Cheney's Halliburton Stock up 3,281% in One Year

[LoungeMachine]

Cheney's Halliburton stock options rose 3,281% last year, senator finds
RAW STORY


An analysis released by a Democratic senator found that Vice President Dick Cheney's Halliburton stock options have risen 3,281 percent in the last year, RAW STORY can reveal.

Sen. Frank Lautenberg (D-NJ) asserts that Cheney's options -- worth $241,498 a year ago -- are now valued at more than $8 million. The former CEO of the oil and gas services juggernaut, Cheney has pledged to give proceeds to charity.


“Halliburton has already raked in more than $10 billion from the Bush-Cheney Administration for work in Iraq, and they were awarded some of the first Katrina contracts," Lautenberg said in a statement. "It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it. The Vice President should sever his financial ties to Halliburton once and for all.”

Cheney continues to hold 433,333 Halliburton stock options. The company has been criticized by auditors for its handling of a no-bid contact in Iraq. Auditors found the firm marked up meal prices for troops and inflated gas prices in a deal with a Kuwaiti supplier. The company built the American prison at Guantanamo Bay.

The Vice President has sought to stem criticism by signing an agreement to donate the after-tax profits from these stock options to charities of his choice, and his lawyer has said he will not take any tax deduction for the donations.

However, the Congressional Research Service (CRS) concluded in Sept. 2003 that holding stock options while in elective office does constitute a “financial interest” regardless of whether the holder of the options will donate proceeds to charities. CRS also found that receiving deferred compensation is a financial interest.

Cheney told "Meet the Press" in 2003 that he didn't have any financial ties to the firm.

“Since I left Halliburton to become George Bush's vice president, I've severed all my ties with the company, gotten rid of all my financial interest," the Vice President said. "I have no financial interest in Halliburton of any kind and haven't had, now, for over three years.”

Cheney continues to received a deferred salary from the company. According to financial disclosure forms, he was paid $205,298 in 2001; $162,392 in 2002; $178,437 in 2003; and $194,852 in 2004.

[LoungeMachine]

Originally posted by LoungeMachine


Congressional Research Service (CRS) concluded in Sept. 2003 that holding stock options while in elective office does constitute a “financial interest” regardless of whether the holder of the options will donate proceeds to charities. CRS also found that receiving deferred compensation is a financial interest.

Cheney told "Meet the Press" in 2003 that he didn't have any financial ties to the firm.

“Since I left Halliburton to become George Bush's vice president, I've severed all my ties with the company, gotten rid of all my financial interest," the Vice President said. "I have no financial interest in Halliburton of any kind and haven't had, now, for over three years.”

Cheney continues to received a deferred salary from the company. According to financial disclosure forms, he was paid $205,298 in 2001; $162,392 in 2002; $178,437 in 2003; and $194,852 in 2004.





So he's a Liar and a war profiteer


How nice

[Nickdfresh]

http://i6.photobucket.com/albums/y240/Nickdfresh/naked2.jpg

[Big Train]

Way to get the facts wrong lib media. YEARS AGO (before he ran for the first term) he assigned all the options to third party charities, which can NEVER revert back to him.

Barking up the wrong tree as usual. Have the senator visit the charities and ask for the options back.

Fucking numbnuts these guys are really..

[Nickdfresh]

Originally posted by Big Train
Way to get the facts wrong lib media. YEARS AGO (before he ran for the first term) he assigned all the options to third party charities, which can NEVER revert back to him.

Barking up the wrong tree as usual. Have the senator visit the charities and ask for the options back.

Fucking numbnuts these guys are really..

Are you sure about that? Did he "pledge" to give the money, or did he actually follow through...

[LoungeMachine]

Claim vs. Fact

Cheney, Halliburton & the Government

Vice President Dick Cheney has gone to great lengths to claim that there are very few connections between Halliburton and the U.S. government. He has also claimed that scrutiny of Halliburton only comes from political opponents who are “desperate.” In each of his claims, the facts tell a very different story.

