Capitol Fax.com - Your Illinois News Radar » *** UPDATED x2 Siedle responds - Rauner response *** Today’s must-read
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x2 Siedle responds - Rauner response *** Today’s must-read

Thursday, Oct 30, 2014

* Ted Siedle at Forbes

In short, I learned from my experience with Rauner that you don’t have to be brilliant to be successful in the silly business of buying and melding together established businesses—businesses you really know very little about—using state workers’ retirement savings. Access to public pension assets is the key prerequisite.

Trust me, any money manager with workers’ monies committed to funding his professional development for a protracted period of time, eventually—assuming he’s reasonably intelligent and capable of learning from his mistakes—will stumble upon a winner. Worse case, he’ll lose much of the workers savings over the course of the standard ten-year lock-up commitment period and pocket millions in asset-based management fees along the way.

Just being around all that pension cha-ching, tweaking purchase and sale agreements and engaging in thinly-disclosed rampant self-dealing virtually guarantees the manager blessed with Other People’s Money under his care will end up wealthy himself. Call it a “wealth transfer.”

Better still, thanks to private equity secrecy agreements, your clients may never know just how much you profited potentially at their expense.

Read the whole thing.

*** UPDATE 1 *** The Rauner campaign responds by attacking the author…

EDWARD SIEDLE IS A UNION ATTACK DOG

Siedle Wrote Articles Attacking Rhode Island Treasurer Gina Raimondo For Investing In Private Equity Funds. “In an online column for Forbes on April 4, Siedle blasted Raimondo for dramatically increasing both risk and fees by steering a sizable chunk of Rhode Island’s $7-billion state pension fund into ‘alternative investments,’ including hedge funds. He accused her of enabling a ‘Wall Street feeding frenzy.’” (Mike Stanton, “Former SEC Watchdog Edward Siedle Criticizes Rhode Island Treasurer’s Pension Strategies,” Providence Journal, 6/30/13)

Shortly After Attacking Raimondo, Siedle Was Paid $20,000 By A Union Hostile To The Treasurer. “A month later, he was having lunch in Providence at Capriccio with Rhode Island union officials and retirees who had read his columns, including two top officials of the state’s largest public employees union, Council 94 of the American Federation of State, County and Municipal Employees. Shortly thereafter, Council 94 hired Siedle for $20,000 to investigate Rhode Island’s pension funds. Siedle declined to reveal his fee, but Council 94 president J. Michael Downey confirmed it after questions from The Providence Journal.” (Mike Stanton, “Former SEC Watchdog Edward Siedle Criticizes Rhode Island Treasurer’s Pension Strategies,” Providence Journal, 6/30/13)

Forbes Forced Sielde To Stop Writing About Rhode Island. “Raimondo immediately attacked Siedle’s credibility and motives. ‘This was a bait and switch,’ said Raimondo spokeswoman Joy Fox. ‘He sold himself as a journalist while pitching a local union for business.’ Raimondo complained to Forbes, which says it has asked Siedle, an unpaid contributor since 2006, to ‘cease writing about Rhode Island.’” (Mike Stanton, “Former SEC Watchdog Edward Siedle Criticizes Rhode Island Treasurer’s Pension Strategies,” Providence Journal, 6/30/13)

*** UPDATE 2 *** The author has responded to the Rauner camp’s claims…

While Gina Raimondo, Democratic Treasurer of Rhode Island (and candidate for Governor) did indeed complain to Forbes about my writings exposing her Wall Street agenda, Forbes never asked me to stop writing about her. I have written a dozen articles on Forbes about her since her complaint which have been read by hundreds of thousands.

Check the record Bruce before you embarrass yourself with bogus allegations.

What about the red flags I’ve identified at GTCR, conflicts and secret dealings? Will you make public the potentially damning evidence?

- Posted by Rich Miller        

29 Comments
  1. - vise77 - Thursday, Oct 30, 14 @ 9:53 am:

    Nice article, thanks. I am shocked–shocked–that these money makers and paper chasers aren’t the wisest of the wise, the smartest of the smart as a good two or three decades of their propaganda would have it.


  2. - Anonymous - Thursday, Oct 30, 14 @ 10:00 am:

    Don’t forget the 20 to 25% return on the pension funds that the state received as a result of the investment and how the current administration can’t account for it like it never happened. The truth, the whole truth, and nothing but the truth.


