Jul 25, 2012
Wall Street Matt Doheny Won’t Say “Outsourcing is Bad”
You’d think that an out-of-touch millionaire who owns multiple private islands might be sensitive to the perception that he isn’t looking out for the best interests of North Country voters. But when asked a simple question – “Is outsourcing bad for New York?” – millionaire Wall Street financier Matt Doheny (NY-21) refused to say that we should be keeping jobs here, and not sending them overseas.
“Matt Doheny spent his adult life making millions at the expense of workers,” said Josh Schwerin, Northeast Press Secretary for the Democratic Congressional Campaign Committee. “It’s not surprising Doheny advocates for protecting tax breaks for companies that ship jobs overseas instead of protecting North Country seniors. Time and time again, Matt Doheny has shown he prioritizes Wall Street companies shipping jobs overseas over protecting the American middle class.”
Doheny Wouldn’t Disavow Outsourcing. “Asked whether outsourcing was bad, Mr. Doheny said the north country has benefited from Canadian firms that have operations in the United States. He also said he appreciates the cheap goods from all over the world available at stores such as Walmart and Target — the natural result of a globalized economy.” [Watertown Daily Times, 7/25/12]
Matt Doheny, “Vulture” Capitalist. Between 2000 and 2008, Doheny worked in Deutsche Bank Securities’ Distressed Products Group, where he was a managing director for Troubled Assets. Deutsche Bank and other firms that deal in distressed debt – sometimes referred to as “vultures,” according to the New York Times – often purchase struggling companies and dramatically restructure them for profit. In fact, half of Deutsche Bank’s distressed debt business came from restructuring. [In re: Adelphia Communications Corp., et al., Debtors, US Bankruptcy Court of the Southern District of New York, Case No. 02-41729 (REG), 1/23/06; dohenyforcongress.com, accessed 5/05/10; New York Times, 2/12/07]
Doheny at Adelphia: Fired Workers, Gave Millions to Executives. Between 2002 and 2006, Doheny led the restructuring of Pennsylvania cable company Adelphia on behalf of Deutsche Bank. In 2002, Adelphia filed for bankruptcy, amidst two federal grand jury investigations and an SEC investigation stemming from large undisclosed loans to the company’s owners. In 2003, Adelphia’s board approved a plan to pay $35 million in bonuses and $5.7 in severance for more than 200 executives over three years. Approximately 500 people were fired. The Rocky Mountain News reported that one executive had $15 million in compensation authorized at the same time workers were being fired. [Watertown Daily Times, 7/1/10; Rocky Mountain News, 8/24/06; Washington Post, 9/16/04; New York Times, 6/26/02]
Doheny at Air Canada: Laid Off Thousands, Slashed Employee Pay. In 2003, Air Canada filed for bankruptcy, citing a “travel slump.” According to its 2004 bankruptcy plan, underwritten by Deutsche Bank, Air Canada would have “a reduced mainline fleet of smaller aircraft, thousands of fewer workers and no negotiations with unions on wages until at least 2006.” By October 2004, the airline employed 6,333 fewer workers than it did a year earlier. Remaining Air Canada employees took salary and benefit cuts, including a 13.5 percent pay cut for flight attendants. [The Scotsman, 4/02/03; The Gazette (Montreal), 7/03/04; Toronto Star, 10/05/04; The Gazette (Montreal), 10/20/04; Toronto Star, 1/18/06]