Catastrophe - Dick Morris [90]
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THERE IS NOTHING LIKE A NAME
Ted Kennedy, Jr., the Senator’s Son
Some people may insinuate that I am looking to trade on my family name. This is definitely not the case.
—TED KENNEDY, JR., April 2004
Apparently Caroline Kennedy isn’t the only member of the Kennedy family who’s tried to capitalize on her famous last name. Even before her disastrous attempt to be appointed as Hillary Clinton’s successor in the Senate, her cousin, Ted Kennedy, Jr., was one big step ahead of her. For years, Kennedy Jr. has been boldly exploiting both his name and his intimate relationship with the most influential member of the U.S. Senate when it comes to health care and organized labor: his father, Senator Ted Kennedy.
Those twin pillars of special interests—the health care establishment and labor unions—have been the foundation of Ted Kennedy, Jr.’s, phenomenal success in the last decade. And his father has been all too willing to help out in making the family connection into a lucrative business for his son.
Despite his righteous denials, public reports and anecdotal information indicate that Ted Kennedy, Jr., actually does privately trade on his famous family name.
Now that his father is set to be the quarterback on health care reform, Ted Kennedy, Jr., is positioned to be in the right place at the right time. His “health care advisory” firm, the Marwood Group, is busily offering its services to hedge funds and other interested groups in the United States and overseas.
What does Marwood offer? Advice and information on what to expect from Washington on health care reform and any and all issues that relate to the health care industry.
What makes Marwood so well equipped to sell this advice?
At the very least, the perception that its information comes straight from the chairman of the committee that will determine every single detail of health care reform. Beyond that, the perception that paying Ted Kennedy, Jr.’s, firm might give you unparalleled access to Senator Ted Kennedy, Sr.
Needless to say, most hedge funds (and lots of other businesses) would jump at the opportunity to have the inside scoop on which businesses will benefit and which will suffer because of the radical changes that are currently being considered for the health care system. Any clues, about the regulation of drugs, medical devices, nursing homes, hospitals, insurance companies, the biotech industry, and so on can mean a gain or loss to those industries and to the hedge funds that invest in them. An early heads-up can lead to immediate trading—buying, selling, shorting. That kind of information is a gold mine.
And Ted Kennedy, Jr., understands that completely. While there is nothing illegal about Kennedy Jr.’s activities and no evidence of any leaking of insider information by Senator Kennedy, the health care industry is desperate for any information and advice, and he knows it.
MAKING THE MOST OF FAMILY TIES
Looking back, it seems rather obvious: sometime around 2000, Ted Kennedy, Jr., apparently decided to begin to commercialize his unique and very valuable family contact in the Senate. Why not? It’s a cardinal rule of business: you use what you have.
To get the ball rolling, Kennedy Jr.’s firm, the Marwood Group, hung out its shingle and registered to lobby in Washington for the four years from 2001 to 2004. Not surprisingly, all of its clients came from a single sector of the economy: health care. For almost half that period, starting in June 2001, Kennedy’s father was the chairman of the Senate Committee on Health, Education, Labor and Pensions. That turned out to be extremely helpful to Ted Jr.
Whether you agree with Ted Kennedy or not, he has been a consistent champion of universal health care for more than twenty years and an influential voice for children, the elderly, consumers, and those without their own lobbyist in Washington.
His son, however, has followed a different agenda.
Ted Kennedy, Jr., went to Washington for one reason: to