Twenty-two months later – vindication!
Almost two years ago, Governor Dannel “Dan” Malloy announced that he was giving Bridgewater Associates, the world’s most profitable hedge fund, $120 million to move their headquarters from Westport to Stamford.
Bridgewater’s CEO, Ray Dalio, is known as the nation’s highest paid individual with an annual income of over $2 BILLION a year.
At the time, Bloomberg news quoted me as saying, “This is stealing from the poor and middle class to make a billionaire even richer.”
But as reported in the Norwalk Hour, Bridgewater announced the following this evening.
“WESTPORT — The Bridgewater Associates’ move to Stamford is not going to happen.
According to a statement released by the global hedge fund on Friday, Bridgewater “will not proceed with the move.”
“After careful examination and reflection surrounding the challenges, time, energy, and resources needed to bring the proposed Stamford project to completion, we have decided not to proceed with the move. We are particularly thankful to Governor Malloy for doing his utmost to make this opportunity possible. We are now exploring our other options,” the statement read…”
While it remains unclear whether Connecticut taxpayers will get all of their money back, the good news is that the governor’s corporate welfare folly for Bridgewater looks like it is coming to an end.
Here is the Wait, What? post from August 12, 2012,
When one of my favorite readers sent me the news late this afternoon, I didn’t believe it.
When Bloomberg News Service wrote seeking a comment a few moments later, I almost drove off the road.
Personally, I can’t make my mortgage payments, but like Connecticut’s other taxpayers, it turns out that I managed to scrounge together $115 million for Bridgewater Associates, the world’s biggest hedge fund.
In fact, since the state is borrowing some of the money, it will actually cost Connecticut’s taxpayers well over $150 million.
And what do we get for it.
Bridgewater will build a $750 million headquarters in Stamford, Connecticut.
And the bargain is that it only costs us $25 million for a “’forgivable” 10-year loan with interest set at 1 percent”, plus $80 million in tax credits, $5 million for some type of “alternative-energy system” and $5 million for job training…although the 154,000 Connecticut residents on unemployment (and the additional 100,000 who have part-time jobs when they really want full time jobs) shouldn’t hold their breath; Bridgewater is very particular about the types of people it hires.
Oh, and the kicker, they will be moving their offices….FROM WESTPORT, CONNECTICUT TO STAMFORD, CONNECTICUT.
My first response to the reporter wasn’t printable, so I stopped the car, took a deep breath and tried again.
The following is what Bloomberg News printed under the sub-headline, “‘Shocking’ Deal”:
“This is stealing from the poor and middle class to make a billionaire even richer…“This isn’t economic development…[it is] shocking beyond words…If a Republican governor did this, we Democrats would be calling for impeachment,” said Jonathan Pelto, a Democrat and former deputy majority leader in Connecticut’s House of Representatives.
The full Bloomberg News article can be found here: http://www.bloomberg.com/news/2012-08-15/connecticut-aids-bridgewater-hedge-fund-to-build-new-hq.html
Paid for by Pelto 2014, Ted Strelez, Treasurer, Christine Ladd, Deputy Treasurer, Approved by Jonathan Pelto
For the full Wait, What? post go to: http://jonathanpelto.com/2012/07/18/will-parents-speak-up-in-time-to-end-the-standardized-testing-madness/