  3. - Lord Stanley's Cup - Thursday, Oct 30, 14 @ 10:10 am:

    Not sure how much hay can be made on Oct 30 but Team Quinn should be doing all it can to push this story downstate.


  4. - Louis Howe - Thursday, Oct 30, 14 @ 10:12 am:

    Hedge funds have been lousy investments for pension funds for years. They earned on average 7.3 % in 2013 and have underperformed the S&P 500 for five straight years.
    But hedge fund managers make out like real bandits. First, taking 2% off the top and 20% of any gains, then paying a top tax rate of 20%. Thanks union members for sharing the wealth.


  5. - the Patriot - Thursday, Oct 30, 14 @ 10:12 am:

    It is ironic that Rauner is the best reason union workers should vote against Quinn so they can shift their money into a 401k they control.

    Yea, this is a Rauner problem. Tens of thousands of union workers, company employees, and public employees have been whacked by the mismanagement of defined benefit pensions. The only solution is to phase out of them into a 401k style program. Better for the taxpayer, and puts control of the workers money where it belongs….with the worker.

    Ironically, Rauner will be the guy to make this change not Quinn. The state still has refused to comply with the orders from the last pension lawsuit.

    Quinn tried to steal your pension, you beat him in court, yet he refuses to comply with the court order. If you vote for him again, you get what you deserve as an public sector union member. Don’t cry when you are 65 and broke.


  6. - Grandson of Man - Thursday, Oct 30, 14 @ 10:14 am:

    “Don’t forget the 20 to 25% return on the pension funds that the state received as a result of the investment”

    Let us not also forget the way Rauner described unions and their government worker salaries and pensions. That’s one of the early and powerful reasons why I oppose him today. I’ve gone on and on about his apparent disdain for unions and pensions, while profiting immensely from them.

    Rauner’s pension record is a contradiction of his campaign stance of needing a new governor to fix the state’s pension mess.


  7. - PublicServant - Thursday, Oct 30, 14 @ 10:16 am:

    Seems like Rauner got rich with a little redistribution of public employee pension fund fees. Redistribution from the little guy to the scam artists like Rauner is apparently common. What a taker that guy is, huh?


  8. - JS Mill - Thursday, Oct 30, 14 @ 10:17 am:

    Rauner absolutely loves to call people corrupt, often for actions allowed under the law. The hypocrisy of it all is that he is involved in or linked through his “businesses” to a mountain of corruption in the financial sector. Their behavior makes even the most corrupt Illinois politician look like an amateur.


  9. - 47th Ward - Thursday, Oct 30, 14 @ 10:25 am:

    Nice article. Not that I needed further proof that Rauner lacks the character and experience necessary to be Governor, it’s still a nice re-affirmation of the many reasons I don’t like the man. So thanks for that.


  10. - Norseman - Thursday, Oct 30, 14 @ 10:26 am:

    So if Raunervich gets elected, we can add another 12 years to his 100 years of corruption rant.


  11. - walker - Thursday, Oct 30, 14 @ 10:34 am:

    Absolute must read.

    In our economy you just don’t make such high personal returns, (unless you truly invented something), without misleading people, operating in narrow corners of the market, and skirting regulations, national boundaries, and what most would assume are the ethical and legal standards that allow our free economy to work.

    His company’s style of private equity investment and management, are not what standard corporations, other industries, or even other venture capitalists do. This is not like hiring a standard corporate or business leader for the job.

    Let’s ask ourselves again: Just what values skills would Rauner bring to the Governor’s job, that have been demonstrated in his business experience?

    Those who know this industry, know that it is very shaky ground from which to grow. It is one of the arenas in our private enterprise world that has more ethical problems than even bad politicians.

    Is Rauner the exception? How would we know?


  12. - VanillaMan - Thursday, Oct 30, 14 @ 10:42 am:

    A good read.
    It appears that Rauner has a great deal of experience shuffling money from one source to another, taking some for himself, and finding new angles to profit with the funds he availed himself of that day.

    If anyone can shake up Springfield and Illinois government, it is a governor with experience doing those kinds of things.

    The author doesn’t trust Rauner, however, he seems to make it clear that he doesn’t trust himself either.

    Want change, Rauner will do it.
    Like how things are going today, keep Quinn.


  13. - Carhart Representative - Thursday, Oct 30, 14 @ 11:34 am:

    I’m so happy that Bruce is coming to shake up Springfield and stop these people from enriching themselves off the public dime like this Rauner fellow.


