Who Do Jared and Ivanka Think They Are?

According to “Kushner, Inc.,” Gary Cohn, former director of the National Economic Council, has told people that Ivanka Trump thinks she could someday be president. “Her father’s reign in Washington, D.C., is, she believes, the beginning of a great American dynasty,”

.. Kushner, whose pre-White House experience included owning a boutique newspaper and helming a catastrophically ill-timed real estate deal, has arrogated to himself substantial parts of American foreign policy. According to Ward, shortly after Rex Tillerson was confirmed as secretary of state, Kushner told him “to leave Mexico to him because he’d have Nafta wrapped up by October.”

.. As political actors, the couple are living exemplars of the Dunning-Kruger effect, a psychological phenomenon which leads incompetent people to overestimate their ability because they can’t grasp how much they don’t know.

Partly, the Jared and Ivanka story is about the “reality distortion field” — a term one of Ward’s sources uses about Kushner — created by great family wealth. She quotes a member of Trump’s legal team saying that the two “have no idea how normal people perceive, understand, intuit.” Privilege, in them, has been raised to the level of near sociopathy.

.. Ward, the author of two previous books about the worlds of high finance and real estate, has known Kushner slightly for a long time; she told me that when he bought The New York Observer newspaper in 2006, he tried to hire her. She knocks down the idea that either he or his wife is a stabilizing force or moral compass in the Trump administration. Multiple White House sources told her they think it was Kushner who ordered the closing of White House visitor logs in April 2017, because he “didn’t want his frenetic networking exposed.” Ward reports that Cohn was stunned by their blasé reaction to Trump’s defense of the white-nationalist marchers in Charlottesville, Va.: “He was upset that they were not sufficiently upset.”

Still, even if you assume that the couple are amoral climbers, their behavior still doesn’t quite make sense. Ward writes that Ivanka’s chief concern is her personal brand, but that brand has been trashed. The book cites an October 2017 survey measuring consumer approval of more than 1,600 brands. Ivanka’s fashion line was in the bottom 10. A leading real estate developer tells Ward that Kushner, now caught up in multiple state and federal investigations, has become radioactive: “No one will want to do business with him.” (Kushner resigned as C.E.O. of Kushner Companies in 2017, but has kept most of his stake in the business.)

To truly make sense of their motivations, Ward told me, you have to understand the gravitational pull of their fathers. Husband and wife are both “really extraordinarily orientated and identified through their respective fathers in a way that most fully formed adults are not,” she said.

“You’ll notice that the U.S. position toward Qatar changes when the Qataris bail out 666 Fifth Avenue,” said Ward, adding, “We look like a banana republic.” Maybe that’s why Jared and Ivanka appear so blithely confident. As public servants, they’re obviously way out of their depth. But as self-dealing scions of a gaudy autocracy? They’re naturals.

 

Jared and the Saudi Crown Prince Go Nuclear?

There are too many unanswered questions about the White House’s role in advancing Saudi ambitions.

Jared Kushner slipped quietly into Saudi Arabia this week for a meeting with Crown Prince Mohammed bin Salman, so the question I’m trying to get the White House to answer is this: Did they discuss American help for a Saudi nuclear program?

Of all the harebrained and unscrupulous dealings of the Trump administration in the last two years, one of the most shocking is a Trump plan to sell nuclear reactors to Saudi Arabia that could be used to make nuclear weapons.

Even as President Trump is trying to denuclearize North Korea and Iran, he may be helping to nuclearize Saudi Arabia. This is abominable policy tainted by a gargantuan conflict of interest involving Kushner.

Kushner’s family real estate business had been teetering because of a disastrously overpriced acquisition he made of a particular Manhattan property called 666 Fifth Avenue, but last August a company called Brookfield Asset Management rescued the Kushners by taking a 99-year lease of the troubled property — and paying the whole sum of about $1.1 billion up front.

Alarm bells should go off: Brookfield also owns Westinghouse Electric, the nuclear services business trying to sell reactors to Saudi Arabia.

Saudi swamp, meet American swamp.

