Chrysler deal, ,The Three Headed Dog at the Gates of Hell

I read yesterday that Chrysler was about to be taken over by a private hedge fund. I was suspicious that this was merely a cover for the Federal Reserve to keep the company afloat so it did not fail under Bush's watch. The hedge funds borrow heavily from the big "investment" houses on Wall Street , who have unlimited access to the Federal Reserve infinite ability to create money out of thin air.

Given that suspicion, even I was sickened by what I learned with just a few clicks...

read on...

From Forbes
"Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry," said the company's chairman, former U.S. Treasury Secretary John Snow. "Most importantly, we believe in Chrysler." ...

From Answer.com
Cerberus was a fierce, pitiless, flesh-eating watchdog, stationed by the River Styx, from which post he would keep the living from entering the land of the dead.

From Fortune
Former U.S. vice president Dan Quayle, chairman of Cerberus Global Investments (Is Quale gone, or is this a division, too late at night to figure it out)...
...
And despite the name, much of this sounds credible...
From Conspiracy planet

(If even a tenth of this is true, Attica would be too good for these guys...)
http://www.conspiracyplanet.com/channel.cfm?channelid=70&contentid=4257
  
Cerberus: Center of Pentagon & CIA Scams
by DAILY KOS

...
A large global hedge fund, Cerberus Capital Management (dba, Cerberus-Gabriel), is at the center of an emerging Pentagon and CIA contracting scandal that has the attention of three Congressional Committees.

In each case, the companies under investigation have links to prominent GOP figures, including Vice President Dick Cheney, former Vice President Dan Quayle, former Defense Secretary Donald Rumsfeld, and several Republican Congressmen indicted for corruption involving kickbacks from defense contractors.

The Republican Congressional Campaign Commitee (RCCC) has also received substantial contributions from conservative fund managers running Cerberus, a virually unregulated $30 billion hedge fund, which owns the second largest bank in Israel.

This scandal involves the mismanagement of VA hospital facilities privatized during the Bush-Cheney Administration, as well as intelligence abuses by private CIA contractors.

The lastest Cerberus scandal involving its holding, International American Products (IAP) Worldwide Services, awarded a $120 million contract to manage facilities at Walter Reed, is only the latest in a long line of serious problems involving the company and its officers

CONSPIRACY PLANET

THE ALTERNATIVE NEWS & HISTORY NETWORK

Your Antidote to Media Cartel Propaganda

Tuesday, May 15, 2007

Cerberus: Center of Pentagon & CIA Scams (continued)
by DAILY KOS

IAP's President, Alfred V. Neffgen, was formerly Chief Operating Officer for KBR's government operations group, which was forced to repay tens of millions of dollars to the Defense Department for food and fuel overcharges in Iraq.

IAP has other contracting connections with Dick Cheney's Halliburton/KBR. Most recently, IAP bid on part of the Iraq oil reconstruction project as a partner with Halliburton KBR. The Army Times reports about the Halliburton tie-in:

http://www.armytimes.com/

Walter Reed also awarded a five-year, $120-million contract to IAP Worldwide Services, which is run by Al Neffgen, a former senior Halliburton official.

They also found that more than 300 federal employees providing facilities management services at Walter Reed had drooped to fewer than 60 by Feb. 3, 2007, the day before IAP took over facilities management. IAP replaced the remaining 60 employees with only 50 private workers.

"The conditions that have been described at Walter Reed are disgraceful," the letter states. "Part of our mission on the Oversight Committee is to investigate what led to the breakdown in services. It would be reprehensible if the deplorable conditions were caused or aggravated by an ideological commitment to privatize government services regardless of the costs to taxpayers and the consequences for wounded soldiers."

The letter said the Defense Department "systemically" tried to replace federal workers at Walter Reed with private companies for facilities management, patient care and guard duty - a process that began in 2000.

Cerberus owns, or had a major interest in, a string of now-bankrupt companies that had contracts with U.S. defense and intelligence agencies that were found to have a common pattern of large-scale fraud, security problems, and financial scandals involving GOP lawmakers and lobbyists.

IAP is also tied-in with Halliburton/KBR on multi-billion dollar Iraq contracts. Halliburton is a major defense contractor once headed by Vice President Cheney, that has had its own history of problems with fraud and overcharges related to its management of sole-source projects in Iraq, particularly the multi-billion dollar LOGCAP contract to repair and maintain Iraq's oil fields and pipelines.

Just months before the invasion, DoD designated Halliburton/KBR as the sole potential bidder for potential large-scale pipeline repair contracts. Four years after the initial invasion and occupation of those fields, Iraq is still not producing at its prewar levels, a threshold that would require termination of the LOGCAP contract.

