Blackwell owned Diebold stock.
By on Apr 4th, 2006 at 1:28 pm
Blackwell owned Diebold stock.
“[Ohio] Secretary of State Ken Blackwell made an embarrassing announcement Monday: He accidentally bought stock in Diebold Inc., a voting machine maker that benefited from decisions made by his office,” the Cleveland Plain Dealer reports. Ohio Attorney General Jim Petro (R) is calling for an investigation.
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Accidentally? Right. And I’m the King of Spain.
April 4th, 2006 at 1:32 pmBut, But, but, IT WAS AN ACCIDENT! Yeah, right.
April 4th, 2006 at 1:36 pmHow do you “accidentally” buy stock?
April 4th, 2006 at 1:38 pmI accidently bought Diebold, I meant to buy Haliburton, but oopps. oh well. all’s well that ends well..my bad
April 4th, 2006 at 1:38 pmGo figure.
April 4th, 2006 at 1:39 pmHow does one ‘accidentally’ buy stock? Was he doing it online and clicked the wrong box? Come on, jeez!
April 4th, 2006 at 1:41 pm#3 If you have other people in charge of them its very easy. You just tend to do quarterly review at most, if you trust their choices.
April 4th, 2006 at 1:42 pmwhat a conicidence! i was just thinking about accidentally buying stocks!
April 4th, 2006 at 1:45 pmdoes he have the same broker as frist?
Ken is just another cog in the very corrupt Republican Political Machine.
What has our country come to? This is compassionate conservative christianity?
April 4th, 2006 at 1:49 pmIn a close society where everyone is guilty, the only crime is getting caught. In a world of thieves, the ultimate final sin is stupidty.
–Hunter S. Thompsen
April 4th, 2006 at 1:52 pm#10, nice to see another Genesis fan!
April 4th, 2006 at 1:54 pm“How do you “accidentally†buy stock?”
Like most rich people or those who wish to avoid conflicts due to political issues (or are not adept at handling money as well) Blackwell chose to hire a broker to manage his portfolio.
From the story, which doesn’t tell much in the way of anything substantive in terms of being able to establish wrongdoing, Blackwell *was not* involved in stock purchases. Indeed, it appears his only involvement was to instruct the firm handling his money to avoid conflicts of interest.
The issue, though, is that his portfolio boy/girl left and a new one came in. The new guy was probably and idiot and didn’t know what Diebold was.
Also, 178 shares is pretty insignificant. 95 shares were sold at 1489 total. The remaining were liquidated when he ‘learned’ of the shares, also at loss. He bought the 95 shares for 5098 and change. So he lost some money.
And he had a crap broker. There was no stop loss on this transaction. No sane investor/investor manager allows that sort of loss.
Anyway, I’m all for going after people who have conflicts like this and he should be investigated but he did use a financial adviser and seems to have kept an arm lengths approach.
The fact that he receives, probably quarterly, updates on his holdings shows some involvement but a useful one. It serves as a check that the public is aware of and he can correct.
It’s an ethical violation, but his financial firm will probably come out with a statement saying that it was because of a new fund manager and then fire him.
I, too, indirectly own shares in Diebold through an equity index fund (listed on NYSE) and some value mutual funds that picked it up at the price he sold it for (their buy was pretty good actually).
Anyway, Diebold makes horrible machines and should be terminated from all states.
The article says he has a ‘hefty portfolio’. If it’s in the millions something like this is pretty insignficant for him in terms of loss, probably why there was no stop loss on the position.
Still, I’d fire my broker if they didn’t put a stop loss way before that sort of drop. That injects much more volatility in your portfolio.
April 4th, 2006 at 1:57 pmOWning the stock via a mutual fund is accidental owning the stock outright is not an accident. But I am sure they will blame the broker and retroactively make it all legal.
April 4th, 2006 at 2:00 pm#1-6 anyway.
If you read the article at any length you would not he *does not* excecute the transactions. He does not decide what to invest in except for whatever mandate he gave his financial services form (this much growth, this much value, this much international, this much bonds, etc).
His *new broker* executed the trade and failed to put a stop loss in place. The man lost nearly 4k on the transaction.
