Richard Blum is about to make a lot of money for his company, CBRE, with the sale of 56 buildings belonging to the United States Postal Service. The buildings are expected to bring in 19 billion dollars and CBRE’s share will be a cool 1 billion. Never heard of Richard Blum? Maybe you know him by his other name, Mr. Dianne Feinstein.
This is not the first time these two have teamed up to make a fortune. When Feinstein was the chairperson of the Senate MILCON (Military Construction) committee, Richard Blum bought stakes in three companies that did little or no business with the government. Suddenly they were the recipients of large no bid contracts. Salon magazine outed the senator, who was forced to resign her committee chairmanship. Richard Blum then sold all of his holdings in the three companies for a cool 20 million dollar profit.
Blum also received a contract with the FDIC for selling off foreclosed property for the government at rates above the norm. It should be mentioned at this juncture that Blum got the money only after Feinstein pressed to get the FDIC additional money. Both Feinstein’s office and the FDIC denied that the two events were related.
The latest contract was approved in favor of Blum in 2011. It calls for CBRE getting a larger than customary fee for it’s services. The other interesting detail is that the post office will be renting space at a cost surpassing the cost of ownership of those buildings. Again, Feinstein’s office denies that there is any connection. In reporting on her wealth, Feinstein shows a net worth of 70 million. Senators are not obligated to list the wealth of their spouses.
Harry Reid didn’t become rich until he became a senator and Nancy Pelosi’s wealth has grown by leaps and bounds after becoming Speaker of the House. Read the details here
Courtesy of Red Statements.