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*** UPDATE *** As far as I can tell, the Rauner campaign is right about the first point in its brief response…
The Quinn campaign is essentially double and triple counting the same shares of stock.
The SEC’s rules for determining “beneficial ownership” of stock state that a parent company is deemed to have “beneficial ownership” of any stock owned by subsidiaries. So GTCR Golder Rauner, LLC is considered to have “beneficial ownership” of the shares of stock held by its subsidiary, GTCR Partners VII, LP. GTCR Partners VII, LP, in turn, owns two other funds, and is deemed to have “beneficial ownership” of their shares.GTCR Funds Owned 18.4 Percent Of HomeBanc As Of February 2006. (SEC Schedule 14A, HomeBanc Corp., 4/20/06)
HomeBanc Did Very Little Subprime Lending. “HomeBanc says the concerns about borrowers’ ability to repay, particularly subprime borrowers, hurt the entire industry. And though HomeBanc did little subprime lending — less than 1 percent of the roughly $5 billion in loans it made last year were in that segment — nervous lenders that HomeBanc relied on to fund loans started retrenching. Wall Street investors who purchased pools of loans through the mortgage-backed securities also retreated.” (Peralte C. Paul, “HOMEBANC: Lender Had Little Margin For Error,” Atlanta Journal Constitution, 8/12/07)
* If you saw the Bears game yesterday (and my condolences if you did), then you probably saw a new ad from Gov. Pat Quinn’s campaign. From a press release…
A new television ad released today highlights a Bruce Rauner company acquired in 2000 that gave its CEO a massive exit package even as its risky lending practices led it to bankruptcy in 2007.
At HomeBanc Mortgage, Rauner’s hand-picked CEO- a “superstar” still listed on the GTCRauner Web site- was given nearly $5 million. In contrast, the 1,100 laid-off employees were given $20 gift cards to the Publix supermarket, paid for through their own voluntary paycheck deductions.
HomeBanc is just one of at least 12 Rauner firms that declared bankruptcy under his failed leadership, while Rauner and his partners took the money and ran.
Another Rauner failure is TransHealthcare Inc., a chain of deadly nursing homes owned and operated by Rauner and his partners that is facing an ongoing trial in Florida bankruptcy court over more than $1 billion in judgments for 6 wrongful deaths. Rauner has said he wants to run state government like he ran his business.
* The ad…
Whew.
* Script…
“After billionaire Bruce Rauner took millions out of HomeBanc Mortgage, it went bankrupt. Eleven hundred employees lost their jobs. The CEO? He was given a five million dollar bonus to tide him over. The 1,100 employees who lost their jobs? They got a $20 gift card. That’s right, newspapers reported it. And while that may not say everything about Bruce Rauner, it says a lot.”
* The spot generated a furious push-back from the Rauner campaign…
FACT CHECK: PAT QUINN’S MOST DESPERATE FALSE ATTACK YET
“This is Pat Quinn’s most desperate false attack yet and a reminder that Quinn will do or say anything to distract voters from his plan to raise taxes on every Illinois family right after the election. Pat Quinn’s 67% income tax hike already cost us jobs and stole one week of pay from the average Illinois worker. Pat Quinn can’t tell the truth about Bruce and he also can’t wait to raise your taxes.” - Rauner spokesperson Mike Schrimpf
False Quinn Ad Script: “After billionaire Bruce Rauner took millions out of Homebanc Mortgage, it went bankrupt. 1,100 employees lost their jobs. The CEO? He was given a $5 million bonus to tide him over. The 1,100 employees who lost their jobs? They got a $20 gift card. That’s right, newspapers reported it. And while that may not say everything about Bruce Rauner, it says a lot.”
Fact Check Summary: Neither Bruce Rauner nor GTCR ever took millions out of HomeBanc Mortgage. HomeBanc went bankrupt in 2007; the last date a GTCR employee was on its board was 2004. HomeBanc was consistently rated as an excellent place to work and its CEO was terminated with a severance package months before the company went bankrupt. Regardless, neither Rauner nor GTCR had anything to do with HomeBac’s layoffs or employee severance pay.
QUINN LIE
“After billionaire Bruce Rauner took millions out of HomeBanc Mortgage, it went bankrupt.”