  14. - Demoralized - Thursday, Oct 30, 14 @ 11:39 am:

    Not all change is good VMan. Change for the sake of change isn’t an answer.


  15. - WhoKnew - Thursday, Oct 30, 14 @ 11:45 am:

    Good read!
    “He who comes bearing gifts—as opposed to merely seeking a hand-out—will be richly rewarded and at breakneck speed.”
    All facilitated with the use of Other Peoples Money!


  16. - Sir Reel - Thursday, Oct 30, 14 @ 12:08 pm:

    Like most masters of the universe, Rauner believes his success is due to his business acumen. I’d like to see him come up with a good idea on his own, then using his own money turn it into a successful business. There’s a difference.


  17. - Oswego Willy - Thursday, Oct 30, 14 @ 12:31 pm:

    To the Rauner response;

    Unions, smear, credibility, personal…

    No denial of the article.

    Imagine “Governor Tom Hagen”, but the Sun-Times is already Sen. Geary, so if Rauner can sit on the Press that’s left, it won’t matter much what they say about Rauner, true or not.

    If you don’t like Rauner, he will destroy you, if he can.

    It’s a pattern. Look around. Read. Read above.

    There’s no denial. There’s only scorched earth.


  18. - Meanderthal - Thursday, Oct 30, 14 @ 12:40 pm:

    If it were that easy, everybody would be doing it.


  19. - Meanderthal - Thursday, Oct 30, 14 @ 12:45 pm:

    Another thought, the best way to get state worker’s retirement funds out of private equity is to give all state workers 401ks and let each one of them decide for themselves which asset class they want to invest in for their retirement.


  20. - Precinct Captain - Thursday, Oct 30, 14 @ 1:08 pm:

    Can’t respond to legitimate criticism? Resort to personal attacks, bullying, and intimidation. Bullying is about the only thing Bruce can legitimately claim as an accomplishment in his life.


  21. - PMcP - Thursday, Oct 30, 14 @ 1:15 pm:

    This shouldn’t be surprising, the number one rule of finance has always been, and will always be, “Other People’s Money.”


  22. - Soccermom - Thursday, Oct 30, 14 @ 1:27 pm:

    Dear Bruce,

    Thanks for the reminder! I was planning to read the article, but it had slipped my mind.


  23. - truthteller - Thursday, Oct 30, 14 @ 1:37 pm:

    Well, is Rauner going to respond to Siedle, or does he have something to hide?
    Can’t say I’m shocked to learn that the Rauner campaign misrepresented the facts in its initial response.


  24. - liandro - Thursday, Oct 30, 14 @ 1:52 pm:

    “There’s no denial. There’s only scorched earth.”

    OW, I have to ask: did you at first comment “if you’re explaining, you’re losing” before realizing you’d have to attack him from some other angle on this one? Because that’s exactly what you would have posted if he had done what you suggested, heh.


  25. - Demoralized - Thursday, Oct 30, 14 @ 2:05 pm:

    So is this going to be Rauner’s standard M.O. when somebody writes something negative about him? Smear the writer? Question their integrity?

    Again, character is important. He seems to be lacking it.


  26. - Soccermom - Thursday, Oct 30, 14 @ 2:39 pm:

    Good article on Siedle — gives some background

    http://www.providencejournal.com/breaking-news/content/20130630-former-sec-watchdog-edward-siedle-criticizes-rhode-island-treasurer-s-pension-strategies.ece


  27. - Soccermom - Thursday, Oct 30, 14 @ 2:54 pm:

    This was an easy fact check, by the way — Siedle has published a number of stories on Rhode Island since he did the work for AFSCME. Here’s a recent one:

    http://www.forbes.com/sites/edwardsiedle/2014/09/05/the-gina-raimondo-rhode-island-state-treasurer-story-that-major-media-nearly-missed/

    (Dear Bruce — I know you don’t want to waste money, but you should probably get your staff access to the Google.)


  28. - Wordslinger - Thursday, Oct 30, 14 @ 8:33 pm:

    VMan, using your brilliant logic, you should vote for Willie — Willie Sutton.

    He knew where the money was.


  29. - RNUG - Thursday, Oct 30, 14 @ 9:03 pm:

    - the Patriot - Thursday, Oct 30, 14 @ 10:12 am:

    I think you are a bit confused on the status of the SB-1 pension case. It’s still in Circuit Court with Judge Belz and no rulings have been made. The next hearing is later in November.