Government Contracts

CLAIM: “The government had absolutely nothing to do with [my economic success at Halliburton].”
– Dick Cheney, 10/5/00

FACT: “Cheney's comment left out how closely Dallas-based Halliburton's fortunes are linked to the U.S. government. The world's largest oil services firm is a leading U.S. defense contractor and has benefited from financial guarantees granted by U.S. agencies. During Cheney's five years as chairman and chief executive, Halliburton was identified as a potential participant in 10 loans or loan guarantees valued at a total of $1.8 billion awarded by the U.S. government. Additionally, during Cheney's tenure, the U.S. Defense Department granted Halliburton contracts valued at about $1.8 billion, according to department records.” In 1999 alone, “the Pentagon ranked Halliburton the No. 17 recipient of ''prime contract awards'' with $657.5 million.”
– Bloomberg News, 10/6/00

CLAIM: “I wouldn't know how to manipulate the [government contract] process if I wanted to.”
– Dick Cheney, 1/22/04

FACT: “A report by the Washington-based Center for Public Integrity suggested that Halliburton essentially cashed in - doubling the value of its government contracts - on Cheney. The company took in revenue of $ 2.3 billion on government contracts ,” which was “up $1.2 billion from the five-year period before he arrived.”
– LA Times, 10/19/00 ; Chicago Tribune, 8/10/00 ; AFP, 12/14/03

Charges Against Halliburton

CLAIM: “Cheney said, ‘Halliburton gets unfairly maligned simply because of their past association with me.' He said allegations of corruption stem from ‘desperate' political opponents who ‘can't find any legitimate policy differences to debate. He said critics haven't produced any evidence to support their claim, which he said is unfounded.”
– Dow Jones, 1/22/04

FACT: Halliburton itself has acknowledged that it “accepted up to $6 million in kickbacks” in its no-bid contract work in Iraq . Additionally, it is the Bush Administration – not “political opponents” that is looking into allegations that the company overcharged the government by $61 million. And it is the Bush Administration that " repeatedly warned the company that the food it was serving the 110,000 U.S. troops in Iraq was 'dirty'” with an audit finding "blood all over the floor" of its kitchens, "dirty pans," and "rotting meats ... and vegetables."
– Boston Globe, 1/23/04; CBS, 12/12/03;

Cheney's Continued Links to Halliburton

Vice President Dick Cheney continues to say that he has no ties to Halliburton since joining the GOP ticket in 2000. He also promised to clear himself from any conflict of interest should he become Vice President. In each of his claims, the facts tell a very different story.

CLAIM: “But what I'll have to do, assuming we're successful [in the election], is divest myself, that is, sell any remaining shares that I have in the company.”
– Dick Cheney, 7/30/00

FACT: A congressional report found that Cheney still owns “more than 433,000 Halliburton stock options,” including “100,000 shares at $54.50 per share, 33,333 shares at $28.125 and 300,000 shares at $39.50 per share.”
– CNN, 9/25/03

CLAIM: “I severed my ties with Halliburton when I became a candidate for Vice President in August of 2000.”
– Dick Cheney, 1/22/04

FACT: Along with the 433,000 stock options, “ Cheney still receives about $150,000 a year” from Halliburton.
– CNN, 10/25/03

CLAIM: “What happens financially [by joining the GOP ticket], obviously, is I take a bath , in one sense.”
– Dick Cheney, 7/25/00

FACT: Halliburton “has agreed to let Mr. Cheney, the Republican vice-presidential candidate, retire with a package worth an estimated $20 million, according to people who have reviewed the deal.”
– NY Times, 8/12/00

Conflict of Interest

CLAIM: “I'll do whatever I have to do to, Sam, to avoid a conflict of interest. I will eliminate the conflict. I can assure you, I've said repeatedly, I will not tolerate or be party to a conflict of interests while I'm vice president. I'll do whatever I have to do to resolve that conflict.”
– Dick Cheney, 8/27/00

FACT: A congressional report found that “the more than 433,000 stock options he possesses ‘is considered among the 'ties' retained in or 'linkages to former employers' that may 'represent a continuing financial interest' in those employers which makes them potential conflicts of interest.”
– CNN, 9/25/03

Cheney's Tenure at Halliburton

Vice President Dick Cheney has told many stories about his time at Halliburton. And even as criticism mounts over Halliburton's treatment of U.S. troops and taxpayers, he continues to say he is proud of the company.

