Bushmaster

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?

Emptywheel Twitterverse
emptywheel @BillPutnamPhoto I was wondering that too. Stealth drone! I guess F-35 is supposed to replace unreliable allies on the ground? @AthertonKD
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emptywheel Did Vlad Putin ever gain political advantage by physically threatening those who teach the nation's future?
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JimWhiteGNV When was the last time the Mets and Yankees were both in first place in Aug or Sept?
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emptywheel @jakemcintyre Also, you're not a Jets fan and so not irrationally forgetting there are others in division...
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emptywheel Why NOT promote Lindsey beyond contributions? He contributes where it counts, in unquestioning devotion to military. https://t.co/WzLmjzL4qQ
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emptywheel @jakemcintyre Where's your excitement for the Pats-debacle-year Bills supremacy?
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emptywheel @KevinOfMI Oh yuck! Do you take the truck across if often (you were in a car today, weren't you?)
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emptywheel @KevinOfMI That bridge scares me.
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emptywheel If MI still had film credits that storm would have made a great setting for Sharknado4.
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bmaz @mattapuzzo @Nick_Hentoff Sure, but thats no filter, that is a joke. The problem is that it has been allowed to infest+slide thru trial cts
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emptywheel RT @KailiJoy: So the journalists who went to the hush-hush Koch party aren't the same ones who complain Hillary won't talk to 'em, right?
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emptywheel @Priestic1 You MUST be being a downer cause I asked the same thing a few hours ago.
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