Moran Raises Failed Company
Waiting to see the first time Terry McAuliffe's investment in failed telecommunications giant Global Crossing would pop up on the campaign trail? Last night was your night.
In an otherwise fairly placid debate on education, Brian Moran brought the company up in response to a question about teacher pensions.
Moran never mentioned McAuliffe by name and the reference likely went over the heads of most of the 700 teachers in the audience. But it was clearly a veiled slam at the former DNC head and millionaire entrepreneur.
"Running government like a business doesn't always work," Moran said. "Running government like Wall Street definitely doesn't work. You know, business plans are about profit--I'm about people."
McAuliffe has packaged his proposals for the state as a "business plan."
Moran continued. "How many corporate disasters do we have to suffer to understand this? Corporate disasters like Enron, AIG, Global Crossing." Moran said those were failures where "investors walked away with millions leaving their employees up the pole without pensions."
McAuliffe invested $100,000 in the company, then sold stock three years before it went belly up for millions. He says he made $8.1 million on the sale of half the stock he owned and that he still owned the remainder of his stock when the company went bankrupt in 2002, leaving 10,000 employees out of work. Investors lost more than $50 billion when the company died.
McAuliffe was never an employee or board member of the company but, still, voters may find the profit he made at the ultimately unsuccessful company distasteful. He's been criticized for it in the past, largely by Republicans when he was head of the Democratic party.
Elisabeth Smith, a spokesperson for McAuliffe, responded to Moran's comments:
"While Virginia is facing the greatest economic crisis since the Great Depression, it's unfortunate that Brian Moran is rehashing old Republican attacks that were debunked and discredited by news organizations years ago. These attacks didn't work then, and they will not work now. Terry will continue to discuss his experience creating thousands of jobs and his plans to get Virginia's economy back on track."
April 24, 2009; 4:37 PM ET
Categories: 2009 Governor's Race , Brian J. Moran , Rosalind Helderman , Terry McAuliffe
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