The Carlyle Group


Former World Leaders and Washington Insiders Making Billions in the War on Terrorism

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Meet the Carlyle Group

Bush Carlucci Baker Darman Ramos Major
US President and
Vice President
Former Director
of the CIA 
Former Secretary of Defense and
Deputy Director
of the CIA
More on Carlucci
Secretary of State
and Sec. of Treasury 
White House
Budget Advisor
Bush / Clinton
Former President of the Philippines Former British
Prime Minister
Senior Advisor
Retired 10/03 Shareholder
Chairman Emeritus
Retired 3/05
Senior Counselor
More on Baker
Managing Director
Carlyle Asia
Advisory Board
Retired 2/04
Carlyle Europe Chairman




The Iron Triangle: Inside the Secret World of the Carlyle Group (Hardcover)

RFID CHIPS and the Carlyle Group

Why Did Bush Lie us into Iraq?          

Investing in War
The Carlyle Group profits from government and conflict
Meet The Carlyle Group
EXPOSED: The Carlyle Group
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04/17/06 Randi Rhodes re: 911  (5.94MB) 25Min 57Sec

Democracy Now! Broadcast Exclusive: James Baker's Double Life in Iraq: The Carlyle Group Stands to Make Killing on Iraqi Debt
In a major expose published last night on The Nation magazine's website, columnist Naomi Klein reveals that President Bush's special envoy on Iraq's debt, former Secretary of State James Baker, has been using his position to benefit his corporate clients and the Carlyle Group, the powerful merchant bank and defense contractor where Baker serves as a partner. [includes rush transcript]
According to confidential documents obtained by The Nation, Carlyle has sought to secure an extraordinary $1 billion investment from the Kuwaiti government, with Baker"s influence as debt envoy being used as a crucial lever. The secret deal involves a complex transaction to transfer ownership of as much as $57 billion in unpaid Iraqi debts. The debts, now owed to the government of Kuwait, would be assigned to a foundation created and controlled by a consortium in which the key players are the Carlyle Group and the Albright Group, which is headed by another former Secretary of State, Madeleine Albright. There are also several other well-connected firms involved.
Under the deal, the government of Kuwait would also give the consortium $2 billion up front to invest in a private equity fund devised by the consortium, with half of it going to Carlyle. In a letter dated August 6, 2004, the consortium informed Kuwait's foreign ministry that the country"s unpaid debts from Iraq are "in imminent jeopardy." Another letter warns the Kuwaitis that world opinion is turning in favor of debt forgiveness. As evidence the consortium points out to Kuwait "President Bush's appointment...of former Secretary of State James Baker as his envoy to negotiate Iraqi debt relief." The consortium's proposal spells out the threat: Not only is Kuwait unlikely to see any of its $30 billion from Iraq in sovereign debt, but the $27 billion in war reparations that Iraq owes to Kuwait from Saddam Hussein"s 1990 invasion "may well be a casualty of this U.S. [debt relief] effort."
In the face of this threat, the consortium offers its services. If Kuwait agrees to transfer the debts to the consortium"s foundation, the consortium will use these personal connections to persuade world leaders that Iraq must "maximize" its debt payments to Kuwait, which would be able to collect the money after ten to fifteen years. And the more the consortium gets Iraq to pay during that period, the more Kuwait collects, with the consortium taking a 5 percent commission or more.
Naomi Klein, award-winning journalist and author of Fences and Windows: Dispatches From the Front Lines of the Globalization Debate and No Logo: Taking Aim at the Brand Bullies.
Naomi Klein's article in The Nation: "James Baker's Double Life"

The ex-presidents' club
Oliver Burkeman and Julian Borger
Wednesday October 31, 2001
The Guardian

It is hard to imagine an address closer to the heart of American power. The offices of the Carlyle Group are on Pennsylvania Avenue in Washington DC, midway between the White House and the Capitol building, and within a stone's throw of the headquarters of the FBI and numerous government departments. The address reflects Carlyle's position at the very centre of the Washington establishment, but amid the frenetic politicking that has occupied the higher reaches of that world in recent weeks, few have paid it much attention. Elsewhere, few have even heard of it.
This is exactly the way Carlyle likes it. For 14 years now, with almost no publicity, the company has been signing up an impressive list of former politicians - including the first President Bush and his secretary of state, James Baker; John Major; one-time World Bank treasurer Afsaneh Masheyekhi and several south-east Asian powerbrokers - and using their contacts and influence to promote the group. Among the companies Carlyle owns are those which make equipment, vehicles and munitions for the US military, and its celebrity employees have long served an ingenious dual purpose, helping encourage investments from the very wealthy while also smoothing the path for Carlyle's defence firms.
But since the start of the "war on terrorism", the firm - unofficially valued at $3.5bn - has taken on an added significance. Carlyle has become the thread which indirectly links American military policy in Afghanistan to the personal financial fortunes of its celebrity employees, not least the current president's father. And, until earlier this month, Carlyle provided another curious link to the Afghan crisis: among the firm's multi-million-dollar investors were members of the family of Osama bin Laden.
The closest the Carlyle Group has previously come to public attention was last May, when a Seoul-based employee called Peter Chung was forced to resign from his £100,000-a-year job after sending an email to friends - subsequently forwarded to thousands of others - boasting of his plans to "fuck every hot chick in Korea over the next two years". The more business-oriented activities of Carlyle's staff have been conducted much more quietly: since it was founded in 1987 by David Rubenstein, a policy assistant in Jimmy Carter's administration, and two lawyer friends, the firm has been dispatching an array of former world leaders on a series of strategic networking trips.
Last year, George Bush Sr and John Major travelled to Riyadh to talk with senior Saudi businessmen. In September 2000, Carlyle hired speakers including Colin Powell and AOL Time Warner chair Steve Case to address an extravagant party at Washington's Monarch Hotel. Months later, Major joined James Baker for a function at the Lanesborough Hotel in London, to explain the Florida election controversy to the wealthy attendees.
We can assume that Carlyle pays well. Neither Major's office nor Carlyle will confirm the details of his salary as European chairman - an appointment announced shortly before he left the House of Commons after the election - but we know, for the purposes of comparison, that he is paid £105,000 for 28 days' work a year for an unrelated non-executive directorship. Bush gives speeches for the company and is paid with stakes in the firm's investments, believed to be worth at least $80,000 per appearance. The benefits have attracted political stars from around the world: former Philippines president Fidel Ramos is an adviser, as is former Thai premier Anand Panyarachun - as well as former Bundesbank president Karl Otto Pohl, and Arthur Levitt, former chairman of the SEC, the US stock market regulator.
Carlyle partners, who include Baker and the firm's chairman, Frank Carlucci - Ronald Reagan's defence secretary and a former deputy director of the CIA - own stakes that would be worth $180m each if each partner owned an equal slice. As in many areas of its work, though, Carlyle is not obliged to reveal the details, and chooses not to.
Among the defence firms which benefit from Carlyle's success is United Defense, a Virginia-based contractor which makes vertical missile launch systems currently on board US Navy ships in the Arabian sea, as well as a range of other weapons delivery systems and combat vehicles. Carlyle's other holdings span an improbable range, taking in the French newspaper Le Figaro and the company which bottles Dr Pepper.
"They are big, and they are quiet," says David Mulholland, business editor of Jane's Defence Weekly. "But they're not easy to get information out of, [but] United Defense are going to do well [in the current conflict]." United also owns Bofors, a Swedish munitions manufacturer.
Carlyle has said that it does not lobby the federal government, thus avoiding a conflict of interest when, for example, Carlucci met Rumsfeld in February when several important defence contracts were under consideration. But critics see that as a matter of definition.
"It should be a deep cause for concern that a closely held company like Carlyle can simultaneously have directors and advisers that are doing business and making money and also advising the president of the United States," says Peter Eisner, managing director of the Center for Public Integrity, a non-profit-making Washington think-tank. "The problem comes when private business and public policy blend together. What hat is former president Bush wearing when he tells Crown Prince Abdullah not to worry about US policy in the Middle East? What hat does he use when he deals with South Korea, and causes policy changes there? Or when James Baker helps argue the presidential election in the younger Bush's favour? It's a kitchen-cabinet situation, and the informality involved is precisely a mark of Carlyle's success."
The world of private equity is an inherently secretive one. Firms such as Carlyle make most of their money buying firms which are not publicly traded, overhauling them and selling them at a profit, so the process by which likely targets are evaluated is much more confidential than on the open market. "These firms certainly don't go out of their way to get into the headlines," says Steven Bell, chief economist at Deutsche Asset Management. "They'd rather make a splash in Institutional Pensions Week. The aim is to realise very high returns for your investors while exerting a high degree of control over the company. You don't want to get into the headlines when you force the management to fire a director."
The process has worked wonders at United, and this month the firm announced plans to go public, giving Carlyle the chance to cash in its investment.
But what sets Carlyle apart is the way it has exploited its political contacts. When Carlucci arrived there in 1989, he brought with him a phalanx of former subordinates from the CIA and the Pentagon, and an awareness of the scale of business a company like Carlyle could do in the corridors and steak-houses of Washington. In a decade and a half, the firm has been able to realise a 34% rate of return on its investments, and now claims to be the largest private equity firm in the world. Success brought more investors, including the international financier George Soros and, in 1995, the wealthy Saudi Binladin family, who insist they long ago severed all links with their notorious relative. The first president Bush is understood to have visited the Binladins in Saudi Arabia twice on the firm's behalf.
The Carlyle Group does not employ anyone at its Washington headquarters to deal with the press. Inquiries about the links with the Binladins (as most of the family choose to spell their name) are instead referred to someone outside the company, on condition he is referred to only as "a source familiar with the relationship". This source says: "I can confirm the fact that any Binladin Group investment in Carlyle has been terminated or is being terminated. It amounted to a $2m investment in the Carlyle II Fund, which was anyway a very small portion of a $1.3bn fund. In the scheme of the investments and in the scheme of the business of either party it was very small. We have to get this into perspective. But I think there was a sense that there were questions being raised and some controversy, and for such a small amount of money it was something that we wanted to put behind us. It was just a business decision."
But if the Binladins' connection to the Carlyle Group lasted no more than six years, the current President Bush's own links to the firm go far deeper. In 1990, he was appointed to the board of one of Carlyle's first purchases, an airline food business called Caterair, which they eventually sold at a loss. He left the board in 1992, later to become Governor of Texas. Shortly thereafter, he was responsible for appointing several members of the board which controlled the investment of Texas teachers' pension funds. A few years later, the board decided to invest $100m of public money in the Carlyle Group. The firm's magic touch was already bringing results. Today, it is proving as fruitful as ever.,1300,583869,00.html

Carlyle's way
Making a mint inside "the iron triangle" of defense, government, and industry.

By Dan Briody
January 8, 2002

Like everyone else in the United States, the group stood transfixed as the events of September 11 unfolded. Present were former secretary of defense Frank Carlucci, former secretary of state James Baker III, and representatives of the bin Laden family. This was not some underground presidential bunker or Central Intelligence Agency interrogation room. It was the Ritz-Carlton in Washington, D.C., the plush setting for the annual investor conference of one of the most powerful, well-connected, and secretive companies in the world: the Carlyle Group. And since September 11, this little-known company has become unexpectedly important.

That the Carlyle Group had its conference on America's darkest day was mere coincidence, but there is nothing accidental about the cast of characters that this private-equity powerhouse has assembled in the 14 years since its founding. Among those associated with Carlyle are former U.S. president George Bush Sr., former U.K. prime minister John Major, and former president of the Philippines Fidel Ramos. And Carlyle has counted George Soros, Prince Alwaleed bin Talal bin Abdul Aziz Alsaud of Saudi Arabia, and Osama bin Laden's estranged family among its high-profile clientele. The group has been able to parlay its political clout into a lucrative buyout practice (in other words, purchasing struggling companies, turning them around, and selling them for huge profits)--everything from defense contractors to telecommunications and aerospace companies. It is a kind of ruthless investing made popular by the movie Wall Street, and any industry that relies heavily on government regulation is fair game for Carlyle's brand of access capitalism. Carlyle has established itself as the gatekeeper between private business interests and U.S. defense spending. And as the Carlyle investors watched the World Trade towers go down, the group's prospects went up.

