Kyle Bass Frantic Gambler Or Investment Genius?
While everyone was licking their financial wounds in 2009, Kyle Bass was counting the millions he made betting that the Wall Street was going to be put on life support thanks to the sub-prime mortgage debacle. Bass was hailed as a genius by some investment gurus that worship the mighty dollar. Very few people knew that Bass was the man behind the press release that said Bear Stearns was too deep in its own complicated mortgage scheme to recover. Kyle was an executive with Bear Stearns at the time, so he had insider knowledge that what was glittering to the rest of world in terms of mortgage lending was actually a quick money ploy the banks concocted to feather their own nests.
The Financial Crisis Inquiry Commission finally released a report that named Bass, the high-flying hedge fund manager, as the man who gave David Faber the inside scoop on the Bear Stearns debacle. But that was old news to the people that know Kyle Bass. Bass has no problem tooting his own horn when it comes to his financial prowess. As the CEO of Hayman Capital Management LP, the company he started with the money he made in 2008, Bass has managed to stay in the news for other questionable practices. His latest scheme isn’t what anyone would call ethical, but ethics is a foreign word to Mr. Bass. Bass proved that when he partnered with Erich Spangenberg, the guy insiders call the “most notorious patent troll on the planet.” Bass beats against pharmaceutical companies before the news breaks that Erich Spangenberg is questioning the legitimacy of drug company patents.
The Argentina financial mess was another thorn in the side for Bass investors. Kyle was a fan of former President Cristina Fernández de Kirchner. Fernández de Kirchner was the key player when Argentina defaulted on their debt and bond holders like Paul Singer took a major financial hit. Bass said Singer was taking advantage of a poor country, and Bass took Fernández de Kirchner side.
The General Motors fiasco was another situation where Kyle Bass went against the victims and praise General Motors because his company had a sizable amount of shares in General Motors. Bass said it was the victims fault when the faulty airbags GM put in some models failed, and power steering on other models didn’t work properly.
But Bass continues to put himself in front of the press talking about his questionable accomplishment even though those accomplishments are considered lame and frantic attempts to maintain his five minutes of genius.