THE FACTS
In 2000, GTCR Partnered With Patrick S. Flood To Establish HomeBanc Mortgage. “First Tennessee National Corporation (FTNC)(NYSE:FTN) announced today that its mortgage banking affiliate First Horizon Home Loan Corporation (FHHLC) signed and closed the sale of its HomeBanc Mortgage division to an investor group led by GTCR Golder Rauner LLC of Chicago and Patrick S. Flood, HomeBanc president.” (Press Release, “First Tennessee Sells HomeBanc Mortgage Division,” Press Release, 5/1/00)
GTCR And Flood Grew HomeBanc Into A Thriving Business, And Took The Company Public In 2004. “The parade of mortgage companies looking to become real estate investment trusts is growing. The latest entrant is HomeBanc Mortgage Corp. here. But unlike the predominantly subprime companies that announced they are converting or looking to convert, HomeBanc has more in common with New York Mortgage Corp., which is another privately held company that is going public by converting to a REIT. In a statement issued by HomeBanc, the new REIT will be called HomeBanc Corp., and the public offering of stock will take place in the late spring or early summer.” (Brad Finkelstein, “Retail Lender HomeBanc To Become REIT,” American Banker, 4/04)
GTCR Did Not Take “Millions Out Of HomeBanc”
From 2000 To 2004, HomeBanc Paid GTCR A $8,333 Monthly Management Fee - An Aggregate Total Of $425,000. “Prior to our initial public offering, GTCR was the majority owner of HBMC Holdings, and as part of its investment in HBMC, we agreed to pay a monthly management fee of $8,333 for management, advice and consulting, including attendance by GTCR representatives at our board meetings, and strategic, operating and financial advice to HBMC. We used approximately $425,000 of the net proceeds from our initial public offering to pay all outstanding accrued management consulting fees due to GTCR.” (SEC Form S-11, HomeBanc Corp, 1/7/05)
Following HomeBanc’s Public Offering, GTCR Was No Longer The Majority Shareholder And Ceased Receiving Management Fees. “As the result of our initial public offering and our related reorganization, GTCR no longer holds a majority interest of our organization, and we no longer accrue or pay any management fees to GTCR.” (SEC Form S-11, HomeBanc Corp, 1/7/05)
HomeBanc Went Bankrupt In 2007, Three Years After It Became A Publicly-Traded Company And Was Out Of GTCR’s Control
HomeBanc Filed For Chapter 11 Bankruptcy In August Of 2007. “Regional mortgage lender HomeBanc Corp has filed for bankruptcy protection, the latest casualty of a housing market that continues to weaken. The Atlanta-based company filed a Chapter 11 petition dated Thursday in U.S. Bankruptcy Court in Delaware. In the filing, the company checked off a box listing estimated assets and liabilities of more than $100 million each.” (”Mortgage Lender Homebanc Files For Chapter 11,” The Associated Press, 8/10/07)
GTCR Stopped Having Representation On HomeBanc’s Board In 2005
The Last Time GTCR Employees Appeared On HomeBanc’s Board Of Directors Was In HomeBanc’s 2004 Yearly SEC Report, Which Was Filed On March 31, 2005. ” (SEC Form 10-K, HomeBanc Corp, 3/31/05)
QUINN LIE
“1,100 employees lost their jobs. The CEO? He was given a $5 million bonus to tide him over. The 1,100 employees who lost their jobs? They got a $20 gift card.”
THE FACTS
Homebanc’s CEO Was Not Given A $5 Million “Bonus” After HomeBanc’s Bankruptcy
Patrick Flood, HomeBanc’s Original CEO, Was Fired By The HomeBanc Board In January Of 2007 - Seven Months Before HomeBan’s Bankruptcy.”HomeBanc replaced its longtime CEO on Tuesday and said it is embarking on a turnaround plan that will restore profitability this year. The Atlanta-based real estate investment trust, like many other companies dependent on the mortgage business, has faced a challenging environment in the last two years. And like some of those companies, including NetBank, the Alpharetta-based Internet bank, HomeBanc is making some dramatic moves. Chief among them: the departure of Patrick S. Flood, who in many ways was the face of HomeBanc, serving as its chief executive and chairman since 2000. Flood had been with HomeBanc and its predecessor companies since 1985. He is being replaced with Kevin D. Race, who had been HomeBanc’s president, chief operating officer and chief financial officer.” (Peralte C. Paul, “HomeBanc Replaces CEO,”Atlanta Journal-Constitution, 1/17/07)
HomeBanc’s Board Gave Flood A $5 Million Severance Package. “Patrick S. Flood, the HomeBanc Corp. CEO who abruptly left his post last week, will receive an exit package valued at $4.98 million. The board of directors at the Atlanta-based mortgage company opted to replace Flood, HomeBanc’s founder and a fixture there since 1985, with Kevin D. Race, whom Flood brought into the company four years ago.” (Peralte C. Paul, “Exit Deal Totals $4.98 Million,” Atlanta Journal-Constitution, 1/23/07)
