Feinstein routes government money to firm doing business with husband

posted at 9:28 am on April 21, 2009 by Ed Morrissey

The Washington Times reports that Senator Dianne Feinstein (D-CA) took unusual steps to route government funding to an agency that usually works from a separate stream of revenue just after the agency awarded her husband’s firm a lucrative contract.  The FDIC gave Richard Blum’s firm, property management firm CB Richard Ellis, contracts to handle residential foreclosures at a higher rate than normal market price, even though CBRE had less experience in that market than other competing firms.  And Feinstein got the FDIC the money even though she has no connection to the Senate Banking Committee, the body that normally deals with the FDIC:

On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband’s real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.

Mrs. Feinstein’s intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn’t a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments – not direct federal dollars.

Documents reviewed by The Washington Times show Mrs. Feinstein first offered Oct. 30 to help the FDIC secure money for its effort to stem the rise of home foreclosures. Her letter was sent just days before the agency determined that CB Richard Ellis Group (CBRE) – the commercial real estate firm that her husband Richard Blum heads as board chairman – had won the competitive bidding for a contract to sell foreclosed properties that FDIC had inherited from failed banks.

About the same time of the contract award, Mr. Blum’s private investment firm reported to the Securities and Exchange Commission that it and related affiliates had purchased more than 10 million new shares in CBRE. The shares were purchased for the going price of $3.77; CBRE’s stock closed Monday at $5.14.

In other words, Richard Blum bought 10 million shares at the same time his wife arranged for an unusual and extremely large chunk of taxpayer money to go to FDIC.  Blum must have been an investment genius to guess that his wife’s intervention would coincidentally precede the FDIC’s award, making CBRE stock more valuable.  Blum’s investment made a $14 million profit for Blum and Feinstein and their partners.

But of course, that’s all just a coincidence.

The contract award to CBRE should raise a few eyebrows:

The firm, known for its commercial real estate services, is to be paid monthly maintenance fees for each foreclosed property it handles, as well as commissions and incentives. The total compensation can range from 8 percent of the sales price on many residential properties to 30 percent for properties worth $25,000 or less. A smaller firm also won a slice of the work with similar terms, records show.

Most real estate agents earn no more than 6 percent on residential, even on foreclosed properties, and CBRE doesn’t have as much experience in foreclosure sales as other firms, the experts said.

FDIC awarded this contract to CBRE even though it’s more known as a commercial real estate property management firm, and it gave them more commission than agents usually get.  Why would the FDIC deliberately award a contract at relatively unfavorable terms to a company with a weak track record in this industry?  Perhaps they knew that the contract award would net them a lot more cash than they would have to pay out, thanks to the political connections at CBRE … and they were right.

Now Feinstein wants people to believe that she and Blum had no idea that the FDIC would give CBRE this contract at the time she gave the FDIC $25 billion.  How did CBRE get the contract — a lottery?  They had to bid for the FDIC contract.  Blum obviously knew that the bid was under consideration, or he’s the most incompetent board chairman in history.  Feinstein expects us to believe that the board chairman would have no idea that his own company had a major bid under consideration for handling foreclosures at a time when foreclosures were exploding?  Is that really going to be her final answer?

At the very least, this shows a clear conflict of interest, especially with Feinstein suddenly jumping into the banking arena and FDIC at a time when her husband was doing business with them.  It looks a lot more like a payoff and a shell game to allow her family to cash in on taxpayer-funded bailout money.  (via Instapundit)

Tags:

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

Oh, I left out the king of corruption – Murtha.

College Prof on April 21, 2009 at 11:16 AM

Bribery by any other name is CONGRESS.

Amazed on April 21, 2009 at 11:29 AM

Reeks of cheney and Haliburton.

getalife on April 21, 2009 at 11:00 AM

As usual getalife cannot defend her corrupt liberal leaders so she has to make unsupported,factless accusations:


Anti-Bush Ad Overstates Case Against Halliburton
June 18, 2004
Updated: June 28, 2004
http://www.factcheck.org/anti-bush_ad_overstates_case_against_halliburton.html

MoveOn PAC ad says administration gave contracts “on a silver platter,” but government investigators say otherwise.

