That means public pensions might be forced to dump their holdings in public-backed investments to provide private-equity firms with emergency casha move that could depress the stock market even further. To revisit this article, select My Account, thenView saved stories. As a subscriber, you have 10 gift articles to give each month. Bethany McLean. Like so many other facets of the COVID-19 crisis, however, this unprecedented crash exposed long-running cracks in the facade. Bethany Lee McLean (born December 12, 1970) is an American journalist and contributing editor for Vanity Fair magazine. Bethany McLean is a journalist and contributing editor for Vanity Fair. The Wuhan Institute of Virology, the cutting-edge biotech facility at the center of swirling suspicions about the pandemics onset, was far more troubled than previously known, explosive documents unearthed by a Senate research team reveal. He and McLean previously worked together on All the Devils Are Here: The Hidden History of the Financial Crisis, about the 2008 market crash. [12], McLean married Chris Wilford in 2000 and divorced in 2006. She co-authored a book on the 2008 financial crisis titled All the Devils Are Here. At least 1 in 303 residents have died from the coronavirus, a total of 2,512 deaths. The industrys total assets under management have hit a record $4.1 trillion. Saudi America: The Truth About Fracking and How Its Changing the World., stocks that make up the S.&P. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Cond Nast. The politics dictating whether the private-equity industry will get its wishes are surprising. McLean graduated from Hibbing High School in 1988. How exactly did the alleged illegal activity go down? Stopping that will require a creative effort to increase and sustain high levels of vaccination. So if Blackstones investments crater, the teachers, firefighters, and health care workers who are counting on those investments to generate the returns necessary to pay their pensions will suffer. Are Crude Oil & Natural Gas Prices Linked? Moodys, the rating agency, said that in the third quarter of 2019, 91 percent of defaulted U.S. corporate debt was due to oil and gas companies. Monday - Friday In 2019, the American Investment Council (AIC), a lobbying group which represents private-equity giants like Blackstone, the Carlyle Group, Apollo Global Management, and KKR, declared that in order to continue to provide the benefits they guarantee, pensions must continue to invest in private equity.. This location, as with the other County contracted medical sheltering sites, will accept individuals from the local community that are referred through DPH. The man who shot his girlfriend and five relatives at a birthday celebration had "control issues". Copyright 2023 WSLS.com is managed by Graham Digital and published by Graham Media Group, a division of Graham Holdings. And North American oil and gas drillers have almost $100 billion of debt that is set to mature in the next four years. But among those angling for a federal handout is one of the wealthiest sectors of the American economy: private equity. January 2022 was the month with the highest average cases, while November 2020 was the month with the highest . Dec 2020 - Apr 20221 year 5 months. We need private equity, we need more of it, and we need it now, chief investment officer Ben Meng said in early 2019right before CalPERS hired a former private-equity guy, who began his career at Goldman Sachs, to head its private-equity efforts. In September 2015, she published Shaky Ground: The Strange Saga of the U.S. Mortgage Giants which examines the governance and financial situation of Fannie Mae and Freddie Mac seven years after the 2008 financial crisis. The key issue is the parent child problem. When wells are clustered tightly together, with so-called child wells drilled around the parent, the wells interfere with one another, resulting in less oil, not more. This material may not be published, broadcast, rewritten or redistributed without permission. As a group of scientists who study virusesexplains, Theres no reason, at least biologically, that the virus wont continue to evolve.From a different angle, the science writer David Quammen surveys some of the highly effective tools and techniques that are now available for studying Covid and other viruses, but notes that such knowledge alone wont blunt the danger. All thats left to tally is the environmental and financial damage. Novavax Inc said on Thursday it would require six months to produce a COVID-19 vaccine designed to match whichever coronavirus variants are circulating for an annual immunization program each fall . The problem is, existing rules at the Small Business Administration, which is overseeing the program, have been widely interpretedas excludingloaning money to most mom-and-pop businesses that are controlled by large parent companiesincluding private-equity firms. And more! Otherwise, the ILPA warned in a previous letter, there would be significant harm not only to employees that see their hours reduced or jobs eliminated, but also significantly reduced returns to the institutions providing retirement security through pensions, insurance policies and other investments that serve hundreds of thousands of Americans. To make matters worse, ILPA added, provisions in many private-equity investments allow private-equity firms to make additional capital calls when times are tough. Here are some tips. Bethany McLean is a Vanity Fair contributing editor. Bethany