It may be conflicts like these, along with even murkier ones, that led American intelligence officials to refuse a top-secret security clearance for Kushner. The Times reported Thursday that Trump overruled them to grant Kushner the clearance.

This nuclear reactor mess began around the time of Trump’s election, when a group of retired U.S. national security officials put together a plan to enrich themselves by selling nuclear power plants to Saudi Arabia. The officials included Michael Flynn, Trump’s national security adviser, and they initially developed a “plan for 40 nuclear power plants” in Saudi Arabia, according to a report from the House Oversight and Reform Committee. The plan is now to start with just a couple of plants.

As recently as Feb. 12, Trump met in the White House with backers of the project and was supportive, Reuters reported.

No one knows whether Prince Muhammed will manage to succeed his father and become the next king, for there is opposition and the Saudi economic transformation he boasts of is running into difficulties.

Trump and Kushner seem to be irresponsibly trying to boost the prince’s prospects, increasing the risk that an unstable hothead will mismanage the kingdom for the next 50 years. Perhaps with nuclear weapons.

Deal Gives Kushners Cash Infusion on 666 Fifth Avenue

The deal, in which Brookfield paid the rent for the entire 99-year term upfront, helps remove the family’s biggest financial headache: a $1.4 billion mortgage on the office portion of the tower that was due in February next year.

.. The Kushners have spent more than two years on an international search for new partners or fresh financing that stretched from the Middle East to China.

The deal would enable the Kushners to pay off at least a large portion of what they owe lenders and retain ownership of the land beneath the tower. But they may not make any money from it.

.. Charles Kushner, Jared’s father, who now runs the company, in turn, negotiated with his lenders to pay less than the company owed to satisfy the debts, the executive said.

Analysts have long said that 666 Fifth was worth less than its debts. The building was 30 percent vacant and only generated about half the annual mortgage payments. In recent months, the building’s largest remaining tenant, Millennium Management, signaled that it too planned to leave.

.. Jared and Charles Kushner sold 666 Fifth’s most valuable asset — the Fifth Avenue retail space — for $525 million and used the proceeds to pay down some of their debt. But office rents continued to fall and two of the tower’s biggest tenants left.

.. In 2016, Charles and Jared Kushner pitched a new deal to investors in the United States and abroad: They would demolish the building and erect a $7.5 billion luxury supertower in its place. They got close to a deal with a billionaire from Qatar, Hamad Jassim Al-Thani, the country’s former prime minister, and with Anbang, a giant Chinese insurance company.

.. Mr. Kushner argued that 666 Fifth was not worth the $1.4 billion that was owed.

.. At 666 Fifth Avenue, Brookfield is betting on a turnaround based on the building’s premier location on Fifth Avenue, near Rockefeller Center and Central Park, and its access to public transportation. The company plans to spend about $700 million renovating the lobby, installing new elevators, refurbishing the vacant office space and attracting new tenants.

“666 Fifth Avenue has the potential to be one of New York City’s most iconic and successful office properties,” Ric Clark, chairman of Brookfield Property Group, said

.. Brookfield is one of the world’s biggest real estate companies, and among its investors is the Qatar Investment Authority, one of the world’s largest sovereign funds

..  That has raised questions given Jared Kushner’s portfolio in the White House, which includes the Middle East.

Brookfield has said that the Qataris had no knowledge of the deal before its public announcement.

Who Is Behind Trump’s Links to Arab Princes? A Billionaire Friend

The billionaire financier Tom Barrack was caught in a bind.

.. Mr. Trump’s outspoken hostility to Muslims — epitomized by his call for a ban on Muslim immigrants — was offending the Persian Gulf princes Mr. Barrack had depended on for decades as investors and buyers.

.. Mr. Barrack, a longtime friend who had done business with the ambassador, assured him that Mr. Trump understood the Persian Gulf perspective. “He also has joint ventures in the U.A.E.!” Mr. Barrack wrote in an email on April 26.

