Cindy McCain sells Sudan investments; renews debate on tax returns
By Steve Benen Thursday May 15, 2008 7:30amGiven the mystery surrounding John McCain’s wife’s finances, stories like these are not going to help matters.
Cindy McCain, the wife of the Republican presumptive nominee for president, has sold off at least $2 million she held in funds with investments in Sudan businesses.
The mutual funds — American Funds Europacific Growth and American Funds Capital World Growth and Income — have investments in companies with business in Sudan, according to the Sudan Divestment Task Force, an advocacy organization that has been working to persuade states, universities and other organizations to divest.
“As soon as she was made aware, she sold it,” said Brian Rogers, a spokesman for the McCain campaign. “Senator and Mrs. McCain are committed to doing everything possible to end the genocide in Darfur.”
Both funds were listed by her husband, Senator John McCain, on his financial disclosure forms. The investments and the divestiture were first reported by The Associated Press, and confirmed by the McCain campaign.
This issue came up briefly a year ago, when four presidential candidates — Sam Brownback, John Edwards, Rudy Giuliani, and Barack Obama — learned of their Sudan-related holdings and quickly divested themselves. For John McCain, who seems to have very few assets of his own, this didn’t come up until now.
In light of Cindy McCain’s rather indignant remarks last week about keeping her finances private, these $2 million dollars in Sudanese investments just won’t do.
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Hey I just checked my 401k and I have AF Europacific! I don't know what Sudan has to do with Euro and Pacific -- doesn't really match the prospectus. Does that make me complicit in genocide?
I am curious to know the date she actually took the necessary step to divest from this Fund. As in, why it is now making the Headlines when I first learned of this over a year ago.
One rather arrogant assumption of people involving Darfur is that the American government isn't using this as a cheap excuse to kill Muslims and blacks at the same time (like Somalia) and that China's propping up this regime is somehow different, than say, us and Pinochet.
Darfur is a religious conflict, as well. The Sudanese north is killing traditional-belief Africans and Christian Africans. Muslims killing Christians. Dubya deserves to rot in hell for this, as do the Chinese and the Janjaweed.
How elitist, Cindy made money off genocide.
"$2 million dollars in Sudanese investments"
That is almost surely a pretty absurdly overblown statement. I really doubt that 100% of the assets of this mutual fund are in Sudan. I would be flabbergasted if it is more than 10%, and surprised if it is more than 1%.
We need something like a "Bushed" for McCain antics because they are piling up... or at least a "McFlipFlop Alert"
SO, maybe I'm dense, but why does isn't the DNC sponsoring an ad bringing this up - with eerie minor synth chords and ominous drum beats - like the TN Repugs did with Michelle Obama and her honest words taken out of context?
I guess we're too nice.
Killers always profit from killing. It gives them lots of pin money for pedicures and spa treatments.
McCain will not only continue Bush's wars, jingoist foreign policy and elitist economic plans favoring the rich - but now it's proven he'll continue Dubya's interminable embarrassments.
It makes you want to ask just how many times can Bush/McSame be made to look like fools.
... but then I guess there's just some things you can't put a number on.
McCain '08 - what's in your wallet?
Most of us here in the states support slavery and oppression in form or another.
We just don't like to have it within our own borders (or on our TV screens) anymore. But we are more than willing to ignore (or deny) our participation in the global apartheid model as long as it supplies us with cheap products.
“As soon as she was made aware, she sold it,” said Brian Rogers, a spokesman for the McCain campaign.
wtf??! I never understood that argument. How can someone NOT be aware of what they're spending their money on? How can someone NOT know, what they OWN??! Especially $2 million worth, you know?
If its a legitimate, seriously legitimate "accident" - that you own $2 million worth of drug and blood money investments - if that kind of investment is slipping through the cracks - I mean, them's some pretty damn big cracks!
I have about $5000 in my 401k, and I know EXACTLY what its invested in. If *I* invested $2 million into something?? well, thats a hefty chunk of change!
"unaware of the investment".... pff.
she's either lying... or telling the truth. and either way - it makes her the pinnacle of "elitism", in my eyes.
life is all about the friendships and partnerships you make. I trust Obama more after seeing and reading interviews with Michele. I like Hillary, because I lived firsthand under the noteworthy leadership of Bill.
I used to like McCain, in the 90's, but the more I scrutinize his wife... the more I find myself distrusting John, because of my growing distrust and disdain for Cindy. I mean, to put it bluntly if not rudely - the man either married into money and now he's pussywhipped... or he's just as greedy and shady as she is. Either way, not the best man to run this nation.
probably pretty rude to talk smack about the man's wife and relationship, but oh well...
Benedict Arnold was a US war hero before he became a traitor
Sometimes being a bitch is all that a woman has to hold onto in life. Poor little Cindy, she will never be accepted as a true first lady so she's going to make certain that people die for what she lacks in her life. Its an old story and she's an old woman married to a very tired old man.
This is a little ridiculous. American Funds is the 3rd largest mutual fund family. Like Stan, I too have money in this fund. And anyone with mutual funds knows that you get a large prospectus before you buy, but besides reviewing the average returns, the type of investment, risk level, companies, etc., most people have no need to look beyond that. After all -- that is why you are buying and paying for the mutual fund -- to have somebody else manage your money.
Just won't do what?
