WP,pg1: Letters Show Frist Notified Of Stocks in 'Blind' Trusts (he lied)

[DeepModem Mom]

Letters Show Frist Notified Of Stocks in 'Blind' Trusts
Documents Contradict Comments on Holdings

By Jeffrey H. Birnbaum
Washington Post Staff Writer
Monday, October 24, 2005; Page A01


Senate Majority Leader Bill Frist (R-Tenn.) was given considerable information about his stake in his family's hospital company, according to records that are at odds with his past statements that he did not know what was in his stock holdings.

Managers of the trusts that Frist once described as "totally blind," regularly informed him when they added new shares of HCA Inc. or other assets to his holdings, according to the documents.

Since 2001, the trustees have written to Frist and the Senate 15 times detailing the sale of assets from or the contribution of assets to trusts of Frist and his family. The letters included notice of the addition of HCA shares worth $500,000 to $1 million in 2001 and HCA stock worth $750,000 to $1.5 million in 2002. The trust agreements require the trustees to inform Frist and the Senate whenever assets are added or sold.

The letters seem to undermine one of the major arguments the senator has used throughout his political career to rebut criticism of his ownership in HCA: that the stock was held in blind trusts beyond his control and that he had little idea of the extent of those holdings.

The extent of Frist's knowledge of the inner workings of his trusts and his family's health care company is related to a recently launched federal investigation of possible insider trading involving the liquidation this summer of Frist's HCA stock. Within weeks of Frist's decision to sell his holdings in June, HCA shares fell sharply because of a weak earnings report. Frist has said he possessed only publicly available and not "insider" information about the company when he directed the sale and, therefore, did nothing wrong....


http://www.washingtonpost.com/wp-dyn/content/article/2005/10/23/AR2005102301201.html

[texpatriot2004]

1. Well, well, well whadda ya know Frist lied. Shock of shocks. Glad

to see this in the paper though.

[napi21]

2. Oops! That must be the reason he admitted the accusations

could affect his decision wether to run for Pres in 08!

[electropop]

37. Hard to run a campaign from a jail cell, I would think.

I believe Congressman have done it, but Pres? So hard to squeeze all those press conferences into an 8x8 cell.

[kestrel91316]

3. Well, that just proves his fabulous qualifications for president

in the Brave New World of post-2000 politics.

[MO_Dem]

4. Whooopeeeee! This calls for some

green bouncies!

:bounce: :bounce: :bounce: :bounce: :bounce: :bounce:

[bunny planet]

5. Ooopsy.

[SoCalDem]

6. This whole "blind trust" is a CROCK anyway

Who "forgets" that he/she has millions of dollars tucked away under their son/daughter's name or sitting there waiting for them to reclaim it eventually?

[truthisfreedom]

7. but you guys, come on! play fair! it's not illegal if you're a republican

and you know it! lay off him! r-e-p-u-b-l-i-c-a-n means "above the law," remember?

[Fovea]

8. Welcome back to private life, Dr. Bill.

Not are you going to fail to be on the bill for '08, but you may end up as Tom DeLay's cell mate.

[alcibiades_mystery]

9. These are not grounds for indictment, yet

But they're getting there. First you establish that Frist had knowledge of his risk potential, then you establish that some communication made this risk imminent, then you go to Frist and ask him what he thinks a jury would believe. The SEC guys (and gals) are absolutely amazing pros at this. I've seen them bust guys with quadruple layers of protection between themselves and an insider transaction (corporate paralegals tell a friend, who recruits an "unknown" friend, who recruits yet another "unknown" fiend to make the actual sale/purchase, etc.)

I think Frist's best defense will look something like Martha Stewart's: Why would I - an ultra-millionaire - risk so much for such a relatively modest return. For many, the answer would be "You're right: nobody would do that."

For those of us familiar with the securities business and SEC actions, however, the answer is much more clear: Because you're a greedy sonuvabitch, just like every other already-rich insider trader.

[MarsThe Cat]

16. speaking of the SEC...

last i had heard, fearless leaders little harken issue with them was never officially "closed".

[oregonindy]

10. CULTURE OF CORRUPTION! Frickin Goons is all they are

indict them
convict them
take away all their money and possession and donate it to charity
Put them in a work release program for the rest of their lives

[stevedeshazer]

11. Holy Jumped-Up Jesus!

The lid's been blown off.

It's over for Cat-Killer.

It's over. :wow:

[lovuian]

12. Frist and Delay nailed!!!

Liars Liars and thieves!!!

[MarsThe Cat]

13. just because he was sent the letters...

it doesn't mean that he read them...and nobody can prove that he did.!(anticipating the faux news morning line...)

[cassiepriam]

30. Try telling that one to a jury

[MarsThe Cat]

33. i certainly hope he gets that opportunity.

in the very near future.

although his counsel would be advised to reject any cat-owners as potential jurors- stick with the dog lovers.