But in fact, investigators from the General Accounting Office (GAO) found Halliburton’s no-bid contracts to be legal and probably justified by the Pentagon’s wartime needs.

If Cheney is guilty,so is Clinton:

The Clinton administration made the same calculation in its own dealings with Halliburton. The company had won the LOGCAP in 1992, then lost it in 1997. The Clinton administration nonetheless awarded a no-bid contract to Halliburton to continue its work in the Balkans supporting the U.S. peacekeeping mission there because it made little sense to change midstream. According to Byron York, Al Gore’s reinventing-government panel even singled out Halliburton for praise for its military logistics work.

So, did Clinton and Gore involve the United States in the Balkans to benefit Halliburton? That charge makes as much sense as the one that Democrats are hurling at Bush now. Would that they directed more of their outrage at the people in Iraq who want to sabotage the country’s oil infrastructure, rather than at the U.S. corporation charged with helping repair it.

Many politicians have business ties to people who do government work.The guilt is if pay-to-play schemes have been involved.
Cheney has not been convicted of any wrong doing cocerning
Haliburton.
Facts matter to people based in reality.
Pathetic,unsubstantiated talking points matter to the useful idiots like getalife.
How did that impeachment go by the way genius????

Now about all of these corrupt democrats in Mr. Hope and Change most ethical administration EEEEEEEEEEEEEEvah!!!!!

Baxter Greene on April 21, 2009 at 11:34 AM

BadgerHawk on April 21, 2009 at 10:29 AM

You did…just an attempt at levity.

right2bright on April 21, 2009 at 11:34 AM

PLEASE STOP SAYING “Government Money”. IT’S OUR DAMN MONEY!!!! WE WORKED HARD FOR THIS MONEY!!!! Man, I’m pissed.

marklmail on April 21, 2009 at 10:55 AM

EXACTLY!

I think part of the problem is MOST people don’t understand that concept! When anyone says US Government they fail to understand WE ARE THE GOVERNMENT! It is our money. The government and the tax payer are independant of each other.

I just had a conversation about this and explained the misconception. I think the sooner people put into context they’re the government the angrier they will get.

So when a politician says the government will be paying for the entitlement programs or giving the 50% of the 95% that don;t pay taxes a tax break they’re really saying we are giving the 40% that don’t pay income tax your HARD EARNED dollars because WE ARE THE GOVERMENT!

xler8bmw on April 21, 2009 at 11:36 AM

We have one Republican actually standing up now and fighting…Cheney.
But where are the others.
Right now their should be a dozen Republicans flooding the news rooms decrying this outrageous, contemptible, illegal, use of the system to pad their own personal fortunes.
One of the wealthiest members of congress, stealing from the public.
Yet I hear nothing, except on a conservative website, preaching to the choir.
WHERE ARE THE REPUBLICANS!!

right2bright on April 21, 2009 at 11:38 AM

Ok, new law. No spouse of anyone in public service, should benefit from the position. EVER!!!

Chances this will be investigated? I say nil. Chances this money will be returned? I say nil. This is exactly why the Government, is NOT the answer to our problems.

capejasmine on April 21, 2009 at 11:39 AM

Another great post Baxter. It’s too bad that your beard will be down to your toes before we see the coverage you’re looking for.

Rovin on April 21, 2009 at 11:15 AM

You are probably right.
The MSM won’t condemn or expose their liberal friends.

It would be nice if we had more Republicans on the Hill with big brass Cheney balls to call the democrats out on their corruption.

Cheney never had a problem calling the democrats out for their corrupt and narcissistic ways:

Dick Cheney rips Harry Reid a new one!!!!!!!!
http://www.youtube.com/watch?v=TTbVFOlk7-E&feature=player_embedded

And now Cheney is calling Mr. transparency out to release all the interrogation memo’s so the American people can see
the lives saved using these methods.

