Daily news, documents and intelligence about Offshore Financial Centers and those who conduct business in them that you will not find anywhere else.
RSS Feed Print
Stephen Feinberg,Cerberus,IAP Worldwide and Bawag ?
Posted: Saturday, August 13, 2011

Posted: 1/18/2007 7:43:50 PM

By: Cerberus' Hidden Empire

Whenever this Business Week list of Cerberus'companies was done,it was before the recent purchase of Bawag Bank of Austria.So does Cereberus and Mr.Feinstein have the records of all those worthless U.S. penny stocks Bawag and Refco and Balmore Fund and Celeste Trust and all those other less known or unknown offshore entities and anonymous accounts who have been Refco's and Bawag's real clients all these years ? ? Should Cerberus be held liable for buying an obviously troubled bank that is known for 'securities' fraud and probable money laundering and not incur any responsibilty for the lingering legacy of its activities ?

Cerberus' Hidden Empire

Hidden Empire (extended)Cerberus Company Description Web site

BlueLinx Holdings Building products distributor
Anchor Glass Glass container manufacturer for Anheuser-Busch and other companies N.A.
NewPage Corp. Coated and carbonless paper producer
Escanaba Timber Major wood supplier managing 900,000 acres of forest
Debis AirFinance Aircraft leasing and financing company with 250 jets and turboprops leased to 85 airlines worldwide
LNR Property Corp. Real estate investment and management company
Vanguard Car Rental Umbrella company form Alamo Rent-a-car and National Car Rental
Strategic Restaurants Acquisition Corp. Burger King's second-largest franchisee with 226 restaurants N.A.
SSA Global Technologies Leading provider for enterprise software and services
Global Home Products Manufacturer of Burnes picture frames, Mirro cookware, and Anchor Hocking glassware
Aozora Bank 48-year-old Japanese bank with $43.5 billion in assets
GDX Automotive Auto parts manufacturer
Talecris BioTherapeutics* Protein therapy provider for rare and chronic illnesses such as immune disorders, shock, and burns
Mervyn's* Department store chain with 257 locations in 13 states
Guilford Mills One of America's largest auto seat suppliers
IAP Worldwide Services U.S. Defense Dept. supplier of services such as base-camp support
Velocita Wireless Wireless services provider to companies, government organization, and 20% of all BlackBerries
Inovis* B2B solutions provider
Sports Brands International Controls, directly or indirectly, 20 international companies that create and distribute sports apparel and footwear under the Fial and Ciesse brands.
Exco Resources* Oil and gas acquisition, exploitation, development, and production company
Flexible Flyer Swing set, hobby horse, and tricycle manufacturer
G+G Retail Teen clothing manufacturer
General Fiber Communications Residential CATV installation services provider
Aegis mortgage Mortgage banking company
CTA Acoustics Fiber-related automotive parts supplier to Ford, GM, and DaimlerChrysler
Tandem Staffing Solutions Staffing services provider
Formica Corp.* Leading supplier of decorative surfacing materials
Rafaella Sportswear Manufacturer of women's casual and career wear, mostly in missy sizes N.A.
Kokusai Kogyo Japanese leisure services provider that runs bus services and owns golf courses as well as hotels
Peguform GmbH & Co. KG*** German automotive components supplier to auto makers such as Porsche and Volkswagen
Jade GmbH German property company N.A.
Airway Industries Manufacturer of luggage sold under the Atlantic Luggage brand
Pitney Bowes Capital Services** Commercial financing business N.A.
*Cerberus is a co-investor with other private investment firms
**Cerberus will own 48% of the company when the pending spin-off is completed.
***Operations in Germany, Spain, Mexico, and Brazil
DATA: Capital IQ, Dealogic, Standard & Poor's, Dun & Bradstreet, Hoover's, Companies

Posted: Saturday, August 13, 2011

Posted: 1/17/2007 7:50:16 PM

By: dan quayle,point man in japan

I bet Stephen Feinberg who describes himself as 'blue collar' would get along real well with Rahm Emanuel's Demo boy Tim Mahoney.Someone might be able to explain nuances but for all intents and purposes they all seem to be in the same lines of 'business'to me.But of course I've become rather cynical after all these years.

Stephen Feinberg -Bio

Cerberus emerges from the underworld
Wednesday, August 24, 2005

By Randall Smith, The Wall Street Journal

NEW YORK -- In myth, Cerberus is the fearsome three-headed dog at the gates of the underworld.