CLAIM: “I had a firm policy that I wouldn't do anything in Iraq even arrangements that were supposedly legal. We've not done any business in Iraq since the sanctions were imposed and I had a standing policy that I wouldn't do that.”
– Dick Cheney, 8/27/00

FACT: “According to oil industry executives and confidential United Nations records, however, Halliburton held stakes in two firms that signed contracts to sell more than $73 million in oil production equipment and spare parts to Iraq while Cheney was chairman and chief executive officer of the Dallas-based company. Two former senior executives of the Halliburton subsidiaries say that, as far as they knew, there was no policy against doing business with Iraq . One of the executives also says that although he never spoke directly to Cheney about the Iraqi contracts, he is certain Cheney knew about them. The Halliburton subsidiaries joined dozens of American and foreign oil supply companies that helped Iraq increase its crude exports from $4 billion in 1997 to nearly $18 billion in 2000. Since the program began, Iraq has exported oil worth more than $40 billion.”
– WP, 6/23/01

Halliburton's Reputation

CLAIM: “Halliburton is a fine company, and I'm pleased that I was associated with the company.”
– Dick Cheney, 8/7/02

FACT: Halliburton has acknowledged that it “accepted up to $6 million in kickbacks” in its contract work in Iraq . It is also under scrutiny over allegations of overcharging the government by $61 million in Iraq – a practice the company was previously fined $2 million for. The company also potentially faces criminal charges in a $180 million international bribery scandal during the time Cheney was CEO of the company. The Pentagon has also " repeatedly warned the company that the food it was serving the 110,000 U.S. troops in Iraq was 'dirty'” with an audit finding "blood all over the floor" of its kitchens, "dirty pans, dirty grills, dirty salad bars and rotting meats…and vegetables."

– B. Globe, 1/23/04; CBS, 12/12/03 & 4/12/03; W. Post, 1/21/04; AFP, 12/14/03

[LoungeMachine]

Originally posted by Big Train
Way to get the facts wrong lib media. YEARS AGO (before he ran for the first term) he assigned all the options to third party charities, which can NEVER revert back to him.

Barking up the wrong tree as usual. Have the senator visit the charities and ask for the options back.

Fucking numbnuts these guys are really..



FACT: A congressional report found that Cheney still owns “more than 433,000 Halliburton stock options,” including “100,000 shares at $54.50 per share, 33,333 shares at $28.125 and 300,000 shares at $39.50 per share.”
– CNN, 9/25/03

CLAIM: “I severed my ties with Halliburton when I became a candidate for Vice President in August of 2000.”
– Dick Cheney, 1/22/04

FACT: Along with the 433,000 stock options, “ Cheney still receives about $150,000 a year” from Halliburton.
– CNN, 10/25/03

[Big Train]

Uh Yea, I'm pretty sure


http://www.factcheck.org/article261.html

Summary

A Kerry ad implies Cheney has a financial interest in Halliburton and is profiting from the company's contracts in Iraq._ The fact is, Cheney_doesn't gain a penny from Halliburton's contracts, and_almost certainly won't_lose even if Halliburton goes bankrupt.


The ad claims Cheney got $2 million from Halliburton_"as vice president," which is false. Actually,_nearly $1.6 million of that was paid_before_Cheney took office. More importantly, all of it was earned before he was a candidate, when he was the company's chief executive.

Analysis


Kerry ad released Sept_17 once again attacks Cheney's ties to Halliburton, implying that Cheney is profiting from the company's contracts in Iraq. That's false.