Can’t wait to get more info on those SCARY CATERPILLARS!!!!!!!!!!!!!!!

Baxter Greene on April 21, 2009 at 11:48 AM

Disclose the dcrone’s clandestine activities!

Christien on April 21, 2009 at 11:49 AM

If I had done anything like this, my employer would hang my a$$ out to dry.

And this is the most ethical congress evah?

But it’s OK…. the adults clowns are in charge.

UltimateBob on April 21, 2009 at 11:49 AM

I realize that Feinstein’s not alone, but her inability to understand, appreciate, and avoid these obvious conflicts of interest is stunning.

Avoid them? She has been using the Federal government to feather her own nest for at least 10yrs. and probably longer. Why do you think she is so out in the open about it now? I would have to guess that nearly all of the Dems, and most of the Republicans are feathering their own nests at tax payers expense.

There is no one to stop them! The whole of Washington is a den of thieves. At this point neither party is worthy of even a modicum of trust. As Ed was pointing out in the other thread degrowing the size of the Federal Government is the only change we ca believe in.

Kjeil on April 21, 2009 at 11:53 AM

We have one Republican actually standing up now and fighting…Cheney.
right2bright on April 21, 2009 at 11:38 AM

Right there with you on Cheney.
We must be on the same page, was putting post together when you put yours up.

Republicans should be on the steps of the Capitol or pulling all nighters until the “ethical,transparent” democratic leaders back up their “accountable” rhetoric with
real actions.

Baxter Greene on April 21, 2009 at 11:54 AM

Again?

crosspatch on April 21, 2009 at 12:00 PM

Baxter Greene on April 21, 2009 at 11:54 AM

We need a “sound biter” like Carville. Mark Levin is the closest we have, but he has a real job.
We need someone, like Carville and others, that go around spitting out “bumper sticker comments” for everything that Obama does.
A young (35-40) hip, free speaking, caustic mouthed, quick witted, one-liner attack dog.
Who attacks everything that comes out of the liberal Washington.

right2bright on April 21, 2009 at 12:00 PM

right2bright on April 21, 2009 at 12:00 PM

You are exactly right.
It seems to me though that when we do get someone who tells it like it is (Malkin,Rove,Cheney,Palin)they get demonized by the left and Republican leadership distances itself from them instead of defending them.

If you are not going to fight for your positions and rights, then you are going to lose them.

Baxter Greene on April 21, 2009 at 12:08 PM

I got a tip. A certain D congressman will soon step down for basically the same thing. Most ethical congress evah!

JeffB. on April 21, 2009 at 12:15 PM

right2bright on April 21, 2009 at 12:00 PM

Gutfield

flyfisher on April 21, 2009 at 12:17 PM

Well, one thing’s for certain.

Pelosi (D-Botox) is gonna go after Harman like a bat out of hell. But Reid (D-Surrender) will remain quiet on this one, allowing the gathering storm in the House to eclipse any news about Feinstein (D-payola).

Watch how the news cycle spins these two scandals completely differently…

Wanderlust on April 21, 2009 at 12:23 PM

Reeks of cheney and Haliburton.

getalife on April 21, 2009 at 11:00 AM

The above, is what happens, when you spend years being brainwashed by liberal ideology.

capejasmine on April 21, 2009 at 12:36 PM

We need a “sound biter” like Carville. Mark Levin is the closest we have, but he has a real job.
We need someone, like Carville and others, that go around spitting out “bumper sticker comments” for everything that Obama does.
A young (35-40) hip, free speaking, caustic mouthed, quick witted, one-liner attack dog.
Who attacks everything that comes out of the liberal Washington.

right2bright on April 21, 2009 at 12:00 PM

Her name is Ann Coulter. She may not be in the, ah, age demographic your prescribed…

daesleeper on April 21, 2009 at 12:38 PM

I am so tired of Feinstein. I’m over 50 but I can’t remember a time in my life this woman has not been the center of attention.
From Mayor of SF to a lifetime position as US Senator. I’m freaking tired of this lady.

