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  • J. Ezra Merkin to give up control over hedge funds

    Financier and philanthropist J. Ezra Merkin assented Tuesday to step down as manager of his hedge funds and to place them into receivership.

    The step was demanded by New York Attorney General Andrew Cuomo, who brought civil charges against Merkin last month, accusing him of fraudulent concealment and misrepresentation for steering his clients’ money to Bernard Madoff without their knowledge or permission.

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    Merkin, the former chairman of GMAC and the scion of a prominent Jewish family, funneled $2.4 billion into Bernard Madoff Investment Securities, including millions from prominent institutions like Yeshiva University.

    Some of his investors, including New York University, New York Law School and Mort Zuckerman’s charitable trust, have brought suit against him, as has the trustee liquidating Madoff’s firm.

    The agreement, announced Tuesday in New York State Supreme Court, means that Merkin will no longer control his three hedge funds, Ascot, Gabriel and Ariel, from which he reportedly collected more than $470 million in fees over the last decade.

    “Mr. Merkin is working closely with the New York Attorney General,” his attorney, Andrew Levander, said in a statement, adding that Merkin had agreed in principle to appoint Guidepost Partners as receivers for the funds while he remains available to consult regarding the wind-down.

    Justice Richard Lowe gave Cuomo and Merkin until May 28 to finalize the agreement.

    Despite his legal and financial woes, the Jewish Week reported that Merkin is the frontrunner expected to be elected chairman Wednesday of the tony Fifth Avenue Synagogue, which his father helped found.

    Nobel Laureate Elie Wiesel, who lost most of the funds of his humanitarian foundation, as well as his personal savings, after investing with Madoff, will become one of two honorary chairmen.

    Despite consternation in some quarters, the Jewish Week said that Merkin has not been publicly opposed, perhaps because he has been one of the synagogue’s primary benefactors.

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    • Spitzer’s mood darkens during state testimony

      May 21, 2009 at 9:48am

      Two sides of former New York Gov. Eliot Spitzer’s personality are revealed in recently released transcripts of two interviews he gave on the same subject under oath last year.

    • ‘Hillaryland’ is reborn at the State Department

      Hillary Rodham Clinton may have reinvented herself as secretary of state, but she hasn’t exactly started with a blank slate.

      The former New York senator has taken along some of her most loyal staffers from “Hillaryland,” the nickname given to the tightknit group that coalesced around her in the White House, and which advised and supported her as she charted her own political career.

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      For starters, there’s Melanne Verveer, who was chief of staff to First Lady Clinton, and who is now the nominee for a new State Department post – ambassador at large for global women’s Issues. It’s a natural stepping stone for Verveer, now the CEO and co-founder of an international nonprofit called Vital Voices Global Partnership, which grooms women for leadership roles around the world.

      Hillary Rodham Clinton
      Hillary Rodham Clinton

      There’s attorney Cheryl Mills, counsel to Clinton’s ill-fated 2008 presidential campaign, who has been reincarnated as her new chief of staff.

      Mills is best known for defending former President Bill Clinton during his 1999 impeachment trial, when she was deputy White House counsel. After that, she took a breather from politics, working as an executive at Oprah Winfrey’s Oxygen Media and at New York University.

      There’s the glamorous Huma M. Abedin, who started with First Lady Clinton as a college intern in 1996, and who moved up to become her “body” person, adviser and close friend, and who has now inherited the title of senior adviser to the secretary.

      Abedin, who was the subject of a 2007 Vogue profile, is famous for her style, and shares an unusually close, almost sisterly relationship with Clinton.

      While critics have questioned Abedin’s foreign policy experience, her supporters note that she is a fluent Arabic speaker who grew up in Saudi Arabia, and who has been a trusted Clinton adviser on the Middle East.

      “Abedin has the energy of a woman in her 20s, the confidence of a woman in her 30s, the experience of a woman in her 40s, and the grace of a woman in her 50s,” Clinton wrote in an email to Vogue. “She is timeless, her combination of poise, kindness, and intelligence are matchless.”

      Abedin is dating Rep. Anthony Weiner (D-NY), who is a possible 2009 New York City mayoral contender.

      Other longtime Clinton loyalists joining her in the State Department include:

      • Judith A. McHale, a longtime Clinton friend and donor, and former president of Discovery Communications, who has been nominated as undersecretary for public diplomacy. After two decades building Discovery, McHale, the daughter of a foreign service officer, helped found the GEF/Africa Growth Fund, a private equity fund that makes investments in consumer goods and services in Africa.
      • James Steinberg, President Bill Clinton’s deputy national security adviser, who has been nominated as deputy secretary. Steinberg, whose articles criticizing the Bush Doctrine of pre-emption became a rallying cry for Democrats, brings experience as a former White House and congressional military policy adviser.
      • Lissa Muscatine, a speechwriter, erstwhile book collaborator and “walking catalogue of everything the candidate has ever said about anything,” who was tapped as chief speechwriter at State.
      • Andrew Shapiro, who advised Sen. Clinton on defense and foreign policy issues, who was nominated assistant secretary for political-military affairs.
      • Philippe Reines, her Senate press secretary, who is reprising that role at State.

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      1 Comments

      • #1.   Stacy 05.18.2009

        Of course she will bring people she knows and trusts with her and what the article doesn’t mention is all the new people at State she has on her team.

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      • Madoff trustee sues Fairfield Greenwich to recover funds

        May 19, 2009 at 3:26pm

        The court-appointed trustee of Bernard Madoff’s defunct firm is going after the millionaire middlemen who acted as witting or unwitting accomplices to Madoff’s $65 billion Ponzi scheme.

