6. He helped pave the way for Bruce Rauner’s election as Governor.
In between Emanuel’s time as one of Bill Clinton’s right-hand men and his first campaign for U.S. Congress, he made his money in banking – at one point, pulling in $16 million in just 2 years. His most lucrative deal was using his political clout to negotiate the sale of a security company on behalf of GTCR Golder Rauner, which was chaired by Bruce Rauner. The details of the sale is the epitome of the shady, corrupt, good-old-boy cronyism that most associate with Chicago politics.
After telecoms giant SBC Communications acquired Ameritech, another giant telecoms corporation, Bill Clinton’s FCC ordered SBC to sell SecurityLink, which was an asset of Ameritech’s that SBC acquired by default. SBC was chaired by William Daley, who was Secretary of Commerce under Bill Clinton, and the brother of Chicago mayor Richard Daley, who depended on Rahm Emanuel as his chief fundraiser. Rahm was able to use his clout to buy SecurityLink for $479 million on behalf of GTCR, $379 million of which was financed by SBC. Emanuel then flipped SecurityLink for $1 billion, netting his client a profit of more than $500 million.
“Bruce Rauner gave Rahm a toehold in the financial sector where Rahm could make a huge amount of money in a couple of years, and then Rahm didn’t have to worry about money anymore,” Phillip Cantor said.
Before Rauner, a Republican, was elected governor of Illinois, Rahm appointed him as the chief of Choose Chicago, the city’s tourism effort. And when Emanuel, a Democrat, was running for mayor of Chicago, he won with the help of Rauner’s donations. But now, the two politicians and vacation buddies have to pretend to be at odds with one another, now that Rauner — who made $30,000 an hour and wants to lower the minimum wage – introduced a nuclear budget that cuts money from schools, healthcare, and other public services vital to Chicago. Rahm has promised to fight the cuts, but Fred Klonsky said Rahm’s rhetoric is just smoke and mirrors.
“The mayor has played this game – the first proposal is the nuclear option,” Klonsky said. “If you remember, Rahm’s first option was to close 300 neighborhood public schools. After the outrage settled down, he backed down to 49. Some people will go, ‘Thank God for that. He only closed 49.’”
“Rauner has this crazy slash and burn budget, knowing that full well the democrat-controlled legislature has a veto proof majority in both chambers,” Klonsky continued. “Rahm knows that, so he can take the position that the budget is a terrible thing, so it’s a politically safe position to take, and makes it sound like he’s standing up for the city.”
“[Rauner] gives to Democrats, and his wife is a Democrat,” Phillip Cantor said. “He only ran as a Republican to oppose Pat Quinn. He’s as much of a Republican as Bill Clinton.”
Klonsky said that despite the two politicians nominally representing opposing parties, the fact that they’re both deeply tied to the financial industry and are able to muster significant support for their campaigns from the same group of donors makes their governing styles interchangeable.
“It’s a new model for the way in which the corporate class governs,” Klonsky said. “This is corporate control of a government with no middle man.”