· GTCR Did Not Have Any Employees On HomeBanc’s Board Of Directors In 2007. (SEC Form 10-K, HomeBanc Corp, 3/31/05)
HomeBanc Filed For Chapter 11 Bankruptcy In August Of 2007 - Seven Months After Flood’s Ouster. “Regional mortgage lender HomeBanc Corp has filed for bankruptcy protection, the latest casualty of a housing market that continues to weaken. The Atlanta-based company filed a Chapter 11 petition dated Thursday in U.S. Bankruptcy Court in Delaware. In the filing, the company checked off a box listing estimated assets and liabilities of more than $100 million each.” (”Mortgage Lender Homebanc Files For Chapter 11,” The Associated Press, 8/10/07)
GTCR Had Nothing To Do With The HomeBanc Layoffs Or The Employee Severance Pay
GTCR Did Not Have Any Employees On HomeBanc’s Board Of Directors In 2007. (SEC Form 10-K, HomeBanc Corp, 3/31/05)
HomeBanc Was Consistently Regarded As An Excellent Place To Work
HomeBanc Was Consistently Named By Fortune Magazine As One Of The Best Companies To Work For In America. “Still, the unraveling of HomeBanc, consistently named by Fortune magazine as one of the best companies to work for in America, was dramatic in its speed.”(Peralte C. Paul, “HOMEBANC: Lender Had Little Margin For Error,” Atlanta Journal Constitution, 8/12/07)
HomeBanc Was Noted For Generous Employee Benefits, Including 20 Hours Of Paid Leave, In Addition To Normal Vacation Time, To Allow Employees To Participate In Family And Community Activities. “Flood, who took the new company’s reins, was hailed as a different kind of chief executive, garnering praise for a faith-based management style that put employees above everything else. ‘I focused on the real value in the organization, and that is the people,’ Flood said in an interview last week. Flood was with HomeBanc and its predecessor companies from 1985 to his firing in January. ‘My focus was always on investing in the people and instructing them to do their best work every day.’ For example, workers were given 20 hours of paid leave called “being there” time to attend their children’s school activities or to volunteer and participate in other family or community events.” (Peralte C. Paul, “HOMEBANC: Lender Had Little Margin For Error,” Atlanta Journal Constitution, 8/12/07)
* While they do make some valuable points, there are some holes in their push-back. From the Quinn campaign…
GTCRauner was in the driver’s seat. Team Rauner mentions an SEC filing - yet conveniently leaves out this SEC filing from more than a year after that point which shows GTCR funds owned 54.9% of the common stock as of the beginning of 2006 [HomeBanc, SEC form 14-A, filed 4/20/06]
Also interesting that they completely ignore what fueled the company’s growth and led to its collapse due to their leadership - risky subprime lending to people who couldn’t afford it. They lit the match and walked away
Also - since their newest “i’m not responsible for anything” excuse is that once they stopped receiving management fees, they weren’t “managing” it anymore– does that mean they finally admit to “managing” the nursing homes?
* More deets from the Quinnsters…
The Business of Bruce Rauner: Homebanc - “It was greed.”
CHICAGO-Bruce Rauner’s Homebanc, which was part of the nation’s lending bubble that burst, positioned itself as a business inspired by values. In fact, it fell victim to greed.
After giving Rauner’s handpicked CEO, Patrick Flood, a $4.98 million exit package, Homebanc went on to lay-off most of its 1,100 employees and, on their way out the door, gave them $20 gift cards for a local supermarket Publix as their severance. Flood is still listed on the GTCRauner Web page.
The company, operating mainly in the Southeast, preyed on people with lower incomes and offered subprime and “interest-only” loans, risky vehicles that yielded unsustainable profits. That became clear when Rauner’s firm filed for Chapter 11 bankruptcy in 2007, one of 12 Rauner bankruptcies to occur under his watch.
The firm’s CEO, who received the five million dollar gift out the door, had lobbied against predatory lending protections that would have forbidden many of the types of loans that took Homebanc into bankruptcy-and led to massive layoffs.
One of Bruce Rauner’s chief lieutenants, Edgar Jannotta, who currently is testifying in Florida at a trial of Rauner-controlled nursing home chains liable for wrongful deaths, also served on Homebanc’s board of directors as did Rauner.
Key quotes:
“They would laugh at us and say the free market will take care of it.” - William Brennan, Atlanta Legal Aid Home Defense Program, who opposed Homebanc’s efforts to gut Georgia predatory lending protections.
