Lehman /JP Morgan pushing to privatize FLA Lottery; Jeb Bush in as new Lehman financial advisor

[seafan]

Financial firms pushing for private Florida Lottery




BY GARY FINEOUT
September 11, 2007

TALLAHASSEE --
Two Wall Street giants, who could stand to earn millions if chosen to help Florida, have been pushing for months the privatization of Florida's 20-year-old Lottery.
What Gov. Charlie Crist last week called an ''idea'' worth exploring has been under consideration since June. A review of public records shows that two prominent financial services companies -- Lehman Brothers and J.P. Morgan -- had already pitched the idea to top aides in the Crist administration, including the head of the Lottery Department.

A top official in Lehman Brothers even gave advice to Crist's office in June about how to ''roll out'' the concept, sell it to the Legislature and avoid the negative publicity that has dogged similar proposals in such states as Indiana and Illinois.
Both companies contend that even though voters approved starting the Lottery in 1986, nothing in the state Constitution prohibits legislators from leasing the $4 billion-a-year enterprise to outside investors.

The main thrust of their pitch is this: At a time when Florida's budget is tightening, the state could reap billions from privatization, enough to pay off class-size requirements or to make up money for schools that could be lost because of property tax cuts. Depending on how the deal was put together, it could reap Florida anywhere from $18 billion to $31 billion.
''The plan gets Florida out of the gambling business and allows the state to focus on its core responsibilities like educating children, reducing property taxes and insurance premiums, providing healthcare to those who need it, creating jobs and keeping people safe,'' states a seven-page memo prepared by Lehman Brothers and sent to Crist's office by Bradley Tusk, a Lehman senior vice president and former deputy governor of Illinois.

.....

Lehman Brothers has strong ties to the Bush family and announced that former Gov. Jeb Bush had joined the company's private equity board. Crist's chief of staff, George LeMieux, said Bush has not been involved in any of the discussions about privatizing Florida's Lottery.
J.P. Morgan's chief lobbyist in Tallahassee is Jason Unger, a lawyer with the GrayRobinson law firm whose wife, Karen Unger, was Bush's 2002 campaign manager and supported Crist's run for governor.

Neither Tusk nor Unger would answer questions about the Lottery proposal, referring them to other company officials. A spokeswoman with J.P. Morgan refused to answer any questions, while a spokeswoman with Lehman Brothers would only confirm that the company is interested in serving as a financial advisor to Florida if it moves ahead with privatization.

.....

The proposals also make it clear that the investors would likely turn over day-to-day control of the Lottery to either GTECH Corp. or Scientific Games International, the two companies that now provide games to the Florida Lottery.

.....

One of GTECH's main lobbyists in Tallahassee is Brian Ballard, one of the most successful lobbyists in the Capitol and a top advisor to Crist's campaign last year.

.....

Lottery Secretary Leo DiBenigno, who has already met with J.P. Morgan officials, said he plans to talk to Crist about it this week. He said he still hasn't made up his mind on what to recommend to the governor.

.....

Jeb Bush joins board at Lehman, August 23, 2007



Jeb may be gone from Tallahassee, but he still has devious plans.


I hope Governor Crist will reject this.

[babylonsister]

1. With a * involved in this, there's probably ulterior motives. I'd like to

know how the hardearned money of taxpayers will get into their pockets legally because that's the only motive they have for privitizing.

All neatly couched in the terms of 'helping' FL.:crazy:

[seafan]

3. Jeb, the new financial advisor, stands to walk away with $$$$$$$$ if this is allowed.

It's ALWAYS about money for the BFEE.


Plus, the GOP *hates* gambling in Florida (unless you're a friend of Jack) .... why, Jeb's apprentice Marco Rubio warns Crist on card games, so why not just strip control of the Lottery, all gaming, and give to their corporate buddies.... That'll show 'em. :sarcasm:


And, with this new lottery privatization proposal, these guys are *still* promising that it *will help education*, when, in reality, the FL Republican Legislature kept raiding the lottery proceeds for replenishing general budget items. :eyes: Is there any wonder why Florida is at near bottom of the 50 states for quality education?


We are, yet again, being sold a bill of goods. These guys don't know how to do ANYTHING for the good of people.

[Initech]

4. True. Is nothing sacred to these fuckers?

I'm glad that the Dems have shot down their evil social security plan... I hope they shoot this down too. The last thing those fuckers need is more money.

[L. Coyote]

2. FL has initiative process. Lotteries can be outlawed by voters!

[flashl]

5. Florida is suffering a financial meltdown from all of Jeb’s privatization ideas.

They really do not need any more help from Jeb.

[seafan]

6. Evening kick. n/t