EIC/Wall Street investigations
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Apr 29, 2012

Deadline looms for Falcone on LightSquared control

April 29 (Reuters) – The clock is ticking for hedge fund
manager Philip Falcone to reach a deal by Monday morning with
debt holders of LightSquared, the upstart wireless telecom
controlled by Falcone’s Harbinger Capital, or face a possible
bankruptcy.

The holders of LightSquared’s roughly $1.6 billion in debt,
who include billionaire activist investor Carl Icahn and hedge
fund manager David Tepper, have given Falcone until 10 a.m.
Monday to strike a deal for restructuring Harbinger’s 96 percent
equity control of LightSquared, a person familiar with the
situation said.

Apr 24, 2012

LightSquared creditors unite against Phil Falcone

NEW YORK, April 24 (Reuters) – Hedge fund manager Philip
Falcone will face a united front when negotiating with key
investors that own bank debt sold by LightSquared, the
money-losing wireless telecom company controlled by his fund.

A number of LightSquared debt holders have joined together
to retain high-powered bankruptcy attorney Thomas Lauria, who
heads White & Case’s global restructuring group, said two people
familiar with the situation.

Apr 21, 2012
via Unstructured Finance

UF Weekend Reads

Nice weather today in NYC. Enjoy it today before Sunday’s deluge. Here’s Sam Forgione’s picks. You can now follow Sam on twitter @samuelforgione

 

From The New Yorker:

Nicholas Lemann explores new books that illustrate the ties between politics and the economy.

Apr 19, 2012

PIMCO fund constrained by investor redemptions

By Jennifer Ablan and Matthew Goldstein

(Reuters) – PIMCO’s flagship Total Return Fund was hit hard by investor redemptions in 2011, but this year it is a less famous fund at the world’s biggest bond shop that is bleeding the most.

The PIMCO Unconstrained Bond Fund, the firm’s “go-anywhere” bond fund, which seeks to minimize risk from systemic shocks, saw an estimated net outflow of $1.69 billion in the first quarter, according to data compiled by Morningstar.

Apr 13, 2012
via Unstructured Finance

Psst, Bank of America has got a deal for you

By Matthew Goldstein

Wanna buy a foreclosed home on a the cheap?  Well, Bank of America has got one for you. Or to be precise, the big U.S. lender has got 556 formerly owner-occupied homes it is trying to unload right now in a bulk deal.

As my colleague Jennifer Ablan and I reported yesterday, BofA, for the second-time in five months, is seeking bids for a bulk sale of foreclosed homes. This second round is much bigger than the first and could be a sign the bank is moving aggressively to sell foreclosed homes with institutional investors eyeing the market.

Apr 12, 2012

BofA launches second round of bulk sales of foreclosed homes

NEW YORK (Reuters) – For the second time in five months, Bank of America is tapping the red-hot market for foreclosed homes by seeking bids on a bulk offering of several hundred single-family homes.

Over the past several weeks, the nation’s second-largest bank by assets has solicited bids for a bulk deal that includes up to 500 largely vacant single-family homes, some of which BofA acquired after its merger with Countrywide Financial, according to several sources within the real estate and mortgage sectors. Countrywide was one of the largest subprime lenders in the United States.

Apr 12, 2012

LightSquared creditor looks to unload debt-sources

NEW YORK, April 12 (Reuters) – The fate of hedge fund
manager Philip Falcone’s upstart telecom may hang in the
balance, but some distressed investors are still wheeling and
dealing in LightSquared debt.

A financial institution controlled by billionaire investor
Andrew Beal is trying to sell $150 million in bank debt that
LightSquared has issued to raise money for its proposed
nationwide wireless network, say three traders familiar with the
situation.

Apr 4, 2012

Exclusive: Falcone mulls voluntary bankruptcy for LightSquared

NEW YORK (Reuters) – Hedge fund manager Philip Falcone said in an interview on Wednesday he is “seriously considering” filing a voluntary bankruptcy for LightSquared, the struggling telecom startup in which his Harbinger Capital Partners is the majority owner.

Falcone said a bankruptcy is one of several options he is considering as he tries to find a way to salvage the company, which reported a $427 million net loss during the first nine months of 2011, and keep its creditors at bay.

Mar 31, 2012
via Unstructured Finance

UF Weekend Reads

Don’t get pranked tomorrow. Remember, it’s April Fool’s Day. Here are the latest Weekend Reads as selected by Sam Forgione.

 

From Fortune:

Hedge fund manager Paul Singer’s hardball approach has benefited Republican candidates as his fund battles in court with nation’s that have defaulted on their debt.

Mar 30, 2012
via Unstructured Finance

Diversity on Wall Street, or a lack thereof

By Matthew Goldstein

The shooting death of Trayvon Martin, an unarmed black teen in Florida, has evoked a lot of debate about race in America and the nation’s attitudes to what it means to be a minority.

There’s been a good deal written that major media organizations were slow to react to this tragic story, in part because there simply aren’t enough minority voices on staff. This point was highlighted recently in a  story in The New York Times