“…Government pressure to lend to poor people didn’t cause lenders to make cold calls to hundreds of homeowners or to team up with home repair firms and persuade elderly property owners to refinance homes to patch up their roofs. It was greed.” [Atlanta Journal-Constitution Editorial Board, 10/3/2008]
Timeline:
Apr. 6, 2000: GTCRauner acquires Homebanc [GTCR.com, accessed 9/27/2014]
2002: Homebanc appoints a prominent minister to head its HR department at a time it embarked on a massive expansion. After the company folded, it was revealed that “Most of HomeBanc’s 450 loan officers had no prior experience in the business. Many were local church leaders or family members and friends referred by HomeBanc staff.” [PR Newswire, 4/4/2002] [Wall Street Journal, 8/13/2007]
2002: Georgia passes predatory lending protections. [Georgia Report, 4/22/2002]
January 2003: CEO Patrick Flood writes an op-ed criticizing the new law. [PR Newswire, 1/21/03]
May 2003: Under lobbying by Homebanc, Georgia guts the predatory lending law. [New York Times, 5/07/2003]
2004: GTCR takes Homebanc public. As majority owner, GTCR held 4.25 million shares after the IPO. [National Mortgage News, 05/02/04]
2004: Homebanc expands into risky loans at a period in which the traditional loan pool had been exhausted. These “nontraditional” loans, extended to low-credit customers, will be part of the germ seed for the Great Recession. [American Banker, 8/27/2004]
February 2006: GTCR funds own 54.9% of HomeBanc’s common stock. [HomeBanc, SEC form 14-A, filed 4/20/06]
September 2006: GTCR sells its remaining Homebanc stock. [Homebanc, SEC form 13-D, filed 9/5/2006]
Jan. 16, 2007: Flood is fired, and given a $4.98 million exit package. [Homebanc, SEC form 8-K, filed 1/12/2007]
Aug. 3, 2007: The New York Stock Exchange delists HomeBanc shares. [New York Stock Exchange press release, 8/3/2007]
Aug. 9, 2007: Homebanc files for chapter 11 bankruptcy. [Reuters, August 10, 2007]
Aug, 10, 2007: The firm’s 1,100 employees are laid off, and given well wishes and $20 gift cards from the Publix supermarket chain, funded from voluntary paycheck deductions. [Atlanta Journal Constitution, September 2, 2007] [Wall Street Journal, 8/13/2007]
posted by Rich Miller
Monday, Sep 29, 14 @ 9:14 am
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Nursing Homes, That I Owned - John Denver, corrupted by VanillaMan
Almost heaven, a growing market
Blue haired ladies, need a place to park it
They move in here, everyone agrees
Enjoying their last years, then succumbing to disease
Nursing homes, that I owned
Were in case, profits were strong
To rest a hernia, or go into a coma
Nursing homes, that I owned
All my memories, have gotten fuzzy
Not much profit, the homes were scuzzy
Trans Healthcare, who bought it, I don’t know
I’ve heard about bankruptcy, they lost a lot of dough
Nursing homes, that I owned
Were a place, where the old belong
To catch pneumonia, or have glaucoma
Nursing homes, that I owned
I hear in Florida, the lawyers have a misson
I’m not guilty, and they don’t want a disposition.
How an old bearded dude, without much money
Wound up holding my bag, No – I don’t find it funny
Nursing homes, that I owned
Were a disgrace, and I was wrong
To milk the profits, then flip them over
Onto the old folks, who were then disowned
Nursing homes, that he owned
Were a place, that he saw
Could make him money, without much drama
Nursing homes, that he owned
Nursing homes, that he owned
On nursing homes, Rauner got pwned
Comment by VanillaMan Monday, Sep 29, 14 @ 9:19 am
Lots of blowback from Rauner Crew, tons of retort from the Quinn Crew.
Reality?
The $20 Gift Card on the way out, cited by the Atlanta Journal Constitution? That is the lingering image both Crews have. Everyone knows what a gift card is…
That, is what is real. Yikes.
Comment by Oswego Willy Monday, Sep 29, 14 @ 9:19 am
We always listen to the radio while watching the game. Wowza. The images alone conveyed the message very, very well.
– MrJM
Comment by MrJM (@MisterJayEm) Monday, Sep 29, 14 @ 9:19 am
“one of at least 12 Rauner firms that declared bankruptcy”
Only 12? Over like 10 years? That’s *really* low for a PE fund.
Comment by Chris Monday, Sep 29, 14 @ 9:20 am
Y’know the most annoying thing about the Rauner campaign’s responses to Quinn’s attacks? It’s their excessive and improper use of capital letters. Drives me nuts! It’s practically reason enough (if more were needed) to vote against him.
Comment by Joan P. Monday, Sep 29, 14 @ 9:21 am
You don’t get to say that your company worked to create relationships with the best executives and get to know them on a personal level, but when they mess up act like you never knew them.
Comment by Come on man! Monday, Sep 29, 14 @ 9:21 am
Whew buddy. This one hurts alot for the Rauner Camp.
Comment by John A Logan Monday, Sep 29, 14 @ 9:21 am
I actually have an idea for a campaign ad where Rauner could respond to these bankrupt business hits but he’s just so gross I don’t want to risk helping him by posting it. Lol.
Comment by hisgirlfriday Monday, Sep 29, 14 @ 9:27 am
This ad and the Stu Levine ad are a terrific set up for the Walter Payton High School “donation” ad.
Comment by Jeepster Monday, Sep 29, 14 @ 9:30 am
What is really sticking out in regards to the Rauner campaign is how untested they are because of the free pass they received in the Primary. Rauner was the only candidate able to get on TV, and didn’t need to face any criticism or blowback. In hindsight this was the best possibility for Pat Quinn: face an untested candidate/campaign who received a free pass. This let Pat Quinn define Rauner as an out of touch billionaire. It blows my mind how Rauner was off the air from March to August and did not prepare for these ads and accusations. There is no vacation time in campaigns.
