Edwards profited from Katrina forclosures

| August 17, 2007

Oddly enough, I’d just finished reading Dadmanly‘s excellent post critiquing John Edwards’ article in Foreign Policy when I happened across this Page One story from Christopher Cooper from the Wall Street Journal;

As a presidential candidate, Democrat John Edwards has regularly attacked subprime lenders, particularly those that have filed foreclosure suits against victims of Hurricane Katrina. But as an investor, Mr. Edwards has ties to lenders foreclosing on Katrina victims.

The Wall Street Journal has identified 34 New Orleans homes whose owners have faced foreclosure suits from subprime-lending units of Fortress Investment Group LLC. Mr. Edwards has about $16 million invested in Fortress funds, according to a campaign aide who confirmed a more general Federal Election Commission report. Mr. Edwards worked for Fortress, a publicly held private-equity fund, from late 2005 through 2006.

Asked about the matter, Mr. Edwards yesterday pledged that he would personally provide financial assistance to New Orleanians who are facing foreclosure by Fortress-affiliated businesses or have lost their homes already. “I intend to help these people,” the former North Carolina senator said.

He also promised to cleanse his portfolio of any investments that may be profiting from their losses. “I am going to divest” from any Fortress funds that have a stake in the subprime lenders that filed the foreclosures, he said in a telephone interview. “I will not have my family’s money invested in these firms.”

Mr. Edwards didn’t give details on how or when he was going to proceed, either to alter his holdings or to aid borrowers. He said he plans to begin making amends to New Orleans homeowners first by contacting them and “seeing where they are in the process.” He said his help may come from his own cash or in collaboration with a charity that specializes in repairing homes.

Seems to me, Edwards, the prettiest girl running for President, is such a great humanitarian, he would have already been aware of the money he’d made in conjuction with foreclosures on Katrina victims and he’d have already made amends – it was nearly two years ago, afterall – and while he was an advisor for Fortress Funds. But then again, the entire $16 million he has invested in Fortress is somehow tainted, wouldn’t you say?

But, if he really wanted to make things right, he’d just hand each of those victims of the evil hedgefund 1/2 million bucks each out of his $16-large. I mean that’s what he’d do if he’s meant what he said all along.

Ack! I just noticed that Michele Malkin has the same story on her front page – and as usual she does a much better job.

Category: Economy, Politics, Society

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Don Carl

You gotta love the NY Post’s headline on this story:

Two Americas, Baby, two Americas…


Jonn Lilyea wrote: Yeah, two Americas – Edwards’ America is stealing from the rest of us. How those dimbulbs can still support his candidacy is beyond my understanding.

Branda Lopez

John Edwards made a profit from his Fortress investments, some exclaim. How could that be, Fortress, FIG, has gone down over 50 % from its top.(see NYSE stock charts, etc). So if that $ 16 million was exposed to such a drop, that is about $ 8 million less than any origional investment. Millions of people own stock in subprime lenders, financial institutions, are they all profiteers off the misery of people who got loans in New Orleans. If anything Edwards got suckered by slick hedge fund dealers, and wheelers. Now, I suppose some will accuse him of being a dupe , who can’t handle his money, as he has a wife and two kids, and a older daughter. Strange, that the piece above cites Michelle Malkin of Fox fame and flame to stick it to Edwards. Maybe we can review O’Reilly’s stock investments, since he is Mother Terrsa of the Murdock Fox Empire. However, Edwards never put any of the deals together, never enforced any foreclosures, and it remains to be seen if he lost a pile of money with the slick Hedge Fund exploiters at Fortress Investment Group, namely FIG. Jonn Lilyea wrote: So O’Reilly is running for president on an anti-Fox News platform (like Edwards) and on a platform of redistribution of wealth (like Edwards)? I know it’s hard for you to understand, but Edwards, while calling for an investigation into hedge funds and their dealings in New Orleans during Katrina, worked as an advisor for a hedge fund and took a half-million bucks in pay and invested another 16-million bucks in a hedgefund during their dealings in New Orleans in the same timeframe as the Katrina thing. Edwards also called for Democrat candidates to return any money they’ve received from Murdoch – while keeping the money he was paid by Murdoch. O’Reilly, on the other hand, isn’t running for President – so I don’t know what point you think you’ve made here. I’m no fan of O’Reilly, and I probably would never defend him, however, I don’t think it’s intellectually honest of you to make a comparison of… Read more »