Gilmore + BearStearns = More Bad GOP News

By Loudoun Insider

I had no idea Jim Gilmore was Chariman of a high-risk BearStearns subsidiary heavily invested in sub-prime mortgages called Everquest Financial, but it’s hitting the fan with the meltdown and subsequent government bailout of BearStearns. Click here for a simple Google seach to see some of the chatter.

I have a horribly sour taste in my mouth that these Wall Street types and their unbridled greed and short-sightedness are now costing we the people dearly in so many ways. The BearStearns bailout has Uncle Sam stepping in to rescue the same folks that got us into this mess in the first place. It seems it’s only the free market for these guys when the going is good, then they turn into socialists when it’s sink or swim time.

Gilmore has enough PR problems as it is without this hanging around his neck. Too many people continue to count Bob Marshall out, but he has no such baggage. Like him or not, he is a man of strong principles - even his detractors cannot impugne his integrity. Bob deserves our support.


Comments

  • gray says:

    Why does this surprise you? How did he run the state? He made a name for himself by enacting a tax cut without a plan. Then, he lied about it, and still does to this day. He’s a piece of crap. Awful leader. Awful politician. Just a dolt.

  • Common Idiot says:

    Not a huge fan of Gilmore, but it’s a stretch to throw mud from the subprime meltdown his way. I mean really. Everquest is a privately-held hedge fund, and it’s not like he or his company were underwriting these loans.

  • Yup, Gov. Gilmore caused the Sub Prime Mortgage crisis just like he caused 9-11, which soured the economy, and didn’t allow Gov. Warner to spend everything the economy could pump into the states coffers.

    Why not analyze that Gov. Gilmore left office with $1B in the rainy day fund. Delivered the largest and longest lasting tax cut in VA’s history. Lowered in-state tuition by 20% and froze it for 4 years.

    He did all of this with excess revenues coming in from the .com boom that was propelling the VA economy.

    He fought for a smaller govt. and lower taxes, something I thought all Republicans were about?

    Your post is only helping to spread the lies for the MSM and the Dems…

  • Jose Kinusee says:

    No, no say it isn’t so; LI, you’re jumping on the Wingnut Express to oblivion–meaning that with Gilmore on the ticket, the GOP has a bit of a chance to beat Warner. But with Marshall on the ticket heralded by his wingnut supporters, the GOP has about as much of a chance as the most honorable Rev. Jeremiah Wright being elevated to sainthood by the Catholic church–it ain’t going to happen.

  • Ric James says:

    This is a pretty serious stretch to lay the blame at Gilmore’s feet for what’s going on up there on Wall Street. Sure, the Directors are responsible for the direction of the firm’s actions, but it’s not like Gilmore was being advised of every mortgagee’s credit history. I don’t see this as a major issue for him.

    As for Bob Marshall, the real question about him is whether he’s got the name recognition to actually stand a fighting chance state-wide. Sure, he’s big news up here but what about elsewhere in VA?

  • You people are wigging out unneccessarily! I never laid the blame for the subprime mortgage fiasco at Gilmore’s feet, I simply told the truth that this connection doesn’t help him. This stuff is out there, now you have your chance to respond.

    He was Chairman of this subsidiary, with relatively little finance experience. Was this job a soft landing arranged for him for leaving the national Republican Party chairmanship?

    Gilmore isn’t going to beat Warner, I’m utterly convinced of it. Sorry, I’ve tried to get into his candidacy but just can’t find any enthusiasm.

    Bob Marshall may seem a bit wacky, but he really is a man of the people. As you can tell by my slamming of Wall Street above, I am generally a populist Republican. Marshall has always had the conviction to stand up for his beliefs, even when they so often conflict with party “leadership”. I think he is the dark horse to beat Warner.

  • Citizen Tom says:

    LI – One of Aesop’s Fables speaks about a frog jumping into a well. You might want to read it.
    http://www.aesopfables.com/cgi/aesop1.cgi?sel&TheFrogsandtheWell&&frogwell.ram

    Two details.
    1. BearStearns’ stockholders lost their shirt. The people who are being “bailed out” are the people whose money BearStearns managed. And I suspect even these people will lose quite a bit.
    2. At this point, the news articles leave the relationship between BearStearns and Gilmore to the imagination. Effectively, you are spreading a rumor.
    See here. http://www.wsls.com/sls/news/state_regional/article/gilmore_campaign_claims_ap_article_on_tie_to_bear_stearns_contains_factual_/7501/

  • Mark Kay says:

    Haha! I love it when “the party of personal accountability” goes into denial and blames the mortgage consumer rather than the people who WERE benefiting from the sub prime greed. Keep drinking that Kool Aid wingnuts:)

    LI has it right. Fair Weather Free Marketeers. They eschew regulation, to protect us from their greed and ultimately paying to bail them out, but then hold their hand out for a bailout (from us) when things go sour.

    Friggin’ phonies, and you suck ups are buying into it. Enjoy your 20% nest egg hit. You deserve it.

  • NoVA Scout says:

    Knowing a little bit about Gilmore, I suspect that the position was largely a sinecure and that his responsibilities were minor. (sort of like Bolling’s position at Reciprocal) Gilmore has bounced around a lot since his days as Governor. But what’s going on with Bear Stearns and the economy is so big and so complex that we can be certain that JG had nothing to do with any of it other than picking up what were probably a few nice checks for leaving his bags in the office. Citizen Tom makes a very good point that the so-called “Bail-out” (a misnomer, but it seems to be sticking) really was designed to protect people for whom Bear Stearns was in a counter-party position, i.e., folks whose retirement monies and investments were at stake. The shareholders were not spared. I also doubt that any of the executives are going to walk away from this with gains.