    The only retiree case that has been decided was Kanerva (formerly Maag aka SB-1313) and it was about the premium free health insurance. Yes, the ISC pretty much telegraphed the likely outcome of the SB-1 case with their Kanerva decision but from a procedural and legal standpoint, there has been no decision in SB-1.

    And as far as the State following the orders that Judge Nardulli issued re Kanerva, the State has been complying. The deductions have been stopped and the court is trying to sort out exactly how to issue the refunds and get the attorney’s fees paid. There are a number of refund issues that have to be sorted out; one example is who receives the refund for a deceased retiree, the estate (if it is still in existence), a survivor who might be receiving a spousal pension, or the beneficiary(s) as listed on the retiree’s pension?


Sorry, comments for this post are now closed.


* Question of the day
* Here we go again...
* Who raised what in AG race?
* Warning issued over putting medically fragile children in Medicaid managed care
* Schakowsky, Gutierrez endorse Lipinski's Democratic opponent
* Rauner tied to Greitens, Pritzker tied to Blagojevich
* Some states looking for ways around federal tax law
* *** UPDATED x2 - Pritzker, Rauner, RGA respond *** Watch Dem candidates appear at Sun-Times
* Poll: Rauner leads Ives 65-21
* Not the governor's greatest day
* *** UPDATED x1 *** Kennedy needs to dig deeper, but can he?
* The fight for second place
* Group offers possible fix to problems with Rauner's AV
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Loading


* ISBE is right to hold state data close..
* Perennial candidate asks question that just won.....
* Cook County Clerk David Orr: When billionaires .....
* VMT tax criticism includes double taxation and .....
* Straub calls Durkin's ties to Democrats a poten.....
* 2 Illinois Governor Candidates Spend $26-Millio.....
* Rauner Spokesman: 'Governor Believes David Duke.....
* State Proposing Doubling Spending On Education .....


* Judge keeping some documents secret in Hastert lawsuit
* Ex-Ataris bassist indicted, accused of telemarketing fraud
* Rock bassist indicted, accused of telemarketing fraud
* Suspect in terror-related case claims 'combatant immunity'
* 2 Illinois governor candidates spend $28M in last 3 months
* Chicago group sues US Steel over Indiana plant's discharges
* 2nd case of measles confirmed in person who was at O'Hare
* Illinois woman gets 15 years for crash that killed teen
* University of Illinois trustee seat has been empty a year
* 6 face charges involving drugs, stolen electronics

* 2 Illinois governor candidates spend $28M in last 3 months
* Statehouse bill would connect rural schools to high-speed internet
* Statehouse bill would connect rural schools to high speed internet
* 2 Illinois governor candidates spend $26M in last 3 months
* Education officials want to double state budget for schools
* University of Illinois trustee seat has been empty a year
* Rauner campaign: 'Governor believes David Duke is a racist'
* Rauner defends amendatory veto of school funding bill
* Rauner signs bill to focus on needs of female prison inmates
* Rauner tours Lincoln prison, touts reforms helping female inmates

* Dow set to close above 26,000 for first time
* Dow closes above 26,000 for first time
* Apple to build 2nd campus, hire 20,000 in $350B pledge
* Theresa Mintle is trying on academia for size
* Emanuel picks up a re-election rival


* Judge keeping some documents secret in Hastert lawsuit
* Police: Officer punched by driver of stolen vehicle on Northwest Side
* Paul Vallas ‘seriously considering’ mayoral run against Rahm Emanuel: report
* Perennial candidate asks question that just won’t go away
* Informing Trump: Chicagoans voice fears, anger as deportation deadline looms
* Sneed exclusive: Michelle Obama’s laid-back birthday bash
* 2 people wounded in Albany Park shooting
* 2 people wounded in Albany Park shooting
* AP: In honor of ‘The Post,’ the top 10 newspaper movies
* AP: In honor of ‘The Post,’ the top 10 newspaper movies


* Archdiocese: 5 Catholic schools to close, several parishes merge
* Warriors down Bulls 119-112, tie franchise record with 14th straight road victory
* Warriors respect talent and potential of Bulls' Lauri Markkanen
* St. Cyprian school to close; River Grove church to form united parish with Elmwood Park's St. Celestine
* Scotty Bowman says he thinks Corey Crawford’s injury concussion-related
* Incarnation Catholic, Our Lady of the Ridge to close at school year's end
* Los Angeles security guard suspected of raping dozens of women, some as young as 15, arrested after victim escapes
* Bannon agrees to Mueller interview but objects to immediate return before Hill committee
* Talks to avoid government shutdown hit roadblocks one day before vote
* Bears coach Matt Nagy focuses on simplicity in developing and teaching new offense


