Thursday, September 20, 2007

Senator Schumer, Playing to the Crowd

Carlyle Selling Stake to Abu Dhabi


Washington Post Staff Writers Thursday, September 20, 2007; 11:18 AM
The Carlyle Group, the District's private-equity giant, announced that it is selling a 7.5 percent share of its general partnership to an investment group owned by the government of Abu Dhabi -- one of a flurry of deals today involving Arab governments and U.S. and British financial assets.
. . . "This deal raises serious questions that must be answered," said U.S. Sen. Charles E. Schumer (D-NY), chairman of the Joint Economic Committee. "Those questions will include -- should we allow foreign governments to take over our financial exchanges and how much control and influence should those foreign governments have? . . "
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______________________________________________________________________ So, let's see now, Chuck. Global commerce is good and free trade deals are good, but 7.5% interest in a single private fund is a "takeover of financial exchanges." That's what we call rhetorically swinging for the seats and missing. Lordy--first it was the Japanese buying America (which they rather quickly sold back at a loss), then Dubai 'buying' control of our ports (which no doubt would have provided better security than Mike Chertoff's benign neglect) and now the drum is beating once again against UAE interests. If there is a hope for the world getting out of the habit of wars, it is in the area of cross collateral financial interests--one simply does not go to war with a valued customer of supplier. Loosen up, Chuck. There's plenty of more important things on your plate.

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