Because the Carlyle Group remains privately
held, it is not required to disclose details of its
investments or business activities. How EXTREMELY CONVENIENT for Bush Sr and his son.
The Carlyle Group: ex-government
officials cash in, including George Bush Sr. and Son.
The incestuous ties between the Bush administration and the corporate world are highlighted
by its relationship with the Carlyle Group, a leading private equity firm.
Private equity companies buy undervalued businesses
and then resell them for a profit. It is a highly profitable field
open to only the wealthiest players. It has returned an average profit of 34 percent per year over the past decade.
The Carlyle Group became a major force on the
world financial scene by employing prominent ex-officeholders,
such as former President George Bush, to provide a foot in the door to government ministries around the world.
Recent activities of the senior Bush include a
meeting last fall with King Fahd of Saudi Arabia. Bush also met with the
of South Korea and other government officials, paving the way for Carlyle to acquire KorAm Bank, considered an important prize
because of its relatively strong financial position. Each speech he gives on behalf of Carlyle generally nets the former
president $80,000 to $100,000.
Carlyle's ties to the Bush family date back
more than a decade. In 1990 Carlyle placed
George W. Bush
on the board of directors of one of its subsidiaries, Caterair, an airline catering company.
Charles Lewis, executive director of the Center
for Public Integrity, commented, 'Carlyle is as deeply wired into the current
as they can possibly be. George Bush is getting money from private interests that have business before the government, while
his son is president. And, in a really peculiar way, George W. Bush could, some day, benefit financially from his own
administration's decisions, through his father's investments.
In addition to the elder Bush, Carlyle
employs former Secretary of State James Baker
and former British Prime Minister John
The firm's advisory board lists such international figures as former President Fidel Ramos of the Philippines and the former prime
minister of Thailand. Karl Otto Pohl, former president of Germany's Bundesbank, is also an advisor.
According to a report in the March 5 edition of
the New York Times, "Carlyle has ownership stakes in 164 companies which
employed more than 70,000 people and generated $16 billion in revenues. About 450 institutions - mainly large pension funds and banks
- are Carlyle investors...
"The California state pension fund invested $305
million with Carlyle, and the Texas teachers
pension fund - whose board
was appointed when George W. Bush was governor - gave Carlyle $100 million to invest in November."
Carlyle is reportedly the eleventh largest
defense contractor in the US because of its ownership of companies
making tanks, aircraft wings
and other equipment. It is also heavily invested in telecommunications, another field that is strongly affected by government policy.
Frank Carlucci,a former defense secretary under
President Ronald Reagan, who is Carlyle's chairman, met with his former
college classmate Donald Rumsfeld, Bush's secretary of defense, in February. The two reportedly spoke about "military matters"
at a time when Carlyle has billions of dollars worth of defense projects under consideration by the government.
~ By Shannon Jones, 16 May 2001
Bin Laden Family Has Intricate
Ties With Washington
Saudi Clan Has Had Access To Influential Republicans
If the U.S. boosts defense spending in its quest to stop Osama bin Laden's alleged terrorist activities, there may be one unexpected
beneficiary: Mr. bin Laden's family. Among its far-flung business interests, the well-heeled Saudi Arabian clan is an investor in a fund
established by Carlyle Group.
Through this investment and its ties to Saudi
royalty, the bin Laden family has become acquainted with some of the biggest
names in the
Republican Party. In recent years, former U.S. President George Bush, ex-Secretary of State James Baker and ex-Secretary of
Defense Frank Carlucci have made the pilgrimage to the bin Laden family's headquarters in Jeddah, Saudi Arabia.
People familiar with the family's finances say
the bin Ladens do much of their banking with National Commercial Bank
in Saudi Arabia and with the London branch of Deutsche Bank AG. They also use Citigroup Inc. and ABN Amro.
"If there were ever any company closely connected
to the U.S. and its presence in Saudi Arabia, it's the Saudi Binladin
Group," says Charles Freeman, president of the Middle East Policy Council, a Washington nonprofit concern that receives
tens of thousands of dollars a year from the bin Laden family.
Mr. Freeman, who served as U.S. ambassador
to Saudi Arabia during the Gulf War, says he has spoken to two of Osama's
hijacked planes rammed the World Trade Center and the Pentagon on Sept. 11. They told him, he says, that the FBI has been "remarkably
sensitive, tactful and protective" of the family during the current crisis, recognizing its longstanding friendship with the U.S.
A Carlyle executive said the bin Laden family
committed $2 million through a London investment arm in Carlyle Partners
II Fund, which
raised $ 1.3 billion overall. The fund has purchased several aerospace companies among 29 deals. So far, the family received $1.3. million
back in completed investments and should ultimately realize a 40% annualized rate of return, the Carlyle executive said.
