Reporter Hunter Walker of Politicker
uncovered the story by noting Romney was a limited partner in 'Golden Gate Capital', one of 13 investor companies which created Endurance three months after the 9/11 attacks.
Walker writes Endurance "was one of many insurance and reinsurance startups that cropped up in the wake of 9/11." He notes they were created to buy debt from insurance companies facing "billions of dollars in claims after the attacks" and explains that the company then "sold insurance at high prices generated by the soaring rates that resulted from the cash crunch on traditional insurance companies."
Romney campaign and blind trust
When Politicker contacted the Romney campaign for a response on his Endurance investments they got one from a spokeswoman, Michele Davis, who was given the task of explaining the seemingly unsavory investment. “Governor and Mrs. Romney’s assets are managed on a blind basis," Davis wrote Politicker. "They do not control the investment of these assets, the investment decisions are made by a trustee."
As is common knowledge, Romney's investments are in a blind trust so that appeared to be end of the story, except Walker knew Romney's assets were not in a blind trust in 2001 when the attacks on the World Trade Center occurred. He did some due diligence and found the financial disclosures Romney filed with the Massachusetts State Ethics Commission identifies "multiple CCG Investments Fund holdings directly owned by Mr. Romney and not in any blind trust
His investments were in fact not
in a blind trust when Endurance was created and nor were they in one until he took office as governor of Massachusetts in January of 2003
. Romney, who has called
blind trusts no more than an "age-old ruse" and said they don't prevent anyone from taking part in their investments, can't in any case hide behind a blind trust on this investment because he alone was controlling his money at the time.
Walker and Politicker have tried to get a response on the inaccuracy of Davis' comments and an answer on whether Romney feels his investment in companies that profited from the chaos that was the aftermath of 9/11 were inappropriate. They said they "reached out to Ms. Davis multiple times since last week to clarify these discrepancies" but have not received any response from her, or anyone connected to Romney's campaign.