McLean was born on 12 December 1970 in Hibbing, Minnesota, USA. Unlike venture capitalists, who provide start-up funds to new companies, private-equity firms generally take over existing businesses, usually by borrowing large sums of money. Its still unclear where most of this debt is held. The industrys boosters argue that technological gains, such as drilling ever bigger wells, and clustering wells more tightly together to reduce the cost of moving equipment, eventually would lead to a gusher of profits. Vanity Fair may earn a portion of sales from products that are purchased through our site as part of our Affiliate Partnerships with retailers. Previous assignments include editor-at-large, columnist for Fortune, and a contributor to Slate. Best-selling author Bethany McLean reveals the true story of fracking's impact - on Wall Street, the economy, and geopolitics. The active outbreak list is intended to inform the public of the current COVID-19 outbreaks in Los Angeles County. On March 10, Scott Sheffield, the chief executive of Pioneer Natural Resources, a major driller in the Permian Basin, told Bloomberg that U.S. oil output could fall by more than two million barrels per day by next year if prices remain where they are today. Vanity Fair may earn a portion of sales from products that are purchased through our site as part of our Affiliate Partnerships with retailers. Americas largest public pension plan, the California Public Employees Retirement System, or CalPERS, put almost $7 billion into private equity during the 2018-2019 fiscal year, according to Institutional Investor. She has co-authored multiple bestselling books, including The Smartest Guys in the Room and All the Devils Are Here. All rights reserved. Waters, in her letter, argues for placing even more strings on the money taken by private-equity-backed companies. Bill White wants to restore Americas historical proclivity for balanced budgets. 8:00 a.m. - 4:30 p.m. 200 W Front StreetBloomington, IL 61701Phone: (309) 888-5450 HoursMonday - Friday8 a.m. - 4:30 p.m. - Manage notification subscriptions, save form progress and more. Given how much of the economy will rise and fall on the investments that private-equity funds manage, we may be forced to let them share the federal handout. Was Tiffany involved? But it doesnt have to be a blank check. By now, it should be abundantly clear that the current shale oil business model does not work even for the very best companies in the industry, the investment firm SailingStone Capital Partners explained in a recent note. In a January 4 opinion piece for the New York Times, Bethany McLean had this to say about the outcome of the Elizabeth Holmes trial: "A jury's verdict is black-and-white, but the real story is . On the surface, it appears that two unforeseeable and random shocks are threatening our dream. Not only should taxpayer funds not be used to pay management or consulting firms, she says, but companies that take the money should also, for instance, be required to include workers on their corporate boards and gradually increase their minimum wage to at least $15 an hour. A college student in Indiana died in her dorm room after testing positive for the coronavirus, school officials and her family said. So why should they be permitted to raid the federal Treasury in a time of crisis? And President Trump reveled in the rhetoric: We hadnt merely achieved independence, his administration said, but rather energy dominance.. Veuer's Tony Spitz has the details. Its thanks to those who are able to contribute that were able to make the podcast free for anyone to listen to. In the Season One finale of Making A Killing, Bethany brings back her friend, colleague and co-author Joe Nocera (Bloomberg Opinion columnist and creator of The Shrink Next Door podcast) to bookend the season with a lively analysis of the former head of Nissan Motor Co. and Renault S.A., Carlos Ghosn. By signing up you agree to our User Agreement and Privacy Policy & Cookie Statement. She is also a columnist at Yahoo Finance and a contributor to CNBC. Jack Ewings Faster, Higher, Farther is more than the story of a scandal. Her two books are the The Smartest Guys in the Room: The Amazing. . 1 FOR PHARMACISTS PRESCRIBING PAXLOVID: This service is available in all locations, with the exception of those in New Hampshire. Mnuchin is a former Goldman Sachs executive and hedge fund guy; Blackstones Schwarzman has ties to Trump; Jared Kushners family business has gotten loans from Apollo, according to the Washington Post. By Bess Levin . Months into the outbreak, no one really knows how well many of the screening tests work, and experts at top medical centers say it is time to do the studies to find out. Smithfield Foods. [citation needed], She authored an article on Enron for the March 5, 2001, issue of Fortune entitled, "Is Enron Overpriced? Get COVID-19 vaccine updates from the CDC. Investors were willing to do this only as long as oil prices, which are not under Americas control, were high and when they believed that one day, profits would materialize. David Wallace Wells writes that by one estimate. Now, it has been shut off. in English and mathematics from Williams College. After nearly bringing down the economy in 2008, how is it possible that Fannie Mae and Freddie Mac are still around? Copyright 2023 Click2Houston.com is managed by Graham Digital and published by Graham Media Group, a division of Graham Holdings. Mortgages should be used to buy homes, not for refinancing. Thats