I’m not justifying him and he should have DEFINATELY BLACKLISTED FIRMS HE HAD CONTACTS WITH EXPLICITLY. It appears he did so initially butthe new broker didn’t know what he was doing (had no experience with politicians).
Read the article and then complain.
His broker made the trade and decided on it. It is unethical because he failed to get weekly updates on his holdings – instead option for the legallly required disclosures.
April 4th, 2006 at 2:01 pm#13
Mutual funds are not utilized by rich people by and large. Private bankers/brokers are. They create their own portfolio based on risk aversion profiles and that’s that.
It hinges on how much involvement you have with your broker. If it’s just collecting the required legal statements, there is no issue.
The WEIRD thing is that the broker held onto the position for SO LONG. A stop loss DEFINATELY should have been in place.
And for the conspiracy theorists out there – had he held the stock he would not have lost money. Diebold is trading at par to his initial purchase price.
April 4th, 2006 at 2:03 pmAnd to answer the vitriol likely to follow, I am not a wingut invading the board:) I don’t think there were adequate safeguards in place and I think the man had too little interest in his holdings (he should have gotten weekly updates on his holdings since he has a very important position).
These people think brokers will make them money. It’s a lie. You’re just as well doing a risk aversion test and investing in a plethora of equity indexes that correspond to your aversion to risk. Their fees erode your investment gains quickly.
Hedge funds are treading water and all the alpha is eaten up (alpha=excess returns) by management fees, performance fees, and that so much money is seeking limited assets.
April 4th, 2006 at 2:06 pmBased on #16
I would suggest *all* politicians with significant conflict of interest possibilities should be REQUIRED to invest in equity index funds (or bonds, currencies, commodities, etc index funds). They can’t abuse the composition because it is weighted on an index – not their say.
This would eliminate this crap once and for all (although some people would have to restrict themselvesfrom certain funds such as the commodities, etc). A treasury secretary shouldn’t hold a short term bond fund for example (they know the borrowing needs before the public).
A interior secretary should definately not hold index funds that are specific to their area.
April 4th, 2006 at 2:10 pmand the Gold Coingate has reached into the Oval office and Karl Rove.
April 4th, 2006 at 2:19 pmUmm James, I do taxes for a living and I wonder how you define rich? I had clients worth $30 million who had extensive mutual fund holdings and clients worth $100,000 who had only stocks. Blanket statements like that just don’t cut it.
As to the whole it was only a few shares, it is still a conflict of interest. In the public accounting field it is nigh impossible to own stocks of any sort. One firm I have used on a consulting basis, but have not worked for described their rules. It is impossible for them to own stock in any company that is a client of theirs, which eliminates a whole slew of desirable publicly traded stocks. They have exceptions for a few things, but their rules are clear and apply to even single shares of stock. Why would similar rules not be applicable to politicians? If there is any possibility for financial gain to conflict with their governing duties they should be obligated to sell. And if there are rules, there are rules, period. I don’t know what the Ohio laws are, but if they are there, they should be enforced. To not enforce them and to make an exception is to make a new set of rules that are ethically challenged. Putting the blame on the broker is a nice tactic, but wrong. It removes the element of personal responsibility and seems very much like King George and his blame someone else attitude.
April 4th, 2006 at 2:23 pmAm I imagining a pattern here?
April 4th, 2006 at 2:25 pm- In reference to the last two presidential elections, ‘00 and ‘04 ……..
- and the two states which were the fulcrum points of the results of those elections, Florida and Ohio…….
- The secretary of states who certified these results, Harris and now Blackwell
- The emerging evidence of their respective corruptions, and with the ties to a voting machine company……………………… oh my my
Can you say ‘Police State’ boys and girls?
“#3 If you have other people in charge of them its very easy. You just tend to do quarterly review at most, if you trust their choices. Comment by squishypoop”
Considering the bad grades most republicans get, I’m not surprised you feel this way. After all, it’s a big super secret that the SOC controls voting machine purchases – what possible conflict of interest could that produce. And how could a 3rd party person possibly know this is the job of the SOC? After all, it’s not like it’s common knowledge – right freeptard?
