October 27, 2011 by Don Surber
John D. Arnold, whom the New York Times described as “a former star trader at Enron who is now an energy hedge fund billionaire,” will host a fund-raiser at his mansion in Houston for Michelle Obama on Tuesday. John Arnold was one of the top bundlers for President Obama, raising $176,400 in the 2008 campaign. He has donated $114,900 personally to Democratic candidates and the party in recent years, including $28,500 to Obama’s victory campaign, according to Federal Elections Commission records.
Tickets start at $10,000 and the campaign will collect contributions up to the legal maximum of $35,800 for the appearance by Missus Obama.
After Enron collapsed (the Bush administration successfully prosecuted its president, Ken Lay on 10 counts of securities fraud and related charges) John Arnold founded Centaurus Advisors, LLC, is a Houston-based hedge fund that specializes in trading energy products. He used his final bonus from the bankrupted Enron to start the company. He has received salary and bonuses as high as $1 billion in a single year. His fortune is estimated at $4 billion. His company now owns 10% of National Coal Corporation.
The Houston Federation of Teachers is protesting the visit. Not because of the Enron connection.
Not because he is a hedge fund trader.
Not because he is one of “the 1%.”
The union protests against his funding of an effort to convert pension plans for government workers in California to a 401-k style plan. His profession rakes in billions every year in fees for managing 401-k portfolios. Arnold and his wife set up the California Foundation for Fiscal Responsibility to push this cause. In August, spokeswoman Meredith Simonton told Bloomberg: “Our attention to pension reform is not California-specific. We chose to get involved there because there are people who are engaged and choosing to illuminate the problems and address possible solutions.”
Gayle Fallon, president of the Houston Federation of Teachers, told the Houston Chronicle that the plan advocated by John Arnold is “very frightening for teachers.”
She also told the Houston Chronicle: “My people supported Obama big-time in 2008. This is not helping.”
She also told the newspaper: “We need street action that will make Wisconsin look like a picnic.”
That referred to the takeover of Wisconsin’s state capitol in February by teacher and other government unions.
Pretty much this is the trifecta of hypocrisy for President Obama: a hedge-fund billionaire who owns 10% of a coal company. I would love to see how Occupy Wall Street rationalizes supporting Obama after this.
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