  • NoVA Scout says:

    Correction: last comment should read (“sort of like I suspect Bolling’s position was at Reciprocal”) I have no direct knowledge of what Bolling did to earn the kind of money he was earning there – but I always thought it was one of these deals (just as I think Gilmore’s was) that companies, especially ones that do a good bit of business in Virginia, will hire and overpay someone in the GA or an ex-executive just because they think it might come in handy or give them some cachet when they need it. The point is that when things go wrong in these companies, one shouldn’t assume that, just because a Virginia pol has a big title or paycheck, they actually had much to do with what happened. Of course, it’;s another discussion as to whether sitting members of the GA should take these positions, but that’s not the point of this post.

  • Former Candidate says:

    Its a shame that Tom Davis was kept out of the race by the insider politics not allowing for a primary. He actually would have had a chance against Warner.

    People have to remember Ronald Reagan’s Rule: If you agree with someone 80%, then support them 100%, or else you end up with someone you only agree with 20%.

    So now we’ll have two liberal senators to match with our liberal governor – mostly due to party infighting about who is “conservative enough.”

  • Citizen Tom says:

    Mark Kay references a CNN Money article about CEOs making big salaries. What Mark and others do not seem to realize is that a corporation is a government invention, not necessarily an artifact of the free market.

    CEOs are managers, not owners. CEOs only do their job well only if the owners, the stockholders, keep an eye on them. However, it is often easier to just sell the stock of a poorly managed company and buy something else. Hence CEOs can too easily arrange for themselves to be too well paid.

  • Chris Marston says:

    This is complete rumor-mongering. Regardless of how you feel about the former Governor, you should check your facts. Read the campaign’s response to the AP reporter who started this, http://www.jimgilmoreforsenate.com/?q=node/132.
    It’s just not true.

  • t says:

    Matt.27
    [22] Pilate said to them, “Then what shall I do with Jesus who is called Christ?” They all said, “Let him be crucified.”
    [23] And he said, “Why, what evil has he done?” But they shouted all the more, “Let him be crucified.”
    [26] Then he released for them Barab’bas, and having scourged Jesus, delivered him to be crucified.
    [35] And when they had crucified him, they divided his garments among them by casting lots;
    [38] Then two robbers were crucified with him, one on the right and one on the left.
    [44] And the robbers who were crucified with him also reviled him in the same way.

  • anon says:

    Its NOT rumor mongoring when the AP puts the story up. That is Gilmore’s SPIN on what really happened. He better keep spinning. This is a poor campaign by Gilmore that will be lucky to even stay afloat should he get lucky and pull out a narrow win in the primary. Bob Marshall has been scandal free and stood for the people against special interests, even on the Republican side when they attempted to force unelected transportation authorities down our throats. Gilmore is a political “has been” who has seen his better days from a political standpoint. If its NOT this story about Bear Stearns its just going to be more about how Gilmore is screwed up the budget and left Mark Warner to pick up the pieces or about Gilmore’s essentially failed venture into RNC politics, and how Gilmore splits hairs over what is considered abortion. In reality your are either pro-life or pro-choice, you cannot be both Mr. Gilmore. One bad story after another. Thats whats really sad.

  • G. Stone says:

    I am not a Gilmore supporter, I actually support Bob Marshall. Having said that, do you believe what you wrote? You have to be kidding me.

    Do some homework as to the congressional legislation mandating lenders up and down the spectrum to include quotas and percentages of loans offered to those you and I would call risky borrowers. Those who would never qualify under market conditions. Just one aspect of this but very important.

    Ask employees and share holders of BearSterns
    if they are going to get bailed out. They are all going to lose billions.

    I am against the Gov’t being involved at all in private contractural matters with the exception of when governments prior interference being the cause or contributing factor in the ” crisis ” to begin with.
    Government interference ( mandates ) + differering markets conditions can sometimes lead to consumers, shareholders and corporations taking a lose. The less government interference the lower those losses will be. Markets understand markets and react more often in the best interest of the market itself. Government inerference generally has an overall negative effect. I know which one I want to remove from the equation.
    This is a prime example of the law of unintended consequences and compounding the problem by drawing the wrong conclusions while looking in the rear view mirror.

  • G. Stone says:

    Former candidate:

    With all due respect, Tom Davis is his own worst enemy. It was Tom Davis who bankrolled his wifes campaign, a campaign that brought in Mayor Bloomberg too advance the cause of gun control in direct opposition to the position of the Republican Party of Virginia and the vast majority of rank and file Republicans. Tom Davis and his wife said to Conservative activists and Republicans , screw you.

    Let me see if I have this right. Tom Davis brought in a former Democrat, former Republican and now independent big city northern mayor ( in other words a political cameleon ) in order to advance aggressive gun control policy in Virginia and it is conservatives who are to blame. You have to be kidding me.

    This pair is concerned about one thing and one thing only, their own political careers. Tom Davis would step on his mothers neck if he thought it would get him one more vote. He will tell two opposing groups two different things within the period of one day in order to garner political support from each. Tom Davis is a serial panderer and would not know a core belief if you stuck it in his ear. You can have him he is all yours.

    Tom should just go away and take his wife with him.

  • Sibyl Says says:

    Loudoun loves Marshall. Go Bob, we’ll be there for the vote!

  • Allan says:

    As a taxpayer, I definitely don’t want Bear Stearns as part of my public portfolio.

  • Shaun Kenney says:

    LI,

    Good to see us supporting the same candidate! Anyone asked Tom Davis who he’s supporting at the convention?

    Best,

  • D.J. McGuire says:

    I’ll have more to say about this later today, but do you Gilmore supporters, all I can advise is to be careful: this is a lot worse than you think.

  • [...] At least the prolific booster of all things TC Mr. Loudoun Insider has signalled his support. [...]

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