gotsnowgotslush
skates like Eck
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Bush's Harken transaction
Bush and Harken Energy
As George Bush announces a crackdown on corporate fraud, the president's own financial dealings from 10 years ago
have come under renewed scrutiny, as Mark Tran explains
What is the fuss over Mr Bush's financial transactions?
On June 22 1990, George Bush, then a director with a company called Harken Energy, sold 212,140 shares for
$848,000 (£548,100). Almost exactly two months later, on August 20, Harken announced a $23.2m loss,
which caused its shares to drop to $2.375 from $3. The next day, Harken returned to $3,
but fell to $1 at the end of 1990
Harken sold 80% of a subsidiary, Aloha Petroleum, to a partnership formed by Harken executives, who got
most of the money for the deal by borrowing from Harken itself. The transaction allowed Harken
to reduce the amount of debt on its balance sheet and to claim the proceeds of the sale as income.
Mr Bush became a director of Harken and a member of its audit committee when Harken paid $2m for Spectrum 7,
a small loss-making energy company with large debts. Mr Bush was chief executive of Spectrum 7.
http://www.guardian.co.uk/world/2002/jul/10/qanda.usa
President GH Bush and son
Bush and Harken Energy
As George Bush announces a crackdown on corporate fraud, the president's own financial dealings from 10 years ago
have come under renewed scrutiny, as Mark Tran explains
What is the fuss over Mr Bush's financial transactions?
On June 22 1990, George Bush, then a director with a company called Harken Energy, sold 212,140 shares for
$848,000 (£548,100). Almost exactly two months later, on August 20, Harken announced a $23.2m loss,
which caused its shares to drop to $2.375 from $3. The next day, Harken returned to $3,
but fell to $1 at the end of 1990
Harken sold 80% of a subsidiary, Aloha Petroleum, to a partnership formed by Harken executives, who got
most of the money for the deal by borrowing from Harken itself. The transaction allowed Harken
to reduce the amount of debt on its balance sheet and to claim the proceeds of the sale as income.
Mr Bush became a director of Harken and a member of its audit committee when Harken paid $2m for Spectrum 7,
a small loss-making energy company with large debts. Mr Bush was chief executive of Spectrum 7.
http://www.guardian.co.uk/world/2002/jul/10/qanda.usa
President GH Bush and son