April 4th, 2006 at 2:28 pmDoesn’t anyone take responsibility for themselves anymore? Given Blackwell’s position, any polictician’s position, it is their duty to PAY ATTENTION. Accident, my ass.
April 4th, 2006 at 2:33 pm#22 – *politician*
April 4th, 2006 at 2:34 pm…and it accidently threw the election….riiiiiiiiight………
April 4th, 2006 at 2:42 pmI accidently didn’t pay my federal taxes for the past four years. I guess I’ll be OK.
April 4th, 2006 at 2:56 pmApparently Blackwell has the same broker as Bill Frist. Remember, he didn’t know what was happening in his accounts either, because they were a “blind trust.”
April 4th, 2006 at 3:00 pmBlackwell’s excuse is lame and unbelievable. He should be fired.
Even if one were to accept the unacceptable defense by #7 squishypoo and believe Blackwell only reviewed his accounts quarterly, this deal was done last year. There is no excuse for Blackwell. There is no excuse for anyone in government not to know what is in their portfolios if for no other reason than to avoid what has happened to Frist. But you see, greed trumps everything.
#21 Ryan, more conspiracy theories and childish insults are the best you can do? It must be hard to carry around that much hate for the other side. To me SOC means Secretary of Commerce, Blackwell is SoS.
April 4th, 2006 at 3:10 pm#3 If you have other people in charge of them its very easy. You just tend to do quarterly review at most, if you trust their choices.
Comment by squegeeboo
Jesus, squeezeboy, that is a stretch even us rightwingers have trouble with.
Correct me if if I’m wrong, but when Scott McClellan gets the ax for not being able to swallowback all those lies, you should apply for his job.
April 4th, 2006 at 3:15 pmJoe
Look at how many other people in the thread said basically the same as me, except in industry terms, before getting into the broker not selling it quicker for other reasons.
I’d love a job at the white house, it would be fun to screw with reporters.
April 4th, 2006 at 3:18 pm“#21 Ryan, more conspiracy theories and childish insults are the best you can do? It must be hard to carry around that much hate for the other side. To me SOC means Secretary of Commerce, Blackwell is SoS. Comment by squishypoop”
I don’t hate stupid people like you, I just don’t want you handling my government, or my investment portfolios. And as for ‘conspiracy’ theories, I was talking mere competence. A competent portfolio director should know what conflict of interests his clients has. If he doesn’t, then he’s inept – much like yourself.
And yes, SoS is what I meant to type, I incorrectly typed SOC (what it’s called in commonwealths as opposed to states, which is what Ohio is). I can understand how that could be confusing for you.
And yet SOC or SOS is still the same, the person who manages elections. If the portfolio manager doesn’t know what the conflict of interests are, then who needs conspiracy when you have incompetence. That should be the new mantra of the republican party…
April 4th, 2006 at 3:31 pmWith his stewardship of his own investments, Blackwell should not be trusted with public funds. If he had really been adept, he could have lost another $4 on that transaction involving 95 shares. Buying high and selling low is not the best strategy in stock trades. Perhaps, W can appoint him as head of the forthcoming personal investment funds (And I thought that Brownie had that job in the bag!).
April 4th, 2006 at 3:36 pm#30 And yes, SoS is what I meant to type, I incorrectly typed SOC
But when republicans are inccrrect you accuse them of lying.
“A competent portfolio director should know what conflict of interests his clients has.”
So it is the portfolio directors fault and not Blackwells? So the incompetance is not Blackwells fault. Your arguing a point I never made.
“I don’t hate stupid people like you, I just don’t want you handling my government, or my investment portfolios.”
April 4th, 2006 at 3:47 pmThats why I’m not in the investment buisness, which is why I used layman language as opposed to the industry jargon from some of the other posters. And everyone gets a vote in government, not wanting a portion of the population to be involved sounds fascist to me.
Blackwell is just lile Bush and Rumsfeld…..downward buckpassers
April 4th, 2006 at 3:58 pm“So it is the portfolio directors fault and not Blackwells? So the incompetance is not Blackwells fault. Your arguing a point I never made. squishypoop”
Actually it depends on how ‘blind’ the trust was. In the case of Frist, we know he was directing the blind trust – it’s possible blackwell did the same.