One speciality of Cerberus Capital Management LP is investing in debt of companies at the gates of bankruptcy.

The scary name has intimidation value for Cerberus founder Stephen Feinberg, a reclusive former Princeton tennis captain with a regular-guy streak. A onetime Army Reserve paratrooper, he hunts deer when not hunting financial deals and drives an aging Ford pickup truck, friends and colleagues say.........

To soften a combative image won in the smack-down arena of bankruptcy court, Cerberus hired former Vice President Dan Quayle as an ambassador and door-opener. Mr. Quayle, who has worked full time for Cerberus since 2000, is chairman of Cerberus Global Investments LLC.

For example, Mr. Quayle said, he helped Cerberus with its investment in bonds of MCI Inc., the former WorldCom until it emerged from bankruptcy court. He served in the same 1989-1993 administration of President George H. W. Bush as Richard Breeden, the former Securities and Exchange Commission chairman, who was MCI's court-appointed monitor.

Mr. Quayle has also served as a point man in Japan, where Cerberus has made several large investments, including an $850 million investment in Nippon Credit Bank, since renamed Aozora Bank Ltd..............

Internal Administrator
Posted: Saturday, August 13, 2011
Joined: 10/12/2010
Posts: 5780

Posted: 1/17/2007 7:11:47 PM

By: where's refco,balmore and celeste ?

Did anyone else see this ? Below are to links with quotes on the purchase of Bawag by Stephen Feinberg's Cerebrus Capital Management.Does anyone know if Cerebrus has had any experience with worthless U.S. penny stocks or do they have another strategy for making Bawag pay ? Does Mr.Feinberg have anything to do with Balmore Fund and Celeste Trust ?

When did Cerebrus get their IAP Worldwide Services and their military-industrial complex connections ? Is he the Israeli connection to Bawag ? Just wondering ........

BAWAG bank sold to US investment firm Cerberus
30 December 2006, 14:00 CET
(VIENNA) - The Austrian Trade Unions Association OeGB announced on Saturday it had sold the BAWAG bank to the New York-based private investment firm Cerberus Capital Management, OeGB announced.

BAWAG, Austria's fifth largest bank, which is wholly owned by the OeGB, was sold in its entirety.

The transaction, which takes effect at the start of 2007, is worth 3.2 billion euros (4.2 billion dollars), of which 2.6 billion euros will go to the OeGB and 600 million to BAWAG.

Cerberus has reserved the right to deduct from the sale price any liabilities which surface between January and April.

The sale should allow the OeGB to clean up its accounts and clear its debts. The bank was bailed out by the Austrian government last spring after several financial scandals had pushed BAWAG to the brink of bankruptcy.

Cerberus, who became involved with its Austrian subsidiaries Generali and Wuestenrot as well as the Austrian Post, was announced as the buyer over four other candidates on December 14.

Text and Picture Copyright 2006 AFP. All other Copyright 2006 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.

Secretive Cerberus quietly building financial empire

SILENT INFLUENCE: Although it avoids media attention, the investment firm has a hand in some of the world's best-known companies and hires political heavyweights

Monday, Dec 25, 2006, Page 11

Coy Wyatt, foreground, clamps electrical lines under a bus being built for the Chicago Transit Authority in a North American Bus Industries factory in Wichita, Kansas on Aug. 21. North American Bus Industries, Inc of Anniston, Alabama, was acquired by Cerberus Capital Management, LLP in February and now manages funds and accounts with capital in excess of US$16 billion.

On the upper floors of a soaring Midtown Manhattan skyscraper, behind heavy glass doors that do not bear his name, sits Stephen Feinberg, one of the country's most powerful -- and anonymous -- financiers.

Over the last few years, Feinberg's US$24 billion investment fund, Cerberus Capital Management, named after the mythological three-headed dog that guards the gates of Hades, has quietly acquired some of the world's best-known companies. The car rental chains National and Alamo, as well as parts of Air Canada and the retailers Mervyn's and Albertson's, are now all within the Feinberg empire.

Last month Feinberg secured a majority stake in General Motors' financing arm, GMAC, thus gaining control of the seventh-largest financial institution in the US.

Army contractor

Through another company it controls, IAP Worldwide Services, Cerberus is poised to become one of the US Army's largest contractors in Iraq. Earlier this month, Cerberus and other funds offered to invest up to US$3.4 billion in Delphi Corp, the auto parts giant.