Comment by Almost the Weekend Monday, Sep 29, 14 @ 9:32 am
$20 gift cards for the little people? Corporate largesse at it’s finest…didn’t Rauner realize his private deals would not remain so when he entered the public realm? Guess not…
Comment by Loop Lady Monday, Sep 29, 14 @ 9:32 am
When I saw this ad I was suspicious. Again the Rauner campaign is blowing it. Instead of a simple response they gave an entire legal deposition. Nobody’s going to read all that. Keep it simple.
Comment by AFSCME Steward Monday, Sep 29, 14 @ 9:33 am
It will get better, because while there were about 1,100 layoffs and law suits over how HomeBanc lied about the subprime predatory lending they specialized in; the real classy stuff is in the foreclosure suits tossing families out of homes day after day.
When the world economy crashed under what the Wall Street Journal calls the “credit crunch” and we call the Bush Depression predators gave ever larger loans and HELOCs to bad credits, Moodys and S&P gave AAA ratings to bad paper and the mortgage bankers hustled CDO and MBS to the world’s suckers ( all hands up please). Markets plunged, retirement assets evaporated, few have been jailed.
Lisa Madigan has recovered lots from the thieves, but no one can replace the years of lost earnings
Meanwhile Mitt is riding high with posh motorcycle club and fancy wine. The ReBooters et. al are spreading their cash around like the slime they are.
If there was anyone cut from the same cloth it is Mitt and Blagoof — Blagoof could not pull it off, Mitt almost did.
Fire, Aim, Ready!
Comment by circularfiringsquad Monday, Sep 29, 14 @ 9:35 am
The info that both campaigns have been providing, defending their and attacking the opponents, ads, is just so dense I can’t imagine anyone is reading it.
Comment by steve schnorf Monday, Sep 29, 14 @ 9:36 am
Brutal.
What’s even more shocking in that after more than a year on the air, the Rauner crew has not put out one feel-good spot addressing his business practices.
After a lifetime in the business, he doesn’t have one “George Bailey” story?
The Rauner spin doesn’t fly. They held controlling interest until September 2006, cashed out, and the company was bankrupt less than a year later.
That’s known as the old pump-and-dump.
Comment by wordslinger Monday, Sep 29, 14 @ 9:36 am
Rauner claims he lost money on nursing homes, on HomeBanc and on every business he is criticized for.
Where did he earn the money to join the wine club and clout his daughter into Payton?
Why is he hiding his success stories?
Comment by truthteller Monday, Sep 29, 14 @ 9:36 am
Quinn’s ad is devastating in its simplicity; Rauner’s explanations are practically incomprehensible in their convoluted complexity.
I don’t see how Rauner can effectively defend himself so I expect him to fall back on his tried and true strategy — just ignore the ad and try to change the subject by attacking on some other issue.
Comment by Mighty M. Mouse Monday, Sep 29, 14 @ 9:37 am
What does the average voter understand? The image of a gift card versus a paycheck.
What does the average voter not understand? Standard business practices in Rauner’s line of work that result in millions for the investors and bankruptcy for the company involved.
Comment by Aldyth Monday, Sep 29, 14 @ 9:39 am
waiting for people to go on camera…don’t let him do to your state what he did to people down south.
Comment by Amalia Monday, Sep 29, 14 @ 9:40 am
Rauner’s campaign has a ton of paid staffers (not volunteers) working all over the state. All this may be for naught if you lose the air waves. Ultimately, I think it will be interesting to see if Rauner’s massive ground game can make up for his lousy TV and radio ads and his spotty history in business.
Comment by Peoria guy Monday, Sep 29, 14 @ 9:41 am
Rauner’s team thinks they have Rocky Balboa, but it’s becoming clearer they have Randall “Tex” Cobb.
Comment by Jocko Monday, Sep 29, 14 @ 9:42 am
- Almost the Weekend -,
Spot. On.
The untested Rauner Crew had zero opportunity to take the Campaign out to sea in rough waters. It was smooth sailing, and they owned the seas.
Pro football teams, like a Steeeler team for example, if they lock up a playoff spot early, go untested, and face a Wild Card team, seasoned at scrapping, and scraping out wins to survive, that easy coast into the playoff team can find itself Ill-prepared for the team that has battled adversity, had drama, found its stride, and is “hot” when it mattered.
And… that “coasting” win, found 60% of those taking ballots…not voting for Rauner to boot.
Good point - Almost the Weekend -.
Comment by Oswego Willy Monday, Sep 29, 14 @ 9:43 am
Someone in the GOP probably should have vetted this guy, but hey were all blinded by the money.
Now the IL GOP must reap what it sowed.
