse of these two Hong Kong banks; the Hong Kong banks' practices of using nominees, front-companies, and back-to-back financial transactions; the Hong Banks' directors having included several important BCCI figures, including Ghanim Al Mazrui, and a close associate of then CIA director William Casey; all raise the question of whether there was a relationship between these two institutions and BCCI-Hong Kong, and whether the two Hong Kong institutions were used for domestic or foreign intelligence operations.
• BCCI's activities in Atlanta and its acquisition of the National Bank of Georgia through First American.
• The relationship between BCCI and the Banca Nazionale del Lavoro. BCCI and the Atlanta Branch of BNL had an extensive relationship in the United States, with the Atlanta Branch of BNL having a substantial number of accounts in BCCI's Miami offices. BNL was, according to federal indictments, a significant financial conduit for weapons to Iraq. BCCI also made loans to Iraq, although of a substantially smaller nature.

[thinden]

First, companies tied to Alan Quasha and Harvard Management lent Harken $46 million. Harken used $15 million of that money to retire E-Z Serve debt. It spent $28 million more on capital improvements at E-Z Serve and Tejas stock. Harken kept the remaining $3 million. The company then gave its shareholders rights to buy E-Z Serve and Tejas stock. An agreement stipulated that any stock not purchased by the shareholders could be bought at a discount of at least 3 percent by two companies affiliated with Quasha and Harvard. But Quasha and Harvard controlled 55.6 percent of Harken stock. By not exercising the rights to buy it immediately, they effectively gave themselves the built-in discount. Harvard Management declines to discuss the deal.

seeds of enron planted here? minus the star wars names, it kinda looks like the same management style. wonder if anderson was "consulting" back then?

[rdavis84]

"Yes. And all of that was reviewed by the SEC. They found no evidence that Bush acted on priviledged information."

And that was Poppy Bush's SEC. Does that count? :-) Anything "investigated" by Clinton's SEC (like Cattle Future type stuff :-) didn't count, did it?

[rdavis84]

"seeds of enron planted here?"

Don't forget, they'd all come off of the S&L ride (rape?) just before that.

[CecilRhodesGhost]

I was worried this day would come. People are brining up BCCI on this thread. Not a good idea. Beyond the internet, discussing BCCI will never happen thank God. Anyone who supports free trade, globalization of the economy or progress of any sort should cringe each time some kook brings up BCCI. It's almost as bad as bringing up "the new world order" and all that crud.

[rdavis84]

Ever wonder what the new one coming down the pike might be?

[dead]

So what you're essentially saying is any evidence that exonerates him of wrong doing is tainted and any speculation that indicts him is fact.

Kinda pointless trying to get to the bottom of the situation when you're always sure there's another bottom below it.

[Fred Mertz]

Ask the loon in #27.

[rdavis84]

"I was worried this day would come. People are brining up BCCI on this thread."

Also bringing up Enron and the S&L thingy. Horrible isn't it?

[dead]

"I was worried this day would come. People are brining up BCCI on this thread." Also bringing up Enron and the S&L thingy. Horrible isn't it?

When does David Rockefeller show up? 8-)

[rdavis84]

"Ask the Loon in #27"

O.K. Fred. But I also want to ask that loon if he has any idea where all of this missing money has gone? Like all of the money from the S&L's, the Enron's, the BCCI scams, the Drug profits, the Dot.Com busts, now the crashes and "mistated profits" of the Stock Market? Stuff like that. :-)

[rdavis84]

"When does David Rockefeller show up? 8-)"

He has to ask the Bilderbugers if he can come out and play in this :-)

[EBITDA]

Well, that does it. It's clearly time to begin impeachment proceedings.

I wonder if Kevin Bacon is on the list.

[thinden]

Anyone who supports free trade, globalization of the economy or progress of any sort should cringe each time some kook brings up BCCI.

BCCI, now there's a business model if I've every seen one.

p.s. I always thought KooK was spelled with a capital K? is it just sinkspur that does that, goombah?

[Betty Jo]

Yep!

[CecilRhodesGhost]

I think BCCI should just be allowed to fade away quietly. Mistakes were made, clearly. But as the world shrinks, people all need to start accepting that there will always be a small level of corruption in any government. It's human nature. And as globalization increases, the problem is amplified. Besides, most people inside the US are not financially versed to even understand BCCI. It's old news anyway.

[rdavis84]

"I think BCCI should just be allowed to fade away quietly. Mistakes were made, clearly."

O.K. Forget I mentioned it. Sorry.

[Boyd]

I see not much has changed.

I did see the story. Thanks.