Edwards' Investments with Hedge Fund may be at odds with his policies on lending, gambling and tax.

[TeamJordan23]

http://news.yahoo.com/s/ft/20070622/bs_ft/fto062120072308041268
Edwards' investment may hit political capital
By Alex Barker in Washington
Thu Jun 21, 10:56 PM ET

His investment in Fortress funds, valued at up to $25m, has been less noticed but perhaps raises more substantive questions. Fortress's investments and business methods appear to be somewhat at odds with Mr Edwards' policies on lending, gambling and tax. The group, for instance, uses offshore structures to minimise the tax its partners and some investors pay - just the kind of tax haven Mr Edwards opposes.

Fortress also recently bought Centex Home Equity, in part using Mr Edwards' capital. The subprime mortgage lender, now called Nationstar Mortgage, offers loans with higher interest rates and fees than traditional mortgages to people with patchy credit.

In the past Mr Edwards has railed against practices in the subprime industry and has criticised "lenders are pulling a fast one on hard-working homeowners". If elected, he wants to tighten regulation.

Mr Edwards' supporters say he has been steadfast in his efforts to fight poverty and injustice. "John Edwards' record on these issues is strong, clear and consistent," said Eric Schultz, campaign spokesperson. "He will never stop fighting for Americans who work hard and deserve a fair shot.

"There is an important difference between legitimate subprime lending and abusive predatory lending practices," he said. "For many families, home ownership is not possible without subprime lenders and John Edwards believes they can serve a valuable purpose."

However, the deal to buy Penn National is likely to pose similar presentational issues. Fortress - working with the private equity group Centrebridge Partners - agreed to buy Penn last week for $8.9bn. If the deal is completed, some of Mr Edwards' money could be put to work in a controversial industry that he wants to regulate more closely. When a senator, Mr Edwards co-sponsored a bill to ban gambling on amateur sports.

[MannyGoldstein]

1. '"He will never stop fighting for Americans who work hard and deserve a fair shot.'

Yes, his vote for permanent 'free' trade with China was so helpful for the lil' guy.

[TeamJordan23]

2. I'm curious, are Edwards' supporters okay with his $25m investment in this firm?

[FrenchieCat]

3. Yes they are. They are OK with everything he has done in the past,

is doing now, and will do in the future.

Any other questions?

[Hekate]

4. Thanks Frenchie. Well put. Sheesh--gods forbid the man should make a success of himself & still care

...about the rest of us. :eyes:

Hekate