Warren, Ocasio-Cortez question Mnuchins role in demise of Sears – NBC News

Warren, Ocasio-Cortez question Mnuchin\s role in demise of Sears - NBC News

Warren, Ocasio-Cortez Unleash Fury Over Steve Mnuchins Role In Sears Downfall

Sen. Elizabeth Warren, D-Mass., and Rep. Alexandria Ocasio-Cortez, D-N.Y., teamed up Thursday to pepper Treasury Secretary Steven Mnuchin with pointed questions about his alleged role in the decline of the once mighty Sears department store chain.

Before joining the Trump administration, Mnuchin served on the board of the Sears Holding Corp. and is a close friend and ex-Yale roommate of Eddie Lampert, the former Sears CEO who has been accused of making billions for himself and investors while closing 3,500 stores and firing 20,000 workers.

Eddie Lampert put his friend Steven Mnuchin on the Sears board and then he drove the company into the ground, Ocasio-Cortez said in a video posted on Twitter.

Before @StevenMnuchin1 became Treasury Secretary, he was on the board of @Sears, where he helped gut the company and fire thousands of employees. Now, @AOC and I have some tough questions for him. pic.twitter.com/hS25rPOsYa

Under Lampert, who led Sears from 2013 to 2018, the company closed more than 3,500 stores, shed some of its most valuable assets, including Lands' End, and laid off thousands. Sears filed for bankruptcy in October. Lampert bought Sears through an affiliate of his hedge fund ESL Investments, saving it from total liquidation.

Instead of investing in the company, he sucked about $6 billion in value out of it and then did stock buybacks, which certainly made him a lot of money, Warren, a Democratic presidential candidate, said of Lampert.

Warren and Ocasio-Cortez also asked whether Mnuchin had sought to waive an ethics agreement in which he promised to "not participate personally and substantially in any particular matter involving specific parties" where Sears was involved. That January 2017 agreement, which applied for one year, has expired.

Mnuchin, Lampert and several other former Sears board members were accused in a lawsuit filed by Sears Holdings in April of allegedly stealing billions of dollars from the store chain.

We are deeply concerned by the financial engineering and potentially illegal activity,” they wrote to Mnuchin. “In addition, we are concerned that, as Treasury Secretary, you are in position to take actions that benefit Sears shareholders and owners at the expense of workers and taxpayers.  Before @StevenMnuchin1 became Treasury Secretary, he was on the board of @Sears, where he helped gut the company and fire thousands of employees. Now, @AOC and I have some tough questions for him. pic.twitter.com/hS25rPOsYa

We are deeply concerned by the financial engineering and potentially illegal activity that took place at Sears Holding Corporation while you served on the companys board, the lawmakers wrote in a letter dated May 23 to Mnuchin. In addition, we are concerned that, as Treasury Secretary, you are in a position to take actions that benefit Sears shareholders and owners at the expense of workers and taxpayers.

They suggest that the money man come clean about his role as a board member alongside his Yale roommate Eddie Lampert, who is accused of spinning off key assets as the once iconic department store stumbles into bankruptcy.

With that in mind, Warren and Ocasio-Cortez posed several questions to Mnuchin and gave him a June 13 deadline to respond.

Share DAVE GOLDINER May 23rd 2019 11:34AM Rep. Alexandria Ocasio-Cortez and Sen. Elizabeth Warren want answers from Treasury Secretary Steve Mnuchin — and for once it has nothing to do with President Trumps taxes.

Among other things, they asked Mnuchin what advice he gave when Lampert decided to buy back almost $6 billion in Sears stock, what advice he gave Lampert about loading Sears with large amounts of debt, and what advice he gave Lampert about selling off or shuttering stores and laying off thousands of workers.

Ocasio-Cortez and Warren Have Some Tough Questions for Mnuchin About the Collapse of Sears

Sears Holdings filed for bankruptcy in October after years of losses under Lampert, who was also the largest shareholder.

The video highlighted ties between Mnuchin and Eddie Lampert, Mnuchin's old college roommate and the subject of a lawsuit claiming he improperly stripped Sears of its assets. Lampert, the former CEO and Chairman of Sears, appointed Mnuchin, also named in the lawsuit, to Sears' board before driving "the company into the ground," Ocasio-Cortez claimed.

The companys creditors contend Lampert, along with Sears biggest shareholders, unduly benefited from deals that occurred on his watch. Specifically, the spinoff of Lands End in 2014 and transactions with Seritage Growth Properties, a real estate investment trust Lampert created through some Sears properties a year later.

It's unclear how Mnuchin will respond, although he's already pushed back on another congressional demand relating to President Trump's tax information. The lawmakers' letter was the latest in a series of Democratic efforts to investigate the Trump administration as the 2020 election approaches.

AOC and Elizabeth Warren team up on Steve Mnuchin over Sears bankruptcy

Altogether, Lampert caused more than $2 billion of assets to be transferred to himself and Sears other shareholders and beyond the reach of Sears creditors, the Sears Holdings lawsuit alleges.

Warren, a 2020 hopeful, reportedly sought Ocasio-Cortez's endorsement and has tried to highlight their relationship in joint videos. The two adopted a lighter tone when they discussed the "Game of Thrones" finale during another video released on Tuesday.

It further alleged that, In an effort to create a false record to cover up their asset stripping, at Lamperts personal direction, Sears employees repeatedly produced financial plans reflecting fanciful, bad-faith predictions that the company would experience an immediate and dramatic turn-around from deep and mounting losses to sudden profitability.

Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Elizabeth Warren, D-Mass., released another joint video Thursday in which they pressed Treasury Secretary Steve Mnuchin over his role in Sears' 2018 bankruptcy — implying that he made money off of American workers' hardships.

Both Warren and Ocasio-Cortez have been harsh critics of predatory corporate practices that have resulted in thousands of workers losing their jobs while enriching the people at the top.

Warren also has a personal connection to Sears. After her father suffered a heart attack, Warrens mother kept the family afloat by getting a job as a phone operator in the catalog department at a Sears store in Oklahoma.

The New York democratic socialist and the 2020 presidential candidate wrote that theyre “deeply concerned by the financial engineering and potentially illegal activity” that went on at Sears, once the largest retailer in the world, while Mnuchin served on its board from 2005 until December 2016.

To give you a better overall experience, we want to provide relevant ads that are more useful to you. For example, when you search for a film, we use your search information and location to show the most relevant cinemas near you. We also use this information to show you ads for similar films you may like in the future. Like Oath, our partners may also show you ads that they think match your interests.

“Had defendants not taken these improper and illegal actions, Sears would have had billions of dollars more to pay its third-party creditors today and would not have endured the amount of disruption, expense, and job losses resulting from its recent bankruptcy filing,” the lawsuit reads.


Posted in Alexandria