      • Muckety Mover the Republican Party

        This post was archived from createpositivechange.org/. View the original on the Wayback Machine.

      • Jon Huntsman Jr. nominated as U.S. ambassador to China

        President Obama seems to have pulled off a slick three-fer today in announcing his nomination of Republican Utah Gov. Jon M. Huntsman Jr. as U.S. ambassador to China.

        First, Huntsman, 49, has solid diplomatic credentials, having served as President George H.W. Bush’s ambassador to Singapore and U.S. trade ambassador for President George W. Bush. He learned to speak fluent Mandarin earlier in life as a Mormon missionary to China, and adopted his daughter from China.

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        Second, it was a high-profile display of Obama’s pledge of bipartisanship, albeit a choice that reflects many Democratic values in a moderate Republican who almost routinely rocks the ribs of the GOP’s never-say-die ultra-conservatives.

        Jon M. Huntsman Jr.
        Jon Huntsman Jr.

        Third, and most significant politically, if Huntsman is confirmed it will effectively remove him from contention in an Obama re-election bid in 2012, at the same time pulling the only moderate out of a field of potential GOP candidates who play insistently to the party’s supposed base.

        One significant example of Huntsman succeeding as a moderate among conservatives was the easing of Utah’s restrictive liquor laws to promote tourism, a move resisted by the state’s large Mormon population.

        He also has endorsed civil marriage for gays – although he supported a successful amendment to his state’s constitution banning them in 2004 – and is a strong voice for environmentalism – especially in joint efforts with the Chinese.

        If his appointment is accepted, Huntsman will replace Clark Randt as ambassador.

        He is the son of Jon M. Huntsman Sr., founder and chairman of Huntsman Corp., a global chemical manufacturer and marketer.

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        2 Comments

        • #1.   Max 05.16.2009

          Governor Huntsman learned Mandarin as a Mormon missionary to TAIWAN, not China.

        • #2.   TonyP4 05.17.2009

          Never use our yardstick on human right on a developing country like China.

          American contributes more pollution per capita than China esp. some pollution is caused by manufacturing for global consumers.

          We can build carriers powered by two nuclear generators and China cannot build helicopters. What a joke!

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        • Muck tracker – C. Robert Kidder to become Chrysler chairman

          May 20, 2009 at 5:14pm

          C. Robert Kidder, the former chairman of Duracell International, will lead a newly restructured Chrysler after it begins its alliance with Fiat, the New York Times reports.

        • NY’s top ethics officer accused of ethical breach

          The fallout from Eliot Spitzer’s short but contentious reign as governor of New York state continues.

          This week, Joseph Fisch, the state’s inspector general, charged the state’s top ethics watchdog, Herbert Teitelbaum, with acting unethically.

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          Teitelbaum, the executive director of the Commission on Public Integrity, should be fired, Fisch concluded.

          The charges came in a 174-page report (not counting appendices) that gives a detailed sense of the power of personal, professional and political connections in Albany.

          The report also recalls a scandal that erupted just a few months after Spitzer took office in January 2007.

          At first, the controversy focused on Republican Joseph L. Bruno, the then leader of the state Senate and a Spitzer opponent.

          Allegedly, Bruno had been using state aircraft to fly to political events, a violation of law.

          Rather quickly, the scandal did an about-face when it was reported that members of Spitzer’s staff had used state police to gather the damaging information on Bruno.

          The use of the police for political purposes violated the law and the scandal got a label, Troopergate.

          The Commission on Public Integrity launched an investigation, an investigation that posed a threat, if not to Spitzer, then to members of his inner circle.

          Fisch, the inspector general, claimed in a report issued Wednesday that Teitelbaum compromised the investigation by leaking confidential information to Robert Hermann, then the director of Spitzer’s Officer of Governmental Reform and a member of Spitzer’s cabinet.

          Hermann then passed information to Lloyd Constantine of Spitzer’s staff on several occasions, the report alleges. Hermann had once been Constantine’s supervisor in the state attorney general’s office.

          Hermann also supposedly talked once about the investigation with Peter Pope, Spitzer’s director of policy.

          Fisch also charges that the commission did not act properly when it was told of Teitelbaum’s conversations with Hermann.

          Both Teitelbaum and Hermann have denied that they did anything wrong, and Teitelbaum has resisted the calls for his resignation.

          Gov. David A. Paterson, Spitzer’s successor, has asked his seven appointees to the 13-member commission to resign. They, so far, have refused to step aside, just as they have refused to fire Teitelbaum.

          Teitelbaum and Hermann, both Spitzer appointees and Spitzer supporters, had known early for years before they came to be officials in Albany.

          As Fisch’s report explains, they first met when Hermann was at the law firm, Skadden, Arps, Slate, Meagher & Flom LLP.

          Hermann interviewed Teitelbaum for an associate’s position with the firm, a position that he took.

          However, Hermann had left the firm by the time Teitelbaum began work. (Eliot Spitzer would later be a lawyer with Skadden, Arps.)

          Later in their careers, Teitelbaum and Hermann worked together at Teitelbaum, Hiller, Rodman, Paden & Hibsher, P.C., another law firm.

          They had also served at different times as the legal counsel for the Puerto Rican Legal Defense and Education Fund.

          Paterson was Spitzer’s lieutenant governor at the time of the Troopergate episode, and he was not swept up in the investigation.

          However, he has a link to the latest news. In naming Fish inspector general last year, Paterson had returned a favor.

          In 1982, Fisch, the chief assistant district attorney in Queens, hired Paterson, who was fresh out of law school.

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