Cerberus Capital: Literally Blood-Sucking the Poor to Make Their Billions
By Mark Ames,
AlterNet. Posted January 9, 2010.
How one company made $1.8 billion by paying peanuts to human plasma donors and then manipulated the market by restricting supply to the desperately ill.Wall Street Vampires: Lately, a lot of Americans, myself included, have used the blood-sucking monsters as a metaphor to describe the Wall Street billionaires who rule us, and who are ruining us. Like so many awful stories of the past few years, it turns out that these Wall Street vampire-billionaires really exist, literally. Like all vampires, they live in remote castles, and feed themselves by luring poor, desperate humans into their dens, hooking them into blood-pumping machines, and sucking out their plasma for mind-boggling profits.
Cerberus Capital, one of Wall Street’s most notoriously ruthless leveraged-buyout firms (or “private equity firms” in PC-speak), recently made a $1.8 billion killing on their human plasma investment, a company called Talecris, which they bought for a mere $82.5 million just four years earlier. Meaning Cerberus made 23 times their investment on human plasma. They did it by the most savage, heartless means possible: by paying peanuts to their impoverished human plasma donors, who increasingly come from Mexican border towns to blood-pumping stations set up on the American side, jacking up the price of plasma by restricting supply (a lawsuit filed by the Federal Trade Commission accused Cerberus Plasma Holdings of “operat
as an oligopoly”), and then selling the refined products to the most desperately ill, patients suffering from hemophilia, severe burns, multiple sclerosis, and autoimmune deficiencies. The products cost so much—one, IVIG (intravenous immunoglobulin) cost twice the price of gold as of last summer -- that American health insurance companies have been dropping or denying their policy holders in increasing numbers, endangering untold numbers.
Tomas Asher, chairman of a company that trades in plasma, described the business this way: "It's like selling hog bellies or wheat or beef. It gets sold all over,"
Profiting from ruined American lives is nothing new to Cerberus -- which takes its name from the legendary three-headed attack dog of Greek legend who guards the gates of Hell, making sure no condemned soul ever escapes. How appropriate too. ..........(more)
The complete piece is at: http://www.alternet.org/workplace/145044/cerberus_capital%3A_literally_blood-sucking_the_poor_to_make_their_billions
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
