I blogged last April about how Cisco was working overtime AGAINST the Buy America provisions of the $7.2B broadband stimulus fund.
Fast-forward to June 19, the National Telecommunications and Information Administration (NTIA) granted Cisco its coveted Buy American Exemption, allowing Cisco to sell to recipients of the $7.2B broadband stimulus fund all of the products that it has outsourced to contract manufacturers located overseas (it's my opinion this "exemption" rewards the behavior that the stimulus fund was passed by Congress to change).
Fast-forward a week later to June 26, Larry Strickling is confirmed as the new Administrator of the National Telecommunications and Information Administration (NTIA).
However, most alarming in my opinion, a financial disclosure document filed March 31 2009, showed that Stickling owned a large Cisco stock position (a minimum of at least $100K according to the document itself, page 3 - line 6.
So why would I find this most alarming?
Well, its been proven that a government official can be bribed with free dinners, so in my mind a government official in possession of a large corporate stockholding while that corporation is subject to administrative rulings by that same government official, raises a "mighty big red flag" in my opinion.
Finally, I found the following statement (page 3 - 2nd paragraph) made by Strickling during his March 19, 2009 confirmation testimony before the U.S. Senate, exceptionally noteworthy:
"Since 2000, I have worked for a handful of telecommunications companies of varying sizes, each with their own product offerings and business strategies. None survives as a stand-alone company today. I believe these experiences with an assortment of communications companies and my previous government service at the FCC provide me a unique background for the position of Assistant Secretary."
I voted for President Obama seeking change, I did not help elect Obama as President because I wanted to see the "status quo" maintained.
Related Stories:
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Cisco gives broadband stimulus rules a thumbs up
Government releases $4 billion in broadband stimulus funds
Broadband stimulus exempted from 'buy American'
4 key points on broadband stimulus money
Cisco against Buy America provisions of the $7.2B broadband stimulus fund
Cisco quietly downsizing through outsourcing
What's your take, do you think owning a large Cisco stock position would tempt you to give "breaks" to Cisco as a government official?
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Strickling checked the box
Strickling checked the box that says he owns $100-250K of Cisco stock. He also checked the box that says he owns that same level of stock in HP and IBM, which compete with Cisco and resell competitive gear (along with reselling Cisco). He even checked boxes that says he owns higher levels of stock in other companies (Exxon, J&J, TIAA, CREF, etc).
My point? You imply that his "large" position in CSCO influenced his decision to waive the buy American provision for broadband stimulus. I say that his position in CSCO does not represent a large percentage of his portfolio and that Cisco's price moving up or down a few percentage points does not affect his net worth in any material way.
If you want to do some real digging, try calculating what items the $7.2B stimulus would actually be spent on, and who the likely providers of the goods and services actually are. Of the goods, what products are actually manufactured in America? Is it even practical to implement broadband without using imported products? On occasion, you state that Cisco has moved its manufacturing overseas -- dig into that a little more and you will find that it has never had any significant manufacturing capability of its own. It uses contract manufacturers and American CMs (if you can find any) are free to compete for Cisco business.
Disclaimer: I would have to check the same financial disclosure box that Strickling checked when it comes to CSCO, but I am not expecting the broadband stimulus to make me wealthy.
No conflict of interest
Glad that you believe a government official owning at least $100K of stock in a corporation subject to administrative rulings by that same government official, does not represent a conflict of interest (I strongly disagree).
As The Who so famously sang in their song, We Won't Get Fooled Again:
I voted for Barack Obama to be President because I wanted change!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Strickling checked the box
so Brad your response to "Strickling checked the box" which was thoughtful and full of facts and great information, is to respond with, "the Who"?
You've officially become the OLD village idiot. Consider yourself ignored.
Very immature for my age!
Agree with you, although I'm extremely old, most people appear totally amazed at just how immature I am for my age!
For example, I still do the Shotgun Boogie:
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Telecom insiders
Strickling appears to be just another insider/ contributor/ politico.
Let's see how he does if he comes up against something interesing, like Verizon building fiberoptic plant in the US using off shore crews. Like the Guatemalan crew they were using in Chalfont PA. The crew probably had green cards and was sanitized through sub contracting. I just don't like the idea of American having to compete with foreign labor in their own front yards.
Will he be a champion of the worker or a political slub? Stay tuned, but please not on FIOS.
Not to worry, Strickling already owns Verizon stock too
Not to worry, new NTIA administrator Larry Strickling already owns Verizon stock too, page 7 - line 3.
Obviously, Strickling has never seen a "conflict of interest" in which he wouldn't want to participate!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Let's follow your premise...
Let's follow your premise... Strickling granted a Buy American waiver for the broadband program to benefit his holdings in Cisco (note: Cisco was not granted a waiver, but all broadband equipment vendors were). As a result, Cisco will get a boost that its competitors that do not make broadband gear won't be getting. Those competitors that won't be boosted include HP and IBM. Since he has holdings in each of those companies at the same level as his holdings in Cisco, he actually ruled against his own best financial interests! Not only that, but he also has holdings in AT&T, Verizon, and Comcast which, so far, have shown no interest in applying for these broadband grants. So, again, he is making it easier for broadband providers that compete with his financial interests to get free government cheese!
Do I believe any of this to be true? No, I'm just following your premise to its conclusion.
Good analogy
Agree with you, good analogy.
Absolutely love your statement:
Gee, as the new administrator of NTIA, I'm absolutely confident that Strickling will find a way to interest AT&T, Verizon and Comcast in applying for its broadband grants.
Care to make a bet that Strickling won't get them interested?
It's just so "refreshing" to see that change is finally coming to Washington, D.C.
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Politicians owning stock?!
THIS ATROCIOUS BEHAVIOR MUST BE STOPP--oh wait, they're just working their retirement. Nevermind, nothing to see here.
Making that retirement nest egg grow!
Agree with you, a fabulous way for a government official to make his retirement nest egg grow is to invest in the corporate stock of those corporations that he will be making "administrative rulings over" during his official capacity of just doing his job as a government official.
And for the benefit of the American people to boot, what a swell example of government service!
Change is obviously coming to Washington, D.C.!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
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