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Tue Dec 18, 2012, 09:11 AM

Private Equity Firm To Sell Sandy Hook Gunmaker

This discussion thread was locked as off-topic by Rhiannon12866 (a host of the Latest Breaking News forum).

Source: buzzfeed

Posted Dec 18, 2012 8:16am EST

Cerberus Capital Management, one of the world's largest investment funds and a dominant player in the American gun industry, is getting out of the business, it said Tuesday morning, citing the horror of the shooting not the commercial risk or negative attention as the decisive factor in its decision.

Here's the company's full statement (at link):

We were shocked and deeply saddened by the events that took place at the Sandy Hook Elementary School in Newtown, CT on December 14, 2012. We cannot comprehend the losses suffered by the families and friends of those killed by the unthinkable crimes committed that day. No words or actions can lessen the enormity of this event or make a dent in the pain that was inflicted on so many.

In 2006 affiliates of Cerberus Capital Management, L.P. made a financial investment in Freedom Group. Freedom Group does not sell weapons or ammunition directly to consumers, through gun shows or otherwise. Sales are made only to federally licensed firearms dealers and distributors in accordance with applicable laws and regulations. We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition.

It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level. The debate essentially focuses on the balance between public safety and the scope of the Constitutional rights under the Second Amendment. As a Firm, we are investors, not statesmen or policy makers. Our role is to make investments on behalf of our clients who are comprised of the pension plans of firemen, teachers, policemen and other municipal workers and unions, endowments, and other institutions and individuals. It is not our role to take positions, or attempt to shape or influence the gun control policy debate. That is the job of our federal and state legislators.

Read more: http://www.buzzfeed.com/buzzfeedpolitics/private-equity-firm-to-sell-sandy-hook-gunmaker

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Replies to this discussion thread
Arrow 8 replies Author Time Post
Reply Private Equity Firm To Sell Sandy Hook Gunmaker (Original post)
trailmonkee Dec 2012 OP
dipsydoodle Dec 2012 #1
samsingh Dec 2012 #2
Zoeisright Dec 2012 #3
Sekhmets Daughter Dec 2012 #4
Atypical Liberal Dec 2012 #5
Blandocyte Dec 2012 #6
DeschutesRiver Dec 2012 #7
Rhiannon12866 Dec 2012 #8

Response to trailmonkee (Original post)

Tue Dec 18, 2012, 09:14 AM

1. Posted earlier today in LBN

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Response to trailmonkee (Original post)

Tue Dec 18, 2012, 09:18 AM

2. good

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Response to trailmonkee (Original post)

Tue Dec 18, 2012, 09:31 AM

3. If they really wanted to "get out of the business"

they would trash that business, not make more money off it.

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Response to Zoeisright (Reply #3)

Tue Dec 18, 2012, 09:59 AM

4. They may lose some money from the sale...

but more importantly they have a fiduciary responsibility to those pension funds for which thy invest. I suspect they see the writing on the wall and want to get out before the losses become monumental. Eliot Spitzer was calling for this on his show ad wrote about it.

http://www.slate.com/blogs/spitzer/2012/12/17/newtown_shooting_it_s_time_to_target_cerberus_the_private_equity_firm_that.html

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Response to trailmonkee (Original post)

Tue Dec 18, 2012, 10:52 AM

5. This, more than anything, shows that guns are going away.

 

When the bankers run, something is in the wind.

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Response to Atypical Liberal (Reply #5)

Tue Dec 18, 2012, 11:21 AM

6. They won't go away

any sooner than swimming pools, in which over 170 children drowned in 2010. Those advocating for their 2nd amendment freedoms will use all kinds of sound reasoning to maintain the status quo.

That's why I unreasonably advocate for a total ban (on guns, not pools.) Emotion, not reason, seems to sway the populace. I can play that.

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Response to trailmonkee (Original post)

Tue Dec 18, 2012, 12:02 PM

7. They are only concerned about potential liability; the dead childrens parents are uber wealthy

people who will be willing to search far and deeply to file suits against anyone who had even dipped an investment finger into this.

The average person? Maybe wouldn't have the pull or money, but all it will take is one of these people with a mission and money to empty this firm's pockets along with quite a few others.

This sounds wonderful. It isn't the reason at all. They had already invested in this business despite numerous other killings, so no, sadly one more isn't a deal breaker for them in the slightest. But it will sound good in front of a jury, maybe get them some points that way.

Financial ruin? Oh, yeah, that'd be the concern. But pulling out now isn't going to help if there is a way for liability to attach - we'll see as the facts develop. And of course, in case the facts allow them to skate, it will prevent them from being a part of any future liabilities.

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Response to trailmonkee (Original post)

Tue Dec 18, 2012, 10:09 PM

8. Locking, sorry, this is a duplicate. Please continue discussion and post updates here:

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