Kerry-Edwards Ad

"Cheney Halliburton"

Cheney: I have no financial interest in Halliburton of any kind and haven't had now for over three years.

Announcer: The truth: As vice president, Dick Cheney received $2 million from Halliburton. Halliburton got billions in no bid contracts in Iraq. Dick Cheney got $2 million. What did we get? A $200 billion dollar bill for Iraq. Lost jobs. Rising health care costs. It's time for a new direction.

John Kerry. Stronger at home. Respected in the world.

Announcer: I'm John Kerry, and I approve this message.


The ad isn't subtle. It says, "As vice president, Dick Cheney received $2 million from Halliburton. Halliburton got billions in no bid contracts in Iraq. Dick Cheney got $2 million. What did we get?" And it implies that_Cheney lied to the public when he said in a TV interview that "I have no financial interest in Halliburton of any kind."

But as_we document here, Cheney has insulated himself financially from whatever might happen to Halliburton._The Kerry ad_misstates the facts.

$2 Million

To start, the $2 million figure is wrong. It is true that Cheney has received just under $2 million from Halliburton_since his election, but_nearly_$1.6 million of that total was paid before Cheney actually took office on Jan. 20, 2001. Saying Cheney got that much "as vice president" is simply false.


We asked Cheney's_personal attorney_to document that, and_he did, supplying several documents never released publicly before:

A_Halliburton_pay statement _dated Jan 2, 2001 shows_just under_$147,579 was paid_that day_as "elect defrl payou," meaning payout of salary from_the company's Elective Deferral Plan. That was salary Cheney had_earned in 1999, but which_he_had chosen previously to receive in five installments spread over five years.

Another_pay statement _dated Jan. 18 shows_$1,451,398 was paid_that day_under the company's "Incentive Plan C" for senior executives. That was Cheney's incentive compensation -- bonus money --_paid on the basis of_the company's performance in 2000. Cheney had formally resigned from the company the previous September to campaign full time, but the amount of his bonus couldn't be calculated until the full year's financial results were known.

Cheney's personal financial disclosure forms,_together with the pay statements just mentioned,_show that_Cheney has received $398,548 in deferred salary_from Halliburton_"as vice president." And of course, all of that is money he earned when he was the company's chief executive officer. Cheney was due to receive another payment in 2004, and a final payment in 2005.

The Kerry ad isn't the only place the false $2 million figure appears. The Democratic National Committee also gets it wrong on their_website. The dates of the Halliburton payments don't appear on Cheney's personal financial disclosure form from 2001, and the DNC assumed --_incorrectly as we have shown -- that all the 2001 payment were_made after he took office.

Deferred Salary

The $398,548 Halliburton has paid to Cheney while in office is all deferred compensation, a common practice that high-salaried executives use to reduce their tax bills by spreading_income over several years. In Cheney's case, he signed a Halliburton form in December of 1998 choosing to have 50% of his salary for the next year, and 90% of any bonus money for that year, spread out over five years. (As it turned out, there was no bonus for 1999.)_We asked Cheney's_personal attorney_to document_the deferral agreement_as well, and_he supplied us with a copy of the_form , posted here publicly for the first time.

Legally, Halliburton can't increase or reduce the amount of the deferred compensation no matter what Cheney does as vice president._So Cheney's deferred payments from Halliburton wouldn't increase no matter how much money the company makes, or how many government contracts it receives.

On the other hand, there is_a_possibility that if the company went bankrupt it would be unable to pay. That raises the theoretical possibility of a conflict of interest -- if the public interest somehow demanded that_Cheney take action that would hurt Halliburton it could conceivably end up costing him money personally. So to insulate_himself from that possible conflict, Cheney purchased an insurance_policy _(which cost him$14,903) that promises to_pay him_all the deferred compensation that Halliburton owes him even if the company goes_bust_and refuses to pay._The policy does contain escape clauses allowing_the insurance company to refuse payment_in the unlikely events that Cheney files_a claim resulting "directly or indirectly" from a change in law or regulation, or from a "prepackaged" bankruptcy in which creditors agree on terms prior to filing. But otherwise it ensures Cheney will get what Halliburton owes him should it go under.