.. During the Trump campaign, Mr. Barrack was a top fund-raiser and trusted gatekeeper who opened communications with the Emiratis and Saudis, recommended that the candidate bring on Paul Manafort as campaign manager — and then tried to arrange a secret meeting between Mr. Manafort and the crown prince of Saudi Arabia.

.. Investigators interviewed him in December but asked questions almost exclusively about Mr. Manafort and his associate Rick Gates

.. he has said he rebuffed offers to become treasury secretary or ambassador to Mexico.

.. He sought a role as a special envoy for Middle East economic development

.. Mr. Barrack’s company, known as Colony NorthStar since a merger last year, has raised more than $7 billion in investments since Mr. Trump won the nomination, and 24 percent of that money has come from the Persian Gulf — all from either the U.A.E. or Saudi Arabia

.. Mr. Barrack played as a matchmaker between Mr. Trump and the Persian Gulf princes.

.. “He is the only person I know who the president speaks to as a peer,” said Roger Stone, a veteran Republican operative who has known both men for decades. “Barrack is to Trump as Bebe Rebozo was to Nixon, which is the best friend,”

.. By 2010, he had acquired $70 million of the debt owed by Mr. Trump’s son-in-law, Jared Kushner, on his troubled $1.8 billion purchase of a skyscraper at 666 Fifth Avenue in New York. After a call from Mr. Trump, Mr. Barrack was among a group of lenders who agreed to reduce Mr. Kushner’s obligations to keep him out of bankruptcy.

.. Thomas J. Barrack Jr. and Donald J. Trump first met in the 1980s, and Mr. Barrack got the better of the encounters. He negotiated Mr. Trump into overpaying for two famous assets: a one-fifth stake in the New York department store chain Alexander’s in 1985, and the entire Plaza Hotel in 1988. Mr. Trump paid about $410 million for the Plaza and later lost both properties to creditors.

.. But Mr. Barrack nonetheless parlayed the deals into a lasting friendship, in part by flattering Mr. Trump about his skill as a negotiator.

“He played me like a Steinway piano,” Mr. Barrack recounted in a speech at the Republican convention.

.. people who know him well say he still tells new acquaintances that he is truly honored to meet them, cheerfully doling out superlatives like “first-class,” “amazing” and “brilliant.” He invariably tells the story of his own success as a parable about luck and perseverance, never about talent.

.. He grew up speaking Arabic as the son of Lebanese immigrants to Los Angeles

.. Mr. Barrack wrote back that Mr. Trump was “the king of hyperbole.”

.. “We can turn him to prudence,” Mr. Barrack wrote in an email. “He needs a few really smart Arab minds to whom he can confer — u r at the top of that list!”

.. Mr. Barrack had befriended Mr. Manafort in the 1970s, when they were both living in Beirut and working for Saudi interests.

.. Early in 2016, when Mr. Trump faced the prospect of a contested nomination fight at the Republican convention, Mr. Barrack had recommended Mr. Manafort for the job of campaign manager. “The most experienced and lethal of managers” and “a killer,” Mr. Barrack called him in a letter to Mr. Trump.

.. The Saudi prince had tried to reach the Trump campaign through “a midlevel person” at the rival private equity giant Blackstone

.. Mr. Barrack forwarded to the ambassador a message from Mr. Manafort with a “clarification” that modulated Mr. Trump’s call for a Muslim ban.

.. Mr. Barrack informed Ambassador Otaiba that the Trump team had also removed a proposed Republican platform provision inserted to “embarrass” Saudi Arabia. The provision had called for the release of redacted pages about the kingdom in a report on the terrorist attacks of Sept. 11, 2001.

.. When those two states imposed an embargo on their neighbor Qatar — home to a major United States air base — Mr. Trump broke with his own administration to throw his weight squarely behind the Saudis and Emiratis.

.. Until recently, Mr. Barrack’s most prominent Gulf customers were neither the Emiratis nor the Saudis — but their bitter rivals the Qataris

.. None of the Gulf investments that Mr. Barrack’s company has brought in since Mr. Trump’s nomination have come from Qatar.