Despite Connecticut’s massive and growing fiscal crisis, Governor Dannel Malloy’s corporate welfare program continues to spin out of control. This time the recipient of the Malloy administration’s taxpayer funded give-a-way program is another massive, extraordinarily profitable hedge fund, a company headed by a multi-millionaire corporate executive who is a climate change denier.
Last Wednesday, as the nation and its citizens reeled from the results of Election Day, Governor Dannel Malloy announced his decision to give Greenwich-based AQR Capital Management $35 million dollars in Connecticut taxpayer funds.
AQR Capital Management is one of the nation’s largest hedge funds, with assets of over $159 billion. The company’s CEO, Cliff Asness, is known for his Republican, Libertarian and right-wing politics, including his consistent denial that climate change is a problem facing the world.
As the Hartford Business Journal reported in, Greenwich firm to expand with $35M in state loans, grants,
Gov. Dannel P. Malloy on Wednesday announced the company’s participation in the Department of Economic and Community Development’s First Five program, providing up to $28 million in loans and up to $7 million in grants to support the firm’s $72 million expansion project. AQR Capital will retain 540 jobs as it creates new ones, Malloy said.
Since the Malloy administration’s corporate welfare program is funded through state borrowing, the $35 million gift to AQR Capital Management will cost taxpayers well in excess of $40 million.
Making the corporate subsidy all the more outrageous, AQR’s top executive has been an extremely controversial figure in the business world.
Addressing Cliff Asness’ statements, a Fortune Magazine article published on March 11, 2015 and entitled, Top hedge fund manager: Global warming isn’t a danger, reported;
One of Wall Street’s most successful hedge fund managers is once again wading into the climate change debate. His conclusion: It’s not as big of a problem as some suggest.
The hedge fund executive went on to suggest that, “based on the current pace of global warming, it will take another 500 years before the changes become a real problem.”
Connecticut crippling state debt is already making it impossible to maintain vital services and will leave future generations with impossibly high debt payments.
In fact, Governor Malloy’s unprecedented use of corporate welfare will cost Connecticut taxpayers well in excess of $1 billion and his fiscally irresponsible policies have already undermined Connecticut state government’s ability to meet its obligations in the years and decades to come.