Comment by too obvious Monday, Sep 29, 14 @ 9:48 am
$5,000,000 golden parachute-He could have over paid 20 north suburban bureaucrats (superintendents) with that money! /snark
The gift card was a nice touch too.
Comment by JS Mill Monday, Sep 29, 14 @ 9:49 am
I have always felt that Rauner is a bad person. These ads solidify that belief. And, as Schnorf said, trying to respond to a blistering ad like this with dense prose loses every time. Bruce better find a business success story that can fit into a 30 second ad. Nobody will read the over capitalized defenses his campaign is providing.
Comment by anon Monday, Sep 29, 14 @ 9:51 am
Overheard at the Rauner Crew HQ;
“Hate to say it, ‘We’ think we underestimated Quinn and his Crew.”
…and they’re right…exactly right.
Comment by Oswego Willy Monday, Sep 29, 14 @ 9:53 am
While the massive number of foreclosures and families tossed into the streets by the HomeBanc millionaires and Mitt is disgusting it must be noted that the fact this was not a story launched by the Illinois media is equally disgusting.
A sleep at the switch? This company was listed on a Bloomberg list published by the Illinois Review in March 2014. Type in the name and get a story.
We worry about polls and who was Blagoof’s best friend, but real facts about a faceless blob who pours millions of really sleazy dough into ads and rentals like the credit union get ignored.
Let’s see what excuses pop up. THis is a little like the excuses used when MSI buried Bruce backer Blinky Jim Edgar. Too complicated, readers won’t understand….blah blah, blah
Illinois readers who got tossed out of their homes by crooked bankers and robbo doc signers and predators on Wall Street will get it. Pronto
TTFN Mitt
Comment by circularfiringsquad Monday, Sep 29, 14 @ 9:57 am
Way too much info in defense.
Try this:
“GTCR and Rauner were gone years before this all happened. It’s like blaming Coach Ditka for this Sunday’s Bears performance.”
Comment by walker Monday, Sep 29, 14 @ 9:57 am
Sooooo…what I got from this is Bruce Rauner owned a bank that went bankrupt and one his friends got a golden parachute on his way out.
Didn’t that kill Alexi’s political career?
Comment by jerry 101 Monday, Sep 29, 14 @ 9:58 am
Wordslinger makes an excellent point. The Rauner camp must have not one good story to use. At this point I wouldn’t be surprised if one of his aggregate materials companies figured out a way to use surge pricing to overcharge flood-ravaged towns for sandbag materials, off shored the profits and declared bankruptcy.
Also, I may have been using “the old pump-and dump” incorrectly. Apparently it does not mean what I thought it did.
Comment by LizPhairTax Monday, Sep 29, 14 @ 10:00 am
^^^^^^Way too much info in defense.
Try this:
“GTCR and Rauner were gone years before this all happened. It’s like blaming Coach Ditka for this Sunday’s Bears performance.”^^^^^^^
Yep. Well said.
Comment by Peoria guy Monday, Sep 29, 14 @ 10:03 am
“Thanks to Bruce Rauner and GTCR, we were able to expand our business, hire more workers and keep all of these people employed locally!”
Wordslinger is absolutely right: The campaign ad that never was may turn out to be the most important ad of the season.
– MrJM
Comment by MrJM (@MisterJayEm) Monday, Sep 29, 14 @ 10:04 am
Liz, the phrase can be used in different contexts, but the meaning is the same.
Comment by wordslinger Monday, Sep 29, 14 @ 10:04 am
This looks like they rode and fully leveraged explosive growth in the sometimes hinky home mortgage business, and bailed before the bubble burst.
Perfect timing for them to make a lot of money — quite a “success” for GTCR.
But how much did this company participate in lending practices that almost bankrupt the developed world’s economies?
Comment by walker Monday, Sep 29, 14 @ 10:05 am
I had the same reaction: who is going to read through all these charges and counter-charges. The gift card is pretty good, though. Cuts right to the chase, as good ads should do.
Good as the ad is, we Americans continue to be pretty easy on the finance industry and on income inequality. Despite the enormous loss of our citizens’ wealth in the housing and financial crash, I don’t believe any financial titans went to jail, or even close. So it’s not clear how much his financial activities, even the questionable ones, will hurt Rauner. Maybe it will contribute to irritation in the voting booth, but directed to whom? Quinn wants to raise taxes, principally on middle class folks who’d like to hang on to what little they’ve got, even if they didn’t earn a billion dollars last year like 25 hedge fund managers.
Comment by Cassandra Monday, Sep 29, 14 @ 10:12 am
Here’s a thought for Rauner: take an equity stake in Oberweis Dairy and then gloam on to the heartwarming story about the lady who was “able to raise her boy” thanks to Jim being such a swell employer. It’s a twofer. Help Obie while helping yourself.
Comment by Willie Stark Monday, Sep 29, 14 @ 10:15 am
@too obvious:
And until we overturn Citizens United, this country reaps what it sows. Its not just Republicans. Money aint speech.