On October 16, 2006, IAP Worldwide Services issued this press release: "IAP Worldwide Services, Inc. Team Submits Bid For LOGCAP IV Contract," which included this quote from former Halliburton/KBR executive Dave Swindle:

"The LOGCAP IV contract is a major challenge," said Dave Swindle, IAP President. "Supporting the warfighter and the Army is a responsibility that allows no compromise. IAP and its team members understand the magnitude of this program and the issues associated with its complexity. We place a high priority on using our proven Business Operating System (BOS) to provide effective oversight and tracking to responsibly meet the customer's needs from Day One. Through BOS we will act as one team through a management and business system that is completely transparent to the customer."

http://www.iapws.com/

Phil:

My sources tell me the deal is being financed by JP Morgan, Goldman
Sachs, Citibank, and Bear Stearns. Chrysler is being advised by JP
Morgan.

-Derek

I read yesterday that Chrysler was about to be taken over by a

private hedge fund. I was suspicious that this was merely a cover for
the Federal Reserve to keep the company afloat so it did not fail
under Bush's watch. The hedge funds borrow heavily from the
big "investment" houses on Wall Street , who have unlimited access to
the Federal Reserve infinite ability to create money out of thin air.

Given that suspicion, even I was sickened by what I learned with

just a few clicks...

read on...

From Forbes
"Cerberus believes in the inherent strength of U.S. manufacturing

and of the U.S. auto industry," said the company's chairman, former
U.S. Treasury Secretary John Snow. "Most importantly, we believe in
Chrysler." ...

From Answer.com
Cerberus was a fierce, pitiless, flesh-eating watchdog, stationed

by the River Styx, from which post he would keep the living from
entering the land of the dead.

From Fortune
Former U.S. vice president Dan Quayle, chairman of Cerberus Global

Investments (Is Quale gone, or is this a division, too late at
night to figure it out)...

...
And despite the name, much of this sounds credible...
From Conspiracy planet

(If even a tenth of this is true, Attica would be too good for

these guys...)

http://www.conspiracyplanet.com/channel.cfm?

channelid=70&contentid=4257

  
Cerberus: Center of Pentagon & CIA Scams
by DAILY KOS

...
A large global hedge fund, Cerberus Capital Management (dba,

Cerberus-Gabriel), is at the center of an emerging Pentagon and CIA
contracting scandal that has the attention of three Congressional
Committees.

In each case, the companies under investigation have links to

prominent GOP figures, including Vice President Dick Cheney, former
Vice President Dan Quayle, former Defense Secretary Donald Rumsfeld,
and several Republican Congressmen indicted for corruption involving
kickbacks from defense contractors.

The Republican Congressional Campaign Commitee (RCCC) has also

received substantial contributions from conservative fund managers
running Cerberus, a virually unregulated $30 billion hedge fund,
which owns the second largest bank in Israel.

This scandal involves the mismanagement of VA hospital facilities

privatized during the Bush-Cheney Administration, as well as
intelligence abuses by private CIA contractors.

The lastest Cerberus scandal involving its holding, International

American Products (IAP) Worldwide Services, awarded a $120 million
contract to manage facilities at Walter Reed, is only the latest in a
long line of serious problems involving the company and its officers

CONSPIRACY PLANET

THE ALTERNATIVE NEWS & HISTORY NETWORK

Your Antidote to Media Cartel Propaganda

Tuesday, May 15, 2007

Cerberus: Center of Pentagon & CIA Scams (continued)
by DAILY KOS

IAP's President, Alfred V. Neffgen, was formerly Chief Operating

Officer for KBR's government operations group, which was forced to
repay tens of millions of dollars to the Defense Department for food
and fuel overcharges in Iraq.

IAP has other contracting connections with Dick Cheney's

Halliburton/KBR. Most recently, IAP bid on part of the Iraq oil
reconstruction project as a partner with Halliburton KBR. The Army
Times reports about the Halliburton tie-in:

http://www.armytimes.com/

Walter Reed also awarded a five-year, $120-million contract to IAP

Worldwide Services, which is run by Al Neffgen, a former senior
Halliburton official.

They also found that more than 300 federal employees providing

facilities management services at Walter Reed had drooped to fewer
than 60 by Feb. 3, 2007, the day before IAP took over facilities
management. IAP replaced the remaining 60 employees with only 50
private workers.

"The conditions that have been described at Walter Reed are

disgraceful," the letter states. "Part of our mission on the
Oversight Committee is to investigate what led to the breakdown in
services. It would be reprehensible if the deplorable conditions were
caused or aggravated by an ideological commitment to privatize
government services regardless of the costs to taxpayers and the
consequences for wounded soldiers."

The letter said the Defense Department "systemically" tried to

replace federal workers at Walter Reed with private companies for
facilities management, patient care and guard duty - a process that
began in 2000.

Cerberus owns, or had a major interest in, a string of now-bankrupt

companies that had contracts with U.S. defense and intelligence
agencies that were found to have a common pattern of large-scale
fraud, security problems, and financial scandals involving GOP
lawmakers and lobbyists.