In running what its own marketing literature spookily calls "a vast, interlocking, global network of businesses and investment professionals" that operates within the so-called iron triangle of industry, government, and the military, the Carlyle Group leaves itself open to any number of conflicts of interest and stunning ironies. For example, it is hard to ignore the fact that Osama bin Laden's family members, who renounced their son ten years ago, stood to gain financially from the war being waged against him until late October, when public criticism of the relationship forced them to liquidate their holdings in the firm. Or consider that U.S. president George W. Bush is in a position to make budgetary decisions that could pad his father's bank account. But for the Carlyle Group, walking that narrow line is the art of doing business at the murky intersection of Washington politics, national security, and private capital; mastering it has enabled the group to amass $12 billion in funds under management. But while successful in the traditional private-equity avenue of corporate buyouts, Carlyle has recently set its sites on venture capital with less success. The firm is finding that all the politicians in the world won't help it identify an emerging technology or a winning business model.

Surprisingly, Carlyle has avoided the fertile VC market in defense technology, which now, more than ever, comes from smaller companies hoping to cash in on what the defense establishment calls the revolution in military affairs, or RMA.  Thus far, Carlyle has passed up on these emerging technologies in favor of some truly awful Internet plays. And despite its unique qualifications for early-stage funding of defense companies, the firm seems to have no appetite for the sector.

Despite its VC troubles, however, the Carlyle Group's core business is set for some good times ahead. Though the group has raised eyebrows on Capitol Hill in the past, the firm's close ties with the current administration and its cozy relationship with several prominent Saudi government figures has the watchdogs howling. And it's those same connections that will keep Carlyle in the black for as long as the war against terrorism endures.

For the 11th-largest defense contractor in the United States, wartime is boom time. No one knows that better than the Carlyle Group, which less than a month after U.S. troops began bombing Afghanistan filed to take public its crown jewel of defense, United Defense, a company it has owned for nearly a decade. That this company is even able to go public is testament to the Carlyle Group's pull in Washington.

United Defense makes the controversial Crusader, a 42-ton, self-propelled howitzer that moves and operates much like a tank and can lob ten 155-mm shells per minute as far as 40 kilometers. The Crusader has been in the sights of Pentagon budget cutters since the Clinton administration, which argued that it was a relic of the cold war era--too heavy and slow for today's warfare. Even the Pentagon had recommended the program be discontinued. But remarkably, the $11 billion contract for the Crusader is still alive, thanks largely to the Carlyle Group.

"This is very much an example of a cold war-inspired weapon whose time has passed," notes Steve Grundman, a consultant at Charles River Associates, a defense and aerospace consultancy in Boston. "Its liabilities were uncovered during the Kosovo campaign, when the Army was unable to deploy it in time. It is exceedingly expensive, and it was a wake-up call to the Army that many of its forces are no longer relevant."

But the Carlyle Group was having none of that. While it is impossible to say what U.S. secretary of defense Donald Rumsfeld was thinking when he made the decision to keep the Crusader program alive, people close to the situation claim to have a pretty good idea. Mr. Carlucci and Mr. Rumsfeld are good friends and former wrestling partners from their undergraduate days at Princeton University. And while Carlyle executives are quick to reject any accusations of them lobbying the current administration, others aren't so sure. "In this particular effort, I felt that they were like any other lobbying group, apart from the fact that they are not," said one Washington, D.C., lobbyist with intimate knowledge of the Crusader negotiations, noting the fine line between lobbying and having a drink with a old friend.

According to Greg McCarthy, a spokesperson for Representative J.C. Watts Jr. (R: Oklahoma), whose district is home to one of the Crusader's assembly plants, the Carlyle Group's influence was indeed felt at the Pentagon. "Carlyle's strength was within the DoD, because as a rule someone like Frank Carlucci is going to have access," says Mr. McCarthy. "But they have other staff types that work behind the scenes, in the dark, that know everything about the Army and Capitol Hill."

Perhaps even more disconcerting than Carlyle's ties to the Pentagon are its connections within the White House itself. Aside from signing up George Bush Sr. shortly after his presidential term ended, Carlyle gave George W. Bush a job on the board of Texas-based airline food caterer Caterair International back in 1991. Since Bush the younger took office this year, a number of events have raised eyebrows.

Shortly after George W. Bush was sworn in as president, he broke off talks with North Korea regarding long-range ballistic missiles, claiming there was no way to ensure North Korea would comply with any guidelines that were developed. The news came as a shock to South Korean officials, who had spent years negotiating with the North, assisted by the Clinton administration. By June, Mr. Bush had reopened negotiations with North Korea, but only at the urging of his own father. According to reports, the former president sent his son a memo persuasively arguing the need to work with the North Korean government. It was the first time the nation had seen the influence of the father on the son in office.

But what has been overlooked was Carlyle's business interest in Korea. The senior Bush had spearheaded the group's successful entrance into the South Korean market, paving the way for buyouts of Korea's KorAm Bank and Mercury, a telecommunications equipment company. For the business to be successful, stability between North and South Korea is critical. And though there is no direct evidence linking the senior Bush's business dealings in Korea with the change in policy, it is the appearance of impropriety that excites the watchdogs. "We are clearly aware that former President Bush has weighed in on policy toward South Korea and we note that U.S. policy changed after those communications," says Peter Eisner, managing director at the Center for Public Integrity, a watchdog group in Washington, D.C., which has an active file on the Carlyle Group. "We know that former President Bush receives remuneration for his work with Carlyle and that he is capable of advising the current president, but how much further it goes, we don't know."

While the Center for Public Integrity looks for its smoking gun, others in Washington say hard evidence is unimportant. "Whether the decisions made by the former president are a real or apparent conflict of interest doesn't matter, because in the public's eye they're equally as damaging," says Larry Noble, executive director and general counsel of the Center for Responsive Politics. "Bush [Sr.] has to seriously consider the propriety of sitting on the board of a group that is impacted by his son's decisions."

And the controversy is expected only to increase as Carlyle's investments in Saudi Arabia are scrutinized during the war on terrorism. Mr. Eisner says that very little is known about Carlyle's involvements in Saudi Arabia, except that the firm has been making close to $50 million a year training the Saudi Arabian National Guard, troops that are sworn to protect the monarchy. Carlyle also advises the Saudi royal family on the Economic Offset Program, a system that is designed to encourage foreign businesses to open shop in Saudi Arabia and uses re-investment incentives to keep those businesses' proceeds in the country.

But the money flowing out of Saudi Arabia and into the Carlyle Group is of even more interest. Immediately after the September 11 attacks, reports surfaced of Carlyle's involvement with the Saudi Binladin Group, the $5 billion construction business run by Osama's half-brother Bakr. The bin Laden family invested $2 million in the Carlyle Partners II fund, which includes in its portfolio United Defense and other defense and aerospace companies. On October 26, the Carlyle Group severed its relationship with the bin Laden family in what officials termed a mutual decision. Mr. Bush Sr. and Mr. Major have been to Saudi Arabia on behalf of Carlyle as recently as last year, and according to reports, the Federal Bureau of Investigation is currently looking into the flow of money from the bin Laden family. Carlyle officials declined to answer any questions regarding their activities in Saudi Arabia.

But for all the questions, Carlyle has stayed clean in the eyes of the law. Lobbying laws in Washington, D.C., are ambiguous at best, requiring only that former politicians observe a one-year "cooling-off period" before they reënter the lobbying scene on behalf of industry. It is playing within this gray area that has given the Carlyle Group some of the best returns in the business.

After David Rubenstein, a former aide in the Carter administration, and William Conway Jr., former chief financial officer of MCI Communications, hooked up at New York's Carlyle hotel in 1987 to form the company, the Carlyle Group spent two lost years investing in a hodgepodge of companies. It wasn't until 1989, when the company brought in Mr. Carlucci, fresh off his two-year stint as U.S. secretary of defense, that Carlyle got serious in government. In 1991 the company made a name for itself by facilitating a $590 million purchase of Citicorp stock for Prince Alwaleed bin Talal. Shortly thereafter, Carlyle snatched up defense contractors Harsco, BDM International, and LTV, turning the companies around and selling them to the likes of TRW, Boeing, and Lockheed Martin.

The Carlyle Group has diversified its holdings since then, investing in everything from bottling companies to natural-food grocers. In the process, it has become one of the biggest, most successful private-equity firms in business, with annualized returns of 35 percent. (Judging by the early numbers from some of their funds, however, like many other private-equity funds, 2001 will be a considerably less profitable year for Carlyle.) "They are the new breed of private equity, acting more like a large mutual fund of private companies," says David Snow, editor of, a Web site that tracks private-equity firms. The numbers are impressive: Carlyle employs 240 people, as opposed to the 10 or 12 typical of most private-equity firms. It has ownership stakes in 164 companies, which collectively employ more than 70,000 people. George Soros invested $100 million in the group's funds; the California Public Employees' Retirement System is in for $305 million.

Carlyle has succeeded by raising money first, then finding the talent to manage it. For instance, it raised a fund for buying out telecom companies and hired William Kennard, the former U.S. Federal Communications Commission chairman, to run it. Accused early on of being nothing more than a bunch of Washington grip-and-grinners, Carlyle has proven its critics wrong. At a Salomon Smith Barney private-equity conference last March, a panel of professional investment managers were asked who the best fund managers are. Carlyle cofounder Mr. Conway was one of two managers chosen.

With its size and success, questions about the firm's ability to grow revenue has arisen. Carlyle has placed its bets for future growth on the VC markets, which it entered in 1996. But to date, it has found that venture capital is a game with far different rules than that of corporate buyouts. "They may be very established in private equity, but it seems to me that they don't really know the venture capital business," says one VC who has done deals with Carlyle. "In buyouts, you take over a company and fight the management, but in venture capital it's the opposite. You want to work with people."

Carlyle executives admit as much. As a result, the Carlyle Europe Venture Partners fund has been slow to commit its capital. So far, it has spent just more than 20 percent of its $660 million, and 3 of its original 17 investments have already folded. None has gone public or been acquired. As Jack Biddle, cofounder of Novak Biddle Venture Partners, dryly puts it, "I haven't been involved in a lot of venture deals where the participation of a president mattered that much. In venture capital, it's all about the technology."

For a firm that has made its money in highly regulated, politically charged industries, picking business-to-business plays is hardly second nature. While Carlyle has investments in highly regulated sectors like telecom and banking, it has avoided defense entirely, instead focusing on tech industries that have already gone flat. The firm's European fund alone boasts six B2B companies, two optical-networking companies, and Riot-E, a wireless media play. Jacques Garaïalde, managing director of the Europe fund concedes that expectations have been shifted. "Clearly, we can't make 100 times returns on B2B, but there are some situations in which we can make 3 times."

But the struggles in its VC business may be offset, at least temporarily, by the expected windfall from the war on terrorism. The federal government has already approved a $40 billion supplemental aid package to the current budget, $19 billion of which is headed straight to the Pentagon. Some of the additional government spending is likely to find its way into Carlyle's coffers.

The Bush administration isn't afraid to mix business and politics, and no other firm embodies that penchant better than the Carlyle Group. Walking that fine line is what Carlyle does best. We may not see Osama bin Laden's brothers at Carlyle's investor conferences any more, but business will go on as usual for the biggest old boys network around. As Mr. Snow puts it, "Carlyle will always have to defend itself and will never be able to convince certain people that they aren't capable of forging murky backroom deals. George Bush's father does profit when the Carlyle Group profits, but to make the leap that the president would base decisions on that is to say that the president is corrupt."

