Bloomberg - February 22, 2019
by Lily Katz, David Kocieniewski, and Caleb Melby
Due to the ongoing blizzard of scandals swirling around this administration, it looks like the President’s son-in-law has a shot at sneaking through an approval for this massive (and massively corrupt) government loan.
Kushner Cos., the real estate firm owned by the family of President Donald Trump’s son-in-law Jared Kushner, has sought financing from federally-owned lenders for its biggest purchase in a decade.
The company has been in talks with Fannie Mae and Freddie Mac about a loan for a $1.15 billion purchase of apartments in Maryland and Virginia, according to two people familiar with the discussions…
Peter Mirijanian, a spokesperson for Jared Kushner’s attorney Abbe Lowell, said that Kushner has no involvement in the company’s management. “As part of an ethics agreement he has and has followed, Mr. Kushner has had no role in the Kushner Companies or its activities since joining the government over two years ago,” Mirijanian said.
Who is monitoring this “ethics agreement”? How do we know it’s being enforced? Can Kushner simply pick up the phone and talk to Kushner Co. executives with no one outside the company being any the wiser? The only assurance we have that Kushner is following the agreement comes from Kushner himself (via a spokesperson for his lawyer). Of course Kushner is going to say “I’m following the agreement – I’ve investigated myself and found that I’m not doing anything wrong.” /sarc
The only true assurance that Kushner is not privy to Kushner Co. business and profiting from it would be if he took these two steps (which he should have done before entering his father-in-law’s administration):
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Sell his holdings to independent third-parties (right now he has just handed off some of them to close family members, undoubtedly with an understanding that they will hand them back later) AND
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Place the proceeds from those sales in a blind trust.
Since he has not taken these steps, Kushner can profit from decisions he makes at the highest levels of our government – a clear and unequivocal conflict of interest. And in this loan, we are watching this corruption play out in plain sight. I’m a little disappointed in Bloomberg’s reporting because, although, they describe the basis of the conflict of interest, they don’t actually spell it out. Here’s the relevant paragraph:
President Trump appointed Joseph Otting to oversee the Federal Housing Finance Agency, which regulates Fannie and Freddie. Otting previously served as CEO of OneWest Bank, founded by now-Treasury Secretary Steven Mnuchin, an ally of Kushner’s in the West Wing.
Let’s dissect these two sentences which are each evidence of a conflict of interest:
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Kushner’s father-in-law (Trump) appointed the person (Joseph Otting) who heads the agency that oversees Fannie Mae and Freddie Mac (responsible for approving the loans). This alone is a flagrant conflict of interest. But there’s more… as revealed in the next sentence.
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That same person (Otting) was also CEO of a bank founded by a powerful White House ally of Kushner (Treasury Secretary Mnuchin).
Therefore, two people at the highest levels of our government (the President and the Treasury Secretary), who are also very close to Kushner, are in a position to apply pressure down the chain of command to the people approving Kushner’s loans. They don’t even have to actively apply that pressure – the favors they are owed do not need to be spelled out to the person who owes those favors.
[This deal] is the latest sign that Kushner Cos. is returning to its roots as an owner of suburban properties. It sold almost $2 billion of apartments in 2007 to help finance the purchase of 666 Fifth Ave. The company set a record with the $1.8 billion purchase of the 41-story Manhattan office tower, which was then plagued by outsized debt payments for more than a decade.
Kushner Cos. reached a deal to sell a 99-year lease on 666 Fifth to Brookfield Asset Management Inc. last year…
The article doesn’t mention that the Qataris hold a significant stake in Brookfield. So what really stinks is that the shady Qatari money that helped bail out Kushner from the disastrous 666 deal put him in a position to make this equally shady new deal.
The Kushner-Brookfield-Qatari connection has been covered in WTFJHT here and here.
And how the Kushner-Qatari bail out is also connected to the administration’s secretive efforts to sell nuclear technology to the Middle East has been covered here.