Today's single payer post: SEIU vs Carlyle Group
BALTIMORE - About 60 union workers protested Monday at a conference where the head of a private-equity firm spoke to business editors and reporters.
Workers from Manor Care (nyse: HCR - news - people ) nursing homes around the U.S. protested David Rubenstein's speech, chanting and passing out flyers, said Julie Eisenhardt, a spokeswoman for the Service Employees International Union.
Residents and caregivers point to recent care problems and problems at the bargaining table as evidence that Carlyle is not truly committed to its promises. One home in Davenport, IA was cited for more than 30 violations of regulatory standards in a recent inspection. Meanwhile, when caregivers in ManorCare’s Towson, MD facility fought for a fully-funded training program, the company fought back, offering a plan that would require caregivers, already struggling to make ends meet at their low hourly wages, to pay back some of the cost.
The account at The Baltimore Sun truly captures Rubenstein's hubris:
Rubenstein told reporters and editors that he sees investment opportunities in financial institutions, whose balance sheets include marked-down assets. Moreover, Rubenstein said he believes banks will become more open to selling debt, including those of Carlyle companies, at a discount.
"The most attractive thing right now is buying back my own debt," he said.
So Carlyle floats bonds, which are subsequently downrated because of Carlyle's dodgy reputation, which Carlyle buys back at a discounted rate. Imagine if all those hard pressed foreclosed could do the same?