Deputy Secretary of the Treasury and A Fishy House Deal

Posted originally @ DailyKos

On 11/25/03 Dennis Bakke bought a house. Not just any house either. The sales price was $3,125,000. Property History Here

AES Corp. is probably the biggest company that nobody has ever heard of. With 118 power plants in 16 countries, the Arlington (Va.)-based power supplier is one of the world's largest providers of electricity, boasting a market capitalization of about $14 billion. Sure, it's an old-line business, but CEO Dennis Bakke and Chairman Roger W. Sant conduct it in a remarkable waySource

As you see Bakke was CEO of AES Corp. which has a History of scandals.

AES allegedly conspired with several other electricity companies to cause a shortage of power during the California power crisis of 2000, thus driving up the price of electricity and driving up profits. (Power Engineering International, Dec. 2002)

And another:

Dennis W. Bakke  Use of secured equity-linked loans (SELL) that grossly inflated revenues and bolstered stock prices. These loans are not carried on the company expense sheets, since they are paid back by issuing stocks--further diluting value and ownership of company.

On the very same day that Bakke bought the house, he sold it to one Rooney Group LLC. Rooney Group LLC belongs to Robert Kimmitt who is the current Deputy Secretary of the Treasury. Whats weird is that he sold the house he had just bought for 3.15 million to Kimmitt for 2.75 million. A net loss of $400,000.

The questions arise of: Why buy and sell a house on the same day for a nearly half-million dollar loss.

Did AES Corp benefit since the house was sold by any actions on Kimmitts part?

Kimmitt was not deputy secretary of the treasury at the time of the sale. the Dep. Secretary of the treasury at that time was one Kenneth Dam, who was the chairman of the German-American Academic Council at the same time Kimmitt was Ambassador to Germany.