But a foreign financier with ties to the bin Laden
family says the family's overall investment with Carlyle is considerably
larger. He called
the $2 million merely an initial contribution. "It's like plowing a field," this person said. "You seed it once. You plow it, and then you
reseed it again."
Former president Bush met with the bin Laden family in Saudi Arabia, in November 1998 and January 2000.
Mr. Baker visited the bin Laden family both
in 1998 and 1999, according to people close to the family. In the second
he traveled on a family plane. Mr. Baker declined comment, as did Mr. Carlucci, a past chairman of Nortel Networks Corp.,
which has partnered with Saudi Binladin Group on telecommunications ventures.
~ By Staff Reporters Daniel Golden
and James Bandler in Boston, and Marcus Walker in Hamburg
The Wall Street Journal Europe, Friday / Saturday September 28-29 2001
The Carlyle Group (George Bush Sr. and bin Laden family), also profits from the BioPort corporation in Michigan,
the only US anthrax vaccine producer!
The Carlyle Group, Bush Sr. and BioPort - Owners of Anthrax Vaccine
Lawsuit By Judicial Watch To
Gain Carlyle Group Documents
(Washington, DC) Judicial Watch, the public interest law firm that investigates and prosecutes government corruption, today announced that it
would be filing a Freedom of Information Act lawsuit against the State and Defense Departments in order to obtain documents concerning the
Carlyle Group, an international consulting and investment firm which retains former President George H.W. Bush.
The Wall Street Journal reported in September that the former president,
father of President Bush, worked for the bin Laden family
business in Saudi Arabia through the Carlyle Group. The senior Bush had met with the bin Laden family at least twice. (Other top
Republicans are also associated with the Carlyle group, such as former Secretary of State James A. Baker.) The terrorist leader Osama bin
Laden had supposedly been "disowned" by his family, which runs a multi-billion dollar business in Saudi Arabia and was a major investor
in the senior Bush's firm. Other reports have questioned whether members of his Saudi family have truly cut off Osama bin Laden. Osama's
sister-in-law, in a recent interview with ABC News, said that she believed that members of her family still supported bin Laden.
In the wake of Judicial Watch and other criticism of its ties to the
bin Laden family business, the Carlyle Group reportedly no longer does
with the bin Laden conglomerate. Yet it has also been reported that the Group has had significant business contacts with the Saudi Arabian
government, which many have criticized for its lack of diligence in reigning in bin Laden and its tepid support for America's war against terrorism.
And documents recently uncovered through Judicial Watch's FOIA to the
Department of Defense shows that the Carlyle Group
access to the U.S. government. The documents include a February 15, 2001 letter on Carlyle Group letterhead to Defense Secretary Donald Rumsfeld from former Defense Secretaries Frank Carlucci and William Perry, both now with Carlyle Group. The documents also include
Secretary Rumsfeld's April 3 response to Messrs. Carlucci and Perry. The letters seemingly discuss the restructuring of the Defense Department.
The Carlyle Group is listed in the documents as Defense Department contractor.
"It is time for former President Bush to leave the Carlyle Group. The
questions raised by his and others involvement with
the Saudi-connected firm can only cause problems for the U.S. war effort," stated Judicial Watch Chairman Larry Klayman.
The letters mentioned above:
Letter from Frank Carlucci and William Perry of the Carlyle Group to Donald Rumsfeld
Letter from Donald Rumsfeld to Frank Carlucci and William Perry of the Carlyle Group
For further info see:
H. Michael Sweeney's N O I L W A R !
Carlyle Group (Bush, Sr. Etc)
Profits Increasing From Afghan War
It is commonly known, though, that the firm favors the defense and aerospace sectors,
with a wide array of investments in Pentagon affiliates.
"Their defense holdings are quite extensive,"
said Tom Fitton, president of Judicial Watch, a Washington
public interest law firm. "Because of their investments, they are a major contractor for the Pentagon."
Among Carlyle's holdings is United Defense Industries, a maker of armed
vehicles and weapons,
which filed in October to raise up to $300 million in an initial public offering of its shares.
Judicial Watch filed suit last week to obtain
documents shedding light on Carlyle business activities undertaken by
President Bush's father, who reportedly met with bin Laden's family in Saudi Arabia at least twice prior to the Sept. 11 attacks.
He also has had dealings with a variety of foreign governments.
"The appearance is awful," Fitton said. "For the father of our current
to be doing business with foreign governments, there is a clear conflict of interest."
Critics of the Carlyle Group have grown increasingly vocal in recent
weeks, particularly over the perception that a
organization with unmistakable links to the White House is benefiting from America's military action in Afghanistan.
~ By David Lazarus, SFGate.com, 12-4-1
In depth report:
Bush Family and the Carlyle Group
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