IAP is also tied-in with Halliburton/KBR on multi-billion dollar

Iraq contracts. Halliburton is a major defense contractor once headed
by Vice President Cheney, that has had its own history of problems
with fraud and overcharges related to its management of sole-source
projects in Iraq, particularly the multi-billion dollar LOGCAP
contract to repair and maintain Iraq's oil fields and pipelines.

Just months before the invasion, DoD designated Halliburton/KBR as

the sole potential bidder for potential large-scale pipeline repair
contracts. Four years after the initial invasion and occupation of
those fields, Iraq is still not producing at its prewar levels, a
threshold that would require termination of the LOGCAP contract.

On October 16, 2006, IAP Worldwide Services issued this press

release: "IAP Worldwide Services, Inc. Team Submits Bid For LOGCAP IV
Contract," which included this quote from former Halliburton/KBR
executive Dave Swindle:

"The LOGCAP IV contract is a major challenge," said Dave Swindle,

IAP President. "Supporting the warfighter and the Army is a
responsibility that allows no compromise. IAP and its team members
understand the magnitude of this program and the issues associated
with its complexity. We place a high priority on using our proven
Business Operating System (BOS) to provide effective oversight and
tracking to responsibly meet the customer's needs from Day One.
Through BOS we will act as one team through a management and business
system that is completely transparent to the customer."

http://www.iapws.com/

***

Cerberus a Major Stockholder in Bankrupt MCI, Takes Over a

Mismanaged $8.8B DoD Project to Create Secure Computer systems for
the U.S. Navy and Marine Corps

By Matt Kelley
USA TODAY The fundraiser, which took place July 7, 2003, and the

subsequent vote illustrate the kind of relationship between
congressman and contributor that's under increased scrutiny in the
nation's capital.

~snip~

Both Lewis and the investment company, Cerberus Capital Management,

benefited from the relationship. Eighteen months after the fundraiser
and the House vote, Lewis won the chairmanship of the Appropriations
Committee. He acknowledges that the fundraising efforts of
Cerberus "played a very significant role" in winning the post. The
ties between Cerberus and Lewis, a 14-term congressman from Redlands,
Calif., have not been publicly examined before.

~snip~

Created in 1992, Cerberus is a hedge fund, a type of private

investment group that's not regulated by the Securities and Exchange
Commission. ...

~snip~

In 2003, Cerberus owned more than $140 million in stock and bonds

of the bankrupt telecommunications giant WorldCom, financial records
show. Its stake in the company, which had filed for bankruptcy
protection the previous year, was large enough that a Cerberus
executive joined the board of directors of MCI, the company's post-
bankruptcy name. ... MCI has been a major subcontractor since 2000 on
an $8.8 billion project to build a secure computer network for the
Navy and Marines. ...

The committee report noted the program's cost overruns, schedule

delays and management foul-ups in its report accompanying the 2003
defense spending bill, also sponsored by Lewis. That report called
for more and better testing of the program before more computers were
added to the network.

(Rep. Jerry) Lewis (R-CA) himself had criticized the Navy-Marine

computer project in October 2002, telling The Washington Post he was
not satisfied with its progress. He also said he was concerned about
MCI's involvement. "When you have a big piece of the pie in trouble,
it just gums up a process that already has great difficulty," he
said. ... Other members of Congress were pushing the federal
government to ban MCI from any future contracts because of the $11
billion accounting scandal, which eventually landed former WorldCom
CEO Bernie Ebbers a 25-year prison term. MCI now has about $2 billion
in annual revenue from government contracts, and the Navy project
remains one of its biggest.

On May 16, 2003, the House Armed Services Committee voted to cut

10% of the Navy project's $1.6 billion budget for the upcoming year.
Federal lobbying records show that two months earlier, Cerberus hired
its first lobbyist, the powerhouse firm Patton Boggs. ... The firm's
lobbyists for Cerberus included Laurence Harris, a former FCC staffer
who would join MCI's board of directors that August; retired Marine
colonel John Garrett; and Marcus Dunn, a former aide to two members
of the House Armed Services Committee. ...Cerberus paid Patton Boggs
$1.1 million for lobbying from 2003 to the middle of 2005, the last
date that records are available. Separately, Cerberus hired former
senator Jake Garn, a Utah Republican, as a lobbyist for $410,000 over
the same period, lobbying records show.

~snip~

http://cache.zoominfo.com/

***
Cerberus donated $100,000 at a single fundraiser to Rep. Jerry

Lewis, fmr. Chair of the House Appropriations Comm., who served as
intermediary to distribute money to fellow GOP lawmakers favored by
Cerberus

http://www.usatoday.com/

Lewis' Future Leaders PAC gave $407,000 to 69 House candidates in

the 2004 election. The Cerberus-related money was equal to nearly a
third of that amount. In 2003, the PAC collected $522,725 - a quarter
of it connected to Cerberus.

Boustany's 2004 campaign got $15,000 in contributions from Lewis'

Future Leaders PAC in three separate $5,000 contributions, according
to Federal Election Commission records. Lewis also kicked in another
$2,000 from his own campaign in two separate contributions to
Boustany's 2004 campaign. Boustany picked up another $5,000 from
Future Leaders PAC in the current election cycle.

