Solamere: More Than Simple Voting Machines, It Seems
I recently noted that Mitt Romney's family has a private equity firm named Solamere that has an interest in voting machines. I expressed concern that this ownership is, if nothing else, a clear case of conflict of interest. Would-be public officials would do better to earn public trust by not owning a stake in the very machines needed to tabulate the ballots that get them to public office.
oslo raised some points about how much influence over said voting machines Romney or his family would actually have, noting that his interest probably isn't enough for control over said machines. Noted, but the conflict still (in my opinion) out-weighs the real-world influence he may or may not have.
It seems, though, that there might be more interest-and even more conflict-to Solamere than first met the eye. Linda Beale over at The Angry Bear notes a far more in-depth look into Solamere's holdings and investors. From The Nation's article by Lee Fang:
In 2008, soon after Romney ended his first bid for the presidency, his eldest son Tagg and his chief fundraiser, Spencer Zwick, formed Solamere Capital, a private equity firm named after the exclusive community in Utah where Romney owned a vacation ski lodge. . . .
Unlike most private equity firms dedicated to analyzing and buying companies, Solamere specializes in something else: billing itself as a “fund of funds” with “unparalleled networks,” it provides investors with “unique access” to an elite set of other private equity firms and hedge funds. . . .
Solamere, a firm predicated on its founders’ relationship with Romney, presents a channel for powerful investors to influence the White House if he wins. Private equity executives looking to lobby a Romney administration may very well have a leg up if they are already doing business with the firm that the president created for his son.
(Emphasis mine.)
The article notes several individuals and companies already invested in Solamere that have a substantial stake in government regulation and regulatory action. Investors include those that provide:
Back at the Angry Bear, Beale sums up this particular conflict of interest situation nicely: "This [article] thus amply illustrates the way class warfare really works: a closely knit group of oligarchs with business ties through their private equity empires and a shared corporatist perspective on society can use insider access to the channels of government power to make government work for them and prevent its working for ordinary folk."
It remains to be seen whether Romney or one of the many other Solamere partners is later seen connected in some investigation into the Hart voting machines. Given, sadly, that Solamere was formed so many years ago, and that influencing voting machine outcomes has been demonstrated to be a relatively simple and traceless operation*, we may not be able to rule out untoward manipulation of this particular Solamere holding until after the national election tallies are finalized. Given the billions in personal and corporate fortunes on the line, I'm not holding my breath for an easy election night.
*At the YouTube video, skip to 1:10 (just before the end) to see a demonstration of hackability that brought tears to election workers in Florida. That might get you to watch the whole thing. Or not. Either way, makes no never mind to me.
X-Posted to talk_politics.
oslo raised some points about how much influence over said voting machines Romney or his family would actually have, noting that his interest probably isn't enough for control over said machines. Noted, but the conflict still (in my opinion) out-weighs the real-world influence he may or may not have.
It seems, though, that there might be more interest-and even more conflict-to Solamere than first met the eye. Linda Beale over at The Angry Bear notes a far more in-depth look into Solamere's holdings and investors. From The Nation's article by Lee Fang:
In 2008, soon after Romney ended his first bid for the presidency, his eldest son Tagg and his chief fundraiser, Spencer Zwick, formed Solamere Capital, a private equity firm named after the exclusive community in Utah where Romney owned a vacation ski lodge. . . .
Unlike most private equity firms dedicated to analyzing and buying companies, Solamere specializes in something else: billing itself as a “fund of funds” with “unparalleled networks,” it provides investors with “unique access” to an elite set of other private equity firms and hedge funds. . . .
Solamere, a firm predicated on its founders’ relationship with Romney, presents a channel for powerful investors to influence the White House if he wins. Private equity executives looking to lobby a Romney administration may very well have a leg up if they are already doing business with the firm that the president created for his son.
(Emphasis mine.)
The article notes several individuals and companies already invested in Solamere that have a substantial stake in government regulation and regulatory action. Investors include those that provide:
- Mobility scooters (reliant on Medicaid/Medicare judgments for their market share);
- Dental services providers (also reliant on Medicaid participation, no matter what the quality of care);
- Private universities (reliant on the GI Bill tuition vouchers, again no matter what the quality of education); and the big one
- The "carried interest" loophole that allows, for one example, private equity stakeholders to pay (like Romney himself) just under 15% for their millions of earned income.
Back at the Angry Bear, Beale sums up this particular conflict of interest situation nicely: "This [article] thus amply illustrates the way class warfare really works: a closely knit group of oligarchs with business ties through their private equity empires and a shared corporatist perspective on society can use insider access to the channels of government power to make government work for them and prevent its working for ordinary folk."
It remains to be seen whether Romney or one of the many other Solamere partners is later seen connected in some investigation into the Hart voting machines. Given, sadly, that Solamere was formed so many years ago, and that influencing voting machine outcomes has been demonstrated to be a relatively simple and traceless operation*, we may not be able to rule out untoward manipulation of this particular Solamere holding until after the national election tallies are finalized. Given the billions in personal and corporate fortunes on the line, I'm not holding my breath for an easy election night.
*At the YouTube video, skip to 1:10 (just before the end) to see a demonstration of hackability that brought tears to election workers in Florida. That might get you to watch the whole thing. Or not. Either way, makes no never mind to me.
X-Posted to talk_politics.