Tom Barrack, the founder of Colony Capital, is taking the lead in advising First Republic Bank on its alternatives as the bank struggles to prevent a collapse after a $30 billion bailout last week failed to satisfy investors.
Barrack taking over the key role of financial advising the bank was announced after they reassured its consumers and customers that it could avoid Silicon Valley Bank’s collapse, which occurred earlier this month when its depositors fled.
First Republic revealed on Thursday that almost a dozen US banks, including JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp., will provide a combined $3 billion in unsecured deposits as a sign of support for the San Francisco-based company.
Tom Barrack, a board member of First Republic and a friend of Donald Trump, is collaborating closely with Executive Chairman Jim Herbert on any potential deal.
Do you want to know more about American Investor Tom Barrack? Are you interested in discovering his personal and professional life? If so, keep reading this article.
Who Is Tom Barrack?
Thomas Joseph Barrack Jr commonly known as Tom Barrack is an American real estate investor, who founded Colony Capital and serves as its chairman and chief executive officer.
He is a long-time friend and supporter of former US president Donal Trump. He has spoken on Trump’s behalf on television news programs. He served as the chairman of Trump’s Inaugural Committee and was a key advisor to the presidential campaign.
Tom Barrack: Early Life and Education
The grandparents of Barrack were Lebanese Christians who left Zahle, Lebanon in 1990 and came to the United States. Barrack was born as the son of a grocery store clerk and a secretary. He was born and brought up in Culver City, California.
Barrack played on the varsity rugby team at the University of Southern California (USC), where he received his Bachelor of Arts degree in 1969. He then went to the USC Gould School of Law, where he served as the editor of the Southern California Law Review, and graduated in 1972 with a Juris Doctor from the University of San Diego School of Law.
Tom Barrack: Beginning of Career
Barrack began his professional career in the law firm of Herbert. Kalmbach, who served as personal counsel to President Richard Nixon. He was transferred by the company to Saudi Arabia in 1972, where he quickly became the Saudi prince’s squash partner.
Later, he worked for a Saudi prince while employed by the Fluor Corporation in the kingdom. Shortly after, at the request of businessman Lonnie Dunn, he assisted in establishing diplomatic ties between Saudi Arabia and Haiti.
In 1982, Barrack worked for the Reagan administration’s James G. Watt as the deputy undersecretary of the US Department of the Interior. When President Reagan stayed at his nearby Rancho del Ciel, the Secret Service would board its horses at Barrack’s ranch.
After being forced to appear before a congressional committee concerning a gift Barrack had given to the buyer of Edwin Meese’s property, Barrack claims he lost interest in working for the government.
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Tom Barrack: Career in Business
Barack held the position of principal of the Robert M. Bass Group. He established Colony Capital in 1990, and Bass, GE Capital, Eli Broad, Merril Lynch, and Koo Chen-fu all contributed to the company’s funding.
Over $200 million of investment have been made in Middle Eastern real estate, along with $534 million in non-performing German real estate loans and a $24 million loan to Annie Leibovitz.
He is also the owner of Neverland Ranch. He manages a $25 billion portfolio of assets through Colony Capital, including Atlantis, the former resort of the Aga Khan in Sardinia, the Fairmont Raffles Hotels International hotel network in Asia, and Resorts International Holdings.
At the University of Southern California, Barrack serves as a trustee. Acor, Kerner, First Republic Bank, Continental Airlines, Korea First Bank, and Megaworld Properties & Holdings are other companies on whose boards of directors he has previously served. Nicholas Sarkozy, the president of France, also gave him the title of Chevalier de la Légion d’honneur.
Tom Barrack: Political Activities
Tom Barrack backed Donald Trump for his presidential run in 2016. He was a significant contributor to the Rebuilding America Now Super PAC, which generated $23 million for Trump’s campaign. Barrack was a close friend of Donald Trump for decades and had been supporting him since then.
Barrack presided over the group in charge of the inauguration of Donald Trump in 2017, for which he raised more money than ever before. Rick Gate was employed by Barrack first as a consultant for his company and then to assist with the administration of the inauguration.
Tom Barrack: Personal Life
Tom Barrack married Rachelle Roxborough in 2014; the relationship lasted for two years. In 2016, Barrack and his wife got divorced. Before the marriage with Rachelle, Barrack had been married twice. He got six kids from the three marriages.
Barrack was born and raised in a Catholic family. The information regarding Barrack’s parents and siblings is mostly unknown.
In 2000, Barrack was awarded the Golden Plate Award by the American Academy of Achievement. He got the Entrepreneur of the Year Award from Lloyd Greif Center for Entrepreneurial Studies in 2005. In 2010, he was honored with Chevalier de la Légion d’Honneur, an award given by the French government for both citizens and foreigners.
Tom Barrack: Controversies
According to reports, Jeffrey Epstein, a rich hedge fund manager, and convicted sex offender was friends with Barrack. Journalist Michael Wolff described Barrack and Donald Trump as a set of nightlife musketeers with Epstein throughout the 1980s and 1990s in his book, Fire and Fury: InsideTrump White House.
Tom Barrack and his business associate were charged with obstruction of law in July 2020 for making false statements to law enforcement, and acting as an agent for a foreign power. He was detained for two days before being freed on a $250 million bond with a $5 million cash guarantee.
In May 2022, the charges against Barrack were expanded to include claims that he improperly lobbied the Trump administration while seeking hundreds of millions of dollars in investments from the United Arab Emirates. Barrack and his associate were cleared of charges on November 4, 2022.
Tom Barrack: Net worth
Tom Barrack, The American Investor is supposed to have an estimated net worth of $1.5 billion as of 2023.
As an investor and real estate businessman, Barrack owns several properties and assets. He had bought a house in Santa for $21 million, which later sold for $35 million. He spent $15.5 million on a house in Aspen, Colorado, in 2017.
Along with Happy Canyon Vineyards in the Happy Canyon of Santa Barbara, Barrack owns a 1,200-acre mountain property close to Santa Barbara, California.
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