Cheney aides supplied a copy of that policy to us -- blacking out only some personal information about Cheney -- which we have posted here publicly for the first time.

Stock Options

That still_would leave_the possibility that Cheney could profit from his Halliburton stock options if the company's stock rises in value. However, Cheney and his wife Lynne have assigned any future profits from their stock options in Halliburton and several other companies_to charity. And we're not just taking the Cheney's word for this -- we asked for a copy of the legal agreement they signed, which we post_here _publicly for the first time.

The "Gift Trust Agreement" the Cheney's signed two days before he took office turns over power of attorney to a trust administrator to sell the options at some future time and to_give the after-tax profits to three charities. The agreement specifies that 40% will go to the University of Wyoming (Cheney's home state), 40% will go to George Washington University's medical faculty to be used for tax-exempt charitable purposes, and 20% will go to Capital Partners for Education , a_ charity that provides financial aid for low-income students in Washington, DC to attend private and religious schools.

The agreement states that it is "irrevocable and may not be terminated, waived or amended," so the Cheney's can't take back their options later.

The options owned by the Cheney's have been valued at nearly $8 million,_his attorney says._Such valuations are rough estimates only -- the actual value will depend on what happens to stock prices in the future, which of course can't be known beforehand. But it is clear that_giving up rights to the future profits constitutes a significant financial sacrifice, and a sizeable donation to the chosen charities.

"Financial Interest"

Democrats have taken issue with Cheney's statement to Tim Russert on NBC's Meet the Press Sept. 14, 2003, when he said he had no "financial interest" in Halliburton:

Cheney (Sept. 14, 2003): I've severed all my ties with the company, gotten rid of all my financial interests. I have no financial interest in Halliburton of any kind and haven't had now for over three years. And as vice president, I have absolutely no influence of, involvement of, knowledge of in any way, shape or form of contracts led by the Corps of Engineers or anybody else in the federal government.

Shortly after that, Democratic Sen. Frank Lautenberg released a legal analysis he'd requested from the Congressional Research Service. Without naming Cheney, the memo_concluded a federal official in his position -- with deferred compensation covered by insurance, and stock options whose after-tax profits had been assigned to charity -- would still retain an "interest" that must be reported on an official's annual disclosure forms. And in fact,_Cheney does report his options and deferred salary each year.

But the memo reached no firm conclusion as to whether such options or salary constitute an "interest" that would pose a legal conflict. It said "it is not clear" whether assigning option profits to charity would theoretically_remove a potential_conflict, adding,_"no specific published rulings were found on the subject." And it said that insuring deferred compensation "might" remove it as a problem under conflict of interest laws.

Actually, the_plain language of the Office of Government Ethics regulations on this matter seems_clear enough. The regulations_state: "The term financial interest means the potential for gain or loss to the employee . . . as a result of governmental action on the particular matter." So by removing the "potential for gain or loss" Cheney has solid grounds to argue_that he has removed any "financial interest" that would pose a conflict under federal regulations.

Conflict of Interest

It is important to note here that_Cheney_could legally have held onto his_Halliburton stock options, and no law required him to_buy insurance against the possibility that Halliburton wouldn't pay_the deferred compensation it owes him. Both the President and Vice President are specifically exempted from federal conflict-of-interest laws, for one thing, as are members of Congress and federal judges.

And even_federal officials who are covered by the law may legally_own a financial interest in a company, provided they formally recuse themselves -- stand aside -- from making decisions that would_have a "direct and predictable effect on that interest." And Cheney says he's done just that.

Cheney says he takes no part in matters relating to Halliburton, and so far we've seen no credible allegation_to the contrary. Time magazine reported in its June 7 edition that an e-mail_from an unnamed Army Corps of Engineers official stated that a contract to be given to Halliburton in March 2003_"has been coordinated w VP's [Vice President's] office." But it wasn't clear who wrote that e-mail, whether the author had direct knowledge or was just repeating hearsay,_or even_what was meant by the word_"coordinated," which_could mean no more than that somebody in Cheney's office was being kept informed of contract talks.