All told, Cerberus has a controlling interest in more than 45 companies that employ more than 250,000 people and generate US$50 billion in revenue each year, more than the sales of Microsoft, Motorola or PepsiCo. The fund has earned an average annual return of about 22 percent over the last seven years, according to its marketing materials, and Institutional Investor magazine estimated that Feinberg took home a US$75 million paycheck in 2004.................

Posted: Saturday, August 13, 2011

Posted: 1/18/2007 8:19:51 PM

By: Israel,Olmert,Cerberus,Bank Leumi

Whose Bank Leumi?

By Nehemia Shtrasler

Beneath the surface, very quietly, a major struggle is taking place over one of the biggest transactions ever conducted in Israel: the sale of Bank Leumi.

The story began in October 1983, when the shares of the major banks collapsed with a loud bang and the state invested $7 billion in order to save the banks and the economy. Since then, the process of selling the banks has been conducted with egregious slowness. First Union Bank was sold (in 1993), then United Mizrahi Bank (in 1994), then Bank Hapoalim (in 1997) and finally Israel Discount Bank (in 2005). Bank Leumi remained on the shelf.

At first, there was talk of selling the bank via the "options plan." In other words, its shares would be distributed to the general public free of charge. That was a very bad plan, both because it would have caused the Finance Ministry to lose billions, and because the bank would have remained ownerless, and would thus have continued to be controlled by its executives.............

This is a veteran and respected consortium, among the largest in the world in the financial field, and most of its members are wealthy Jews. It has purchased a bank in Japan and a bank in Europe, and it intends to make Bank Leumi a major international player, to expand its activity to financing international transactions and to take it out of the provinces into the wide world. But it fears that the Bank of Israel has been checking into it for such a long time in order to find an excuse to torpedo the transaction.

The Bank of Israel confirms that the examination is taking a long time, but it explains that there is a problem with Bank Leumi New York. According to American law, the group cannot own both a New York bank and nonfinancial enterprises. Therefore, it will either have to sell Leumi New York or turn it into a financial company. But how is it possible to expand international activity without a bank in the United States? Is it possible for the number two bank in Israel not to have a bank in the U.S.?

The Bank of Israel is also afraid of the consortium's aggressive business activity: Central bank officials are asking what will happen if the group embarks on a risky operation that fails and leads to heavy losses. They are also worried by the fact that this is the first time that half of the investment will be coming from "other people's money" (the money of investors in the funds), while only half of it is the personal money of five or six wealthy Jews.

On the other hand, Bank of Israel officials say that they know these are high-quality investors, with tremendous capital and an excellent reputation, who can turn Bank Leumi into a global bank................

Central bank still vetting winning bidder

By Ram Dagan

The Bank of Israel is not expected to stop examining the international hedge fund Cerberus-Gabriel, the group awarded the Bank Leumi tender, despite the probe into Prime Minister Ehud Olmert's involvement in the sale.

A Bank of Israel official said yesterday the affair has no ramifications for the examination.

The source added that, at this time, the central bank is continuing to examine the fund, which is seeking permission to acquire control of Bank Leumi.

A source close to the fund said yesterday that Frank Lowy, whom Olmert is suspected of assisting in the tender, is not included among the members of Cerebrus-Gabriel's controlling interest in Bank Leumi.

Bank Leumi has been under examination in recent months by the supervisor of banks.

The hedge fund must receive approval for the transfer of control of Bank Leumi by May 24.

Olmert is suspected of trying to change the terms of the tender, so that a group including Frank Lowy would win the tender, although the group withdrew its candidacy and did not make a bid in the end.

In the past it was reported that the fund added Frank Lowy to a group of private investors with whom they will share the controlling interest.


Jump to different Forum... 

We hunt for red flags in high-value, cross-border finance by monitoring offshore and onshore courts, regulatory actions, offering documents, and other sources - and email you the results.

View Recent Digests

Cayman Court Secrecy: A Huge Red Flag for Foreign Investors & Clients
David Marchant
As any fule kno, the biggest enemy of fraud, corruption, money laundering, and other forms of financial crime is transparency, while their best friend is secrecy. That's why the unprecedented mass sealing of cases that's taking place at the Financial Services Division of the Grand Court of the Cayman Islands is repugnant to anyone with a genuine concern for financial crime.