bill daley owes chicagoans more than rhetoric … daley parking meter pres...crain’s chicago...

BillDaleyOwesChicagoansMoreThanRhetoricAboutEthics:Heowesanswers.

!  Chicagoissufferingandthisnextelectionisaboutgoodpoliciesbut,equallyimportant,itisabouttrust.

!  BillDaleyhasmadeacareeroutofmonetizinghisrelationships,oftenatthedirectexpenseofeverydayChicagoans.Despitehisconsistentandrepeatedrhetorictoassurethevotersheissomeonethatwillrestoreethics,BillDaleyisamemberofthefor-profitpoliticalclass.

!  Billhasadecades-longhistoryofmonetizinghispoliticalcontactstothetuneoftensofmillionsofdollarsfromcompanieslikeSBCandJPMorgan.CouldthisincludetheinfamousParkingMeterDeal?

VallasForAllChicago.com 1

BillDaleyOwesChicagoansMoreThanRhetoricAboutEthics:Heowesanswers.

!  TherecentnewsofcorruptionwithAldermenEdBurke,DannySolis,andothersunderstandablydisgustsmostChicagovotersandputseveryoneonheightenedalert.

!  $10,000fromaBurgerKingbusinessman,paymentforprostitutionmassagesandViagra,andpushingbusinesspeopletousepoliticallyconnectedserviceprovidersinexchangeforcashcontributionstopoliticiansrepresenttherootcauseformanyofChicago'sproblems.

!  TheshockingthingaboutthisisthatmostChicagoansaren’tonebitsurprisedbecausethishasbecome“businessasusual”inChicago.

!  Furthermore,everyChicagoanhasasensetheseinstancesarejustthetipoftheiceberg.

!  ChicagoneedstrustandtransparencyfromitsnextMayor.Thatstartswithgettingstraightanswers.


BillDaleyflipflops:SaysthattheChicagoParkingMeterDealwasaGoodDeal,

thensaysitwasaBadDeal.Heisrightonboth—itwasagooddealfortheinvestors,includinghiscompanyJPMorgan,butitwasabaddealforeverydayChicagoans.

!  BillDaleywroteaChicagoTribuneOp-Eddefendinghisbrother’sParkingmeterdealbeforehejumpedintotheMayor’srace.Billwrotetheparkingmeterdeal“madegoodbusinesssense”[IndefenseofMayorRichardM.Daley.ChicagoTribune.May9,2018.]

!  ItmakessensethatBillDaleywouldwanttodefendhisbrother’smistakesasmayor,sinceBillhimselfhasbeencitedashisbrother’sclosestconsultant.[BillDaley:Notyourtypicallittlebrother.ChicagoTribune.Aug.25,1996.]

!  Billwasonein“asmallcircleofconfidants”ofhisbrothersandafewbuddiesfromtheolddays.[TheDaleyShow:DynasticRuleinObama’spoliticalbirthplace.TheNewYorker.Mar.8,2010.]

!  Justfivemonthslater,afterhe’dthrownhishatintotheringformayor,hesaidhisbrother“…soldtheparkingmeters”andsaid“[t]hewaytheydiditwasabsolutelyamistake…Iwouldnotdothatdeal.”[WhatBillDaleysayshisbrother‘gotwrong’asChicagomayor.ChicagoSun-Times.Oct.26,2018.]

!  Whenaskedwhy,asacloseadvisortohisbrother’sadministration,hedidnottellRichardDaleyhewasmakingamistake,BillDaleytoldtheSun-Times“[b]ecauseIwasn’trunningformayoratthetime.”

!  DespiteChicago’s“terrible”parkingmeterdeal,BillDaleywouldstillentertainfurtherChicagoassetsales[Asked&Answered:BillDaley.Feb.3,2019.]


BillDaley’sRoleatJPMorganBank.

!  ManypeopleknowBillDaleyservedasJPMorgan&Chase’sMidwestChairmanfrom2004until2011.

!  BillDaleywastheMidwestChairmanandheadofJPMorgan’sofficeofcorporatesocialresponsibility,becomingoneofthe13highest-rankedexecutivesatJPMorgan.PartofcorporateresponsibilitydutiesincludedcoordinatingJPMorgan’sglobalstrategyintheareasofgovernmentrelations,publicpolicy,charitablegiving,andenvironmentalandcommunityaffairs.[BillDaleypromotedtoChase’seliteleadershipcircle.Crain’sChicagoBusiness.June28,2007.]


