Pass along a news tip by clicking HERE.

Wednesday, February 17, 2010

Ohio Republican Party Wrecks Kasich's Qualifying Day: Presser Surfaces Blasting 'Ties To Lehman Brothers'

CINCINNATI (TDB) -- In November 2008, one didn't have to work for Lehman Brothers to be considered unfit for government service in a high office. According to the Ohio Republican Party, one just had to have "ties to Lehman Brothers," the bankrupt Wall Street investment house. John Kasich, a former Lehman Brothers managing director (2001-2008), qualified today as the GOP candidate for governor of Ohio. Wall Street is in his past, and so is his own party's criticism Wall Street executives. Today, The Daily Bellwether links to this Nov. 24, 2008 Ohio Republican Party press release that first raised the Lehman Brothers fitness issue. The state GOP targeted Lawrence Summers -- an Obama economic adviser -- with a headline that said "Summers Is A Managing Director Of A Hedge Fund With Ties To Lehman Brothers." It turns out that Lehman bought a 20% stake in the D.E. Shaw hedge fund in March 2007. By that time, Kasich had been a managing director for six years -- he was full time with Lehman Brothers. Below is the actual text of the Ohio GOP's concerns about Lehman Brothers:

"Summers Is A Managing Director Of A Hedge Fund With Ties To Lehman Brothers:
"[Summers] Is A Managing Director Of A Hedge Fund, D.E. Shaw Group, At A Time Of Distrust Of Wall Street." (Deborah Solomon and Michael M. Phillips, "The Obama Transition: Summers And Geithner, Two Contenders For Treasury Job, Have Close Career Ties," The Wall Street Journal, 11/8/08)
Summers Took On The Role Of Managing Director In October 2006. "In October [2006] Lawrence Summers, former Harvard University president and U.S. Treasury Secretary under the Clinton administration, was named managing director at D.E. Shaw; Mr. Summers also is known for his role in the bailout of Long-Term Capital Management in 1998." (Jacob Bunge, "Lehman Brothers Buys Into D.E. Shaw," [New York] Daily News, 3/13/07)
In March 2007, Lehman Brothers Bought A 20 Percent Stake In D.E. Shaw Group. "Lehman has also heavily expanded its investment banking capacities in Europe and Asia, and has built up its asset management capabilities. Its business trading and arranging financing for hedge funds have also picked up just this week Lehman took a 20 percent stake in D.E. Shaw Group, one of the world's largest hedge fund managers." (Joe Bel Bruno, "Lehman Brothers 1Q Profit Up 5.6 Pct.," The Associated Press, 3/15/07)
D.E. Shaw Founder David Shaw Said "We're Very Pleased To Be Associated With Lehman Brothers." David Shaw: "We're very pleased to be associated with Lehman Brothers. ... Lehman has demonstrated a strong commitment to investment management, and will be a valuable resource to us as we continue our efforts to innovate within both the absolute-return and benchmark-relative asset management areas." (Jacob Bunge, "Lehman Brothers Buys Into D.E. Shaw," [New York] Daily News, 3/13/07)"


  1. So what is the story here?

    Obama uses anti-Wall Street rhetoric, hires Wall Street Insiders, and promotes crony capitalism.

    Republicans (atleast their platform) embraces free markets. Kasich worked at Lehman's and helped businesses access needed Capital.

    Lehman's fault was investing in instruments underwritten by the government and insured by AIG... which was also backed up by the government.

    And every point in the ORP's press release is to make Larry Summers look silly to liberals and liberal reporters.

    Now the only one who looks silly is Bill Sloat.

  2. Matt Naugle is now defending Lehman Brothers. Matt Naugle loves losers. Naugle stuck with Ken Blackwell all the way until Blackwell took the biggest loss in Ohio history. Naugle is defending Lehman Brothers which pulled the U.S. economy down due to greed and incompetence. Naugle is defending Kasich, who worked for Lehman Brothers. Matt Naugle is beyond silly. He is a stooge.

  3. matt spends most of his time staring at the floor, never making eye contact and slinking around the statehouse. and he has terrible hair.

  4. Cool. Personal attacks. Would love to debate the Lehman's Issue, but whatever.

    Used to work there. But I have been in the State House three times in the past year and a half.

  5. I hope it doesn't get personal. It should never be personal. I don't know if Matt N. is Matt Naugle. I assume it is. And I have to say that Matt entertains me, he sometimes make my blood boil, he's always interesting. He busts his keister blogging. He and I work different sides of the street. He's been at it longer. We are like two guys with vegetable stands who are across from each other, rivals but not enemies. I say my apples are better than his. No, he says, mine are crisper. Nope, mine are the best. And so it does. We disagree. It is not personal. If he ever comes to Cincinnati, I hope he looks me up. I'll buy him a glass of French pinot noir, the fake kind called Red Bicyclette. I won't put any poison in the glass. Promise.

  6. This is Naugle. Thanks for the invite... er, maybe not.

    And Sloat you're not THAT liberal to be my counterpart. But you actually break news, have leftward bent, and make trouble for Republicans... In other words, apparently reporters never retire.