And even if he didn’t, who picked the investment directors – Blackwell? In the end, it’s Blackwell’s fault for choosing people who were either unqualified (remember mike brown), and/or not ensuring that they were sufficiently competent and directed to ensure no conflict occurred.
“Thats why I’m not in the investment buisness, which is why I used layman language as opposed to the industry jargon from some of the other posters. And everyone gets a vote in government, not wanting a portion of the population to be involved sounds fascist to me. squishypoop”
You can be involved, I just don’t want you running anything. You’re too incompetent and corrupt without proper supervision…
As for the use of ‘layman’s’ language, well that would be fine if you used it correctly for a change…
April 4th, 2006 at 4:04 pmAnother ‘accidental’ crook. Our government seems to be full of such “accidents”.
April 4th, 2006 at 4:39 pm“Accidently” like hell he did. He knew exactly what he was doing. It’s just another ‘brain dead – I forgot – I didn’t know – and it’s all Bill Clinton’s fault’ excuse.
April 4th, 2006 at 4:41 pmThese assholes are jus like dandelions – you think you got rid of all of them and BAM – more show up. They just keep popping up all over the place.
April 4th, 2006 at 4:43 pmJesus Christ God of War – please come down and save us from these facists!
Love your name – kind of sticks it to the fundamentalist.
April 4th, 2006 at 4:46 pmThat little revelation by Blackwell puts a bit of a kabosh on his angle against Petro, where Blackwell was trumpeting the Noe coin scandal happened on Petro’s watch.
Good. Now they are equally bad.
April 4th, 2006 at 4:47 pmWho cares if he made or loss money – what did he have to do with helping Diebold get a contract to set up rigged voting machines in Ohio? Hello – Ohio?
April 4th, 2006 at 4:49 pmYou know, Osama, who I am still not convinced had anything to do with 9/11, was convicted without a trial. bush said so, so it was.
Why can no one ever just say, “What is the point of involving money in an investigation?” He has money in Diebold, he made decisions as a law-maker that benefitted him directly by his investment in Diebold, so what’s the damn mystery?!
Neo-con the neo-cons I say; investigate, but anything other than complete condemnation is a whitewash and a lie.
April 4th, 2006 at 5:23 pmOhio’s AG Petro….now there’s another joke. I wrote to Petro showing how Assistant Discplinary Counsel Kenneth Donchatz of the Disciplinary Counsel of the Supreme Court of Ohio had fabricated evidence, advised the attorney I had filed the complaint against to tamper with the evidence to cover up the theft of property and obstruction. Petro wrote back and said there was nothing he could do about criminal activity by the Disciplinary Counsel because sometimes the Disciplinary Counsel comes to the AG for opinions. WTF
April 4th, 2006 at 5:41 pm[...] Ken Blackwell “accidentally bought” Diebold stock, hmmm…ANOTHER corrupt Republican [...]
April 4th, 2006 at 7:33 pmAt reading this, I wanted to throw stones at Blackwell like everyone else, but after reading the attached article, I’m not so sure. On the face of this, it really doesn’t look good at all. Then add the environment where everyone’s mood wants to hang those who smell like they are involved in corruption really makes his problem worse.
Choosing a way of life in Politics certainly means that you have to be aware of how you’ll be perceived by all the “normal life†choices you make. Often, because of the mood, your “normal†may not be exactly accepted as “normalâ€. Even though I’m very familiar from experience with being in a family for more than 26 years who joined Organized Crime that works directly with very wide spread Political Corruption, I’m not going to leap real fast on this one. I will say that it would be important to probe the details of what this is to let the facts stand on their own. That way this issue can be dealt with in an appropriate manner. If there is something to this, the real questionable issues will surface later for all of us to see.
April 5th, 2006 at 12:26 pmIt’s TRUE!
Diebold stock can JUMP into one’s investment portfolio…
…without even the slightest provocation…
April 5th, 2006 at 12:56 pmInvestment Portfolio
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