A BuzzFlash Reader Commentary
Florida, Enron, and Alliance Capital
January 14, 2002
The wealthy and powerful, because they are a small segment of the population, move in the same small circles. They look out for each other, despite their competitiveness, thus ensuring they all retain their riches -- while further enriching themselves off the "little people." The immolation of Enron and the malfeasance of Alliance Capital Management are perfect examples.
As reported in the Sunday, January 13, edition of the Palm Beach Post, Florida lost more than $300 million from it’s state pension fund due to stock losses after Enron’s collapse. The Post reported:
Now, why would Alliance Capital continue to buy plummeting Enron stock with state employee pension contributions? For one, there might have been a relationship that the Post didn’t touch upon in its report. According to an October, 29, 1999 press release from Enron:
Curiously -- or disingenuously -- Enron announced in late October of 2001 that it was forming a "special committee" to investigate . . . itself! Though Frank Savage was appointed to the Enron board of directors in 1999 (above), in last October’s announcement Enron claimed the special committee would be joined by "independent director Frank Savage, CEO of Savage Holdings LLC."
Furthermore, according to Qualcomm, Mr. Savage is "Chairman of Alliance Capital Management International and is a Director of Alliance Capital Management Corporation."
And on the Council on Foreign Relations website, his biography states:
However, if you look at Alliance’s websites there is no mention of Mr. Savage, and according to the board of directors page on Enron’s website Mr. Savage is only the CEO of Savage Holdings.
If this cross-pollination of executive direction isn't explanation enough for Alliance’s irresponsible purchase of Enron stock, the other shoe drops with a report by the South Florida Sun-Sentinel, where they write that, "Alliance Capital was the biggest holder of Enron shares on Sept. 30, with 43 million shares or 5.78 percent of the stock."
Under those circumstances, Alliance Capital had an obvious interest in protecting its own hefty investment in Enron. Put that together with the apparent high-level relationship between Alliance’s board and Enron’s board; put it together with the fact that the Florida Board of Administration was led by George Bush's brother Jeb; and one must ask the question, "Was Florida's pension fund purposely looted?"
The only logical explanation for the continued waste of Florida's money on Enron stock is that well-connected people in Florida government, Alliance Capital, and Enron tried to funnel money into Enron in an effort to prop it up. And it’s hard to believe that Florida’s pension fund was the only source being tapped for this purpose.
and power are the ties that bind in politics and corporate America. Are
we to believe that Alliance Capital knew nothing about Enron’s woes before
it publicly announced its shady bookkeeping? Are we to believe that Jeb
Bush, his Board of Administration,
the theft of the presidential election, to West Coast energy market manipulation;
from the secret Bush/Cheney energy policy, to the biggest bankruptcy in
US history; the same names keep popping up over and over again. They all
hold power in the executive
The only question left to ask is, "What did these people know and when did they know it?"
* * *
Contributed by BuzzFlash Reader Mike Kress, Everett, WA.
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