Pearls of Wisdom

Those of us who run small businesses are well aware that “snail mail” is no longer the preferred method of correspondence.   E-bills and E-payments are commonplace.  Personal letters have been replaced by e-mails.  With the U.S. Postal Service facing financial deficits that are increasing geometrically each year, the federal government recognizes the need for reorganization. There are currently discussions of downsizing, deliveries only five days per week,  and closing smaller distribution centers in an effort to cut losses to the postal system. 

When closing the smaller Post Offices that have now become extraneous, the federal government hopes to raise money by the sale of these valuable pieces of real estate.   So how is it that something as simple as selling off a few pieces of property has the potential to become a national scandal?! 

It has been reported on the internet that the United States of American has entered into a contract with a real estate firm to sell 56 buildings that currently house U.S. Post Offices that are scheduled to be closed or have already been closed.   These buildings are located on prime real estate in cities and towns around the country.   The sale of these properties will fetch potentially billions of dollars and a 6% commission to the company engaged to handle the sales. 

A private corporation would investigate the most competent brokers to handle these sales, might choose to engage more than one to “spread the wealth", or might attempt to negotiate the commission, perhaps to reduce it to 4% or 5%.  The USPS has publically stated that the engagement of a real estate firm was put out for competitive bids, but does anyone really believe that?  In the past, it appears that the USPS has engaged multiple brokers, but in this case, chose to give an exclusive contract to one broker!  The question that arises here is why bother to keep it honest and upfront when we can just hand it over on a silver platter to the person with the strongest political connections?

Blum Capital, a private equity firm founded by Richard C. Blum, is one of the largest institutional stockholders in the real estate company, CBRE Group Inc., (a publically traded corporation) that has been engaged. Richard Blum is also Chairman of the Board of CBRE.   Who is Richard C. Blum? Richard Blum just happens by “pure coincidence” to be the spouse of Dianne Feinstein, Senior United States Democratic Senator from California!!!!  Where is Boss Tweed when we need him? City Hall corruption has risen to new levels!  Am I incorrect, or was there some mention of transparency in President Obama’s reelection campaign? Sorry, I must have been mistaken. 

Richard Blum’s firm, CBRE is the singular firm handling the sale of these properties, so Senator Feinstein and her husband stand to make a small fortune.  At the very least, you would think they could have offered us a small discount!

One interesting fact is that while this has been reported on the internet, there does not appear to be any mention of this collusion in the New York Times or any mainstream media outlet.  

http://www.snopes.com/politics/business/blum.asp