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China Deal Benefits Obama Donors

Home - by - March 3, 2013 - 11:00 America/New_York - 7 Comments

WFB

David Shaw, CNOOC, Nexen, Frank Brosens

Administration-approved takeover by Chinese oil company provides Obama backers windfall

The government watchdog group Judicial Watch is suing the Treasury Department for records pertaining to the department’s decision to grant a Chinese government-backed company access to oil deposits in the Gulf of Mexico, a move that will benefit Obama donors.

The Chinese National Offshore Oil Corporation (CNOOC) reached a “definitive agreement” with Nexen, Inc., a Canadian energy company, announced on July 23, 2012, to buy all of the company’s outstanding public shares. Nexen has holdings in the Gulf of Mexico and Canada, giving the Chinese government access to millions of barrels of Keystone XL and Gulf reserve oil.

Nexen’s holdings in the Gulf, coupled with the Chinese government’s ownership of CNOOC, meant the Treasury Department’s Committee on Foreign Investment in the United States had to approve the takeover, which it did on Feb. 12.

The secretaries of several major executive departments—including treasury, state, defense, and homeland security—sit on the committee.

Judicial Watch filed a Freedom of Information Act request for information on the deal in November, but the Treasury Department did not reply within the mandatory 20 days. Judicial Watch then filed suit on Feb. 14 to get access to the documents.

Judicial Watch noted that several prominent fundraisers and donors to President Barack Obama’s 2012 campaign stood to make a windfall profit from the Chinese corporation’s expansion in their press release announcing the suit.

David Shaw founded D.E. Shaw and Co., which massively increased its shares in Nexen in the third quarter of 2012, according to its SEC reports. Nexen’s stock rose almost 50 percent the week of the announcement, which was early in the third quarter.

Shaw bundled between $200,000 and $500,000 for the Obama campaign in 2012. He also sits on a presidential advisory council, Judicial Watch noted. D.E. Shaw and Company did not return a request for comment.

Frank Brosens is another prominent Democratic supporter who stood to gain significantly from the merger. His firm Taconic Capital bought at least 6 million shares in Nexen in the third quarter of 2012 but sold all of them by the end of the year. Taconic did not return a request for comment on their investment strategy.

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» 7 Comments

  1. Birdie Num Num

    March 3rd, 2013

    The CNOOC logo looks suspiciously like the oppressive 0bama logo-swastika.

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  2. Troy

    March 3rd, 2013

    In fifty years, scholars are going to marvel at the amazing crap this bastard got away with.

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  3. the aardvark

    March 3rd, 2013

    Crony capitalism at its best or its worst depending upon how you look at it. Nothing to look at just move on and don’t pay any attention. We’re being hosed right before our very eyes and most people could care less. And they wanted to impeach Nixon for far less than what Barry is getting away with. God help us!

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  4. persecutor

    March 3rd, 2013

    I’m shocked….shocked, I tell you![sarcasm set to perpetual]

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  5. Tim

    March 3rd, 2013

    They steal elections, plunder the treasury, and then rub our noses in the stink of their corruption.

    When do we say “ENOUGH!”?

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  6. scr_north

    March 3rd, 2013

    This sale was a political hot potato up here in Canada. Prime Minister Harper ended up holding this one up for months while being attacked from all sides (greenies went after it because it would increase the oil-sands extracts), lefties went after it because if was foreign ownership of critical resources and because the chinese have such a bad record on human rights, US lefties went after it because of the above reasons, conservatives went after Harper because he had delayed approval, the Chinese went after Harper because they thought (or maybe just playing the race card was a the best they came up with) that there was discrimination in the delay.

    Finally, Harper approved the sale because if you’re going to say you’re open for business you better mean it. In any event both up here in Canada and down on your side of the fence it’s always a good thing to remember that we are the ones that can turn off the taps at the oil-sands, the southern end of Keystone and even on the drilling rigs in the Gulf if it ever came to a shoving match.

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  7. GI-had Joe

    March 4th, 2013

    The Oligarchy is being run as a Kleptocracy. Selling our natural resources to a potential enemy like China is a national disgrace. Heads needs to roll.

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