Indeed, a few_days later_it was revealed that Cheney's chief of staff Lewis "Scooter" Libby was informed in advance_that Halliburton was going to receive_an earlier_contract_in the fall of 2002 --_to secretly plan post-war repair of Iraq's oil facilities. But_being informed of a decision after it is made_is_a_far cry from taking part in making it. And according to the White House, Libby didn't even pass on the information to Cheney anyway.

So to_sum up, this Kerry ad's implication that Cheney has a financial interest in Halliburton is_unfounded and the $2 million figure is flat wrong.

Sources

"Vice President Dick Cheney discusses the war with Iraq, the economy and other topics," NBC News "Meet the Press" 14 Sep 2003.

Jack Maskell, "Official's__Stock Options In and Deferred Compensation From a Corporation as a "Financial Interest" of an Executive Branch Official in Such a Corporation," Memorandum , American Law Division, Congressional Research Service,_22 Sep 2003.

US Code of Federal Regulations,TITLE 5,_CHAPTER XVI--OFFICE OF GOVERNMENT ETHICS,_PART 2640--INTERPRETATION, EXEMPTIONS AND WAIVER GUIDANCE CONCERNING 18 U.S.C. 208 (ACTS AFFECTING A PERSONAL FINANCIAL INTEREST)_5CFR2640.103(b)

Timothy J. Burger and Adam Zagorin, "The Paper Trail: Did Cheney Okay a Deal?", Time magazine, 7 June 2004: 42.

Larry Margasak, "Cheney never heard plan_to give work to Halliburton for rebuilding of Iraq," The Associated Press 16 June 2004.

[FORD]

factcheck.org is a Republican misinformation site. Uncle Dick himself said as much on Meet The Press in 2004

[Big Train]

even thugh the dcumentation is there? um, ok...

[LoungeMachine]

factcheck.org

well, I'm sold.....

[krcampbell]

Regarding politics, I think a lot of people (on this site, in general) need to take this approach: deal with it.

"WAAAAH our country is going down the drain!!"

Meh, can't win 'em all.

"Cheney's a war-profiteer!"

So? Who gives a shit?

I'm not arguing or disputing any of these facts. I'll be honest, I don't know enough or care to know enough about any of this. I understand why people care, and it's fine if you don't feel the same way as me. But big fuckin' deal...politicans are corrupt and regardless of who is in office, there's going to be all sorts of wrong-doings.

My approach is just sit back and enjoy the ride. Let the chips fall as they may. I'm alive, I'm breathing, I'm enjoying my life. And I'm sure many of you are doing the same, so why sweat this stuff? Complaining about everything isn't going to help anything at all, so just relax and enjoy your stay.

[krcampbell]

Paraphrasing Diamond Dave, there's two rules to life. One, don't sweat the small shit, and two, it's all small shit.

[LoungeMachine]

Originally posted by krcampbell


. I'll be honest, I don't know enough or care to know enough about any of this. .

Perhaps the Frontline isn't the Forum for you.


Crack another brewski, beat the wife, and watch King of the Hill reruns.


mkkay?

:cool:

[Big Train]

So I'm supposed to believe your article then, because it comes from a more respected , by you, source?

I'll take the documentation any fucking day, thank you..

[Nitro Express]

If Chenney is as evil as some of you think he is, when he has his final heart attack, he will have Satan poking him in the ass saying,"Welcome to Hell you motherfucking liar and war profiteer, here's a large pinapple to shove up your ass."

[Satan]

Originally posted by Nitro Express
If Chenney is as evil as some of you think he is, when he has his final heart attack, he will have Satan poking him in the ass saying,"Welcome to Hell you motherfucking liar and war profiteer, here's a large pinapple to shove up your ass."

Let's just say my plantation in Hawaii has been alerted to plant extra crops for the new season :D