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Romney Has Major Stake in Sinking Fund

Candidates in both parties could see big donations dry up

By Evelyn Renold,  Newser User

Posted Aug 16, 2007 7:23 PM CDT

(Newser) – Former Massachusetts  Governor Mitt Romney has a substantial investment in a teetering Goldman Sachs hedge fund that was propped up with a $3 billion cash infusion after it lost a third of its value. Romney, who won a symbolic victory in Iowa's GOP straw poll last weekend, is thought to have least $1M in the Global Equity Opportunities Fund, reports thestreet.com.

Given Romney's immense wealth (estimated at 250M), the fund meltdown may not be so painful for him. But the real-estate and credit collapse could mean trouble for other presidential candidates, both Democrats and Republicans, who rely on Wall Street banks, hedge-fund companies and the real-estate industry for major campaign contributions.

Republican presidential hopeful Mitt Romney, speaks to a group of supporters during a town hall meeting in Winter Park, Fla., Wednesday, Aug. 15, 2007.(AP Photo/John Raoux)
Republican presidential hopeful Mitt Romney, speaks to a group of supporters during a town hall meeting in Winter Park, Fla., Wednesday, Aug. 15, 2007.(AP Photo/John Raoux)   (Associated Press)
Republican presidential hopeful Mitt Romney speaks at a campaign stop in Greer, S.C., Thursday, Aug. 16, 2007. The former Massachusetts governor's visit comes on the heels of campaign stops this week by GOP rivals Rudy Giuliani and John McCain.  (AP Photo/Mary Ann Chastain)
Republican presidential hopeful Mitt Romney speaks at a campaign stop in Greer, S.C., Thursday, Aug. 16, 2007. The former Massachusetts governor's visit comes on the heels of campaign stops this week...   (Associated Press)
Republican presidential hopeful Mitt Romney, speaks to a group of supporters during a town hall meeting in Winter Park, Fla., Wednesday, Aug. 15, 2007.(AP Photo/John Raoux)
Republican presidential hopeful Mitt Romney, speaks to a group of supporters during a town hall meeting in Winter Park, Fla., Wednesday, Aug. 15, 2007.(AP Photo/John Raoux)   (Associated Press)
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