But, Boustany also benefited from the Lewis/Cerberus relationship

in another way: Lewis also got Cerberus to help with his fundraising
for the National Republican Congressional Committee, the arm of the
GOP that gives money to House candidates. Lewis said he invited
Cerberus executives to an April 2004 NRCC fundraiser he chaired that
included a speech by President Bush.

The NRCC got $70,000 in Cerberus-related donations during the first

two weeks of April 2004, including $25,000 from Cerberus founder
Stephen Feinberg, records show. "I had been doing this for over a
dozen years, helping to raise money for our members," Lewis
said. "Others (candidates for Appropriations chairman) began to be
helpful with fundraising, but that had been a recent and newfound
interest of theirs."

Federal Election Commission records show that the National

Republican Congressional Committee spent $72,620 in coordinated
spending on Boustany's 2004 campaign and another $96,593 on
independent expenditures on behalf of Boustany's campaign. Now, of
course, the national parties raised millions of dollars for
congressional races, so Boustany's share of that Cerberus/Lewis
effort might well have been small through this particular channel. In
any event, it was no where near as large as Cerberus's impact on
Future Leaders PAC dollars.

Wilkes employed a lobbyist named Bill Lowery who is unusually close

with House Appropriations Committee Chairman Rep. Jerry Lewis. Copley
News Service conducted a three month investigation of their
relationship:

From powerful positions on the House Appropriations Committee,

California Rep. Jerry Lewis has greenlighted hundreds of millions of
dollars in federal projects for clients of one of his closest
friends, lobbyist and former state Congressman Bill Lowery.

Meanwhile, Lowery, the partners at his firm and their clients have

donated 37 percent of the $1.3 million that Lewis' political action
committee received in the past six years...The Lewis-Lowery
relationship, however, is remarkable for the closeness and mutual
dependence...They've even exchanged two key staff members, making
their offices so intermingled that they seem to be extensions of each
other.

Cerberus founder Stephen Feinberg is reported to have made

particularly substantial donations to Republican organizations, with
a 2004 contribution of $25,000 to the RCCC. Feinberg also contributed
$2000 to the Senate campaign that year of Connecticut Senator Joseph
Lieberman. http://www.fundrace.org/

Both Cerberus and MZM were giving GOP House Appropriations Chairman

Jerry Lewis large amounts of money for distribution to other GOP
Congressmen through Lewis' PAC. Cerberus appears to have been the
senior partner in the scheme. Lewis was being investigated by the US
Attorney for the Southern District of CA, Debra Wong Yang, who
resigned on Nov. 10 to go to work for the powerhouse LA law firm
that's defending Lewis. USA Lam, who had the MZM case, meanwhile was
fired along with six others in a January purge of the US Attorneys
Office that is just now receiving considerable attention.

Laura Rozen speculates that Yang, upon learning of her impending

firing last year, accepted a rather comfortable exit package rather
than be fired as was here her colleague, USA Caroline Lam. See,
http://www.tpmmuckraker.com/… /

http://thehill.com/

In a plea agreement with prosecutors, Cunningham named four people

who had conspired with him to commit the crimes. Although the plea
agreement does not refer to the co-conspirators by name, they are
widely believed to be Mitchell Wade, the former president of defense
intelligence firm MZM Inc., Brent Wilkes, president of defense
contractor ADCS Inc., Tom Kontogiannis, a New York real-estate
developer, and an unnamed family member of Kontogiannis.

Wade and Wilkes gave heavily to congressional Republicans in recent

years, and now lawmakers must decide whether to keep the campaign
largesse.

Wade, Wilkes, Kontogiannis and others remain under investigation,

according to a statement made by the lead federal prosecutor in the
case, U.S. Attorney Carol Lam.

Congressional ethics experts predict that one or more of the co-

conspirators would be charged, especially because Cunningham has
agreed to continue to cooperate with the investigation.

"Given that they were both described as co-conspirators in the plea

agreement and that the agreement calls for former Rep. Cunningham to
cooperate in the investigation, it's very likely that both Mitchell
Wade and Brent Wilkes will be indicted," said Brett Kappel, an ethics
lawyer at Vorys, Sater, Seymour and Pease LLP.

Sen. Jim Talent (R-Mo.) has returned money from lobbyist Jack

Abramoff, the center of another congressional ethics scandal, while
Republican Reps. Jeb Bradley (N.H.), Kenny Hulshof (Mo.), Heather
Wilson (N.M.) and Steve LaTourette (Ohio) gave back contributions
from DeLay after he was indicted in September.

