With no political pay-for-play enticements, it appears the Clinton family legacy and magical touch for success has eroded.
The Clintons have been wheeling and dealing in politics for decades. They’ve always made sure to take care of their supporters, no matter how controversial, from whichever elected office they held.
President Donald Trump’s ongoing draining of the swamp cut off Clinton access to public power. Private endeavors connected to them have failed or are flailing without the influence they so readily peddled for profit.
One business connected to the former politicians was slammed with the negative Clinton effect when the business tried to rally funds to pay debt, The Daily Caller reported.
Laureate Education, Inc., which has close ties to Bill and Hillary Clinton, tanked on its first day in the stock market.
The for-profit firm’s Initial Public Offering (IPO) of stock to potential investors was put on the market Wednesday by KKR and other leveraged buyout owners in the hope of reducing a crushing $4 billion debt.
But even before the company was to go public as a NASDAQ traded firm, it was clear the stock price would not command the owner’s projected $17 to $20 price target. Late Tuesday before Wednesday’s opening, the market priced the Laureate IPO at $14, about 15% below Laureate’s estimates.
The Laureate IPO went nowhere during the day, went as low at $12.46 and closed at $13.25.
What a bust for a company that that spent millions supporting the Clintons and used its Clinton connections for profitable endeavors.
Laureate’s relationship with the Clintons began in 2010, when it paid the former president $16.5 million as its “honorary chancellor” for five years. Baltimore-based Laureate – led by chairman and CEO Douglas Becker – also donated up to an additional $5 million to the Clinton Foundation.
And during Hillary Clinton’s tenure, the Department of State’s US Agency for International Development awarded $55 million to the International Youth Foundation (IYF), which is linked to Laureate and is chaired by Becker.
Laureate also faced complaints from Congressional leaders questioning the potential “kickbacks” to Bill Clinton his wife’s tenure at State.
Questions surrounding the payments and the contracts, along with federal inquiries, were not disclosed to the SEC prior to the public stock offering, reported The Daily Caller.
Donald Dion, attorney-owner and chief investment officer of DRD Investments, told TheDCNF the IRS review omission was a “big problem” and described the IPO’s performance Wednesday as “a complete disaster.”
The poor Laureate showing contrasts with a very strong IPO market seen since Donald Trump’s election victory, The Daily Caller reported. Laureate couldn’t win with the Clintons not working behind the scenes.
“There was no appetite for this stock. It looked ugly today,” Lon Juricic told The Daily Caller News Foundation Investigative Group (TheDCNF). Juricic is founder and president of StreetInsider.
“There’s just a lot of questions about the company. The private owners, they’re liquidating it. Investors don’t like its big debt. They weren’t biting,” Juricic said. But “people don’t like these deals.”
Laureate operates 71 educational institutions in 25 countries with a heavy presence in Latin America.
With all the revelations of corrupt connections, kickback-style payments and back-door deals from the Clintons, it appears more companies would do well to distance themselves from the dying legacy.
Too many companies are feeling the heat from past pay-for-play dealings, and the Clintons have bee allowed to wither away into obscurity.
Source: The Daily Caller