!  In2008,whileBillDaleywasMidwestChairmanandheadofcorporateresponsibilityatJPMorgan,Chicagodecidedtoleasetherightstothecity’s36,000parkingmetersfor75years.[FAIL.ChicagoReader.Apr.9,2009.]

!  ManypeopleareawarethatthebuyerofthisleasewasanentityownedinlargestpartbyaWallStreetBank,MorganStanley.

!  Manypeoplemaynotbeawarethat,althoughBillDaleynowsaystheparkingmeterdealwas“absolutelyamistake”andswearshe“wouldnotdothatdeal,”BillDaley’sfirm,JPMorganwantedapieceofthedeal.[JPMorganMarch14,2008LetterofInterest.]

!  WhileBillDaleywastheMidwestChairmanandheadofJPMorgan’sglobalstrategyongovernmentrelationsJPMorganthrewitshatintothering;issuingaLetterofInterestparkingmeterdeal.


BillDaley’sRoleatJPMorganBank.

JPMorganfindsawaytoquietlybeinvolvedinthepurchaseofChicago’sparkingmeterdeal,avoidingmajorpublicity.

!  AgroupofinvestorsheadedbyMorganStanley,notJPMorgan,ultimatelyleasedtheChicagoparkingmetersusinganentitycalledChicagoParkingMeter,LLC.

!  ButdocumentspresentedtoCityCouncilinDecember2008showedJPMorganendedupgettingapieceoftheparkingmeterdealafterall.[FAIL.ChicagoReader.Apr.9,2009.]

!  JPMorganfundsendedupintheownershipstructureofChicagoParkingMetersLLC,alongwithMorganStanley,whereBillDaley’sson,WilliamDaleyJr.,wasanexecutive.[Paininthemeter.ChicagoTribune.Dec.3,2008]

!  InearlyDecember2008,Chicago’sCityCouncilwasgivenonlytwodaystoexamineandvoteontheparkingmeterdeal.Aspartofalargepacketofinformation,theCityCouncilreceivedacomplex,single-pagecorporateflowchartfor“clarity”toshowwhichentitieshadastakeinChicagoParkingMeters,LLC,theentitythatwouldleasetheparkingmeters.[FAIL.ChicagoReader.Apr.9,2009.]

!  ThreeJPMorganChaseentitieswerelistedonthechartaspartofChicagoParkingMetersLLC.[ChicagoParkingMetersLLCCorporateStructure.]


JPMorganfindsawaytoquietlybeinvolvedinthepurchaseofChicago’sparkingmeterdeal,avoidingmajorpublicity.


ChicagoParkingMetersLLC,investorsprofitsofftheparkingmeterdealwhileChicagoanspay.

!  Fortherecord,thepurchaseofChicago’sparkingmetershasbeenawindfallforMorganStanleyandalltheotherinvestorsinChicagoParkingMetersLLC.

!  InvestorsinChicagoParkingMetersLLCwillrecouptheirpurchasemoneybytheyear2021andstillhave62yearsofparkingmeterreceiptstogo,profitingfromChicagoansforsixmoredecades![Parkingmeterdealkeepsgettingworseforcityasmeterrevenuesrise.ChicagoSun-Times.May5,2018.]

!  Chicagodriverswillpay$11.6billionover75yearstoChicagoParkingMetersLLC.Thatis$9.58BillionmorethanwhatChicagotaxpayersreceivedfromthesale.[MorganStanleyGroup$11billionmakesChicagotaxpayerscry.Bloomberg.Aug.8,2010]

!  Chicago’sbudgetisamessandthecityhasamongtheworstfinancialsituationinthecountrybecauseofforegonerevenueandballooningobligationstoChicago’spensionfunds.

!  Chicagoansarenowpayingthepricewiththehighesttaxesinour185yearhistoryandpropertytaxincreasescomingin2019thataregoingtobeastronomical.

!  Ifthisonedeal,theparkingmeters,washandledproperly,Chicagowouldhavealmostnofinancialburdenatthispoint.It’sshockingbutitistrue.


ChicagoPensionsGoBrokeWhileTexasTeachersPensionsGainfromChicago’sParkingMeterdeal.

!  AddinginsulttoinjurywhileChicago’spensionfundsaregoingbroke,theTeacherRetirementSystemofTexasinvestedintheparkingmeterdeal,reapinghugebenefitsattheexpenseofChicagodrivers.ChicagoParkingMetersLLCCorporateStructure

!  TheTeacherRetirementSystemofTexasgottoinvestinanassetthatwillpayforitselfby2021andwillallowinvestorstoprofitforthenext62years.[Parkingmeterdealkeepsgettingworseforthecityasmeterrevenuesrise.ChicagoSun-Times.May5,2018.]