Republican Reps. Tom DeLay (Texas), John Doolittle (Calif.) and

Jerry Lewis (Calif.) all received at least $30,000 in donations -
either through their campaign committee or their leadership PACs -
from Wade, Wilkes, their family members and their companies' PACs
over the past four years. These totals do not include individual
contributions from employees of these firms. Early this year, Lewis
became the chairman of the powerful House Appropriations Committee.
Before that, he headed the defense appropriations subcommittee.
Because of these high-profile roles, Lewis often receives more
donations than most House members. Doolittle also sits on the
Appropriations Committee.

But Cunningham, who was simply a member of the defense

appropriations subcommittee, received the most - at least $66,000
during the same period.

Rep. Duncan Hunter (R-Calif.), chairman of the Armed Services

Committee, received just over $28,000, as did Rep. Virgil Goode (R-
Va.). Rep. Jerry Weller (R-Ill.) was the recipient of $20,000.

Wilkes is a prominent Bush fundraiser, earning a designation as

a "Bush pioneer" in 2004 for raising more than $100,000. If Wilkes is
indicted, he will be the third Bush pioneer, after Abramoff and Ohio
fundraiser Tom Noe, to be indicted this year.

Wade resigned from MZM earlier this year. The company was sold to a

private equity firm in August.

Senate Judiciary Committee Goes Into Closed Hearings to Discuss

Firing of U.S. Attorney Who Prosecuted CIA Contractor Case

On Tuesday, Judiciary Committee member Arlen Specter revealed

publicly that the committee he used to Chair would be going behind
closed doors to discuss still-classified details about the
retaliatory firing of U.S. Attorney Caroline Lam, who had
aggressively prosecuted the MZM Wade-Cunningham contracting case.
(Source C-Span Radio, 03/05/2007, @ 7:20 pm).

According to Specter, the Senate Judiciary Committee went into

closed session to talk about an ongoing TOP SECRET investigation that
stems from the Cunningham case. Three Hill Committees reached an
agreement with the Department of Justice to receive files compiled by
the U.S. Attorney's office in San Diego, and are just beginning to
hold public hearings into the unlawful dismissal of Lam. (See,
generally, http://thehill.com/… ;
http://www.signonsandiego.com/… ; http://www.scoop.co.nz/

These closed hearings are most likely related to contracts that MZM

had with CIA, including one that led to the falsification of data
about aluminum tubes shipped to Iraq that allegedly were going to be
used to reconstitute Saddam's nuclear program. That's right, those
aluminum tubes, the one's that were falsely used by White House and
Vice President to justify the invasion of Iraq.

***

On background, it should be noted that Laura Rozen's WAR&PIECE

column of December 11, 2005, "Wade, Wilkes and Bad Intelligence?"
identified Mitchell Wade's MZM defense contracting firm as a culprit
in faulty intelligence generation that led to the Iraq invasion. See,
http://www.warandpiece.com/

A source cited by Rozen identified MZM as the private contractor

cited for support of an errant CIA Iraq WMD assessment used to
justify the Bush Administration's argument for war. An MZM analysis
erroneously concluded that aluminum tubes ordered by Saddam Hussein
were intended for use in a clandestine nuclear fuel enrichment
program that didn't exist. Rozen came up with the extraordinary
finding that consultants working for MZM and other intelligence
contractors staffed the Robb-Silberman Commission that investigated
the faulty Iraq WMD findings.

***

During testimony in the Scooter Libby trial, we learned that

Valerie Plame was involved in the aluminum tube issue within the
CIA's Counter-Proliferation Division (CPD), where she worked before
being "outed" by Libby and others in the White House and Vice
President's office.

***

Dan Quayle is chair of new Leumi owner Cerberus-Gabriel, Interceded

With SEC Head to Block Rules Governing Hedge Funds

www.haaretzdaily.com/hasen/pages/ShArt.jhtml?itemNo=645933
Dan Quayle is chair of new Leumi owner Cerberus-Gabriel
Ha'aretz 11/16/2005
Cerberus is chaired by former U.S. vice president Dan Quayle. - The

Cerberus-Gabriel group was led by Gabriel president J. Ezra Merkin,
assisted by CPA Avi Berger, the general manager of the Kesselman &
Kesselman accounting firm, and attorney Yaakov Ne'eman. Stephen
Feinberg, 45, a Jew from New York and the wunderkind of the hedge
funds world who, within 20 years, turned a $10 million fund into a
holding company whose companies have combined sales of $30 billion a
year, is the founder and manager of Cerberus Global Investment.

http://www.globes.co.il/
Experts: Ultimate owners of Leumi unclear
Globes 11/16/2005
Banking sources: US investor disclosure regulations will cause

Cerberus-Gabriel problems.- Ministry of Finance officials have
declared a great victory in the Bank Leumi (TASE: LUMI) tender, but
banking specialists are not so enthusiastic. They say that the
victory wasn't so great: the buyers (Cerberus Capital Management LP
and Gabriel Capital Management) are too anonymous, their business
isn't transparent enough, and, most of all, the saga is far from
over...these owners have specific problems in connection with
operating a bank in the US, and they are looking for indirect ways to
operate there, perhaps without a banking license.

