Edwards to divest funds - Has $16 million tied to foreclosures on Katrina victims
Edwards to divest funds - Has $16 million tied to foreclosures on Katrina victims
BY MIKE GLOVER AND JIM KUHNHENN
Copyright by The Chicago Sun-Times and The Associated Press
August 19, 2007
DES MOINES, Iowa -- Democratic presidential candidate John Edwards, who has called homeownership ''the foundation of the American dream,'' said Friday he will get rid of personal assets tied to lenders who have foreclosed on Hurricane Katrina victims.
''I will not have my family's money involved in these firms that are foreclosing on people in New Orleans,'' he said.
Edwards has reported $29.5 million in assets, more than half of which are invested in the hedge fund Fortress Investment Group, a company that paid him nearly half a million dollars last year for consulting advice.
Fortress has investments in lenders that offer subprime mortgages, higher priced loans for borrowers considered greater risks. The Wall Street Journal on Friday identified 34 New Orleans homeowners who face foreclosure actions from lenders connected to Fortress.
''My reaction is I'm going to help these people,'' Edwards said. ''I just learned about this. I don't know the details, I will find out and I will find a way to help them.''
Edwards has decried the predatory lending practices that sometimes accompany subprime mortgage lending. He has built his campaign on an anti-poverty message.
Edwards worked part-time for Fortress Investment Group, getting paid $479,512.
The campaign said Friday that Edwards and his wife, Elizabeth, have $16 million in their Fortress-related investments.
And Fortress executives have donated more than $150,000 to his campaign in the first six months of the year.
The Washington Post reported Fortress' connections to subprime lenders in May.
At the time, Edwards said he was unaware that the hedge fund had such investments. He also said that he asked Fortress to help Katrina victims facing foreclosure.
BY MIKE GLOVER AND JIM KUHNHENN
Copyright by The Chicago Sun-Times and The Associated Press
August 19, 2007
DES MOINES, Iowa -- Democratic presidential candidate John Edwards, who has called homeownership ''the foundation of the American dream,'' said Friday he will get rid of personal assets tied to lenders who have foreclosed on Hurricane Katrina victims.
''I will not have my family's money involved in these firms that are foreclosing on people in New Orleans,'' he said.
Edwards has reported $29.5 million in assets, more than half of which are invested in the hedge fund Fortress Investment Group, a company that paid him nearly half a million dollars last year for consulting advice.
Fortress has investments in lenders that offer subprime mortgages, higher priced loans for borrowers considered greater risks. The Wall Street Journal on Friday identified 34 New Orleans homeowners who face foreclosure actions from lenders connected to Fortress.
''My reaction is I'm going to help these people,'' Edwards said. ''I just learned about this. I don't know the details, I will find out and I will find a way to help them.''
Edwards has decried the predatory lending practices that sometimes accompany subprime mortgage lending. He has built his campaign on an anti-poverty message.
Edwards worked part-time for Fortress Investment Group, getting paid $479,512.
The campaign said Friday that Edwards and his wife, Elizabeth, have $16 million in their Fortress-related investments.
And Fortress executives have donated more than $150,000 to his campaign in the first six months of the year.
The Washington Post reported Fortress' connections to subprime lenders in May.
At the time, Edwards said he was unaware that the hedge fund had such investments. He also said that he asked Fortress to help Katrina victims facing foreclosure.
posted by Carlos T Mock at 6:39 AM
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