Exposed: The Carlyle Group
"The war in Iraq does not seem to be over al all, but in the meantime the rebuilding has already started. This has unleashed fiercecompetition for contracts, which are mainly awarded to American (ed: U.S.) companies.
What is remarkable about these companies, is that they have people on their payroll from American politics and the military. Is this a conflict of interest, or is this the new global way of doing business?
One of the companies that operates in this manner is the Carlyle Group."
On their payroll are people like : George Bush (Sr.), James Baker III and old premier John Major.
The Carlyle Group is a private investment bank which doesn't come to the publics attention very often but it is one of the biggest American (ed: USA) investors of the defense industry, telecom, property and financial services.
What is the Carlyle Group? Who are the people behind the name? And how much power does Carlyle have?
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The Carlyle Group
Established in 1987, The Carlyle Group is a private global investment firm that originates, structures and acts as lead equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings.
Advisory Boards

Carlyle Europe
James A. Baker, III
Frank C. Carlucci
Etienne Davignon
Reto Domeniconi
Oscar Fanjul
Dr. Fritz Gerber
Sir Denys Henderson
Dr. Ing E.h. Eberhard von Kuenheim
Cees van Lede
The Rt. Honorable John Major, CH
Michael Rogowski
Peter Sjöstrand
Enrico Chicco Testa
Firm Profile

The Carlyle Group is one of the world’s largest private equity firms, with more than $18.9 billion under management. With 26 funds across four investment disciplines (management-led buyouts, real estate, leveraged finance, and venture capital), Carlyle combines global vision with local insight, relying on a top-flight team of nearly 300 investment professionals operating out of offices in 14 countries to uncover superior opportunities in North America, Europe, and Asia.

While open to opportunities wherever they can be found, Carlyle focuses on sectors in which it has demonstrated expertise: aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, real estate, technology & business services, and telecommunications & media.

In a world awash with information, insight is often in short supply. Carlyle’s edge is its ability to leverage the local insight of its investment professionals, collaborating across the firms’ investment disciplines from deal sourcing and due diligence through portfolio company development. The result: A broader view of potential investment opportunities and deeper level of expertise, creating value for Carlyle portfolio companies that translates into superior returns for Carlyle investors.
Carlyle’s team of investment professionals includes 127 MBAs, 27 JDs and 12 PhD/MDs from many of the world’s most prestigious universities.
Carlyle’s conservative investment philosophy and disciplined investment process has generated extraordinary returns for its investors. Since its founding in 1987, the firm has invested $12.4 billion in 355 transactions.
More than 600 investors from 55 countries entrust Carlyle with their capital and their reputations. As one means of aligning its own interests with those of its Limited Partner investors, Carlyle has committed more than $900 million of its own capital to its funds.

Assets Under Management


The ingredients of American Bloody Capitalism:
Will the Carlyle Group salvage Lord Black's Hollinger?


By Chuck Baldwin
Posted: March 27, 2003 - 8:45 pm PST
Since World War II, dozens of U.S. companies have made a "killing" from military conflict. President Dwight David Eisenhower was the first to refer to these companies as the "military industrial complex." The financial and political clout of these companies has risen and waned through the years, depending on who was in power and what the international climate was like.
Whatever one thinks of the morality or necessity of our war in Iraq, one thing is undeniable: certain well-placed companies are making millions of dollars off the war. Two companies with close ties to the Bush and Cheney families that are reaping huge profits are the Halliburton Company and the Carlyle Group.
The Carlyle Group is so proficient at raking in government contracts that it is often referred to as the "Ex-Presidents Club." Some of the West's biggest and most powerful political leaders are helping to guide Carlyle through the muddy waters of governmental red tape and are reaping huge benefits in the process.
Carlyle's movers and shakers include such heavyweights as Former Secretary of State James Baker, Ex-Secretary of Defense Frank Carlucci, Former President George H.W. Bush, and Former British Prime Minister John Major. President G.W. Bush has also held board membership. What is even more fascinating is that the bin Laden family was an investor in Carlyle.
Carlyle also has direct links to the Saudi royal family and has been directly involved in training Saudi troops to protect oil fields. It also helped build Saudi Arabia's national guard from 26,000 to over 70,000 troops. The link between Carlyle and Saudi Arabia is so strong that some have called Carlyle a "front" organization for the Saudi royal family.
Since the September 11 terrorist attacks, the Carlyle Group has reaped millions of dollars from government contracts on things such as cleaning up anthrax-infected buildings, including the Hart Senate Office Building, making X-ray scanners, providing logistics support to the U.S. military, making metal-bond structures in fighter jets and missiles, and providing employee background checks for the government.
Another well-connected company that is greatly profiting from the Iraq War is Halliburton, a company formerly headed by Vice President Dick Cheney. A Halliburton subsidiary, Kellogg, Brown and Root, just received a government contract to extinguish oil well fires in Iraq. According to Forbes Magazine, no other company was even allowed to bid on the contract. This contract alone is worth tens of millions of dollars.
Therefore, while our war in Iraq is costing billions of dollars to America's taxpayers and is also costing many American families the ultimate sacrifice of lost sons and daughters, certain well-connected companies are reaping huge profits and benefits. I sincerely hope and pray that these connections are merely circumstantial and not intentional.
© 2003 Chuck Baldwin - All Rights Reserved

The Carlyle Group

by Victor Thorn, Babel Magazine, Issue #77, 6 October 2002

A few weeks ago, James Baker publicly offered advice to the Bush Administration on how they should proceed with their war on Iraq. What he and every newscaster or commentator failed to mention was that Baker is now employed by the highly-influential Carlyle Group, which is the eleventh largest defense contractor in the United States. In essence, then, we have a man trying to influence public policy while privately employed by a company that has a vested interest in activating America's War Machine.

If you're not familiar with them, the Carlyle Group has become a powerhouse in affecting the direction in which our foreign policy takes, especially in regard to war. They accomplish this by hiring former government officials, then investing in private companies that are subject to government change (i.e. the military and telecommunications). Who, you may ask, do they employ to secure their government contracts? Well, check-out this list for starters:

Frank Carlucci - Department of Health, Education and Welfare - 1970's
Deputy Director, CIA - 1978-81
Deputy Secretary of Defense - 1981-82
National Security Director - 1987-89
George Bush - CIA Director - 1976-77
Vice President of the United States - 1981-89
President of the United States - 1989-93
James Baker - Chief of Staff - 1981-85
Secretary of the Treasury - 1985-89
Secretary of State - 1989-93
Dick Darman - Former White House Budget Chief
William Kennard - Former Head, FCC
Arthur Levitt - Former Head, SEC
John Major - Former Prime Minister, Britain
Fidel Ramos - Former Philippine President
Afsaneh Beschloss - Treasurer & Chief Investment Officer of the World Bank
Anand Panyarachum - Former President, Thailand
Karl Otto Pohl - Former President, Bundesbank
Louis Vuitton - French Aerobus Company
Park Tae Joon - Former South Korean Prime Minister
Alwaleed Sin Talal
bin Abdulaziz Alsaud
- Saudi Arabian Prince
George Soros - New World Order/Bilderberg luminary & int'l financier
Fred Malek - George Bush Sr's campaign manager

There is also one other "family" that invested in the Carlyle Group, but I'll keep that as a surprise for next week's article. In the meantime, take a look at that list. It's like walking onto a baseball field and having the New York Yankees behind you. The best team money can buy! And I didn't even mention all of the players. Carlyle also employs the former chairman of BMW and Nestle, is interviewing former Clinton cabinet members (to insure that they have both sides of the aisle covered), plus once hired Colin Powell and AOL Time-Warner Chairman Steve Case to speak at a meeting at Washington D.C.'s Monarch House. Plus, if we look at James Baker again, we'll find that he's on the board of Azerbaijan International Oil Company, in which two U.S. oil companies hold 40% of the shares. Who are these two companies? The first is Amoco, who has on their payroll none other than Zbigniew Brzezinski (Trilateral Commission founder, National Security Advisor for the Carter Administration, Globalist supreme, and David Rockefeller's puppet on a string). The second is Pennzoil, who has on their payroll Brent Scowcroft, former National Security Advisor under George Bush, Sr.

But the man that really brought it all together is Frank Carlucci, who holds directorships on such companies as General Dynamics, Westinghouse, the Rand Corporation, and Ashland Oil, plus sits on the board of directors of twelve other companies. Carlucci was also the college classmate of someone very closely related to our current administration's War Machine - Defense Secretary Donald Rumsfeld! What relevance does this association have you may wonder? I think it is of great importance, for in February, 2001, Carlucci and Vice President Dick Cheney met with Donald Rumsfeld when the Carlyle Group had several billion-dollar defense projects under consideration. (If you haven't guessed, the Carlyle Group fared quite well when all was said and done.) Do you still think these ties don't matter? Philip Agee, in his book "On the Run" details all of Carlucci's CIA connections, many of whom he hired (along with his Pentagon cronies) when he joined Carlyle in 1989. (And all of us know what influence the CIA has, don't we?)

A former Carlyle employee honed-in on these dynamics when he said, "The firm understands that having Bush and Major is like having movie stars around."

It's all about power and access, folks, as Oliver Burkeman and Julian Burger pointed out in "The Guardian" on October 31, 2001. "Carlyle has become the thread which indirectly links American military policy in Afghanistan to the personal financial fortunes of its celebrity employees, not the least the current President's father."

Is the picture becoming clearer? Now we're getting to the bottom of America's War Machine. The Carlyle Group is set to make huge amounts of money from our upcoming military conflicts and weapons expenditures. In other words, when I talk about the War Machine, these folks are at the crux of it. They're the war profiteers that keep its wheels greased!

Dan K. Thomasson, former editor of the Scripps Howard News Service, summed it up best in March, 2001. "Nothing in recent history seems to approach the success this group has had in the wholesale conversion of former high government rank to gigantic profits."

Peter Eisner, Managing Director of the Center for Public Integrity, adds, "It should be a deep cause for concern that a closely held company like Carlyle can simultaneously have directors and advisors that are doing business and making money and also advising the President of the United States."

The Washington Business Journal simply says, "The Carlyle Group seems to play be a different set of rules."

But who is the Carlyle Group? Well, their office is located only a few blocks from the White House, and it was founded by three men:

They named their group "Carlyle" after a New York hotel favored by one of their first investors, the Mellon family. They now have an ownership stake in 164 different companies, have 535 investors, operate in 55 different countries, and have $13.5 billion in capital. International financier George Soros invested $100 million in them, while the California Public Employees Retirement System dumped $305 million into their laps. They also recently purchased the KorAm Bank, thus accelerating their entry into the highly lucrative Asian markets.

But how did they become so successful so quickly? I'll let the Carlyle Group's company brochure answer that question: "We invest in niche opportunities created in industries heavily affected by changes in government policies." Stated differently, the Carlyle Group buys what it knows best - companies regulated by the government. In fact, 2/3 of their business is either in the defense or telecommunications industries ... those affected by changes in government spending or policy!

And how do they affect these policies? It all revolves around ACCESS! That's the key. Basically, they operate within what is called the "Iron Triangle" - industry, government, and the military. A spokesman for Oklahoma Representative J. C. Watts understood this connection when he said, "Carlyle's strength was within the Department of Defense because they have staff types that work behind the scenes, in the dark, that know everything about the Army and Capitol Hill."

Charles Lewis, ex-Director at the Center for Public Integrity, adds credence to this argument. "Carlyle is as deeply wired into the current administration as they can possibly be."

On May 5, 2001, the New York Times described the Carlyle Group as such: "It owns so many companies that it is now in effect one of the nation's biggest defense contractors and a force in global communications. Its blue-chip investors include major banks and insurance companies, billion dollar pension funds and wealthy investors." Hmm, they have a firm, controlling grip on both the War Machine and the media ... convenient, don't you think?

After reading how deeply established they are as "Insiders," do you think that the Carlyle Group has America's best interests at heart, or their own which entails capitalizing on war? An excellent example can be found in the recent $470 million contract that "United Defense," a Carlyle subsidiary, received. And what did they get it for? To develop the CRUSADER, which is such a faulty, antiquated, horrendous product that it was described by Eric Miller of "The Project on Government Oversight" as follows. "The Crusader has been the GAO's (Government Accounting Office) poster child for bad weapons development." The Crusader Project was so maligned that the government was set to drop it completely. But lo and behold, what happened? War was on the horizon, Carlyle pulled a few strings, and welluh - a $470 million contract is thrown Carlyle's way for the Crusader. Funny how things happen, huh?

If that's not bad enough, the Carlyle Group is also the financial advisor to a certain government. Who? Saudi Arabia. In fact, they make nearly $50 million/year training the Saudi Arabian National Guard --- troops that are sworn to protect the Saudi royal family! Now, if all hell breaks loose in the Middle East, and considering that Saudi Arabia has said that it won't support our efforts against Iraq, who do you think the Saudi soldiers will kill? Their own kind - Arabs - or the invading "white American devils?"

If you ask me, we've entered very treacherous waters, all for the sake of making money off of warfare. Regardless of what they say, these men in the Carlyle Group epitomize a very nefarious form of evil via their actions.


Your one-stop shop for Halliburton, Bechtel, Carlyle Group, and related evil overlords

Dick Cheney, CEO until 2000 election
Arthur Andersen, former Accountant
Carlyle Group
George H.W. Bush Sr, Senior Advisor
Frank Carlucci, Chairman
James Baker, Senior Counselor
“I fixed the election in Florida for George Bush.”
- - James Baker, 2003 Dec 01-ish
Arthur Levitt, Senior Advisor
Richard Darman, Partner
Donald Rumsfeld, former lobbyist
"Judge whether good enough hit S.H. at same time. Not only UBL. Go massive. Sweep it all up. Things related and not."
- - Donald Rumsfeld, 2001 Sep 11 memo
George Schultz, former President
Caspar Weinberger, former General Counsel and Vice President
William Casey, former consultant


Politicians affiliated with Carlyle

The Saudi Arabian relatives of Osama bin Laden (not Osama bin Laden himself) were also minor investors in Carlyle until October 2001 when the family sold its $2.02 million investment back to the firm in light of the public controversy surrounding the bin Laden family after September 11.


Businesspersons affiliated with Carlyle

What Did Eisenhower Mean When He Warned of a Military Industrial Complex? Take a Look at the Carlyle Group An interview with Dan Briody

Halliburton is not the only company making huge profits from the invasion of Iraq. The Carlyle Group is one of the US government's biggest contractors and one of the largest defense contractors in the world. War = profit for them. There is also a big connection between Chevron-Texaco and the Bush administration. Chevron-Texaco is the # 1 US importer of Iraqi oil and they stand to make billions once that Iraqi oil starts flowing at full capacity.

Take a Look at the Carlyle Group
An interview with Dan Briody
(Author of "The Iron Triangle: Inside the Secret World of the Carlyle Group")
Buzzflash, June 23, 2003

They are at the epicenter of the military-industrial-complex-Bush-Cheney-crony-capitalism administration. The Carlyle Group is the model example of the nearly seamless connection between the Bush administration, self-enrichment and companies who receive big government defense contracts.
The roster of Carlyle "consultants" reads like a whoís who guide to government officials of the 1980s, starting with former president George Bush, former secretary of state James Baker, and former defense secretary Frank Carlucci.
The most chilling aspect of Briody's book is that the political connections and lobbying activities he unmasks are not illegal.
It is a testament to the brain dead mainstream media that the relationship between the Carlyle group and the Bush-Cheney cartel is not a national scandal.
Brady is an award winning journalist who has written for Forbes, Wired, Red Herring and the Industry Standard.
BuzzFlash: If we were looking at the Carlyle Group -- aside from its controversial nature and the political world of who runs it and the consultants affiliated with it -- what business model does it represent?
Dan Briody: Itís whatís known as a private equity firm. And thatís a very vague term to describe a whole umbrella of different types of companies. What Carlyle specializes in is buyouts, which means that they operate very similar to a mutual fund. Only instead of buying and selling stock, they buy and sell private companies. And they also do venture capital and real estate. So theyíre in a variety of different kind of financial transactions-based businesses. But their bread and butter is buyouts. And within that area, they focus heavily on government-regulated industries ñ anything that depends very heavily on policymaking and legislation coming out of Washington, D.C. As such, they hire a number of ex-politicians to help them in that regard.
BuzzFlash: In terms of companies that they buy out, most notably in terms of their political-business crossover, theyíre probably most known for their relationship to the defense industry, even though thatís not by any means exclusively what they do.
Dan Briody: They got their start in the defense buyout business. They struggled for the first couple of years before they hired Frank Carlucci, who was the outgoing Secretary of Defense from the Reagan administration. And Carlucci brought them in the direction of defense buyouts in the late ë80s, early ë90s, in between the Cold War and the Gulf War, when defense properties were undervalued. And the company struck gold a couple times in that business and was able to build a very healthy buyout practice on the back of these defense LBOs, or leveraged buyouts.
>From there, they have diversified over the ensuing 10-12 years, into everything from healthcare to telecommunications, to aerospace and others. But defense is still the cornerstone of their practice. And when people think of the Carlyle Group, the first thing they think of is defense.
BuzzFlash: On the cover jacket of your book, it says that the book will provide witness to how the Carlyle Group profited from the Sept. 11 terrorist attacks and continues to profit from the ongoing war on terrorism. What evidence do you provide for that?
Dan Briody: There are a number of transactions that the company profited from directly following the Sept. 11 attacks. The most important one was the fact that they were able to take United Defense, their crown jewel of defense holdings public shortly after the attacks. In fact, in the prospectus that they circulated, before that IPO, they cited the Sept. 11 attacks as one of the reasons why they were able to sell public stock in this company at this time. So that was all on the back of the defense build-up following Sept. 11.
There are also a number of other holdings of theirs -- like at that time, they owned a company called the IT Group, which is a company that cleans up hazardous materials and won a very lucrative contract to clean up the Hart Senate Building in Washington, D.C., which had been tainted by anthrax.
They also own a company called U.S. Investigative Services, USIS, which is a company that does background checks and provides varying levels of security clearance for different government employees, airline employees ñ things like that. Obviously their contracts went through the roof after Sept. 11.
In addition to that, they own companies that do all kinds of security, different aerospace companies. So whenever thereís a big defense buildup, those companies profit. So there are a number of ways that theyíve profited very handsomely from Sept. 11.
BuzzFlash: I recall that reading in the British papers that Tony Blair was considering privatizing a portion of the intelligence apparatus in Britain, and that the Carlyle Group was going to be subcontracted to do some of that.
Dan Briody: He did, in fact. The new company is called Qinetiq. Itís spelled Q-I-N-E-T-I-Q. Itís the research arm of the ministry of defense in the U.K., which is essentially equivalent to DARPA [the Defense Advanced Research Projects Agency] here in the U.S. And the Carlyle Group was part of that transaction, so they own part of Qinetiq. It was a very controversial transaction in the U.K., obviously. I mean, if you could try to imagine a foreign company coming in and buying DARPA from the United States. Itís unimaginable. And particularly a company thatís so stockpiled with very powerful former politicians.
BuzzFlash: So Tony Blair essentially condoned the privatization of a large section of the British defense intelligence apparatus to the Carlyle Group. It would be comparable for us to subcontract that to a foreign company.
Dan Briody: Yes, which I don't think would ever happen.
BuzzFlash: You mentioned in another interview that we heard - I believe it was on NPR, Terry Gross ñ that your book doesnít detail illegal activity of the Carlyle Group. And whether that exists or not, you donít know. But it details the legal activity, which is, to you, probably the more worrisome issue ñ that all of this is legal. By that, do you mean the seamless relationship between the private military sector and the governmental military sector?
Dan Briody: Thatís exactly what I mean. The book opens up with a mention of Dwight Eisenhowerís farewell speech, in which he warned the country against the formation of this military-industrial complex. And I think that that is exactly what weíre seeing today. Weíre seeing a very tight-knit group of companies and private military contractors that are virtually indistinguishable from various administrations and the political infrastructure of Washington, D.C. ñ so much so that itís not clear whose interests weíre acting on when we go to war.
BuzzFlash: And now we see the extension in the case of Britain, to the British defense intelligence industry.
Dan Briody: Right. And weíre also seeing Carlyle expand into Italy. They just bought part of Fiatís aerospace division, which was a state-controlled Italian military agency. And they are also in the running to buy out DaimlerChryslerís aerospace division in Germany. So weíre seeing a real broadening of the military activity around the Carlyle Group, so much so thatís becoming more than just a domestic concern here ñ itís becoming an international concern.
BuzzFlash: Now Carlyle is ñ correct me if Iím wrong ñ a holding company. Is it publicly traded?
Dan Briody: It is not publicly traded.
BuzzFlash: So itís a limited partnership?
Dan Briody: Yes. Itís a limited partnership. And as such, itís under no obligation to release any of its financial data. So itís very difficult for the average citizen to find out what the holdings of this company are and where the conflicts of interest might be. You may have noticed that they "opened up" their website recently because they were receiving a lot of criticism for being secretive and closed up. But theyíre still controlling what information theyíre putting on that website, so itís not like weíre getting a look under the hood, so to speak, of this company. And theyíll never go public. They would never do that.
BuzzFlash: Now probably the most controversial relationship is the relationship of former President Bush to the company. As you point out, so many of the members of the cast of characters in the Carlyle Group have been associated with past administrations, particularly Reagan and Bushís. Former President Bush has probably the highest profile relationship. What is his relationship to the Carlyle Group, and what has he been used for?
Dan Briody: George Bush Sr. is a senior advisor to the company -- again, an ambiguous term -- but essentially his role is to travel abroad and meet with foreign business leaders and foreign heads of state, give speeches on behalf of the Carlyle Group, and pack the house full of wealthy investors who will contribute to Carlyleís buyout fund. And also he has had his hand in a number of deals for Carlyle. He has worked closely with business leaders in South Korea and in Saudi Arabia. Heís very close with the bin Laden family. Heís close with the royal family in Saudi Arabia. So heís been very, very involved and a very effective business partner for the Carlyle Group for a number of years now.
BuzzFlash: Is there cause to be concerned? Some people who cover Carlyle also mention that one shouldnít solely focus on him, because he sort of jumps in and out. Itís more the day-to-day people who cross back and forth between their relationships with government officials and the private industry - the military-industrial complex, if you will, as Eisenhower called it. But former President Bush is the most visible symbol. Do you have any speculation on how that might impact foreign policy, since heís the father of the current president?
Dan Briody: There have been numerous reports that have been widely circulated, and not disputed, by the New York Times, Wall Street Journal, of how the father of the president is advising his son on foreign policy. Certainly in the first year, he was very active in advising his son on policy toward Korea and toward Saudi Arabia. And in both cases, he stepped in and placed phone calls himself to the leaders of those nations to try to smooth things over for his son, who was struggling a little bit in the early going, in dealing with some of those more sensitive areas. So I think that the impact of the father on the son in foreign policy has been very significant and very inappropriate, given the investments of George Bush Sr.ís company in both regions ñ in both the Korean peninsula and in Saudi Arabia.
BuzzFlash: On pages 144 to 146, you discuss a little bit of the relationship between Carlyle and the bin Laden family. Can you just mention that in passing, and what that relationship was and perhaps is now?
Dan Briody: The Carlyle Group started working in Saudi Arabia in the early ë90s through a Saudi prince, who is one of the biggest foreign investors here in the United States. And through that relationship, they started expanding their business in Saudi Arabia very significantly. One of the most important investors that they found in the kingdom was the bin Laden family, which, of course, owns the Saudi Binladin Group. It's about a $5 billion construction company -- extremely wealthy family, extremely successful company, and who officially disavowed Osama bin Laden back in the early ë90s.
So they had been doing business with the bin Laden family for, give or take, five or six years, when Sept. 11 happened. And suddenly, Osama bin Laden became public enemy number one. He was on the cover of all the newspapers. And it came to light that this company that was employing George Bush Sr. counted the bin Laden family among their investors. And they had to divest themselves from that relationship because of the criticism.
BuzzFlash: And although you donít mention it, there are those, including author Greg Palast, who have claimed that the Bush administration ferreted out members of the bin Laden family on special planes after Sept. 11. But again, thatís not a part of whatís in your book, but weíre just pointing that out.
Letís look at United Defense as one example of the relationship between the private industry, the defense industry, and, in this case, itís a publicly held company owned by the privately held Carlyle Group. Is that correct?
Dan Briody: Thatís right. And they own 50% of it.
BuzzFlash: And what is United Defense? Maybe you can give us as a case study of the interrelationship between a company that has an umbilical cord to the U.S. government, about how a company like that is never a loser.
Dan Briody: United Defense is a classic military contractor. They make guns and gun systems, large Howitzer-type, mobile Howitzers. They make the Bradley fighting vehicles and the Paladin gun systems that weíve seen a lot of on TV, especially during the Iraqi war. They are one of the largest defense contractors to the Army in the nation. And the Carlyle Group has owned this company since 1997.
When they bought the company, there was a gun program that was the future of United Defense. It was a gun called the Crusader. It was essentially a next-generation Paladin gun system ñ a very large, mobile Howitzer. It looks like tank, but itís essentially an enormous gun. And the Crusader was heavily criticized by a national defense panel that was put together to assess the military requirements going forward. It was called too heavy, too slow ñ a Cold War relic. And it was on the chopping block for years after that. But the Carlyle Group was able to mount a very successful campaign by using strategically placed lobbyists, by extending their personal relationships with folks in the Pentagon and in Washington, and by waging essentially a public relations campaign for the gun, and they kept it alive through successive rounds of defense budget cuts ñ miraculously.
No one could believe that this gun had survived as long as it did. And then finally after Sept. 11, when all ships were sort of, you know, rising on the tide of defense spending, they were able to take United Defense public, make hundreds of millions of dollars off of that IPO, only to then finally have the Crusader program cancelled in a very public fashion by Donald Rumsfeld in an announcement. But of course, behind the scenes, what the public didnít see was that United Defense was awarded a brand-new contract for a brand-new gun that very same day that the Crusader program was cancelled. In fact, the press release that United Defense put out about it had the announcement of the new contract in it as well.
BuzzFlash: So they were essentially held harmless.
Dan Briody: Yes, exactly.
BuzzFlash: Perhaps this is more of a comment, but we found it not-so-curious that after the controversial visit of Bush to the U.S.S. Abraham in the flight suit, that he returned to California from 30 miles offshore and gave a speech at, of all places, the United Defense plant. Do you have any thoughts there about the fact the President of the United States is speaking at a plant that is 50% owned by a company that his father is a consultant with?
Dan Briody: I think itís brazen, and I think itís shameless. And I think that that will go down as a hallmark of this administration. We have seen an absolute affinity for mixing business and politics, and throw in a war and youíve got the Bush administration. And that scene of him giving that speech at United Defenseís plant in Santa Clara summed up perfectly what this administration is all about.
BuzzFlash: So all the interconnections were right there -- he was boosting the war effort, talking about keeping the country secure, which meant, in this case, he was praising the employees of United Defense, who, in essence, are employees, in part, of the Carlyle Group, with which his father is affiliated.
Dan Briody: He was doing it all. He was pitching a tax cut for the very wealthy while doing an advertisement for his fatherís company, and professing the war to be over, and kicking off his reelection campaign, all in one fell swoop. It was an amazing achievement.
BuzzFlash: And yet for all these connections, I did not see any of them in the press. I only made them because of your book, and knowing about the Carlyle Group, and just going back and confirming that United Defense was, in essence, a company that the Carlyle Group had ownership of.
Dan Briody: It was missed by most of the mainstream media, and that was very disappointing. But The Nation picked up on it, thank God.
BuzzFlash: Going in another direction, you detail how the firm, when it was opened in 1987, picked the name, "the Carlyle Group."
Dan Briody: Well, the co-founders, David Rubenstein and Stephen Norris, were, at the time, meeting frequently at this hotel on the Upper East Side of New York called the Carlyle Hotel. And the Carlyle was very, very, very opulent and itís a very swanky establishment. Itís a beautiful hotel. And these guys were looking for a name that gave them a sense of legitimacy and credibility in the industry. They wanted something that was a little blue-blood, or, as Steve Norris put it, gave them a silk-stocking air. And so they thought that the Carlyle Group was the right way to go. And certainly it does have that blue-blood, old money kind of feel to it, even though itís only 15 years old.
BuzzFlash: Your book about the Carlyle Group, subtitled Inside the Secret World of Carlyle Group, is called The Iron Triangle. Why did you choose that title?
Dan Briody: Well, "the iron triangle" is the euphemism that is employed in a number of different areas. But among the areas that itís employed is this confluence of business and politics that Eisenhower was talking about when he referred to the military-industrial complex. This is a combination of power and influence that is very dangerous and can result in foreign policy decisions that are based solely on monetary concerns of very few people. And thatís what I think weíve found here today.
BuzzFlash: Recently we've read that the Carlyle Group is starting to dabble into media acquisition. Is that right? And if so, should we be worried about that?
Dan Briody: Yes, they have picked up a couple media companies. They, for a while now, have owned a very popular publication called Le Figaro in France, and they have been expanding their media acquisitions. And I definitely think this is something that we should be concerned about. I mean, anytime you see a company that has this much political clout -- and obviously has a political agenda -- picking up media properties, youíve got to be concerned, especially with the action that the FCC has taken so far this year. Weíre looking at the potential for having a real controlling influence in the media. And I personally would not like to see Carlyle Group controlling the information that I receive on a daily basis.

Carlyle Group

From SourceWatch

According to the company web site, The Carlyle Group, headquartered in Washington D.C., was established in 1987 as a "private global investment firm that originates, structures and acts as lead equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings."[1] (  )

Carlyle states that its "mission is to become the premier global private equity firm and to generate extraordinary returns while maintaining our good name and the good name of our partners. Toward that end, we have established a family of funds in the Carlyle name and a network of offices around the world. We maintain the highest standards of ethical conduct and employ a conservative, proven and disciplined approach to investing."[2] (  )

The collection of influential characters who now work, have worked, or have invested in the group would make the most convinced conspiracy theorists incredulous. They include among others, John Major, former British Prime Minister; Fidel Ramos, former Philippines President; Park Tae Joon, former South Korean Prime Minister; Saudi Prince Al-Walid; Colin Powell, former Secretary of State; James Baker III, former Secretary of State; Caspar Weinberger, former Defense Secretary; Richard Darman, former White House Budget Director; the billionaire George Soros, and even some bin Laden family members. You can add Alice Albright, daughter of Madeleine Albright, former Secretary of State; Arthur Lewitt, former SEC head; William Kennard, former head of the FCC, to this list. Finally, add in the Europeans: Karl Otto Poehl, former Bundesbank president; the now-deceased Henri Martre, who was president of Aerospatiale; and Etienne Davignon, former president of the Belgian Generale Holding Company.

Hoover's Online describes the Carlyle Group as a military-industrial complex. The Carlyle Group, Hoover's continues,

takes part in management-led buyouts (MBOs), acquires minority stakes, and provides other investment capital for companies. It is particularly hawkish on the aerospace and defense industries, putting to good use the experience of its chairman emeritus Frank Carlucci, a former Secretary of Defense. Firms in this arena make up a significant share of the portfolio at Carlyle, one of the world's largest private equity firms. The company has also engineered MBOs and other capital deals for firms in such industries as consumer products, energy, health care, information technology, real estate, beverages, and telecommunications. Carlyle's directorship reads like George Walker Bush's inaugural ball invite list. Reagan Secretary of the Treasury James Baker serves as a senior counselor, and Richard G. Darman, former director of the Office of Management and Budget under George Herbert Walker Bush, is a managing director. Former President George Bush has served with Carlyle and Colin L. Powell, before becoming Secretary of State, made an appearance on behalf of the firm.[3] (,2147,42166,00.html )
The company has more than $13 billion in assets under management and has invested in such names as: United Defense Industries, of Crusader artillery and Bradley Fighting Vehicle fame; Dr Pepper/Seven Up Bottling Group  (,2163,40853,00.html ); and MedPointe Inc. (,2163,10301,00.html ).[4] (,2147,42166,00.html ) Carlyle owns about 90% of Voight Aircraft Industries, Inc. (,2163,103867,00.html ).
Although the majority of the firm's money is in North America, it is also pushing more intensely overseas, launching funds aimed at Asia, Europe, Latin America, and Russia. The firm (along with Apax Partners (,2163,40358,00.html ) and UK-based Cinven ( )) bought a 28% share of France-based health care and business publisher Vivendi Universal Publishing ( ). One of the company's larger moves overseas is the purchase of the transportation business of The Daiei ( ), Japan's #2 retailer in which the company has a 90 percent stake, worth $28 million.[5] (,2147,42166,00.html)  
Its moves overseas haven't all been as easy as picking up the phone or as lucrative, however. Carlyle, along with investment firm Welsh, Carson, Anderson & Stowe ( ), are planning to buy the yellow pages business of the financially strapped Qwest Communications ( ) while navigating the lawsuit filed by Milberg Weiss Bershad Hynes & Lerach LLP ( ). The firm also returned portions of its European venture capital group funds to investors after the values of its investments lessened and the availability of target acquisitions decreased.[6] (,2147,42166,00.html)  
Carlyle is keeping an eye on the transportation and healthcare industries as possible candidates for deal making, but the maturing buy-out market creates fewer prize deals and more competitors.[7] (,2147,42166,00.html )
California Public Employees' Retirement System (, or CalPERS, owns more than 5% of Carlyle.[8] (,2147,42166,00.html )

The Carlyle Group Invests $20 million into Claris Lifesciences
Our News Bureau - Mumbai
Global private equity firm, The Carlyle Group, has made a $20 million investment in Claris Lifesciences Limited (Claris), a leading Indian pharmaceutical company that manufactures and markets life saving products for treating critical illness


Former President Bush Works for International Investment Firm With Ties To Saudi Arabia

Company Had Bin Laden Family Connections

(Washington, DC) Judicial Watch, the public interest law firm that investigates and prosecutes government corruption, today pointed out that the recent spate of terror attacks on Israel has lent new urgency to the need for former President Bush to resign from the Carlyle Group, an international investment firm with close ties to the government of Saudi Arabia.

The former president, the father of President Bush, worked for the bin Laden family business in Saudi Arabia through the Carlyle Group, meeting with them at least twice. The terrorist leader Osama bin Laden had supposedly been “disowned” by his family, which runs a multi-billion dollar business in Saudi Arabia and was a major investor in the senior Bush’s firm. Other reports have stated his Saudi family have not truly cut off Osama bin Laden.

In the wake of Judicial Watch and other criticism of its ties to the bin Laden family business, the Carlyle Group reportedly no longer does business with the bin Laden conglomerate. Yet the Group, among other conflicts of interest, reportedly has a major business relationship with the Saudi Arabian government, which many have criticized for its lack of cooperation in America’s war on terrorism and its financial and other support for terrorist attacks on Israel and U.S. interests.

“It stands to reason, as noted in the David Sanger piece in The New York Times today, that President Bush consults with his father on issues of the day. In a normal situation, this would be appropriate, but with President Bush’s father being effectively an agent of the Saudi Arabian government, it raises, in the least, a conflict of interest problem. Questions can be raised, for instance, if the ‘kid gloves’ treatment of Saudi Arabia by the Bush Administration has anything to do with his father’s financial ties to the Saudi regime. Former President Bush would be doing his son and his country a favor by immediately resigning from the Carlyle Group,” stated Judicial Watch Chairman and General Counsel Larry Klayman.

UAE, Carlyle Group, Bushes & Terrorism: Strange Mix
by J. Grant Swank, Jr.
Feb 28, 2006
Washington's "name" people and world leaders reap billions on the "war on terrorism." Could this likewise involve the present UAE – US 21 ports sneak?

And could US President George W. Bush reap his own billions from the "war?"

Note: The quiet, no-noise Carlyle Group, a worldwide private equity investment company founded in 1987 with more than $30 billion of capital, is alleged to have connections to the Middle East.

Both father and son George Bush belong and belonged to it. Other well-known personages such as Colin Powell, James Baker, John Major, and George Soros also gather yield from the Group.

The Group specializes in Aerospace, Defense, Automotive, Consumer, Industrial, Energy, Power, Real Estate, Technology, Business Services, Telecommunication, Transportation and Media. Its involvement focuses on interests related to political activity, some calling it political arbitrage.

So how do political personal riches equate to membership in the Group? How do the 800 members benefit from its billions, that sum equating to $37.5 million apiece? After all, Group's offices are positioned on Pennsylvania Avenue between the White House and Capitol Building, not far from the FBI Building.

Some of the Group's contractors relate to the US military, for example, an artillery project, aerospace and defense industries.

Craig Unger's book, "House of Bush, House of Saud," informs that Saudi Arabia inserted 1.4 billion to companies tied to father and son George Bush. Ninety percent of that money was contracted to BDM, defense contractor, such firm owned by the Group.

"Among the companies Carlyle owns are those which make equipment, vehicles and munitions for the US military, and its celebrity employees have long served an ingenious dual purpose, helping encourage investments from the very wealthy while also smoothing the path for Carlyle's defense firms," state Oliver Burkeman and Julian Borger of The Guardian.

"Since the start of the ‘war on terrorism,' the firm has taken on an added significance. Carlyle has become the thread which indirectly links American military policy in Afghanistan to the personal financial fortunes of its celebrity employees, not least the current president's father.

"Until earlier this month, Carlyle provided another curious link to the Afghan crisis: among the firm's multi-million-dollar investors were members of Osama bin Laden family. The bin Laden tie to the Group was more than six years."

Question: How do the current President and former President Bush make policy in Muslim affairs, such as UAE and US ports, while being members of the Group? Private business and public policy, mix and match, can be extremely complex on multitudinous levels, including financial and ethical, not to mention national safety.

As Muslims ripped into the Twin Towers, Carlyle's annual investor meeting was taking place in DC's Ritz-Carlton. Included were representatives of the bin Laden family. While the towers tumbled down, the Group's investments went up, according to Dan Briody, author of "The Iron Triangle," as published in Red Herring Business Magazine.

The bin Laden clan actually made money in the war targeted against their son, the latter disowned by the family ten years ago. Finally, the family got out of the Group when criticism mounted against them.

At the same time, President Bush was "in a position to make budgetary decisions that could pad his father's bank account. But for the Carlyle Group, walking that narrow line is the art of doing business at the murky intersection of Washington politics, national security, and private capital."

In other words, we have a strange soup mix going here: Bushes, bin Laden, Saudi princes, Afghanistan, war on terror, investments, Muslim rich, military, and where do the ingredients end? The whole recipe is called "the iron triangle: defense, government, industry." Fill in the blanks, or to keep the terms consistent, "mix in your own veggies."

More data from Briody:

"For the 11th-largest defense contractor in the United States, wartime is boom time. No one knows that better than the Carlyle Group, which less than a month after U.S. troops began bombing Afghanistan filed to take public its crown jewel of defense, United Defense, a company it has owned for nearly a decade. That this company is even able to go public is testament to the Carlyle Group's pull in Washington.

"United Defense makes the controversial Crusader, a 42-ton, self-propelled howitzer that moves and operates much like a tank and can lob ten 155-mm shells per minute as far as 40 kilometers. The Crusader has been in the sights of Pentagon budget cutters since the Clinton administration, which argued that it was a relic of the cold war era--too heavy and slow for today's warfare.

"Even the Pentagon had recommended the program be discontinued. But remarkably, the $11 billion contract for the Crusader is still alive, thanks largely to the Carlyle Group."


"Mr. Bush Sr. and Mr. Major have been to Saudi Arabia on behalf of Carlyle as recently as last year, and according to reports, the Federal Bureau of Investigation is currently looking into the flow of money from the bin Laden family. Carlyle officials declined to answer any questions regarding their activities in Saudi Arabia."

So how does the Muslim UAE – US ports deal play into the Group? There are those doing their research as I type. God bless them, every one. After all, in the end, it's our hide.

As Joe Costello puts it: "So forget Abramoff and Duke Cunningham. The bipartisan influence peddling that gets DC contracts in the billions is best and most loathsomely represented by the Carlyle Group. They make nothing. They sell influence.

"They use their former positions to profit in a way that you, dear citizen, couldn't imagine in your wildest dreams. If you want to expose the legalized graft that passes for government in DC, the Carlyle Group is a good place to start."

Copyright © 2006 by J. Grant Swank, Jr.

"Fight and slay the Unbelievers wherever ye find them. Seize them,beleaguer them, and lie in wait for them in every stratagem of war." Qur'an, Sura 9:5

The Halliburton Agenda : The Politics of Oil and Money

The Carlyle Group to Meet in Portugal to Plan for Rebuilding Iraq
Headlines. Broadcast on Friday, April 4, 2003 by the The Portual News (Portugal's Weekend Newspaper in English) US Arms Group Heads for Lisbon ... The American based Carlyle Group is heavily involved in supplying arms to the Coalition forces fighting in ... several other US companies, the Carlyle Group is expected to be awarded ...
The Wall Street Journal Europe, Friday / Saturday September 28-29 2001, p.4

Bin Laden Family Has Intricate Ties With Washington
Saudi Clan Has Had Access To Influential Republicans

By Staff Reporters Daniel Golden and James Bandler in Boston, and Marcus Walker in Hamburg

If the U.S. boosts defense spending in its quest to stop Osama bin Laden's alleged terrorist activities, there may be one unexpected beneficiary: Mr. bin Laden's family.

Among its far-flung business interests, the well-heeled Saudi Arabian clan - which says it is estranged from Osama - is an investor in a fund established by Carlyle Group, a well-connected Washington merchant bank specializing in buyouts of defense and aerospace companies.

Through this investment and its ties to Saudi royalty, the bin Laden family has become acquainted with some of the biggest names in the Republican Party. In recent years, former U.S. President George Bush, ex-Secretary of State James Baker and ex-Secretary of Defense Frank Carlucci have made the pilgrimage to the bin Laden family's headquarters in Jeddah, Saudi Arabia. Mr. Bush makes speeches on behalf of Carlyle Group and is senior adviser to its Asian Partners fund, while Mr. Baker is its senior counselor. Mr. Carlucci is the group's chairman.

Osama is one of more than 50 children of Mohammed bin Laden, who built the family's $5 billion business, Saudi Binladin Group, largely with construction contracts from the Saudi government. Osama worked briefly in the business and is believed to have inherited as much as $50 million from his father in cash and stock, although he doesn't have access to the shares, a family spokesman says. Because his Saudi citizenship was revoked in 1994, Mr. bin Laden is ineligible to own assets in the kingdom, the spokesman added.

The bin Laden family has long disavowed Osama, and has cooperated fully with several federal investigations into his activities. The family business, headed by Osama's half-brother Bakr bin Laden, epitomizes the U.S.-Saudi alliance that the suspected terrorist often rails against. After the 1996 truck bombing in Dhahran, Saudi Arabia, that killed 19 U.S. servicemen, Saudi Binladin Group built military barracks and airfields for U.S. troops.

But the Federal Bureau of Investigation has issued subpoenas to banks used by the bin Laden family seeking records of family dealings, a person familiar to the matter said. This person said the subpoenas weren't an indication the FBI had found any suspicious behavior by the family. A family spokesman said he had no knowledge of the subpoenas but that the family welcomes them and has nothing to hide.

People familiar with the family's finances say the bin Ladens do much of their banking with National Commercial Bank in Saudi Arabia and with the London branch of Deutsche Bank AG. They also use Citigroup Inc. and ABN Amro, the people said.

"If there were ever any company closely connected to the U.S. and its presence in Saudi Arabia, it's the Saudi Binladin Group," says Charles Freeman, president of the Middle East Policy Council, a Washington nonprofit concern that receives tens of thousands of dollars a year from the bin Laden family. "They're the establishment that Osama's trying to overthrow."

Mr. Freeman, who served as U.S. ambassador to Saudi Arabia during the Gulf War, says he has spoken to two of Osama's brothers since hijacked planes rammed the World Trade Center and the Pentagon on Sept. 11. They told him, he says, that the FBI has been "remarkably sensitive, tactful and protective" of the family during the current crisis, recognizing its longstanding friendship with the U.S.

A Carlyle executive said the bin Laden family committed $2 million through a London investment arm in Carlyle Partners II Fund, which raised $ 1.3 billion overall. The fund has purchased several aerospace companies among 29 deals. So far, the family received $1.3. million back in completed investments and should ultimately realize a 40% annualized rate of return, the Carlyle executive said.

But a foreign financier with ties to the bin Laden family says the family's overall investment with Carlyle is considerably larger. He called the $2 million merely an initial contribution. "It's like plowing a field," this person said. "You seed it once. You plow it, and then you reseed it again."

The Carlyle executive added that he would think twice before accepting any future investments by the bin Ladens. "The situation has changed now," hesaid. "I don't want to spend my life talking to reporters."

A U.S. inquiry into bin Laden family business dealings could brush against some big names associated with the U.S. government. Former President Bush said through his chief of staff, Jean Becker, that he recalled only one meeting with the bin Laden family, which took place in November 1998. Ms. Becker confirmed that there was a second meeting in January 2000, after being read the ex-president's subsequent thank-you note. "President Bush does not have a relationship with the bin Laden family," says Ms. Becker. "He's met them twice."

Mr. Baker visited the bin Laden family both in 1998 and 1999, according to people close to the family. In the second trip, he traveled on a family plane. Mr. Baker declined comment, as did Mr. Carlucci, a past chairman of Nortel Networks Corp., which has partnered with Saudi Binladin Group on telecommunications ventures.

Bush Advisers Cashed in on Saudi Gravy Train
by Jonathan Wells, Jack Meyers and Maggie Mulvihill
Second of two parts.

Many of the same American corporate executives who have reaped millions of dollars from arms and oil deals with the Saudi monarchy have served or currently serve at the highest levels of U.S. government, public records show.

Those lucrative financial relationships call into question the ability of America's political elite to make tough foreign policy decisions about the kingdom that produced Osama bin Laden and is perhaps the biggest incubator for anti-Western Islamic terrorists.


Nowhere is the revolving U.S.-Saudi money wheel more evident than within President Bush's own coterie of foreign policy advisers, starting with the president's father, George H.W. Bush.

At the same time that the elder Bush counsels his son on the ongoing war on terrorism, the former president remains a senior adviser to the Washington D.C.-based Carlyle Group. That influential investment bank has deep connections to the Saudi royal family as well as financial interests in U.S. defense firms hired by the kingdom to equip and train the Saudi military.

Last year, former President Bush visited Saudi Arabia's King Fahd bin Abdul Aziz Al-Saud, but a Carlyle spokesman said the two did not discuss Carlyle business as previously reported. The elder Bush is reportedly paid between $80,000 and $100,000 for each Carlyle speech he makes. The company declined comment on the former president's pay.

The Carlyle Group has also served as a paid adviser to the Saudi monarchy on the so-called ``Economic Offset Program,'' an arrangement that effectively requires U.S. arms manufacturers selling weapons to Saudi Arabia to give back a portion of their revenues in the form of contracts to Saudi businesses, most of whom are connected to the royal family. A company spokesman said yesterday that arrangement was ended ``a few months ago,'' but said he did not know whether it was terminated before or after the Sept. 11 attacks.

A spokesman for former President Bush, reached yesterday, had no immediate comment on his work for the Carlyle Group.

These intricate personal and financial links have led to virtual silence in the administration on Saudi Arabia's failings in dealing with terrorists like bin Laden, said Charles Lewis, executive director of the Center for Public Integrity, a Washington, D.C.-based government watchdog group.

``It's good old fashioned `I'll scratch your back, you scratch mine.' You have former U.S. officials, former presidents, aides to the current president, a long line of people who are tight with the Saudis, people who are the pillars of American society and officialdom,'' said Lewis.

``So for that and other reasons no one wants to alienate the Saudis, and we are willing to basically ignore inconvenient truths that might otherwise cause our blood to boil. We basically look away,'' he said. ``Folks don't like to stop the gravy train.''

Some foreign policy observers said as long as American power brokers in lucrative business deals with the Saudis do not simultaneously craft U.S. foreign policy, there is no conflict of interest.

``To have Bush Sr. on the board of Carlyle is not necessarily a significant problem because Carlyle has interests all over the world,'' said Vincent Cannistraro, a former counter-intelligence chief for the Central Intelligence Agency.

Companies regularly entice powerful political figures to work for them, he said.

``It's kind of business as usual. Where it really affects things is when someone with a financial interest in a company also has a policy position in the administration,'' Cannistraro said.

Insiders trading

A significant portion of the millions of dollars U.S. companies and their politically influential executives have earned in deals with the Saudis has been through military contracts.

The Carlyle Group had a major stake in the large defense contractor B.D.M., which has multimillion-dollar contracts through its subsidiaries to train and manage the Saudi National Guard and the Saudi air force, U.S. Department of Defense records show. In 1998, Carlyle sold its controlling interest in B.D.M. to defense giant TRW International.

Meanwhile, the boards of directors of the Carlyle Group, B.D.M. and TRW are all stocked with high-level Republican policy makers.

Frank C. Carlucci, a former secretary of defense under President Reagan, was chairman of B.D.M. for most of the 1990s. Carlucci, who also served as Reagan's national security adviser and a deputy director of the CIA, now heads the Carlyle Group.

Along with former President Bush, other officials from past Republican administrations now at the Carlyle Group include: former Secretary of State James A. Baker III; ex-budget chief Richard Darman; and former Securities and Exchange Commission chairman Arthur Levitt.

President Bush is himself linked to the Carlyle group: He was a director of one of its subsidiaries, an airline food services company called Caterair, until 1994. Six years later, when Bush was governor of Texas, the board of directors of the Texas teachers' pension fund - some of whom were his appointees - voted to invest $100 million with the Carlyle Group.

The president of B.D.M. is Philip A. Odeen, a former high-level Pentagon official in the Nixon administration. During the Clinton administration, Odeen chaired the Pentagon task force that planned the restructuring of the U.S. military for the 21st century. Currently, he is the vice-chair of the Defense Science Board, which advises the Pentagon on emerging threats.

TRW, the new owner of B.D.M., has its own noteworthy board members, including former CIA director Robert M. Gates and Michael H. Armacost, who served as undersecretary of state under President Reagan and as ambassador to Japan for former President Bush.

Big Saudi money also makes its way back to Texas and the Bush family. The family of Saudi Arabia's longtime U.S. ambassador, Prince Bandar bin Sultan bin Abdul Aziz, gave $1 million to the Bush Presidential Library in College Station, Texas.

The revolving door

Another example of the complex web connecting U.S. and Saudi powerbrokers is Dick Cheney, who moved from the Pentagon to the international oil business and back as vice president last year.

After serving as the elder Bush's secretary of defense, Cheney was hired to run oil-services giant Halliburton Co., where he worked until he resigned last year to campaign with the younger Bush. In 2000, his last year with Halliburton, Cheney received $34 million when he cashed out from the company.

Not surprisingly, Halliburton's links to Cheney and other Washington power brokers appear to have helped the company's business prospects in the Middle East.

Just last month, Halliburton was awarded a $140 million contract to develop an oil field in Saudi Arabia by the kingdom's state-owned petroleum firm, Saudi Aramco, and a Halliburton subsidiary, Kellogg Brown & Root, along with two Japanese firms, was hired by the Saudis to build a $40 million ethylene plant.

Cheney isn't the only member of President Bush's inner circle whose work for firms connected to the Saudis has paid big dividends.

The current national security adviser, Condoleezza Rice, is a former longtime member of the board of directors of another giant oil conglomerate with business in the Saudi desert, Chevron, which merged with Texaco this year. Rice even has a Chevron oil tanker named after her.

Substantial profits received by U.S. leaders in private sector deals with the Saudis have helped to squelch criticism of the royal family's refusal to address the role its country has played in fueling Islamic terrorism, Lewis said.

``There's a disconnect there,'' Lewis said. ``I'm fascinated that we don't lay this at Saudi Arabia's doorstep. But the chances to cash in and the amount you can cash in for are starting to become absolutely astronomical. Who wants to look like the Boy Scout complaining about it and potentially jeopardize their own post-employment prospects?''

Former advisers to the president's father also hold key positions with U.S. firms which have teamed up with the Saudis on major oil deals.

Former Bush Secretary of the Treasury Nicholas Brady and a former Bush assistant, Edith E. Holiday, are both on the board of directors of Amerada Hess, an American petroleum firm currently teaming up with several powerful Saudi families to develop oil fields in Azerbaijan.

Another company that has done business with wealthy Saudis is international energy firm Frontera Resources Corp. based in Houston. Until recently, Frontera was a 30 percent investor in a $900 million project to develop oilfields in Azerbajian. Also investing in the project were Azerbaijan's state-run oil company and Delta-Hess, a joint-venture created by the Saudis' Delta Oil and Amerada Hess.

Randy Theilig, a Frontera spokesman, said the company relinquished its interest in the project in July because it was no longer ``economically viable,'' and has no current business dealings with the Saudis or in Azerbajian.

Members of Frontera's board of advisers, which includes former CIA director John Deutch and former Secretary of the Treasury and U.S. Sen. Lloyd Bentsen, have been active financial supporters of the Democratic Party.

Shining a bright light on the web of financial connections between the power elite in the U.S. and Saudi Arabia is critical, Middle Eastern foreign policy experts said.

``I think the fact that they have these connections makes it important for this information to be made public,'' said Henry Siegman, a senior fellow on the Middle East at the Council on Foreign Relations.

Larry Noble, executive director of the Center for Responsive Politics in Washington, D.C., a non-partisan group that examines money and politics, said the Bush-Carlyle connection is a concern.

``It is well known that the father is a close adviser to his son and therefore it does raise concerns,'' Noble said ``It's not necessarily that the father has been compromised, but the danger is that it leads people to question George W. Bush. The public has a right to feel their leaders are making independent judgments without the influence of private interests.''

FAHRENHEIT 9/11:  “The Carlyle group is a multinational conglomerate that invests in heavily government-regulated industries like telecommunications, healthcare and, particularly, defense.  --Michael Moore

FAHRENHEIT 9/11: The Bin Laden and Bush families were both connected to the Carlyle Group, as were many of the Bush family’s friends and associates.

In the early 1990s, George W. Bush served on the board of directors for CaterAir, an airline catering company. CaterAir was owned by the Carlyle Group. Kenneth N. Gilpin, “Little-Known Carlyle Scores Big,” The New York Times, March 26, 1991. “George W. Bush left the company in 1994, a year after his father’s presidency ended.” Ross Ramsey, et al., “Campaign ’94 Fisher’s Staff Slips Up On Spanish,” The Houston Chronicle, September 17, 1994.
In the mid-1990s, George H.W. Bush joined up with the Carlyle Group. “Under the leadership of ex-officials like Baker and former Defense Secretary Frank C. Carlucci, Carlyle developed a specialty in buying defense companies and doubling or quadrupling their value. The ex-president not only became an investor in Carlyle, but a member of the company's Asia Advisory Board and a rainmaker who drummed up investors. Twelve rich Saudi families, including the Bin Ladens, were among them. In 2002, the Washington Post reported, ‘Saudis close to Prince Sultan, the Saudi defense minister ... were encouraged to put money into Carlyle as a favor to the elder Bush.’ Bush retired from the company last October, and Baker, who lobbied U.S. allies last month to forgive Iraq's debt, remains a Carlyle senior counselor. Kevin Phillips, “The Barreling Bushes; Four Generations of the Dynasty Have Chased Profits Through Cozy Ties with Mideast Leaders, Spinning Webs of Conflicts of Interest,” Los Angeles Times, January 11, 2004.
The bin Laden family first invested in Carlyle in 1994. Representing Carlyle’s Asia Board, George H.W. Bush visited the bin laden family's headquarters in Jeddah, Saudi Arabia. Kurt Eichenwald, “Bin Laden Family Liquidates Holdings With Carlyle Group,” The New York Times, October 26, 2001.
James Baker was a Carlyle Senior Counselor beginning in 1993. Carlyle Group web site, site down Archived at: .
Bush's OMB chief, Richard Darman, was with Carlyle by 1994. Bob Cook, Mergers & Acquisitions Report, December 12, 1994.
George W. Bush was with Caterair -- owned by Carlyle -- until 1994, after Fred Malek, a senior advisor to Carlyle, who also served as the director of the 1988 Republican Convention, suggested to Carlyle that the President’s eldest son would “be a positive addition to Caterair’s board.” Kenneth N. Gilpin, “Little-Known
Carlyle Scores Big,” New York Times, March 26, 1991.

“Carlyle Group was holding its annual investor conference on the morning of September 11th in the Ritz Carlton Hotel in Washington, D.C. At that meeting were all of the Carlyle regulars, James Baker, likely John Major, definitely George H. W. Bush, though he left the morning of September 11th. Shafiq bin Ladin, who is Osama bin Laden’s half-brother, and was in town to look after his family’s investments in the Carlyle Group. All of them, together in one room, watching as the uh the planes hit the towers.”
On the morning of September 11, 2001, “in the plush setting of the Ritz-Carlton hotel in Washington, DC, the Carlyle Group was holding its annual international investor conference. Frank Carlucci, James Baker III, David Rubenstein, William Conway, and Dan D’Aniellow were together, along with a host of former world leaders, former defense experts, wealthy Arabs from the Middle East, and major international investors as they terror played out on television. There with them, looking after the investments of his family was Shafiq bin Laden, Osama bin Laden’s estranged half-brother. George Bush Sr. was also at the conference, but Carlyle’s spokesperson says the former president left before the terror attacks, and was on an airplane over the Midwest when flights across the country were grounded on the morning of September 11. In any circumstance, a confluence of such politically complex and globally connected people would have been curious, even newsworthy. But in the context of the terrorist attacks being waged against the United States by a group of Saudi nationals led by Osama bin Laden, the group assembled at the Ritz-Carlton that day was a disconcerting and freakish coincidence.” Dan Briody, The Iron Triangle, John Wiley & Sons, Inc., 2003, p. 139-140. See also, Melanie Warner, “What do George Bush, Arthur Levitt, Jim Baker, Dick Darman, and John Major Have in Common? (They All Work for the Carlyle Group),” Fortune, March 18, 2002,
“With all the weapons companies it owned, The Carlyle Group was in essence, the 11th largest defense contractor in the United States.”

“By virtue of its holdings in companies like U.S. Marine Repair and United Defense Industries, Carlyle is the equivalent of the eleventh-largest defense contractor in the nation. It has $16.2 billion under management and claims an average annual return of 35%.” Phyllis Berman, “Lucky Twice,” Forbes, December 8, 2003.
FAHRENHEIT 9/11: “It owned United Defense, makers of the Bradley armored fighting vehicle. September 11th guaranteed that United Defense was going to have a very good year. Just 6 weeks after 9-11 Carlyle filed to take United Defense public and in December made a one day profit of $237 million dollars.”

“On a single day last month, Carlyle earned $237 million selling shares in United Defense Industries, the Army's fifth-largest contractor. The stock offering was well timed: Carlyle officials say they decided to take the company public only after the Sept. 11 attacks. … On Sept. 26, [2001], the Army signed a $665-million modified contract with United Defense through April 2003 to complete the Crusader's development phase. In October, the company listed the Crusader, and the attacks themselves, as selling points for its stock offering. Mark Fineman, “Arms Buildup is a Boon to Firm Run by Big Guns,” Los Angeles Times, January 10, 2002.
"Still, in its annual report for 2001, United announced that it had been awarded a three-year, $697 million contract to complete full upgrading of 389 Bradley units and had added a $ 655 million contract modification to complete the Crusader's 'definition and risk-reduction phase contract,' which would be worth $ 1.7 billion through 2003. Together, the Crusader and Bradley programs contributed 41 percent of United sales in 2001, the report said. With Crusader and the Bradley upgrade in hand, a decision was made to sell United stock to the public in late 2001." Walter Pincus, “Crusader a Boon to Carlyle Group Even if Pentagon Scraps Project,” Washington Post, May 14, 2002.
“With so much attention focused on the bin Laden family being important Carlyle investors, the bin Ladens eventually had to withdraw.”
"Following the attacks on September 11, the bin Laden family’s investments in the Carlyle Group became an embarrassment to the Carlyle Group and the family was forced to liquidate their assets with the firm." Kurt Eichenwald, “Bin Laden Family Liquidates Holdings with Carlyle Group,” The New York Times, October 26, 2001.
“Bush’s dad stayed on as Senior Advisor to Carlyle’s Asia Board for another 2 years.”
“Former President Bush was at one time the Senior Advisor to the Carlyle Asia Advisory Board but retired from that position in October 2003. He holds no other positions at Carlyle.”  
“The former president is no longer a company adviser, but he still has investments there, Mr. Ullman (vice president for corporate communications) said.” Dallas Morning News, "Michael Moore keeps heat on at premiere", May 18, 2004
George H. W. Bush receives daily CIA briefings.
"One of the people who corresponded with [former ambassador Joseph] Wilson is George H. W. Bush, the only president to have been head of the C.I.A.-- he still receives regular briefings from Langley." Vicky Ward, “Double Exposure,” Vanity Fair, January 2004.
Former President Bush has made efforts to keep abreast of foreign affairs, partly by exercising his right to be briefed by CIA personnel about developments around the globe. Ha'aretz, “George Bush Sr. Vouches for Son's Support of Israel to the Saudis”, July 16, 2001.
“They are benefiting from the confusion that arises when George H. W. Bush visits Saudi Arabia, on behalf of Carlyle, and meets with the royal family and meets with the bin Laden family. Is he representing the United States of America, or is he representing an investment firm in the United States of America or is he representing both?”
Few firms could have rivaled the Carlyle Group for its array of high-powered friends. The Washington-based venture capital house had been likened to a retirement home for Gulf War veterans, and the likes of George Bush Sr, James Baker, and John Major ‘can take credit for its rapid rise.’ The Observer noted in a profile, “It used to be fashionable to deride Carlyle as a second-rate influence-peddler and dismiss its stable of retired politicians as superannuated ‘access capitalists.’” … Carlyle had sponsored visits by Bush Sr. to South Korea and China, and his clout with the Saudi government – perhaps Carlyle’s most important customer – is also likely to be valued. Conal Walsh, “The Carlyle Controversy: With Friends in High Places: Former World Leaders Give Carlyle Group Unrivalled Prowess in Lobbying for Business,” The Observer, September 15, 2002.

“’It should be a deep cause for concern that a closely held company like Carlyle can simultaneously have directors and advisers that are doing business and making money and also advising the president of the United States,’ says Peter Eisner, managing director of the Center for Public Integrity, a non-profit-making Washington think-tank. ‘The problem comes when private business and public policy blend together. What hat is former president Bush wearing when he tells Crown Prince Abdullah not to worry about US policy in the Middle East? What hat does he use when he deals with South Korea, and causes policy changes there? Or when James Baker helps argue the presidential election in the younger Bush's favour? It's a kitchen-cabinet situation, and the informality involved is precisely a mark of Carlyle's success.’" Oliver Burkeman Julian Borger, “The Winners: The Ex-Presidents' Club,” The Guardian, October 31, 2001.
“The Saudi family of Osama bin Laden is severing its financial ties with the Carlyle Group, a private investment firm known for its connections to influential Washington political figures… In recent years, Frank C. Carlucci, the chairman of Carlyle and a former secretary of defense, has visited the family's headquarters in Jeddah, Saudi Arabia, as have former President George Bush and James A. Baker III, the former secretary of state. Mr. Bush works as an adviser to Carlyle, and Mr. Baker is a partner in the firm.” Kurt Eichenwald, “Bin Laden Family Liquidates Holdings With Carlyle Group,” New York Times, October 26, 2001.
“Another group of people invest in you, your friends, and their related businesses $1.4 billion over a number of years.”
“In all, at least $1.46 billion had made its way from the Saudis to the House of Bush and its allied companies and institutions.” Craig Unger, House of Bush, House of Saud, p. 200, (Scribner: New York, 2004). For a complete breakdown of the investments, see Unger’s Appendix C, pp. 295-298.
This number includes investments made and contracts awarded at the time that Bush’s friends were involved in the Carlyle Group:
James Baker was a Carlyle Senior Counselor beginning in 1993. Carlyle Group web site, site down. Archived at:

Bush's OMB chief, Richard Darman, was with Carlyle by 1994. Bob Cook, Mergers & Acquisitions Report, December 12, 1994.

George W. Bush was with Caterair -- owned by Carlyle -- until 1994, after Fred Malek, a senior advisor to Carlyle, who also served as the director of the 1988 Republican Convention, suggested to Carlyle that the President’s eldest son would “be a positive addition to Caterair’s board.” Kenneth N. Gilpin, “Little-Known CarlyleScores Big,” New York Times, March 26, 1991

Bush Sr. was first involved in Carlyle by the mid-1990s and no later than 1997.Kevin Phillips, “The Barreling Bushes; Four Generations of the Dynasty Have Chased Profits Through Cozy Ties with Mideast Leaders, Spinning Webs of Conflicts of Interest,” Los Angeles Times, January 11 , 2004; Dan Briody, The Iron Triangle, John Wiley & Sons, Inc., 2003.

Additional back up for these numbers is as follows:
Saudi investments in the Carlyle Group worth $80,000,000. Craig Unger, “Saving the Saudis,” Vanity Fair, October 2003. The number was reported to Unger by the head of Carlyle, David Rubenstein, in an interview.

In 1994, Carlyle owned military contractor BDM was “awarded a contract to provide technical assistance and logistics support to the Royal Saudi Air Force.” Worth: $46,200,000. PR Newswire, “BDM Federal Awarded $46 Million Contract To Support Royal Saudi Air Force,” October 27, 1994.

During the 1990s, the Vinnell Corporation (a BDM subsidiary) held contracts to train the Saudi Arabian National Guard, worth $819,000,000. Robert Burns, “US Advises Saudi Military On Range Of Threats—Including Terrorism,” Associated Press, November 13, 1995.

In 1995, BDM collected a contract to “augment Royal Saudi Air Force staff in developing, implementing, and maintaining logistics and engineering plans and programs.” Worth: $32,500,000. Defense Daily, “Defense Contracts,” June 23, 1995, as cited by Craig Unger.

In 1996, BDM was awarded a contract “to provide construction of 110 housing units at the MK-1 Compound, Khamis Mushayt, Saudi Arabia, for Technical Support Program personnel assisting the Royal Saudi Air
Force…. This effort supports foreign military sales to Saudi Arabia.” Worth: $44,397,800. Department of Defense News Release, “BDM Federal, Incorporated,” April 1, 1996.

During the late 1990s, Vinnell was awarded a contract “for the Saudi Arabian National Guard (SANG) Modernization Program. The three-year contract, awarded competitively, calls on Vinnell to continue to support SANG training operations and related activities.” Worth: $163,300,000 . PR Newswire, “Vinnell Selected for Award of $163.3 Million Contract for Saudi Arabian National Guard Modernization Program,” May 3, 1995. Kashim Al-An, “Saudi Guard Gets Quiet Help from US Firm with Connections,” Associated Press, March 22, 1997.

In 1997, BDM was awarded a contract “to provide for 400 contractor personnel to support the Royal Saudi Air Force in developing, implementing, and maintaining logistics, supply, computer, reconnaissance, intelligence and engineering plans and programs.” Worth: $18,728,682 (note: this is a “face value increase to a firm fixed price contract). Defense Daily, “Defense Contracts,” February 4, 1997.

Note: Carlyle purchased BDM and its subsidiary Vinnell in 1992 and sold it to TRW in Dec, 1997.

In November 2001, Dick Cheney’s former company Halliburton was awarded “a contract to provide services for the Saudi Arabian Oil Company’s (Saudi Aramco) Qatif Field development project in the eastern province of Saudi Arabia.” Worth: $140 million. Halliburton press release, “Halliburton Awarded $140 Million Contract by Saudi Aramco,” November 14, 2001.

The same month, a consortium of three companies led by Halliburton subsidiary KBR won a “contract for engineering, procurement, and construction of an ethylene plant for Jubail United Petrochemcial Company, a wholly owned company of Saudi Basic Industries Corporation.” Worth: $40 million. MaggieMulvihill, et al., “Bush Advisers Cashed in on Saudi Gravy Train,” Boston Herald, December 11, 2001 ; Halliburton press release, “Halliburton KBR, Chiyoda, and Mitsubishi Win SaudiArabian Ethylene Project,” November 19, 2001. (Note: The $40 million figure cited for this contractin all likelihood is much too low. Three separate energy industry journals place the value of the contract at $350 million. While there are two other companies involved, all reports point out that Halliburton KBR led the consortium and thus, if the contract were $350 million, it is likely that their cut would be—as lead contractor—significantly more than $40 million. See, Petroleum Economist, “News in Brief,” January 14, 2002; Chemical Week, “KBR, Chiyoda, Mitsubishi Win Jubail Ethylene Contract,” December 5, 2001; Middle East Economic Digest, “Projects Update: Petrochemicals,” March 7, 2000.

Soon after Harken bought out George W. Bush’s company Spectrum 7 in 1986 and placed Bush on their board of directors, a Saudi sheik swooped in to save the troubled Harken. Abdullah Taha Bakhsh purchased a 17% stake in the company. Worth: $25,000,000. Thomas Petzinger Jr., et al., “Family Ties: How Oil Firm Linked to a Son of Bush Won Bahrain Drilling Pact; Harken Energy Had a Web of Mideast Connections; In the Background: BCCI; Entrée at the White House,” Wall Street Journal, December 6, 1991.

In 1989 Saudi Arabias King Fahd donated money to the Barbara Bush Foundation for Family Literacy. At the time, Ms. Bush was the First Lady of the United States. The King’s contribution represented almost half the amount the organization was able to raise that year. Worth: $1,000,000. Thomas Ferraro, “Saudi King also Contributed to Barbara Bush’s Foundation,” United Press International, March 13, 1990.

Following George H. W. Bush’s departure from office, Saudi Ambassador to the United States, Prince Bandar, donated money to the Bush Sr. Presidential Library fund. Worth: At least $1,000,000. Dave Montgomery, “Hail to a Former Chief,” Fort Worth Star-Telegram, November 7, 1997.

Both George H. W. Bush and George W. Bush attended the elite Phillips Andover Academy in Massachusetts. In the summer of 2002 the Academy announced it had established a scholarship in Bush Sr.’s name. Saudi Prince Alwaleed binTalal bin Adul Aziz Alsaud -- the same Prince who bailed out EuroDisney in the mid-Nineties -- was among the donors to the scholarship. Worth $500,000. Phillips Academy-Andover press release, “A Statement from Phillips Academy-Andover Regarding the Bush Scholars Program,” December 31, 2002.

Among the many presents George W. Bush has received from foreign leaders and dignitaries during his term as President, perhaps none is grander than the one Prince Bandar bestowed upon him. Bandar gave the current president a “C.M. Russell oil canvas painting of a native American buffalo hunt….” Worth: $1,000,000. Siobhan McDonough, “Gifts to President are Gratefully Received, Quickly Carted into Storage,” Associated Press, July 14, 2003.

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