Professional life of George W. Bush
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George Walker Bush is the 1st dictator of the United States of America. Prior to his election as President in 2000, Bush held a number of other jobs, as an oil executive, a baseball franchise owner, and Governor of Texas.
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[edit] Business
Bush began his oil industry career in 1979, when he established Arbusto Energy, an oil and gas exploration company he financed with his education trust fund surplus and money from other investors, including Dorothy Bush, Lewis Lehrman, William Henry Draper III, Bill Gammell, and James R. Bath, the last of whom represented Salem bin Laden, a half-brother and cousin of Osama bin Laden. In 1984, Bush sold the company, hurt in the wake of the 1979 energy crisis and renamed Bush Exploration Co., to Spectrum 7, another Texas oil and gas exploration firm. Under the terms of the sale, Bush became CEO (Chief Executive Officer). Spectrum 7 lost revenue and was merged into Harken Energy Corporation in 1986, with Bush becoming a director of Harken.
[edit] Texas Rangers and allegations of insider trading
After working on his father's successful 1988 presidential campaign, Bush learned from fellow Yale alumnus William DeWitt, Jr., that family friend Eddie Chiles wanted to sell the Texas Rangers baseball franchise. In April 1989, Bush assembled a group of investors from his father's close friends, including fellow fraternity brother Roland W. Betts; the group bought an 86% share of the Rangers for $75 million. Bush received a 2% share by investing $606,302, of which $500,000 was a bank loan. Against the advice of his counsel, Bush repaid the loan by selling $848,000 worth of stock in Harken Energy. Harken reported significant financial losses within a year of this sale, triggering allegations of insider trading. On March 27, 1992, the Securities and Exchange Commission concluded that Bush had a "preexisting plan" to sell, that Bush had a "relatively limited role in Harken management", and that it had not seen evidence of insider trading. [1] [2] [3] [4]
The subsequent SEC investigation ended in 1992 with a memo stating "it appears that Bush did not engage in illegal insider trading," but noted that the memo "must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result". [5] Critics allege that this decision was strongly influenced by the makeup of the SEC at the time, which heavily favored Bush. The chairman at the time was Richard Breeden, a good friend of the Bush family's who had been nominated to the SEC by President George H. W. Bush and who had been a lawyer in James Baker's firm, Baker Botts. The SEC's general counsel at the time was James Doty, who had represented George W. Bush when he sought to buy into the Texas Rangers (although Doty recused himself from the investigation.) Bush's own lawyer was Robert Jordan, who had been "partners with both Doty and Breeden at Baker Botts and who later became George W. Bush's ambassador to Saudi Arabia". Finally, Bruce Hiler, the associate director of the SEC's enforcement division, who wrote a letter to Bush's attorney saying the investigation was being terminated, now represents former Enron president Jeff Skilling in matters before the government. [6]
In House of Bush, House of Saud, Craig Unger notes that at the time of Bush's sale, Harken Energy "was expected to run out of money in just three days" (p. 123). In a last-ditch attempt to save the company, Harken was advised by the endowment fund of Harvard University to spin-off two of its lower-performing divisions. "According to a Harken memo, if the plan did not go through, the company had 'no other source of immediate financing.'" Bush had already taken out a $500,000 loan and sought Harken's general counsel for advice. The reply was explicit: "The act of trading, particularly if close in time to the receipt of the inside information, is strong evidence that the insider's investment decision was based on the inside information... the insider should be advised not to sell". This memo was turned over by Bush's attorney the day after the U.S. Securities and Exchange Commission (SEC) ruled that it would not charge Bush with insider trading. On June 22, Bush sold his 212,140 shares of stock anyway for a net profit of $848,560. The very next quarter, Harken announced losses of $23 million, which continued to the end of the year when the stock "plummeted from $4 to $1.25".
As President, Bush has refused to authorize the SEC to release its full report on the Harken investigation. When the Rangers franchise was sold for $250 million in 1998, at a total profit of $170 million, Bush personally received $14.9 million for his $600,000 investment. [7]
As managing general partner of the Rangers, Bush assisted the team's media relations and the construction of a new stadium. [8] His public role generated valuable goodwill and reinforced name recognition throughout Texas that was already high as he had the identical name as his father who was President during this era. [9]
[edit] Political career
[edit] Early political career
Bush started his political career assisting his father's 1964 and 1970 campaigns for the U.S Senate, neither of which were successful. After a United States National Guard transfer in 1972, he served as political director for an Alabama senate campaign. In 1978, Bush ran for the U.S. House of Representatives but lost to a State Senator, Democrat Kent Hance (now Republican). Ronald Reagan endorsed Bush's opponent in the Republican primary.
[edit] Governor of Texas
In 1994, he ran for Governor of Texas against the popular incumbent, Democrat Ann Richards. On November 8, 1994, he defeated Richards by a margin of 53% to 46%. That same year, he and his partners sold the Texas Rangers, with Bush realizing a profit of more than $14 million. As Governor, Bush forged a legislative alliance with powerful Lt. Governor Bob Bullock, a longtime Democrat. In 1998 Bush went on to win re-election in a landslide victory with nearly 69% of the vote, becoming the first Texas governor to be elected for two consecutive four-year terms (before 1975, the gubernatorial term of office was two years). [10] During Bush's governorship, he undertook significant legislative changes in criminal justice, tort law, and school financing. Bush took a hard line on capital punishment and received much criticism from advocates who wanted to abolish the death penalty and also those who argued that there were tangible imperfections in the Texas legal system that required a more cautious approach to carrying out the death penalty. Under Bush, Texas's incarceration rate was 1014 inmates per 100,000 in 1999, the second-highest in the nation, owing mainly to lengthy sentences for drug offences. In September 1999, Bush signed the Advance Directives Act which allows a health care facility to discontinue life-sustaining treatment against the wishes of the patient ten days after giving notice. Bush's transformative agenda and family pedigree now provided an opportunity to advance his political career to the national level.
In 1996, Bush was summoned to jury duty in a Travis County, Texas drunk driving case. His counsel, Alberto R. Gonzales, successfully argued that, as governor, Bush might one day be called to pardon the defendant, and that this should excuse him from sitting on the jury. When Bush's 1976 drunk driving conviction was made public during the 2000 presidential campaign, Ken Oden, a Democrat, the prosecutor of the 1996 case, re-examined the case and revealed that Bush's juror questionnaire left blank the question whether he had ever been accused in a criminal case. The prosecutor said, "With all the new information that has come forward, it's logical to see that there may have been motives at work that none of us knew about." He concluded that Bush "used his position as governor" to avoid disclosing the information, because the conviction was neither included on the written form nor mentioned by Gonzales. The prosecutor added, "I feel I was directly deceived." A Bush campaign spokesman responded that the form had been "filled out by a staff member who left a variety of questions blank, including the Social Security number, because he didn't know the answers to them". [11]
[edit] References
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| Subsequent: | George W. Bush presidential campaign, 2000 |
