Cerberus Capital: Literally Blood-Sucking the Poor to Make Their Billions
By Mark Ames, AlterNet. Posted January 9, 2010.
Wall Street vampires. Lately, a lot of Americans, including myself, have used the bloodsucking monsters as a metaphor to describe the Wall Street billionaires who rule us, and who are ruining us. Like so many awful stories of the past few years, it turns out that these Wall Street vampire-billionaires really exist, literally. Like all vampires, they live in remote castles, and they feed themselves by luring poor, desperate humans into their dens, hooking them into blood-pumping machines and sucking out their plasma for mind-boggling profits.
Cerberus Capital, one of Wall Street’s most notoriously ruthless leveraged-buyout firms (or “private equity firms” in PC-speak), recently made a $1.8 billion killing on its human plasma investment, a company called Talecris. Talecris was purchased for a mere $82.5 million just four years earlier, meaning Cerberus made 23 times its investment on human plasma. This was accomplished by the most savage, heartless means possible: by paying peanuts to impoverished human plasma donors, who increasingly come from Mexican border towns to blood-pumping stations set up on the American side, jacking up the price of plasma by restricting supply (a lawsuit filed by the Federal Trade Commission accused Cerberus Plasma Holdings of “operat[ing] as an oligopoly”), and then selling the refined products to the most desperately ill—patients suffering from hemophilia, severe burns, multiple sclerosis and autoimmune deficiencies. The products cost so much—one, IVIG (intravenous immunoglobulin) cost twice the price of gold as of last summer—that American health insurance companies have been dropping or denying their policyholders in increasing numbers, endangering untold numbers of people.
Tomas Asher, chairman of a company that trades in plasma, described the business this way: "It's like selling hog bellies or wheat or beef. It gets sold all over."
Profiting from ruined American lives is nothing new to Cerberus. (The company takes its name from the legendary three-headed attack dog of Greek legend who guards the gates of Hell, making sure no condemned soul ever escapes. How appropriate.) Cerberus is the same shady fund that bought Chrysler and GMAC in 2007 and drove them into the ground, blamed everything on unions (even after firing 30,000 Chrysler employees), and dumped the companies onto American taxpayers—but only after lining up tens of billions in taxpayer-funded bailout funds. Cerberus is led by some of the most aggressive "free market" Republicans of our time. The chairman of Cerberus is former Treasury Secretary John Snow, who oversaw the destruction of America’s economy while serving under Bush from 2003 to 2006, bragging during his tenure, "We are the envy of the world."
Snow bragged again in 2007 after Cerberus acquired Chrysler, "Over 25 years ago, when Chrysler faced bankruptcy, it turned to the United States government for assistance. Today, Chrysler again faces new financial challenges. But it is private investment stepping in to inject much-needed support." A year later, Snow was running around Washington begging and screaming for government handouts.
Joining Snow as international chairman for Cerberus is former Republican Vice President Dan Quayle, the pampered imbecile who couldn’t spell “potato” correctly. Two more perfect vampires couldn’t have been invented than Quayle and Snow for the America of the Bush Era—peanut-brained, sleazy jerks.
The top vampire in Cerberus is the fund’s founder, billionaire Stephen Feinberg, a major Republican Party campaign donor with a hardcore fetish for Harleys and big guns. Supposedly Feinberg was very uncomfortable with taking all those socialism-esque billions from American taxpayers. The New York Times described him as "a longtime free-market enthusiast and a Republican who never envisioned himself needing the government for help.”
The true genius of evil bastards like Cerberus founder Stephen Feinberg is that they have the where withal to control the media and the message to get those who suffer the most due to their financial shenanigans to defend and even admire them.
As noted in the article above Feinberg and Cerebus:...bought Remington, America’s oldest firearms manufacturer, and since then they’ve snapped companies making everything from bullets to silencers... And what was one of the biggest unfounded rumors circulation round the right wing moron-o-sphere? the Barack Obama ammunition ban. At the height of this lunacy NRA members were urged to buy a lifetime supply of ammunition. And, of course, when this NRA fueled and funded panic created shortages of ammunition, not only for gun dealers but law enforcement, the NRA blamed the president.
I can imagine Feinberg and NRA vice-president-for-life Wayne La Pierre meeting for congratulatory sessions of mutual masturbation for hoodwinking their working class stooges once again, and for a tidy profit.