» 2 Illinois Governor Candidates Spend $26M In Last 3 Months
» State Board of Education: Double School Funding Now
» Lawmakers Demand Fast Internet For Rural Schools
» 2 Dreamers Discuss Helping Other Immigrants Amid Uncertainty
» Rauner Spokesman: 'Governor Believes David Duke Is A Racist'
» Rauner Signs Law To Help Women Behind Bars
» A Poor Neighborhood In Chicago Looks To Cuba To Fight Infant Mortality
» Democratic Candidates In Lockstep At Justice Forum
» Dem Candidates In Lockstep At Justice Forum
» Chicago Sees Record Number Of Visitors In 2017


* Our View: Focus on cost-cutting, then turn to taxes
* 2 Illinois governor candidates spend $28M in last 3 months
* Statehouse bill would connect rural schools to high-speed internet
* 2 Illinois governor candidates spend $26M in last 3 months
* Education officials want to double state budget for schools
* University of Illinois trustee seat has been empty a year
* Rauner campaign: 'Governor believes David Duke is a racist'
* Our View: Dubious tariff endangers newspapers' future
* Byron York: Paul Manafort has a point
* EJ Dionne: Will Trump exhaust our democratic capacities?


* Catching up with...Ed Hightower
* District 118 considers adding fall break
* PHOTOS: Millikin University Women's Basketball Invited Special Olympics Teams For Skills Demonstration
* Clarification for Jan. 18
* SWIC board votes to eliminate childcare service at Belleville campus
* Boil order issued for 12 metro-east communities; 2 schools cancel
* Ex-gang member sentenced in 2015 shooting death of 14-year-old boy
* SIUC to host science conference themed around microscopic 'water bears'
* East St. Louis man gets prison time for sexually assaulting 12-year-old girl
* Schlarman girls pace locals in latest AP hoops rankings


* West Chicago teachers could hold strike vote in 'near future'
* Construction of new Willow Creek Huntley church could begin this spring
* Hardiman favors violence-prevention czar, gun restrictions, and no public funds for private schools
* Archaeologists in Mexico claim world's longest flooded cave
* Neymar scores 4 in PSG rout yet still leaves field unhappy

* Tioga State Bank president and CEO address...
* Teacher raised in Yorkville running agains...
* Kane County assessor: No guarantee your ta...
* Dissident artist Ai Weiwei and US Rep. Ran...
* Suburban Democrats line up to challenge Ro...
* Hultgren joins fellow lawmakers fighting t...
* 3 suburban GOP reps provide crucial votes ...
* This RSS feed URL is deprecated
* Our view: End patronage at Algonquin Towns...
* Subcommittee on Financial Institutions and...

* This RSS feed URL is deprecated...
* Letter: Grateful for Dick Durbin's fortitu......
* On “The View,” Sen. Dick Durbin defends hi......

* This RSS feed URL is deprecated...
* Some Democrats on Capitol Hill push for al......

* The [Wednesday] Papers
* Fix Illinois by breaking the state apart? A gubernatorial candidate makes the case.
* Bruce Rauner wants Quincy veterans' home to remain open after one-week stay, and other Chicago news
* Loy Webb shows us The Light
* Durbin says Trump's Haiti comments were "hate-filled, vile and racist"
* Di Leo: Setting the Record Straight on Israel
* Cabaret star Charles Busch relives his youth in My Kinda 60s
* Black Playwrights Festival At BET
* EXTRA: Ives a movement, or nobody?
* From the archive: The man who built a 33-foot-tall metal Madonna


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* YouTube’s new monetization policies are cracking down on smaller channels
* Apple to Lease New Office Building in Culver City
* ASUS joins Project Treble with ZenFone 4 Android Oreo update
* Twitter’s COO believes that streaming devices like Chromecast and Fire TV will disappear in 5 years
* Huawei gets internet excited over 5-minute charging tech from 2015
* HomePod shipments reportedly begin with up to 12 million set for this year
* Nomad’s new wireless charging hub is a traveler’s best friend

* With maturity comes lofty expectations for Eloy
* Pirates rebuild not met with enthusiasm
* Moncada guiding Robert during mini-camp
* White Sox announce player development staff
* Robert at ease during Sox hitters mini-camp
* Moncada guiding Robert during mini-camp
* White Sox announce player development staff


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller