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RELEASE: Mike McFadden tries to distract from his own business record

Mike McFadden tries to distract from his own business record
Decision by McFadden’s company to scrub deal shows investment banker not being honest

ST. PAUL [10/27/14] — Today, the Franken campaign responded to investment banker Mike McFadden’s press conference and desperate attempt to claim his company was not involved in the Smurfit-Stone restructuring deal that resulted in 417 workers in Missoula, Montana, losing their jobs, even though the deal was featured prominently on the company’s website on his watch.

“Investment Banker Mike McFadden is trying to distract from the fact that his company worked on a deal that resulted in more than 400 workers losing their jobs. We know this because his company, Lazard Middle Market, took credit for it on its website while Mike McFadden was still CEO. The fact that his company tried to scrub the deal from its website after the ad started airing on TV just shows that Mike McFadden is trying to hide his profits-over-people mentality from Minnesotans,” said Alexandra Fetissoff, Franken campaign spokesperson.

Here are a few key details that undermine McFadden’s desperate spin on his company’s role in the Smurfit-Stone restructuring deal:

  1. The Smurfit Stone restructuring deal was advertised on Lazard Middle Market’s website during Mr. McFadden’s tenure as CEO, a fact he attempted to conceal during yesterday’s post-debate scrum.
  2. Yesterday, Mr. McFadden tried to claim that the deal must have been scrubbed from the website because “[Lazard Middle Market] has investor relations people that monitor any mention of Lazard and so it would come to their attention and they probably looked into it and decided to remove it because Lazard Middle Market wasn’t involved in the transaction.”HOWEVER, the deal was first reported on by POLITICO on May 3, 2013, ten days before McFadden took his leave of absence.
  3. Mr. McFadden had a chance to respond to the deal then, and he chose to say nothing. According to Politico: “McFadden did not respond to emails and a voicemail, so it’s unclear how he will present his business experience in a Senate campaign — or how he’ll address business practices that are standard in the financial world but traditionally vulnerable to political criticism.”
  4. Don’t forget: This isn’t the first time McFadden has tried to claim no responsibility for a deal his company took credit for on its website. READ MORE HERE.

Timeline:

April 10, 2013: McFadden’s name first surfaces as a potential opponent to Sen. Franken. That day, the Franken campaign captured the Lazard Middle Market website, which clearly advertises work on Smurfit-Stone’s restructuring.

May 3, 2013: Politico reports that McFadden is gearing up for a run, and speculates that McFadden’s business record at Lazard Middle Market could be a liability for him. The article specifically cites the restructuring of True-Temper, the sale of L&P Plastics and Smurfit-Stone. McFadden did not respond to press inquiries.

May 13, 2013: Mike McFadden takes his leave absence from Lazard Middle market (Per his Personal Financial Disclosure).

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