!  InsteadofinvestinginChicago’sparkingmeters,likeTexasteachersdid,Chicago’spensionfundslost$54millioninrealestatedealsthatpaidBillDaley’snephewRobertVaneckoandhispartnerAllisonDavis$9millioninfeesforlosingthemoney.[DaleyPensionDebacle:WhereDid$54million[DaleyPensionDebacle:Wheredid$54milliongo?ChicagoSun-Times.Dec.9,2018]


BillDaleymadetensofmillionsofdollarswhileworkingatJPMorgan.!  BillDaleyembracedtheparkingmeterdealbeforehewasrunningformayor.

!  BillDaleynowdisavowstheparkingmeterdealbecausehisrolehaschangedfrombusinessmantopoliticalcandidatequestingforthemayor’soffice.

!  BillDaleymadetensofmillionsfromJPMorgan,puttingJPMorganintherightplacesintheMidwesttomakemoneyforshareholders(includingBillDaley),andcoordinatingJPMorgan’sglobalgovernmentrelationsstrategy.[Daleytook$15MfromJPMorgansince’09.Politico.Feb.18,2011.]

!  BillDaleyreceiveda$3.2millionbonusfromJPMorganfor2009,theyearChicagoParkingMetersLLCfinalizedtheparkingmeterdeal.


!  BillDaleycollecteda$4.8millionbonusin2010,ayearaftertheChicagoParkingMeterdealclosed.

!  Daleysold$8.3millioninJPMorgan&Chasesharesinlate2010whenhejoinedPresidentObama’sWhiteHousestaff.LuckilyforBill,hehadtheopportunitytoreinvesttheproceedswithouttaxconsequences.[Daleycandefertaxeson$8.3millionJPMorganSale.Bloomberg.Jan.20,2011.]

!  Alltold,BillDaleymade$15millionfromJPMorganChasejustfrom2009toFebruaryof2011whenheleftJPMorganChase.

MorganStanleyandBillDaleyJr.!  MorganStanleywasthebiggestparkingmeterinvestor.Atthetime,BillDaley’ssonWilliamDaleyJr.was

aMorganStanleylobbyist,althoughthecompanyswearsDaleyJr.neverworkedontheChicagometerdeal.[Paininthemeter.ChicagoTribune.Dec.3,2008.]

!  ButtheyearafterChicagofinalizedthehorrendousmeterdeal,WilliamDaleyJr.wasamemberofMorganStanley’s“infrastructuremarketsandacquisitionsteam,”advisingtheCityofPittsburghonapotentialparkinggarageandmeterlease.[ParkingfirmshaveChicagoties.PittsburghPost-Gazette.Oct.3,2010.]

!  MorganStanleyevenflewWilliamDaleyJr.toPittsburghtourgecitycouncilmembersnottogetanindependentvaluationoroutsideadviceonaparkingmeterdeal.[Councilvotestostudyparkinggarages’worth,despiteobjections.PittsburghPost-Gazette.Mar.10,2010.]


!  ThankfullyforPittsburgh,ChicagoAldermanLeslieHairstonflewherselfouttoPittsburghtourgethatcity’scounciltoactivelyseekoutindependentinformation.[ChicagoofficialwarnsPittsburghaboutparkingleases.PittsburghPost-Gazette.Mar.11,2010.]

!  Pittsburghdecidedagainstleasingitsmetersandgarages.[Parkingcostsplenty,butitwasalmostworse.PittsburghPost-Gazette.May6,2017.]

JPMorganisn’tBillDaley’sfirstrodeo.HestartedatSBCandmademillionsatthatfirmaswell.

!  BillDaleyhasalonghistoryofmakingmillionsintheFor-ProfitPoliticalIndustry.BillDaleymadefriendswithSBCchairmanEdWhitacrewhileDaleywasUSsecretaryofcommerce.SBClaterhiredDaleyasitspresidentin2001.[IsitfairtocallBillDaleyalobbyist?HuffingtonPost.Oct.24,2008.]

!  SBCsoughttouseDaley’sconsiderableclouttohelpthetelecomgiantsquashlocalcompetition.[BillDaley’sSeediestExploit.theNewRepublicJan.5,2011.]

!  SBCpaidDaleynearly$3.4millionin2002andnearly$3millionin2003.[SBCconnectsforWm.Daley.Crain’sChicagoBusiness.Feb.21,2004.]

