High Profile Republican Firm, Cerberus, to Sell Freedom

It has come to this. Cerberus–the private equity firm full of well-connected Republicans like John Snow and Dan Quayle–has decided it can no longer continue to invest in Freedom Group, the maker of the Bushmaster assault rifle used in Friday’s massacre at Sandy Hook.

In its statement announcing the decision, it attempts to absolve itself of responsibility for killing 20 children.

In 2006 affiliates of Cerberus Capital Management, L.P. made a financial investment in Freedom Group.  Freedom Group does not sell weapons or ammunition directly to consumers, through gun shows or otherwise.  Sales are made only to federally licensed firearms dealers and distributors in accordance with applicable laws and regulations.  We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition.

It then couches its decision to sell Freedom in fiscal responsibility, not moral complicity.

It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level.  The debate essentially focuses on the balance between public safety and the scope of the Constitutional rights under the Second Amendment.  As a Firm, we are investors, not statesmen or policy makers.  Our role is to make investments on behalf of our clients who are comprised of the pension plans of firemen, teachers, policemen and other municipal workers and unions, endowments, and other institutions and individuals.  It is not our role to take positions, or attempt to shape or influence the gun control policy debate.  That is the job of our federal and state legislators.

There are, however, actions that we as a firm can take.  Accordingly, we have determined to immediately engage in a formal process to sell our investment in Freedom Group. [my emphasis]

But that mention of its clients, including teachers pension plans, is the real tell. As CNN suggests, it was likely pressure from the California Teacher’s pension fund that prompted this decision.

Yesterday we reported that one of the largest investors in Cerberus private equity funds was the California State Teachers’ Retirement System, which subsequently said it would review its indirect investment in Freedom Group (it made no such pledge following the Aurora shooting, where a Bushmaster rifle also was used).

In any case, having made the decision to sell Freedom, things will now get interesting for Cerberus, as the sharp decline in gun stocks will force Cerberus to sell Freedom at a big loss.

Often when something like that happens–most spectacularly when Cerberus decided to sell Chrysler–it asks for a bailout. Will John Snow and Dan Quayle orchestrate a federal bailout for themselves again, as they did with the auto bailout?

Tweet about this on Twitter7Share on Reddit0Share on Facebook3Google+0Email to someone

12 Responses to High Profile Republican Firm, Cerberus, to Sell Freedom

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12

Emptywheel Twitterverse
JimWhiteGNV RT @DCreDC: Please note, #MI03, @RepJustinAmash's brave (1 of 8) and humane No vote tonight against funding the 5%-effective #IronDome whil…
3hreplyretweetfavorite
JimWhiteGNV RT @drunkenpredator: "Also, we blew some folks up with robots. Lotta folks, come to think of it."
4hreplyretweetfavorite
JimWhiteGNV @Pedinska Indeed. Then it turns into what we call UFC grooming.
4hreplyretweetfavorite
bmaz Just saw my first @RubenGallego commercial on TV, was at 6:51pm on @CNN Good to see, need more. Go Ruben!
4hreplyretweetfavorite
bmaz It is really brave of High Holy Civil Rights Constitutional Law Scholar+Humanitarian Obama to "condemn" the Palestinians in face of genocide
4hreplyretweetfavorite
JimWhiteGNV This grooming session looks peaceful for now, but is likely to escalate to violence. http://t.co/gdcySOJOkN
5hreplyretweetfavorite
emptywheel Apparently Director of "Intelligence" Clapper doesn't remember that just 5 years ago govt declassified more than 480 pages of torture docs.
5hreplyretweetfavorite
emptywheel RT @ChadPergram: DNI Clapper: The redactions were the result of an extensive & unprecedented interagency process..to protect sensitive clas…
5hreplyretweetfavorite
emptywheel @Casual_Obs Most of what @onekade is riffing on is in this post. http://t.co/HBWMUN6eR9 I was riffing too.
5hreplyretweetfavorite
emptywheel @Casual_Obs No, I used that. It's the mid-point of estimates, but as @onekade notes, some estimates are 3X that.
6hreplyretweetfavorite
emptywheel @jilliancyork You had me worried! @EFF
6hreplyretweetfavorite
emptywheel @Kittfornow Well, sure. But faking accountability while protecting the powerful comes naturally to Bayh. Like breathing. @onekade
6hreplyretweetfavorite
December 2012
S M T W T F S
« Nov   Jan »
 1
2345678
9101112131415
16171819202122
23242526272829
3031