10/12/2006 CRP Squawker
McClintock Blasts Garamendi for Selling Out Investors To French...
Amy Chance writes in the Sacramento Bee: "Insurance Commissioner John Garamendi, has a new ad attacking his opponent.... ANNOUNCER: 'The truth about John Garamendi's record as insurance commissioner.' Vince Watson: 'As insurance commissioner, Garamendi sold our insurance company to a junk bond king and foreign bank. They made billions while elderly and handicapped policyholders were financially devastated....' Sue Watson: 'John Garamendi didn't protect us; how can you trust him to protect you?' As insurance commissioner in 1991, Garamendi seized control of Executive Life in an effort to protect its policyholders when the company ran into financial trouble. He then sold the company's assets to an investor group financed by Credit
Lyonnais , a banking firm owned by the French government. After the firm resold the assets at a hefty markup, Garamendi drew criticism from policyholders who said he didn't make the best deal on their behalf.... Garamendi said he was misled.... Last year, U.S. District Judge A. Howard Matz... was skeptical of testimony by Garamendi and his lieutenants in the case, saying at one point that their accounts were 'devoid of credibility.'"
»
Back to News and Press