because oil fracking has never been financially viable. Click here to take a moment and familiarize yourself with our Community Guidelines. Daily updates from Washington, Wall Street, and Silicon Valley. The typical fee structure in private equity is the so-called 2 and 20, which means that a fund collects a fee of 2% of the total assets it manages, as well as 20% of any gains on its investments after a certain return is achieved. All rights reserved. Copyright 2020 The Associated Press. The Next Financial Crisis Lurks Underground (Bethany McLean, New York Times), Coronavirus May Kill Our Fracking Fever Dream (Bethany McLean, New York Times), Are Crude Oil & Natural Gas Prices Linked? Since that time, Oxys stock has plummeted almost 80 percent in part due to fears that the Anadarko acquisition is going to prove so wildly unprofitable that it sinks the company. As a result, private equity is now wound into the very fabric of our economy. Americas energy independence was an illusion created by cheap debt. Copyright 2023 WSLS.com is managed by Graham Digital and published by Graham Media Group, a division of Graham Holdings. NEW YORK (AP) Business writers Bethany McLean and Joe Nocera are collaborating on a critical take of the U.S. response to the coronavirus pandemic. Writer: Enron: The Smartest Guys in the Room. The industrys lack of profits wasnt exactly a secret. Nocera is a columnist for Bloomberg Opinion and co-author of Indentured, about the NCAA. Some of it has been packaged into so-called collateralized loan obligations, pieces of which are held by hedge funds. BLOOMINGTON A total of 208 new COVID-19 cases have been reported by the McLean County Health Department from Jan. 27 through Friday. Joe Nocera is a journalist and column writer for Dealbook. Use of this site constitutes acceptance of our User Agreement and Privacy Policy and Cookie Statement and Your California Privacy Rights. Portfolio, a Penguin Random House imprint . [13][14][15] They divorced in 2020. On March 10, the company announced that it would slash its dividend for the first time since the early 1990s, when Saddam Husseins invasion of Kuwait sent oil prices plummeting. McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. Nocera is a columnist for Bloomberg Opinion and co-author of Indentured, about the NCAA. To revisit this article, visit My Profile, thenView saved stories. McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. Thats because some of the major investors in private-equity funds are public pension plans; at Blackstone, roughly one-third of the firms money comes from retirement plans set up to provide for over 30 million working-class Americans, according to someone with knowledge of its portfolio. The industry also quietly helps itself to yet more money by having portfolio companies pay fees for consulting and financing services provided by, of course, their private-equity backers. Hours When will the pandemic end? Seventy-one members of the Bethany Slavic Missionary Church near Rancho Cordova or people associated with congregation members have been afflicted with the virus, county officials say, making. But that didnt seem to matter, because low interest rates facilitated private equity in another way. Fracking, they said, was just manufacturing, in which process and human intelligence could reduce costs and conquer geology. Whats more, the Milken Institute reported, even by mid-2018, private equity owned more companies than the number of businesses listed on all of the U.S. stock exchanges combined, and have accounted for a more significant source of financing than initial public offerings in many recent years. Bethany McLean, a contributing editor at Vanity Fair, is the author of "Saudi America: The Truth About Fracking and How It's Changing the World." The Times is committed to publishing a. All we know for sure is that fracking company executives and private equity financiers have made a fortune by touting the myth of energy independence and they wont be the ones who have to pick up the pieces., Bethany McLean, a contributing editor at Vanity Fair, is the author of Saudi America: The Truth About Fracking and How Its Changing the World.. According to the Institutional Limited Partners Association. (And not all private-equity firms care equally about all of the programs.) This is late 80s bad, a close observer of the industry says. More than 100,000 people already have died in this country from the virus. Nocera and McLean writing book on U.S. coronavirus response By The Associated Press June 24, 2020 NEW YORK (AP) Business writers Bethany McLean and Joe Nocera are collaborating on a critical take of the U.S. response to the coronavirus pandemic. Think of private-equity firms as the banks of the corona crisis: They are, for better or worse, too big to fail. That, too, is ending, as investors in such funds have become disillusioned. McLean was born in Hibbing, Minnesota on December 12, 1970. Bethany McLean is a . Clients who show symptoms of COVID-19 (for example have a fever, cough, or difficulty breathing) and/or are waiting for their test results. As early as 2018, some investors had begun to tell companies that they wanted to see free cash flow, and that they were tired of compensation models that rewarded executives with rich paydays for increasing production, but failed to take profits into account. Private-equity managers won the financial crisis, as Bloomberg put it last fall. Bethany Lee McLean (born December 12, 1970) is an American journalist and contributing editor for Vanity Fair magazine. From 2015 through 2019, private equity firms raised almost $80 billion in funds focused mostly on shale production, according to Barclays. Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. Dont hesitate: sign up on Patreon today. today. In 2018, according to analytics firm eVestment, pension funds in the U.S. and the U.K. pumped 27% of their fresh allocations of money into private-equity funds, up from 25% the year before. Has its bubble finally burst? These firms not only have a record $1.5 trillion in cash on the sidelines, waiting to be invested, but their CEOs are among Americas richest executives. Confirmed cases include those reported since the beginning of the current active outbreak and may include cases that . David Wallace Wells writes that by one estimate, 100,000 Americans could die each yearfrom the coronavirus. How will the virus continue to change? Manage all aspects of the daily operation for Ham Conversion, processing up to 1.5 million lbs/day . on March 2.Read more about the C.D.C . The big banks emerged from the financial crisis victorious, but also subject to a host of new regulations designed to reduce leverage and stabilize the economy. 1. [9], In September 2018, she published Saudi America: The Truth about Fracking and How It's Changing the World which examined the "fracking revolution" and U.S. energy independence. The 42 Best Romantic Comedies of All Time, The 25 Best Shows on Netflix to Watch Right Now. But with super-low interest rates, investors in search of yield were still willing to buy debt. Like the big banks in 2008, private equity is holding us all hostage. Whiting Petroleum, whose stock once traded for $150 a share, filed for bankruptcy. She is known for her writing on the Enron scandal and the 2008 financial crisis. Private equity financiers typically get a 2 percent management fee on funds they can raise, so they are incentivized to take all the money that pension funds, desperate for returns to shore up their promises to retirees, have been willing to give them. Even as the public equity and debt markets grew cautious, drilling continued. The Wuhan Institute of Virology, the cutting-edge . Yet an exemption for the private-equity industry did not make its way into the CARES Act; according to Bloomberg, Senate Majority Leader Mitch McConnell is trying to pass a $250 billion boost to the PPPwithout provisions opening it to private-equity-backed companies. Tar Heel, North Carolina, United States. Americas energy independence was built on an industry that is the very definition of dependent dependent on investors to keeping pouring billions upon billions in capital into money-losing companies to fund their drilling. The fracking boom that drove a decade of record U.S. oil and gas production was never really profitable to begin with. COVID-19 in McLean County for the week ending 3-3-23 - New Cases (2-23-23 to 3-1-23):129; New Hospitalizations (2-22-23 to 2-28-23):10 ; McLean Countys COVID-19 Community Level is LOW: When Community Level is LOW: Stay up to date on vaccinations, Get tested if you have symptoms. Bethany McLean. Portfolio, a Penguin Random House imprint, announced Wednesday that the two had reached an agreement for a news-breaking, character-driven narrative revealing the forces that rendered critical American institutions ill-equipped to cope with the deadliest pandemic since the 1918 Spanish flu and the economic consequences of that failure.The title and release date have not yet been determined. Nocera is a columnist for Bloomberg Opinion and co-author of Indentured, about the NCAA. The SHIELD saliva-based testing is available for all ages. By Bethany McLean. "[3] The article noted some irregularities in Enron's financial documents that were available to the public, suggesting the company's then-record high stock price was unjustified but she did not at that point suspect fraud at Enron. About Bethany McLean is a contributing editor at Vanity Fair. Never mind that they often overpaid for the companies they acquired, and loaded them up with so much debt that even a mild economic downturn could make it nearly impossible for those companies to repay their loans, as Fortune put it. Infuriatingly enough, the financial crisis in 2008 might even have saved private-equity firms from their sins. The fear, of course, is that private equity will do what private equity does best, which is pocket the money themselves rather than devoting it to the businesses theyve invested in. The half decade from 2013 to 2018 saw the most private-equity deals over any five-year period in American history. The socio-economic status of individuals needing . McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. Nocera is a columnist for Bloomberg Opinion and co-author of Indentured, about the NCAA. If private equity is handed billions in taxpayer money, it could use some of it to pay themselves hefty fees today, then pocket even more of it down the road, when they sell their portfolio companies and collect their 20% of the taxpayer-enabled gains. By Bethany McLean Coronavirus May Kill Our Fracking Fever Dream America's energy independence was an illusion created by cheap debt. In each of the past four years, according to data-provider Preqin, private-capital managers raised over $500 billion of new money to invest. Traders last year at the New York Stock Exchange near the post that trades Anadarko Petroleum and Occidental Petroleum. Increasingly desperate to boost the portfolios of