(Can't get that top link to work yet -- Globe link requires

registration and installation of their software. Found these links

In 2004, met with then The SEC Chairman William Donaldson a month

prior to Donaldson's vote on whether to open hedge funds to periodic
inspections:

~snip~
Canary Scandal

Former U.S. Vice President Dan Quayle, an adviser to Cerberus, met

in June with Donaldson to discuss fund regulation. Craig Whitney,
executive vice president of Quayle & Associates, denied that Quayle
was lobbying Donaldson to weaken the SEC's hedge fund plan.

Hedge fund executives also say the SEC should focus its resources

on better protecting the 91 million U.S. holders of mutual funds. The
SEC's move to increase regulation of the private investment pools has
gained pace since New York Attorney General Eliot Spitzer alleged 10
months ago that ``illegal trading schemes'' enabled some hedge funds
to buy mutual fund shares at prices not available to most investors.

Canary Capital Partners LLC and its managing principal, Edward

Stern, agreed on Sept. 3 to return $30 million in profits and pay a
$10 million fine. Since then, regulators have imposed more than $2.3
billion in sanctions against about a dozen companies including Bank
of America Corp. and Alliance Capital Management Holding LP. ~snip~

http://quote.bloomberg.com/

DONALD RUMSFELD - CERBERUS INVESTOR

During the tenure of former Secretary of Defense Donald Rumsfeld,

the Pentagon awarded a large contract to the company at the center of
the Walter Reed Army Hospital scandal. Rumsfeld may have financially
benefited from it along with other major GOP figures, including
former Vice President Dan Quayle also invested or were employed by,
or received campaign contributions from the same Wall Street hedge
fund that owns the company.

In his last financial disclosure before becoming Defense Secretary,

Rumsfeld revealed that he held shares in Cerberus, a large NY Hedge
Fund that acquired International American Products, Inc., the company
awarded a Pentagon contract to privatize facilities management
services at Walter Reed. http://www.businessweek.com/

***

2005 - CERBERUS PURCHASES SECOND-LARGEST BANK IN ISRAEL, COMPLETING

THE PRIVATIZATION OF THE ISRAELI BANKING SYSTEM

Cerberus group, which in 2005, acquired the second largest Israeli

bank, Leumi Bank, completing a process of privatization of the
Israeli financial sector pushed by the Right-wing Likud Party and its
successor under the present Prime Minister, Ehud Olmert.

Cerberus holding Leumi Bank privatized Israeli banks - IAP

privatized VA hospitals

Strange symmetry to this, isn't there? Perhaps, no coincidence to

any of it. Here's why.

You have to read a seminal neocon document written in 1997 for then-

Israeli PM Netanyahu by the guys who went on to run the Office of
Special Plans (OSP), Feith, Wurmser, and Perle. That paper, "A CLEAN
BREAK: A New Strategy for Securing the Realm" –
http://www.iasps.org/… – lays out a battle plan for conquering the
Mid-East, starting with Iraq and Lebanon as means to undermine and
discourage Syria, and then, finally, a forced reorientation of the
region's enormous Shi'a population away from Iran and the elevation
of the Heshemite Kingdom of Morocco's King Hussein. The point of all
this isn't just military conquest, and the elimination of regional
threats, it's actually to set the preconditions for a PRIVATIZED
Israeli economy, and the "clean break" is with Israeli's social-
democratic past.

It is also meant to map out a profound shift in Israel's

relationship with the United States, away from a traditional client
state that submits to bi-partsian Washington, with the an alliance
with the ascendant GOP Right-wing, the authors planned to elevate
Israel into a new regional Superpower.

A Clean Break is a daringly blunt statement of those commercial,

ideological and strategic ambitions:

Israel has a large problem. Labor Zionism, which for 70 years has

dominated the Zionist movement, has generated a stalled and shackled
economy. Efforts to salvage Israel's socialist institutions-which
include pursuing supranational over national sovereignty and pursuing
a peace process that embraces the slogan, "New Middle East"-undermine
the legitimacy of the nation and lead Israel into strategic paralysis
and the previous government's "peace process." That peace process
obscured the evidence of eroding national critical mass- including a
palpable sense of national exhaustion-and forfeited strategic
initiative.

SNIP

Syria challenges Israel on Lebanese soil. An effective approach,

and one with which American can sympathize, would be if Israel seized
the strategic initiative along its northern borders by engaging
Hizballah, Syria, and Iran, as the principal agents of aggression in
Lebanon, including by:

SNIP

* striking Syrian military targets in Lebanon, and should that

prove insufficient, striking at select targets in Syria proper.

SNIP

Israel can shape its strategic environment, in cooperation with

Turkey and Jordan, by weakening, containing, and even rolling back
Syria. This effort can focus on removing Saddam Hussein from power in
Iraq - an important Israeli strategic objective in its own
right . . . Since Iraq's future could affect the strategic balance in
the Middle East profoundly, it would be understandable that Israel
has an interest in supporting the Hashemites in their efforts to
redefine Iraq.