Public financing of all elections.
End gerry-mandering…return electoral districts to the boundaries in the National Atlas. Force candidates to run for office with the people actually in the district, and not made up ones for Michael Madigan or John Boehner.
Comment by Del Clinkton Monday, Sep 29, 14 @ 10:16 am
To the update: no surprise that the team that ran this state’s economy into a ditch can’t read an SEC form properly.
Comment by so... Monday, Sep 29, 14 @ 10:17 am
Willie Stark
“Here’s a thought for Rauner: take an equity stake in Oberweis Dairy and then gloam on to the heartwarming story about the lady who was “able to raise her boy” thanks to Jim being such a swell employer. It’s a twofer. Help Obie while helping yourself.”
With Rauner’s track record, Obie would be on Food Stamps by the end of the year if Brucie got his hands on the business.
Comment by AFSCME Steward Monday, Sep 29, 14 @ 10:19 am
Too obvious, my impression is that Rauner was not really the GOP pick; they were hoping one of the other guys would pull it out. Unfortuently the other guys had no money and a poor game, so rauner one.
Rauner went in with his check book and threats of cutting off money from the large donors like his buddy Griffin if they didnt get behind him. Iron fist in the velvet checkbook. So they decided to get on board, but I would never say he was the GOP’s selection.
Comment by Ghost Monday, Sep 29, 14 @ 10:19 am
$5,000,000 CEO bonus vs $20.00 gift card for 1,100 laid off workers.
It’s all most people will need to know. 10,000 words can’t erase that.
Comment by Wensicia Monday, Sep 29, 14 @ 10:31 am
===Rauner went in with his check book and threats of cutting off money from the large donors like his buddy Griffin if they didnt get behind him. Iron fist in the velvet checkbook. So they decided to get on board, but I would never say he was the GOP’s selection.===
My Party … Is an ally to Bruce Rauner like Sen. Geary (Nevada) was a friend to the Corleone Family after that… “incident”
Bruce Rauner OWNS the ILGOP.
Owns.
My Party is Rauner’s until it isn’t.
Like Blago owned the Dems during all the time everyone wondered aloud…
“Why are all these Dems backing Rod? Why? Why don’t they stand up to Rod instead of lining up behind him?”
It’s Blago in reverse right now. It will be far worse if Rauner wins for My Party… Tom Hagen worse.
Comment by Oswego Willy Monday, Sep 29, 14 @ 10:32 am
===Overheard at the Rauner Crew HQ;
“Hate to say it, ‘We’ think we underestimated Quinn and his Crew.”
…and they’re right…exactly right.===
Upon reflection, I think Rauner lashing out and saying that PQ is not the folksy, bumbling fool he wants everybody to think he is was a “left-handed” compliment. It was really just Brucie’s grudging way of saying, “Don’t underestimate this guy!”
Comment by Mighty M. Mouse Monday, Sep 29, 14 @ 10:39 am
Dear Bruce,
TLDR. Sorry.
Comment by Soccermom Monday, Sep 29, 14 @ 10:41 am
“HomeBanc Did Very Little Subprime Lending. “HomeBanc says the concerns about borrowers’ ability to repay, particularly subprime borrowers, hurt the entire industry”. …. This is absolutely false as the trail of law suits filed when Mitt and Crew raced.
Homebanc claimed not to be subprime predators, but that proved nonsense in the end…regulators, so-called ratings agencies all snoozed while this bank and most other plundered the work. economy…and the IL media dozed too.
Comment by circularfiringsquad Monday, Sep 29, 14 @ 10:49 am
TLDR. Sorry.
I REALLY hate the insider abbreviations in this space.
Comment by Wallinger Dickus Monday, Sep 29, 14 @ 10:56 am
It really is a HomeBanc for Rauner and his pals.
Comment by Amalia Monday, Sep 29, 14 @ 10:57 am
Rauner’s consultants view him as an ATM machine. They may not be the best, but in his mind, if they are expensive they must be good. Rauner has probably seen him numbers plummet so they panicked. It’s too late for him to do a feel good ad. He has to go negative so hard just to keep Quinn from gaining more. Not to mention the Libertarian candidate. Rauner is in TROUBLE.
Comment by Anonymous Monday, Sep 29, 14 @ 11:00 am
Saw the ad during the game and immediately thought it was the most effective ad I’ve seen in this campaign. Quinn also ran an ad during the game that refuted Rauner’s ad on the prison releases, and it did a very good job of turning that allegation into a positive for Quinn. The Quinn team upped their game to the point that they won the TV war this past week. Rauner no doubt has more money to spend to try to reverse that trend, but I don’t know that he’s got the ammo left to do that. If he just keeps running his same old “Illinois is awful” ads, I don’t think that’s going to do the trick.
Comment by OldSmoky2 Monday, Sep 29, 14 @ 11:15 am
Haha, only “insider” if you don’t have a snotty teenager in your house.