retiring workers, they too turned to private equity as their saviorurged on by private equitys promises that it alone could deliver the necessary returns. We could close that, once and for all. (This may not surprise anyone who is attempting to be productive while working in close quarters with their children.). Previous assignments include editor-at-large, columnist for Fortune, and a contributor to Slate . By early 2019, America was the worlds largest producer of crude oil, surpassing both Saudi Arabia and Russia. All the Devils Are Here: The Hidden History of the Financial Crisis is a nonfiction book by authors Bethany McLean and Joseph Nocera about the 2008 financial crisis. They have two children. The Times is committed to publishing a diversity of letters to the editor. [7][8] The Washington Post selected it as one of the best nonfiction books of 2015. COVID-19 Guidance for isolation and quarantine, COVID-19 Education and Outreach Materials Page. The title and release date have not yet been determined. governor announced on Tuesday that he will convene a grand jury to investigate "crimes and wrongdoing" related to COVID-19 vaccines. (Many of the companies owned by mammoth private-equity firms like Blackstone are too big on their own to qualify for this bucket of money.). We asked three experts two immunologists and an epidemiologist to weigh in on this and some of the hundreds of other questions weve gathered from readers recently, including how to make sense of booster and test timing, recommendations for children, whether getting covid is just inevitable and other pressing queries. A deal, and higher oil prices, might help the industry. The value of West Texas Intermediate crude, a U.S. benchmark, dipped below zero for a few hourstrading as low as negative $40 a barrel. Portfolio, a Penguin Random House imprint, announced Wednesday that the two had reached an agreement for a news-breaking, character-driven narrative revealing the forces that rendered critical American institutions ill-equipped to cope with the deadliest pandemic since the 1918 Spanish flu and the economic consequences of that failure.The title and release date have not yet been determined. He and McLean previously worked together on All the Devils Are Here: The Hidden History of the Financial Crisis, about the 2008 market crash. In this episode, McLeanwho has tracked the industrys shaky footing for yearstraces the ups and downs of the industry from the 1970s to 2008 to today, and assesses whether a new recession will speed the transition away from fossil fuelsor hand oil barons a life raft. This kind of rewrites the economics of oil trading.. She has suggestions for how to approach the problem. All rights reserved. The promised profits havent materialized. Following the trail of evidence, Louisiana Senator: Our Maternal Death Rates Are Only Bad If You Count Black Women, If you correct our population for race, were not as much of an outlier as itdotherwise appear.. To keep growing, companies have to keep plowing billions back into the ground. Bethany College will continue to adapt and collaborate as needed to encourage vaccines and boosters for staff and students. MCHD offers free COVID-19 (PCR) testing every Tuesday and Wednesday from 9am-12pm inside the McLean County Health Department building, 200 W. Front Street in downtown Bloomington, Room 400E. New revelations about how one Trump staffer helped preserve the transfer of powerfrom the forthcoming book on the Biden White House, COVID-19 Origins: Investigating a Complex and Grave Situation Inside a Wuhan Lab. On March 9, the price of oil plunged by almost a third, its steepest one-day drop in almost 30 years. Blame Congress for the meltdown, not Goldman Sachs. Exclusive: Inside the S--tshow That Was the Trump-Biden Transition. McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. After the United States engaged in a high-stakes negotiation with Russia and Saudi Arabia to curtail production, a tentative deal was struck on Thursday. In the five years ending in April, there were 215 bankruptcies for oil and gas companies, involving $130 billion in debt, according to the law firm Haynes and Boone. Thats a difficult question to answer definitely, writes the Opinion columnist Zeynep Tufekci, because of the lack of adequate research and support for sufferers, as well as confusion about what the condition even is. McLean started her career as an investment banking analyst for Goldman Sachs[2] and joined Vanity Fair as a contributing editor in 2008. The community level of Covid-19 in McLean County is low based on cases and hospitalizations, according to the most recent update from the C.D.C. The fracking boom that drove a decade of record U.S. oil and gas production was never really profitable to begin with. In the first half of 2019, when oil was around $55 a barrel, only a few top-tier companies were profitable. More than 100,000 people already have died in this country from the virus. If you like the episode and want to hear more, sign up as a monthly member at patreon.com/hotbotheredclimate today. Almost everything thats happened since 2008 has tilted in their favor. Ms. McLean is the author of Saudi America: The Truth About Fracking and How Its Changing the World., Ever since the oil shocks of the 1970s, the idea of energy independence, which in its grandest incarnation meant freedom from the worlds oil-rich trouble spots, has been a dream for Democrats and Republicans alike.
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