SNIP

King Hussein may have ideas for Israel in bringing its Lebanon

problem under control. The predominantly Shia population of southern
Lebanon has been tied for centuries to the Shia leadership in Najf,
Iraq rather than Iran. Were the Hashemites to control Iraq, they
could use their influence over Najf to help Israel wean the south
Lebanese Shia away from Hizballah, Iran, and Syria. Shia retain
strong ties to the Hashemites: the Shia venerate foremost the
Prophet's family, the direct descendants of which - and in whose
veins the blood of the Prophet flows - is King Hussein.

SNIP

Forging A New U.S.-Israeli Relationship

In recent years, Israel invited active U.S. intervention in

Israel's domestic and foreign policy for two reasons: to overcome
domestic opposition to "land for peace" concessions the Israeli
public could not digest, and to lure Arabs - through money,
forgiveness of past sins, and access to U.S. weapons - to negotiate.
This strategy, which required funneling American money to repressive
and aggressive regimes, was risky, expensive, and very costly for
both the U.S. and Israel, and placed the United States in roles is
should neither have nor want.

Israel can make a clean break from the past and establish a new

vision for the U.S.-Israeli partnership based on self-reliance,
maturity and mutuality - not one focused narrowly on territorial
disputes. Israel's new strategy - based on a shared philosophy of
peace through strength - reflects continuity with Western values by
stressing that Israel is self-reliant, does not need U.S. troops in
any capacity to defend it, including on the Golan Heights, and can
manage its own affairs. Such self-reliance will grant Israel greater
freedom of action and remove a significant lever of pressure used
against it in the past.

To reinforce this point, the Prime Minister can use his forthcoming

visit to announce that Israel is now mature enough to cut itself free
immediately from at least U.S. economic aid and loan guarantees at
least, which prevent economic reform. [Military aid is separated for
the moment until adequate arrangements can be made to ensure that
Israel will not encounter supply problems in the means to defend
itself]. As outlined in another Institute report, Israel can become
self-reliant only by, in a bold stroke rather than in increments,
liberalizing its economy, cutting taxes, relegislating a free-
processing zone, and selling-off public lands and enterprises - moves
which will electrify and find support from a broad bipartisan
spectrum of key pro-Israeli Congressional leaders, including Speaker
of the House, Newt Gingrich.

SNIP

Israel's new agenda can signal a clean break by abandoning a policy

which assumed exhaustion and allowed strategic retreat by
reestablishing the principle of preemption

SNIP

Israel's new strategic agenda can shape the regional environment in

ways that grant Israel the room to refocus its energies back to where
they are most needed: to rejuvenate its national idea, which can only
come through replacing Israel's socialist foundations with a more
sound footing; and to overcome its "exhaustion," which threatens the
survival of the nation.

Ultimately, Israel can do more than simply manage the Arab-Israeli

conflict though war.

SNIP

****

The rush to privatize many of the functions of the Pentagon,

including the VA system, is really the same strategy as that
advocated by Feith, Perle and Wurmser in their strategic vision for
Israel in 1997. Seize upon the opportunities created by a series of
wars in the Mid-East that expand the military, and then privatize
that economic engine. That is at heart a fascist vision. That, in
short, is what has been going on in the United States during the Bush-
Cheney era. It's military Keynesianism turned into a killing and
maiming machine for profit.

So, this is the Israeli state they ended up with, led by
Kadima's Ehud Olmert, a Tool of Oligarchs ... Cerberus-Gabriel

Forbes Reinforces Claim That Kadima is Tool of Oligarchs

by Ezra HaLevi

(IsraelNN.com)
According to the report, the business groups are controlled by the

following families: Sami Ofer, Nochi Dankner, Shari Arison, the
Cerberus-Gabriel consortium, Charles Bronfman, Yitzchak Tshuva, the
Saban group, Lev Leviev, Matthew Bronfman, Tzadik Bino, the Borovich
family, and Eliezer Fishman. The 12 families own 60 percent of the
aggregate market value of all Israeli public companies (excluding the
even larger Teva Pharmaceutical Industries), Forbes reported.

The report goes on to say that the families have constructed their

empires, which consist of Israel's largest companies, using
organizational structures that have long ago been done away with in
the Western world.

The report explains that the groups have an inordinate amount of

control over Israel's economy, political leaders and media due to the
structuring of their holdings as pyramids - meaning several layers of
companies each own others beneath them but are all beholden to the
leading families. Such a phenomenon was eliminated in the US in the
early 20th century through restrictions on ownership and the double
taxation of dividends a company paid its owner company.