I don't know why - but I am still surprised at the daily depravity practiced by the power elite in America. Of all the reasons I supposed for Cindy McCain to hoard her tax returns - investing in genocide didn't even register as a possibility. I just don't get it. My husband and I donate thousands of dollars to charity every year - though we can ill afford to. It's something I've always done, having been homeless and destitute at one time in my life. We even discuss what to do should my writing sell - should we ever become one of the ‘hoi polloi’. I think in terms of what I can do with the money to make other people's lives better - not how I can screw the poor in developing countries out of what little they already have.
How in hell does she sleep at night?
The Fat Lady Sings @ 17:
alone.
and upside down.
Oh please. Their handlers are telling them they'll HAVE to present those tax returns eventually and they're scrambling to white wash it. When the time comes they'll have all kinds of make believe ready to be spread on why those nasty little investments were totally innocent and nobody knew anything at the time and aren't they all just wonderful saintlike human beings, and hey! is that more bbq over there?
mudshark @ 18:
FTW! LOOL!
NoTorture @ 15:
bullshit. what do you have in there?
do you have $1000 out of your $60,000/year salary? if so - then I guess I understand why you wouldn't look.
do you have $10,000 of your $60,000/year salary? if so - then... well you're a dumbass for not looking.
do you have $2 million out of your $3.5 million/year salary? if so - well, then again, you're a dumbass for not looking.
do you have $2 million out of your $100 million/year salary? if so - well, then..... you're an elitist.
Cindy McCain had $2 million invested in shady investments. she's either dumb, or elitist, or both. either way, John thought she was a good partner to invest his life and love into. so - John, by extension, is either dumb, or elitist, or both.
do you really not know what you're invested in? I do...
burnt @ 21:
I have 787 bucks in AF Europac. Yay I'm outta genocide range. Seriously, though, who decides what's genocide funding and what's an extra diversification? $2mil for Cindy McCain may be like 787 bucks to me compared to my net worth, and she may have hundreds of different investment instruments in her portfolio. Would you be able to tell if a small % of a small % of your retirement was invested in something you don't support politically if you have fully diversified into dozens of different funds? I'll leave it at that.
Ok I know I said I'd leave it, but I just had to peek at AF EuroPac's prospectus:
Top Ten Holdings 3 as of 03/31/2008
Roche Holding Ltd
Bayer
Novo-Nordisk A S
Banco Santander
Gazprom OAO (EDR)
America Mobile ADR
Hon Hai Precision Industry
AXA
Nestle
Vodafone Grp
17.91% of the portfolio
From the Sudan Divestment website does not list which of the holdings has an interest in Sudan and how much involvement in Sudan that company or companies have. They do provide a comprehensive list, however, which numbers well over 60. As you can see, even the top 10 holdings make up only 18% of the fund's investments. If you had to screen every single company, you could be there for days.
Here's another problem I just thought of -- what about people who invest in "Funds of funds" like the target-date retirement funds or Vanguard's STAR fund? Does a % of a % of a % of involvement in Sudan or Myanmar or Turkmenistan or Russia constitute an endorsement of said government's unethical, tyrannical, or evil behavior? And if so, how does one even begin to sleuth out those relationships?
ARRG sorry I misspoke (miswrote?):
from the Sudan Divestment site:
The Following Companies Are On
The Sudan Divestment Task Force's Targeted Divestment List:*
Company Name ticker # of shares % of holdings Value
Oil & Natural Gas Corp 36339064 0.71% $742,632,000
Stan @ 23:
I think that is the point -- nobody has the time or capacity to investigate every fund. (Or even if you investigate the fund, how do you investigate every company?). Many mutual fund companies offer "socially responsible" funds -- that screen out many "undesirable" characteristics. Take a look at the Calvert Index or the FTSE4Good US Select Index. Of course, I'd rather people invest in the best performing mutual funds and then be more charitable.
I thought American Fund's perspective was interesting (not sure I agree with it):
http://www.americanfunds.com/about/disclosures/social-responsibility.htm
American Funds’ approach to Sudan and socially responsible investing
Background
Although American Funds does not categorize any of its funds as “socially responsible,” when making investment decisions, we do consider the possible impact social issues may have on a company’s long-term success. It is important to remember that, as investment professionals, we have a fiduciary responsibility to base our investment decisions solely on the financial objectives stated in each American Funds prospectus.
The situation in Sudan
We abhor the genocide in Darfur and share with many the belief that investment firms with Sudan-related holdings should consider whether they could take actions that might help alleviate the crisis.
We are aware that some are urging investment firms to sell their holdings in companies doing business in Sudan based on the view that divestment is the best way to bring about needed change.
Others believe that staying engaged provides an opportunity to exert influence that could increase pressure on Sudan’s government to end the genocide. Earlier this year, Warren Buffett responded to calls for Berkshire Hathaway to divest itself of a firm doing business in Sudan by asking, “then what?” If publicly held international firms were to abandon their operations in Sudan, would their replacements — perhaps private companies or the Sudanese government itself — help, or might they actually make things worse?
We have spent much time discussing the potential effectiveness of various responses to this tragic situation. We have determined not to divest, but to use our status as a shareholder in companies doing business in Sudan to support calls for meaningful, enduring change. Among other things, we are urging the managers of these companies to press the Sudanese government to take actions to end the genocide.
Other social issues
Since the introduction of these funds in the 1950s, American Mutual Fund and Washington Mutual Investors Fund have policies that prohibit investing in the securities of companies that derive a majority of their revenue from alcohol or tobacco.
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