[don954]

14. a republican lied????? SHOCKING!!!!

i just dont know how that happened... ;)

[RedEarth]

24. Great picture...a perfect representation of the republican party

All that has come out over the last 5 yrs has to be turned to the corruption of the ENTIRE republican party and not just a few crooks and liars like bush, delay, frist, etc. Because in my opinion, the majority of them are all the same.

[0007]

15. What a guy!

More of article......

Stevenson said Frist's concerns involved the perception of a conflict rather than any real conflict of interest. In 1997 and 1999, the ethics committee cleared Frist to participate in Senate debates involving Medicare and health maintenance organizations despite his "substantial" holdings in HCA. The committee did not take into account whether Frist's holdings were in blind trusts in reaching its decisions.

Frist said last week he was not required to set up a blind trust after he went to the Senate, but he wanted to "apply the highest ethical standards I possibly could. I thought, why not raise the bar, why not do a good deed . . . and avoid any appearance of a conflict of interest."

Senate rules prohibit any lawmaker with a blind trust from contacting his trustees unless the ownership of an asset poses a potential conflict of interest "due to the subsequent assumption of duties" by the lawmaker. The lawmaker can then ask the trustees to dispose of the asset.

Frist did not take on any new duties this year. But a Frist adviser said the senator had been thinking about selling his HCA stake from the time he was elected majority leader in 2002. Frist had not known that he could sell his shares until this spring, the adviser asserted, and so went ahead with the sale based on his nearly three-year-old wish.

This is a hell of lot clearer than what Martha Stewart did...

[PurityOfEssence]

17. Martha Frist! Martha Frist!

How fucking rich do you have to be anyway? The guy's incredibly rich and would continue to be even if his family's stock sinks like a stone, but that's not enough for him.

The sheer blind money addiction of so many conservatives is just jaw-dropping.

[Maraya1969]

18. Blind trusts are to keep the BENEFICIARIES from knowing what

is in the trust. Is he saying he is the BENEFICIARY? He sounds a little old to have such a trust. Unless his parents or some sort of guardian is still alive it is a bunch of shit.

"A trust in which the executors have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust.
Investopedia Says... Blind trusts are generally used when a trustor wishes to keep the beneficiary unaware of the specific assets in the trust, such as to avoid conflict of interest between the beneficiary and the investments."

http://www.investopedia.com/terms/b/blindtrust.asp

[Sgent]

22. There is no "age limit"

on trusts -- and blind trusts are regularly setup for polititions to reduce conflits of interest.

Another option (a better one IMHO) is what Alan Greenspan does -- buying US Treasury bonds at auction, and not owning any stock or private/state bonds.

The problem with "blind trusts" is not the legalities -- which are fairly well set. Rather, its the practical realities. If the beneficiary is also the funder (as in this case), its very hard for a bank trust agent to refuse information to the beneficiary -- even though it may violate the terms of the trust.

[countmyvote4real]

19. OMG This is very shocking: reporter doing the unthinkable these days.

What compels this maverick reporter to research and use facts as a basis for the report? Do they have no idea that all facts and talking points are now supplied by the GOP?

[cassiepriam]

31. Yah, what's up? Reporters actually reporting the truth?

He keeps this up and he'll be fired....

[antonialee839]

20. So the blind trust was totally faking it?

[MagickMuffin]

21. I have to agree with him

he is "Totally Blind"

[annabanana]

23. that whole "blind trust" thing was probably considered

... just a formality, nothing to concern yourself with. How else could they get so many really, really rich people to take a pay cut and work in Washington?

[JNelson6563]

25. Indictments for everyone!!

:toast:

[leftofcool]

26. Oh Goody.....pass the popcorn please eom

[Zynx]

27. I really like this "Culture of Corruption" slogan.

It seems to be fitting these guys quite nicely.

[EFerrari]

28. Mr. Hassert, you're up! lol n/t

[swag]

29. Denny can bat 'em all in with the loot Sibel Edmonds says the Turks

bragged about funneling to him.

[EFerrari]

35. That's right. Omigod, there's s many scandals

I'd forgotten that one.

Geezelouize, culture of corruption is an understatement.

[xchrom]

32. i could get to like mondays

with news like that.

[No Exit]

34. Sing it! "I once was blind, but now I see......"

It's beginning to look a lot like Fristmas, everywhere you go....

[Jackpine Radical]

36. But Frist DID maintain a blind trust.

He just had the letters read to him.

[IndyOp]

38. 15 times - not once, not twice, not three times, not four times...

Christie Harvey & Al Franken milked this one today on Al's show!

It was great - :bounce:

[Yo_Mama_Been_Loggin]

39. More from the party of family values

Their arrogance knows no limited. They truly think their God's chosen.