As for this blip on the screen. Just watch, by tomorrow the story will be buried.

Corruption by Dems is permitted. California DEM corruption is endemic and accepted.

FireBlogger on April 21, 2009 at 12:50 PM

Anybody else get a whif of ‘insider trading’ ?? (DNREFP)

CaveatEmpty on April 21, 2009 at 12:59 PM

since her days as a SF stupidvisor there has always been shinanigans going on with her and her hubby.

Mojack420 on April 21, 2009 at 1:22 PM

Reeks of cheney Democrat President Lyndon Johnson and Haliburton.

getaclue on April 21, 2009 at 11:00 AM

There, I fixed it for ya, kid. The only thing that reeks is your basement bedroom.

Lyndon Johnson climbed into bed with KBR, later to be joined at the hip with Halliburton, in 1936-5 years before Darth Cheney was even born. He never left. In fact, at the time she died a couple of years ago, his widow was still on the Board of Directors.

Bill Clinton also gave no-bid work to Halliburton during his own non-UN-sanctioned War of Choice in Kosovo.

Keep trying.

Del Dolemonte on April 21, 2009 at 1:36 PM

theRealMcCoy wrote:

. . . just wait until a younger, violence induced generation gets the drift that they have been screwed out of their America by the very people that were voted upon to run this country. It will NOT be pretty!

What do you think gangs are? They are a direct outgrowth of the government “education” system. Kids are not stupid; they know they are getting noting of value from the dem controlled schools. Natural desire to survive takes them to the next logical step of going out to take what you need since noone could be bothered to teach them how to earn it. Ever been to Detroit or New Orleans? Democrat strongholds.

noblejones on April 21, 2009 at 1:36 PM

Her name is Ann Coulter. She may not be in the, ah, age demographic your prescribed…

daesleeper on April 21, 2009 at 12:38 PM

Levin, Coulter, Rush, they are all good, but they have commercial interests, radio shows. So the MSM won’t use them.

I am talking about an “independent” attack dog. Like Carville, he gets paid for “consulting”, but he really is just an attack dog.

right2bright on April 21, 2009 at 3:47 PM

Baxter Greene on April 21, 2009 at 11:06 AM

Baxter, you’re simply awesome! I get so much great information from every one of your posts. Damn, I’m glad you became part of the HA community….

Keemo on April 21, 2009 at 4:57 PM

In other words, Richard Blum bought 10 million shares at the same time his wife arranged for an unusual and extremely large chunk of taxpayer money to go to FDIC. Blum must have been an investment genius to guess that his wife’s intervention would coincidentally precede the FDIC’s award, making CBRE stock more valuable. Blum’s investment made a $14 million profit for Blum and Feinstein and their partners.
But of course, that’s all just a coincidence.
The contract award to CBRE should raise a few eyebrows:

WOW!!!

What a coincidence!!!

I haven’t heard of such a coincidence since Feinstein, senior member of MILCON (Military contracts) like totally un-knowingly directed BILLIONS of taxpayer’s money to her husbands companies!

How strange? It’s such a small world, I’m sure there’s no linkage tween Feinstein Senate committee jobs and contracts from her committees going to her husbands companies.

It must be just one of those strange cosmic unexplainable things that some how her husbands companies get involved with the “businesses” her Senate jobs give contracts too.

Senator Feinstein’s Iraq Conflict

http://www.metroactive.com/feinstein/

In the November 2006 election, the voters demanded congressional ethics reform. And so, the newly appointed chairman of the Senate Rules Committee, Dianne Feinstein, D-Calif., is now duly in charge of regulating the ethical behavior of her colleagues.

But for many years, Feinstein has been beset by her own ethical conflict of interest, say congressional ethics experts.

