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August 2, 2007
Last word on "two-class" ownership structure
James Fallows's last word on the two-class corporate stock structure features our favorite eminent domain-abusing political-connection-wielding dynasty, The Ratners.
Develop Don't Destroy Brooklyn asks, "So, it seems to you that Forest City Enterprises and Forest City Ratner have undue influence on our political movers and shakers and you just can't figure out why?"
Fallows has the answer on his blog hosted by Atlantic Online (no connection with Atlantic Center Mall, Atlantic Terminal Mall or Atlantic Yards):
A reader writes:
"Forest City, the Cleveland real estate behemoth, also uses the two-class stock structure you discuss. In case you haven't heard of them, Forest City is the nation's largest real estate firm, responsible for the New York Times' new building and the relocation of the New Jersey Nets.
...
"And wouldn't you know it, it turns out Albert Ratner, Samuel Miller, Charles Ratner, etc., are all the biggest holders of Class B stock!"The family nature of Forest City is one of the reasons its directors have built a political empire--with nearly 20 family members in the business, they can easily bundle their contributions and donate tens of thousands to a single candidate.
"It is also, presumably, a big reason why their firm is so successful. Direct control can reap direct benefits."
NoLandGrab: And we thought the Ratners ruled because they were liberal do-gooders who listened to the community — go figure.
Posted by lumi at August 2, 2007 9:15 AM