Bush ran companies into the ground.
name one...
• 1979-83:
Fifty Bush family investors and friends, led by uncle Jonathan, a
New York Republican Party official and an investment manager, fork over $4.7 million to set up young Bush in a company called Arbusto. It's a flop, and in 1982 gets a new name: Bush Exploration.
• 1984: Spectrum 7 Corporation, an Ohio oil exploration outfit owned by Dubya's Yalie pal
William DeWitt Jr., buys out Bush Exploration, setting up young Bush as CEO at $75,000 a year and giving him 1.1 million shares of the firm's stock. Another flop. The company's fortunes soon sink, with $400,000 in losses and a debt of $3 million.
• 1986: In the nick of time, Bush and partners merge the failing Spectrum with Harken Oil, a Dallas exploration company, with a $2 million stock purchase. Bush puts up about $500,000 and gets a $120,000 annual consulting fee along with $131,250 in stock options. Harken is a small outfit, looking for oil opportunities within the U.S. Then out of the blue comes
Harvard Management Corporation, an investment adviser for
Harvard University's endowment portfolio. It pumps millions into the venture.
• 1990: Although Harken has no international expertise, it gets the attention of the
Bahrain National Oil Company, which unexpectedly appears on the scene and bypasses big oil's
Amoco and
Chevron to sign a production agreement with the little Texas concern. The contract grants Harken exclusive rights to what seems to be a promising offshore area squeezed between two productive tracts owned by
Saudi Arabia and
Qatar.
The Wall Street Journalspeculates
Bahrain was trying to cozy up to Daddy Bush, who was plotting an assault on
Iraq after
Saddam Hussein seized
Kuwait.
Bass
Enterprises Production Company finances the Bahrain drilling with $25 million, and Harvard Management raises its investment. A couple of members of the
Fort Worth Bass family have places on Team 100, an elite business group contributing to the
Republican National Committee.
In June, Harken drills two dry holes in Bahrain. The future looks bleak. Dubya dumps two-thirds of his Harken holdings (212,140 shares), for $848,560. He uses some of this money to buy into the Texas Rangers baseball club. This is a lot of stock to dump on the market all at once, and brokers say it was purchased by an unnamed institutional investor.
That August, Harken posts a loss of $23 million.
• January 1991: Daddy Bush attacks Iraq.
• February 1991: Dubya, as the official in charge at Harken, reports his big stock sale to the SEC—eight months late.
• April 1991: The SEC begins an investigation into Harken dealings.
Chairman Richard Breeden, who had been appointed by the senior Bush and served him as an economic policy adviser, hails from Baker & Botts, a big Texas oil law firm where he was a partner. Inside the SEC,
James Doty, general counsel and the official in charge of any litigation that might come out of the Harken investigation, is another alumnus of Baker & Botts. And as a private attorney, before joining the government, Doty represented the younger Bush in matters related to Dubya's ownership of the Rangers.
• 1993: The SEC ends its Harken investigation following perfunctory interviews.
The good people of Baker & Botts continued looking out for Shrub. Since 1993, Breeden, Doty, and other lawyers there have given him $182,050 for his various political campaigns, making the firm one of his biggest supporters.
That's how the network functioned in the Harken affair. Dubya also has historic mentors among his kin. During the Second World War, for example, the government investigated his grandfather,
Prescott Bush, and his maternal great-grandfather,
Bert Walker. Under the
Trading With the Enemy Act, officials seized Bush stockholdings, charging that "huge sections of Prescott Bush's empire had been operated on behalf of
Nazi Germany and had greatly assisted the German war effort."
George Bush, Failed Corporate Crook - - News - New York - Village Voice