As chairperson and ranking member of the Military Construction Appropriation subcommittee (MILCON) from 2001 through the end of 2005, Feinstein supervised the appropriation of billions of dollars a year for specific military construction projects. Two defense contractors whose interests were largely controlled by her husband, financier Richard C. Blum, benefited from decisions made by Feinstein as leader of this powerful subcommittee.

DSchoen on April 21, 2009 at 5:03 PM

This probably is chicken feed in comparison to the opportunities she had while in charge of awarding military contracts to her husband’s firms. She removed herself from the committee and the stories all buried.

rsl775 on April 21, 2009 at 5:09 PM

how can this be a crooked democrat well i’m shocked this reporter must be stopped we cannot have a crooks treated like this.thankfully she will get on tv and lie threw her false teeth

wade underhile on April 21, 2009 at 5:46 PM

Let’s wait to see some proof. This is nothing more than speculation, frankly, and it’s tiresome. It’s tiresome when it’s used against Palin. It’s tiresome when it’s used against Feinstien.

We used to insist on the principle that proof was required. If it’s not important, anyway, then really news reporters are performing a job nobody even cares about. Why bother to get verification at all?

Just print the latest rumor and let it rip.

AnninCA on April 21, 2009 at 10:18 AM

OH, NO YOU DON’T. According to YOU DEMS, it’s the seriousness of the charge, not the nature of the evidence, that matters.

fossten on April 21, 2009 at 5:49 PM

A young (35-40) hip, free speaking, caustic mouthed, quick witted, one-liner attack dog.
Who attacks everything that comes out of the liberal Washington.

right2bright on April 21, 2009 at 12:00 PM

I might be 45 yrs old, and a grandfather, but i’m not f-ing dead yet.

can i have the job please,pretty please, cause i promise the first thing i’ll do is kick keith overbite in the nutz, followed by a swift kick to “perez f@ggot@ass hilton”

UNREPENTANT CONSERVATIVE CAPITOLIST on April 21, 2009 at 5:56 PM

Ya Hoooo!
Glenn Beck is doing this story!

What are GB’s numbers? April 20th 2009

Beck 633 FNC
Matthews 174 MSNBC
Blitzer 155 CNN
Prime: 101
WOW! I didn’t know it was THAT BAD for MSNBC and CNN their down in the “test pattern” rang.

http://www.mediabistro.com/tvnewser/ratings/the_scoreboard_monday_april_20_114637.asp?c=rss

DSchoen on April 21, 2009 at 6:20 PM

Bush could have skewered her, why didn’t he?

Because there are 3 branches of government, all equal.
It is up to the Congress to police the Congress.

And the unofficial 4th branch is tasked with informing us the population if the Congress or Admin or SC are actually doing their jobs.

DSchoen on April 21, 2009 at 6:27 PM

Levin, Coulter, Rush, they are all good, but they have commercial interests, radio shows. So the MSM won’t use them.

The MSM has financial interests too, unfortunately that involves burying stories which are potentially damaging to Democrats.

A Republican Congressman allegedly tries to get a BJ in a bathroom stall? Front page, tarred and feathered.

A Democratic Senator funnels billions of taxpayer dollars into her husband’s company? Put it under the Junior Jumble.

TheMightyMonarch on April 21, 2009 at 6:38 PM

“Too much money, too much temptation.
Of course, cons scream about any change so deal with it.
Getalife”

Uhmmmm what change? Milcon and now the FDIC

MILCON
As chairperson and ranking member of the Military Construction Appropriation subcommittee (MILCON) from 2001 through the end of 2005,

Note: getaclue, the Dems had the majority in the Senate after the 2000 election.

Senator Feinstein’s Iraq Conflict cont:

Feinstein supervised the appropriation of billions of dollars a year for specific military construction projects. Two defense contractors whose interests were largely controlled by her husband, financier Richard C. Blum, benefited from decisions made by Feinstein as leader of this powerful subcommittee.

In short getaclue, Feinstein awarded, guided or sent MILCON contracts to her husband worth BILLIONS of taxpayers money.

