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CNN Money – They pray for recessions and smile a little wider when a company climbs onto its death bed.
Welcome to the world of distressed, or so-called "vulture" investors, an often-ignored corner of the market that has increasingly taken center stage as more businesses slip into bankruptcy or look to shed assets.
There has been no shortage of corporate ruin lately. Lehman Brothers, which sent a shockwave across the financial system. Outside of the banking sector, electronics retailer Circuit City and media giant Tribune Co both filed for bankruptcy.
Here Is The City – Bloomberg reports that CEOs at Wall Street’s top five securities house earned a staggering $3bn between them from 2003 and 2007, during the time when the subprime and toxic securities timebomb was ticking away in the background. Goldman Sachs CEOs were paid the most in this period ($859m), followed by Bear Stearns ($609m).
And talking of Wall Street finest, former Merrill Lynch CEO Stan O’Neal (who bagged $172m in pay between 2003 – 2007), is said to be thinking of making a comeback. According to The Financial Times, O’Neal is considering joining Vision Capital Advisors, a small hedge fund and private equity firm.
Bloomberg also reports that JPMorgan Chase has acquired Washington Mutual’s branch network for $1.9bn, as the thrift was seized in what has been described as the largest bank failure in US history. JPMorgan will not acquire any of WaMu’s liabilities. CEO Jamie Dimon said: ‘This is a fabulous franchise. We think we got this at a price that protects us’.
New York Post- Phil Falcone’s Harbinger Capital Partners – the hedge fund that won a battle to land board seats at The New York Times Co. – is expanding its size and presence to capitalize on its newfound clout.
Falcone is seeking to use the reputation gained from the Times fight and winning bets against subprime to springboard Harbinger, which now has $25 billion in assets, toward new goals, according to people familiar with the situation.
On the heels of gains this year of close to 30 percent, Falcone is looking to attract $4 billion over the next six months, The Post has learned.