Comment by Soccermom Monday, Sep 29, 14 @ 11:24 am
Wallinger, TL:DR-Too Long, Didn’t Read.
Comment by Arthur Andersen Monday, Sep 29, 14 @ 11:29 am
So do we know how much GTCR sold its Homebanc shares for? After the inflated profits and IPO and before the collapse orchestrated by the GTCR prototype CEO Flood? The management fee is only a portion of the siphoning off of equity. it wreaks of the “too big to fail” narrative burned into the psychie’s of mainstreet voters.
AND Call it a bonus (inaccurately) call it a golden parachute, call it a severance package…. most people who get “terminated” don’t get paid to leave.
Comment by in the know Monday, Sep 29, 14 @ 11:32 am
For help with “insider” lingo: http://lmgtfy.com/?q=TLDR
– MrJM
Comment by MrJM (@MisterJayEm) Monday, Sep 29, 14 @ 11:33 am
OW - …some people have to play their little games…
Comment by Ghost Monday, Sep 29, 14 @ 12:19 pm
I agree pretty much with what others have said. But one point I found interesting was in the initial Rauner reply, they bring up the argument that Quinn wants to raise taxes. Hasn’t Rauner also said that he wants to keep the tax rate, at least temporarily at 5% before lowering it?
Comment by G'Kar Monday, Sep 29, 14 @ 12:33 pm
Ardent Rauner supporter Doug Ibendahl has an article on his blog about an Ohio racketeering civil charge involving the nursing home company. This was reportedly settled out of court.
The nursing homes’ landlord alleged that the nursing home company pocketed Medicare and Medicaid money and stiffed them on rent.
http://republicannewswatch.com/wp/?p=13684
Then there’s the Cardinal Logistics delivery drivers case, in which there was a huge settlement fund. Delivery drivers accused Rauner’s company of ripping them off by misclassifying them as independent contractors.
Comment by Grandson of Man Monday, Sep 29, 14 @ 12:35 pm
===OW - …some people have to play their little games…===
I get it, I also get those who are with Rauner, and the idea and ideal of “the Nominee” and Rauner, like Edgar and GHR, the ILGOP is an extension of Rauner’s Campaign, and I have even commented as understanding the rationale.
If your Crew, and in this case, the Rauner Crew goes about their business as they have, then what has to be understood is the hypocrisy is as much out front as the partisanship.
Throw in the 1/3 of the ILGOP GA, …My Party’s members as corrupt, the idea of backing Dems or Republicans backing the Rauner agenda and retaliation…and weaknesses, fears…and the “plans” that make no sense in budgetary Illinois.
It’s those …blindly… telling me to “fall in line, be quiet” that refuse to see these games are as dangerous as when My Party called out the Dems for the same …blindness…towards Rod.
It’s all games, I respect the games, and even the roles those …must…play. That won’t silence me. I promised myself I wouldn’t be silent.
Comment by Oswego Willy Monday, Sep 29, 14 @ 12:37 pm
==The CEO? He was given a five million dollar bonus to tide him over. The 1,100 employees who lost their jobs? They got a $20 gift card.==
That’s a killer. People will definitely connect with that. It reinforces the narrative many already have in their head - the little guys are treated like crap. And Rauner is one of the big guys. They continue to hammer that point home and I think they are having some success as far as public opinion towards Rauner goes.
Comment by Demoralized Monday, Sep 29, 14 @ 12:59 pm
AA –
Thanks.
Comment by Wallinger Dickus Monday, Sep 29, 14 @ 1:02 pm
The whining from these guys is too much.
They bought a company, installed a CEO, took it public, then cashed out just before it went bankrupt. The CEO got $5m severance, the 1,100 employees got gift cards.
Rauner’s excuse is they dumped their shares prior to the company folding? To me that’s even worse, why didn’t they try to save the company?
Because they don’t save companies, it’s not their business model. If they did we’d see a barrage of those stories, yet we haven’t seen a single one.
Comment by Anonymous Monday, Sep 29, 14 @ 3:23 pm
Is $5M a bonus or a severance package? Who cares, the guy is financially set for life.
$20 gift card = A turkey and some Cheetos.
Of course GTCR pulled out of the company only because the ROI was huge, not for what was coming because Rauner keeps up on all the details.
Comment by zatoichi Monday, Sep 29, 14 @ 4:15 pm
There were some people who believed in the Homebanc way of doing business.
They were bought out of bankruptcy by Countrywide Financial.
Comment by wordslinger Monday, Sep 29, 14 @ 8:19 pm
- Anonymous
” …why didn’t they try to save the company?
Because they don’t save companies, it’s not their business model. If they did we’d see a barrage of those stories, yet we haven’t seen a single one.”
Correct. It is the Gordon Gecko business model.
Comment by Skeptical Tuesday, Sep 30, 14 @ 12:55 pm