~snip~
http://www.israelnationalnews.com/

In that light, consider the article about the conflict surrounding

the Serberus-Leumi group privatizing the Israeli banking system. Bear
in mind that Israel's banks, including Leumi, had been bailed out by
the government in the disastrous year of 1983, after Ariel Sharon led
the IDF into an ill-fated and incompetently led invasion of Lebanon.
An "optional" war that resulted in the massive withdrawal of
international capital, and a steep recession in Israel's reputation
and fortunes:

http://209.85.165.104/
Leumi on the way to going global

By Nehemia Shtrasler

A historic decision will be made next week. The Bank of Israel will

announce whether it approves the sale of Bank Leumi to the Cerberus-
Gabriel consortium. This would mark the end of the long process of
privatizing Israel's banking system.

As early as November 2005 a tender was issued for the bank's sale,

and it was won by Cerberus-Gabriel. The consortium offered to pay NIS
4.62 billion for a controlling stake of 20 percent in the bank - a
very high price indeed. But the consortium failed to close the deal
because the Bank of Israel did not approve its becoming a controlling
partner.

The decision will now be made by the Bank of Israel Governor,

Professor Stanley Fischer, who has said in internal meetings that
this is one of the most difficult decisions he has been asked to
make. At those same meetings, Rony Hizkiyahu, the new Supervisor of
Banks, said that he wished the problem with the New York branch of
Bank Leumi were resolved because then there would be no obstacle to
selling the bank to the consortium. Indeed, this is the only problem
that is keeping Cerberus-Gabriel from Bank Leumi, the subsidiary in
New York.

According to American law, the Cerberus-Gabriel consortium will not

be able to hold the bank in New York because it is invested in non-
financial sectors. According to American rules, it is not permitted
to have industrial and real estate holdings and also a bank - out of
concern for possible conflict of interest.

During those same internal meetings at the Bank of Israel a number

of proposals were put forth for a solution to the problem. For
example, to sell Leumi New York, and in its place set up a financial
entity that could offer business loans but not be able to accept
deposits or offer retail banking services. The problem is that such a
financial firm will not operate under the supervision of the Federal
Reserve (because it is not a bank). As for Israeli supervision, it
will not be easy to keep an eye on a company that is situated so far
away.

SNIP

Indeed, the deal went through and the regulatory obstacles removed

to the privatiziation that is pushed by Prime Minister Olmert, one of
the leading proponents of the scheme, as this article makes clear:

http://www.fundstreet.org/
December 13, 2005

Cerberus-Gabriel hedge fund buys stake in Leumi Bank
Israel is on its way to privatization. The banking sector is

amongst the first ones to take a step in this direction. Bank Leumi
was in the market recently and attracted bids from several players.
Bidder names include strategic investors like Lev Leviev, IDB and
Bill Davidson and also financial contenders like UBS, Deutsche Bank
and Citibank. However the winner was an American Hedge fund, Cerberus-
Gabriel.

Cerberus-Gabriel has purchased 9.9% of the shares of the bank. The

purchase of this stake was for approximately $500 million. The fund
also has the option of buying an additional 10.01% in the bank. This
will bring the total shares quantum to 20% and is roughly valued at
$1 billion. This option of additional purchase has to be utilized
with in the next one and a half years.

Ehud Olmert, Finance Minister of Israel, is reportedly quite

satisfied with the outcome. He feels that this is a positive
development and will help the over all Israeli economy. He is amongst
the top promoters of privatization move. In his statement he also
mentioned that the purchase will ensure healthy competition between
the banks and will definitely contribute a lot to the local market.

Another person quite happy with the development is Yaron Zelekha,

the treasury's accountant-general, who led the tender. He sees it as
fulfillment of the promise made to the people of Israel about
privatization of the entire banking system in 2005.

CONCLUSION

Both the MZM-Cunningham and Jerry Lewis cases involve the funneling

of foreign money to the GOP through a neocon controlled global hedge
fund, Cerberus Capital Management, that was dispersing money to a
number of key GOP figures and organizations in various ways,
including Bush, Rumsfeld, a number of GOP Congressmen, and the RNC.
The case is also tied up with the Walter Reed scandal, and the effort
to privatize many Pentagon and CIA functions, which resulted in
catastrophic failures at both. http://www.democraticunderground.com

Let's recap: a corrupt Israeli PM - has a stake in a corrupt

Israeli bank- owned by a corrupt Wall Street global hedge fund -
which owns a corrupt US defense contractor - which contributes to
corrupt GOP Congressmen - who also receive money from another corrupt
defense contractor - that defense contractor produced faulty intel
under contract to a corrupt CIA Assn't Director - that faulty intel
was used to justify a corrupt US Administration's case for invading
Iraq - that was planned and executed by corrupt neocons inside DoD
who had written a proposal years earlier to wage wars to privatize
the Israeli economy.

What a tangled web. One wishes Chairman Waxman's staff and other

Congressional investigators the strength of Hercules in taking down
the Three-headed Dog, Cerberus, that guards the gates to Hell.

___________________________________________________________

2007. Mark G. Levey. Fair use applies. Acknowledgement: Some

material compiled from a research thread at Democratic
Underground.com, with particular thanks to "bobthedrummer"
and "Emit", and other DU researchers:
http://www.democraticunderground.com