!  InApril2003,SBCgotano-bidcontracttorunpayphonesattheCookCountyjailforthreeyears,andDaley’sbrother,CookCountyCommissionerforthe11thdistrict,votedinfavorofthecontract.[Noconflictinjailpact,officialssay.ChicagoSun-Times.Apr.16,2003.]


JPMorganisn’tBillDaley’sfirstrodeo.HestartedatSBCandmademillionsatthatfirmaswell.

!  WhileatSBC,DaleyunleashedanavalancheofmoneytoIllinoisstatepoliticians,including$200,000toGov.Blagojevich,tosecureabilltobypassIllinoisCommerceCommissionregulationsandletSBCnearlydoublerateschargedtocompetitorsfornetworkaccess.[BillDaley’sSeediestExploit.TheNewRepublic.Jan.5,2011.]

!  Thebillpassedjustfourdaysafterbeingintroducedinthelegislature,guaranteed“avirtualSBCtelephonemonopolyinIllinois”accordingtoonecommentator.[MediaphoneincoverageofSBC,DaleyConnection.ChicagoTribune.May15,2003.]

!  Afederaljudgeapparentlyagreed,blockingtheratehikeinthebillasanti-competitiveandharmfultoconsumersjustweeksafterDaley’sbiglegislativewin.[SBC,rivalsfacelegaldonnybrook.Crain’sChicagoBusiness.May18,2003;JudgesaysSBCcan’thikerates.Crain’sChicagoBusiness.Jul.2,2003.]

!  SBCeventuallydidwina(comparatively)modest30%increaseinnetworkaccessrates,andsevencompetitorsincreasedratesforlocaltelephoneserviceincomparableamounts.[Localphonecos.raisingrates.Crain’sChicagoBusiness.Sept.11,2004.]


BillDaleyishidingthings.!  BillDaleysayshewon’treleasehistaxreturnsuntilChicagoanselecthimMayor.[Candidatesnotcandid

onpensions.ChicagoTribune.Jan.16,2019.]

!  Daleysaysheisthemostvettedcandidateintherace,havinggonethroughFBIbackgroundchecksforfederalcabinetandchiefofstaffpositions.[BillDaley:ShrinkChicagoCityCouncilfrom50aldermento15.ChicagoTribune.Jan.7,2019.]

!  Federalbackgroundchecksarelargelyforidentifyingcriminalhistoryandthreatstonationalsecurity.BillDaleyisnotathreattonationalsecurity.Nooneissayingthat,andBillknowsthatisn’tthepointofreleasinghistaxreturns.

!  ButneitherareBillDaleyorhisethicsplansathreattothepay-to-playcultureinChicago.Thecottageindustriesoflobbying,zoningconsultants,andtaxappealsconsultantsandlawyersinthiscityareathreattoChicago’staxdollarsandgoodgovernment.

!  WhileBillDaleyandothersprofitfromthissystem,everydayChicagoanssuffer.

"  Chicagoansaresufferingwithacrisisincrimeandpublicsafetythathasspreadthroughoutthecity."  Chicagoanshavethehighesttaxburdentheyhavehadinthe185yearhistoryofthecity."  Chicagohasamongtheworstfinancialsituationofanybigcityinthecountry."  Chicago’sresidentialhomepricesareperformingamongtheworstofanycityinAmerica."  Chicago’sAfrican-Americanunemploymentis16%."  ChicagoitselfisthefastestshrinkingbigcityinAmerica.


!  ThewayforChicagotoshakeoffthepay-to-playculturestartswithgettinganswersfromcandidatesbeforeChicagogoestothepolls.

#  BillDaleymustreleasehistaxreturnsbeforeChicagogoestothepolls.Whatmoreishehiding?

#  BillDaleymustanswerdefinitivelyonJPMorgan’sandhisroleinthe2008ChicagoParkingMetersLLCdeal,andhemustanswerbeforeChicagogoestothepolls,especiallygivenhisdouble-talkontheparkingmeterdealandhiswillingnesstoembracefurtherprivatization.

!  Wecanfixtheseproblems.

!  IhaveputforthspecificplansandIwillworkashardashumanlypossibletoimprovetheseissues.

!  ThefutureofChicagodependsonelectingleadershipthatisindependentofthepay-to-playsystemthathasfesteredfordecadesinChicago.Wehavetosweepthebumsout.Andweneedanswersfromcandidates,soChicagoansdecidewhotheyare.


BillDaleyishidingthings.


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