Feinstein routes government money to firm doing business with husband

In short getaclue, Feinstein awarded, guided or sent FDIC contracts to her husband worth MILLIONS of taxpayers money.

On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband’s real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.

DSchoen on April 21, 2009 at 7:09 PM

Reeks of cheney and Haliburton.
getalife

Gezzz Clueless.

Speaking of Halliburton, did ya notice the amazing drop off of stories about Halliburton once Soros bought MILLIONS of shares?

Guess you never figured it out? Soros, through his useful idiots, Moveon, MSNBC, Media Matters, Air America Radio and the Center for American Progress ThinkProgress, Ameriblog, Kos and CrooksandLiars and progressives in general, tried to drive Haliburton stock prices down.

BTW, the useful idiots, like your self, were not bright enough to figured it out that they were being used by the convicted “inside trader” Soros.

Soros plan didn’t work, drive the stocks down that is, However it is widely believed that Soros bough the 60 million worth of stock to avoid being charged and convicted market manipulation.

That’s why the stories about “Halliburton” dropped of the news radar.

Cheney got no money from Halliburton while he was VP.

Nice try at deflection, cept ya end up looking even more pathetic, desperate and stupid.

DSchoen on April 21, 2009 at 8:09 PM

Bill Clinton also gave no-bid work to Halliburton during his own non-UN-sanctioned War of Choice in Kosovo.
Keep trying.
Del Dolemonte on

Good point, and true.

The military goes with a single source/ no bid company when they have a “get it done now” problem. These companies have the people supplies and logistics to go on a phone call. These companies also have a standing long-term contract with the government that they will be the company that gets that call. Halliburton is one of those companies. Halliburton had the contract BEFORE 2000, in other words before Bush or Cheney were in office.

BTW Clueless, since ya brought it up in a story about Feinstein corruption and her husband.

Blum (Feinstein husband) bought a controlling share of Perini in 1997, when it was nearly broke.

In 2000, according to public records, Perini—which partly specializes in erecting casinos—earned a mere $7 million from federal contracts. Post-9/11, Perini transformed into a major defense contractor. In 2004, the company earned $444 million for military construction work in Iraq and Afghanistan(this includes the electrical work at US bases where are soldiers are being electrocuted in the showers) , as well as for improving airfields for the U.S. Air Force in Europe and building base infrastructures for the U.S. Navy around the globe.

In a remarkable financial recovery, Perini shot from near penury in 1997 to logging gross revenues of $1.7 billion in 2005.

In December 2005, Perini publicly identified one of its main business competitors as Halliburton. The company attributed its growing profitability, in large part, to its Halliburton-like military construction contracts in Iraq and Afghanistan.

Halliburton-like military construction contracts sent to them by Blum’s wife Senator Feinstein!

BUT JTP owes $1200.00 for something!!!

DSchoen on April 21, 2009 at 8:52 PM

AnninCA has either drunk enough Kool-Aid to float a battleship or she/he has been living under a rock somewhere.
College Prof

Or is on Feinstein’s staff .

DSchoen on April 21, 2009 at 9:05 PM

Blum’s investment made a $14 million profit for Blum and Feinstein and their partners.

Feinstein used MY taxpayer money and gets to reap all the profits? Crooks. Cheats. Liars. Fire them all!

TN Mom on April 21, 2009 at 9:10 PM

Why isn’t this bitch in jail *now*?

F@#$ing hell, damnit, I’m sick to f@#$ing death of this bullsh!t.

Midas on April 21, 2009 at 10:01 PM

Why isn’t this b!tch in jail *now*?

F@#$ing hell, damnit, I’m sick to f@#$ing death of this bullsh!t.

Midas on April 21, 2009 at 10:01 PM

You mean that throwing around billions of dollars with no oversight whatsoever leads to even more corruption?!?

Who woulda thunk it!

I don’t get these Democrats. They ignore being ripped off as long as it’s one of their own.

Dr. ZhivBlago on April 22, 2009 at 5:55 AM

Comment pages: 1 2