Federal City National Bank
In 1985, McAuliffe helped found the Federal City National Bank, a small bank based in Washington, D.C.[5] In January 1988, when he was 30 years old, the banks board elected McAuliffe chairman, making him the youngest elected chairman of a federally chartered bank in the history of the United States.[6]
The bank loaned $125,000 to a political action committee that supported Richard Gephardt's presidential campaign. McAuliffe told The New York Times that he abstained from voting on the loan because he was also the Gephardt campaign's finance chairman.[7] The bank also provided loans to former U.S. Representative Tony Coelho and the then-Speaker of the United States House of Representatives, Jim Wright.[8]
In 1991, McAuliffe helped to negotiate a merger with Credit International Bank (then under the management of Republican Richard V. Allen), which he called his "greatest business experience".[8] McAuliffe went on to become vice chairman of the newly merged bank, leading to questions from shareholders that he was given special treatment, which Allen denied.[8][9]
American Pioneer Savings Bank
In 1979, McAuliffe met Richard Swann, a lawyer who was in charge of fundraising for Jimmy Carter's presidential campaign in Florida. In 1988, McAuliffe married Swann's daughter, Dorothy.
In the late 1980s, Swann's finances collapsed, entangling McAuliffe, who then used his political contacts to help Swann.[8] In 1990, federal regulators seized Swann's American Pioneer Savings Bank, causing Swann to file for bankruptcy, and McAuliffe to lose $800,000 he had invested in American Pioneer.[8] The Resolution Trust Corporation, a federal agency, seized American Pioneer's assets and liabilities.[8] Under the guidance of Swann, McAuliffe partnered with a pension fund controlled by the International Brotherhood of Electrical Workers and the National Electrical Contractors Association to buy American Pioneer real estate, valued at $50 million, for $38.7 million from the Resolution Trust Corporation.[8][10] Of the purchase amount, McAuliffe paid $100, while the pension fund paid $38.7 million;[8] McAuliffe still received a 50% equity stake.[10] The deal was arranged by pension fund trustee Jack Moore, who was an acquaintance of McAuliffe from the Gephardt presidential campaign.[8][10] Following the deal, the Department of Labor filed a lawsuit against McAuliffe and Moore, accusing them of imprudent business practices.[8][10]
Global Crossing
In 1997, McAuliffe invested $100,000 in Global Crossing,[6] a Bermuda-registered telecommunications company providing fiber-optic networking services worldwide.[11] Global Crossing went public in 1998.[12] The following year, McAuliffe sold the majority of his holding for a $8 million profit (other accounts have said his profit was $18 million).[13] McAuliffe sold the rest of his shares in January 2002.[13] The company filed for bankruptcy that same month, causing investors to lose over $54 billion, and 10,000 employees to lose their jobs.[13][14] McAuliffe, who lambasted Republicans after the Enron scandal, was criticized as hypocritical in the media, prompting him to set up television interviews to explain himself.[15] On Hannity & Colmes, Sean Hannity pointed out McAuliffe's large profit, to which McAuliffe responded, "What are you, jealous or something? I mean, you buy stock. It was a great company."[16] According to McAuliffe's book, he played no management role in Global Crossing.[6]
GreenTech Automotive
GreenTech Automotive
In 2009, McAuliffe founded GreenTech Automotive, a holding company, which purchased Chinese electric car company EU Auto MyCar for $20 million in May 2010.[17][18] Later that year, McAuliffe relocated GreenTech's headquarters to McLean, Virginia. GreenTech subsequently announced plans to manufacture vehicles in Mississippi.[19][20]
In April 2013, McAuliffe announced his resignation from GreenTech.[21] Although he resigned from his position, McAuliffe still holds majority ownership in GreenTech.[22][23]
In December 2012, McAuliffe was questioned as to why he chose to locate the factory in Mississippi as opposed to Virginia. McAuliffe claimed that he wanted to bring the factory to Virginia but the Virginia Economic Development Partnership (VEDP), the state's business recruitment agency, chose not to bid on it.[24] However, in January 2013, PolitiFact declared McAuliffe's claim to be false. According to PolitiFact, VEDP and GreenTech formally discussed building the factory in Virginia, and its representatives even toured potential sites with GreenTech representatives.[24] McAuliffe said he disagreed with PolitiFact's report, and said other GreenTech executives made the decision, but did not offer specifics as to how the report was mistaken
