The 2008 financial meltdown may be old news to some people, but to the people that lived through the disaster, it will never be old news. Employees of Bear Stearns lived through a nightmare. And for people like David Faber the CNBC reporter, and hedge fund investor Kyle Bass that nightmare will impact their lives forever. Kyle Bass was the Bear Stearns executive that gave Faber the information that Goldman Sachs would not accept counterparty risk for Bear Stearns.
The outcome of the 2008 financial crisis is still causing anguish and stress for people eight years later. But Kyle Bass, the man that predicted and bet that the meltdown would happen, made a fortune because he was in the right place at the right time and saw an opportunity. Bass is a hedge fund manager, and he was called a genius when people discovered that he was one of the few Wall Street mavens that went against the current and told the world the real story. UsefulStooges was first to expose him in their Kyle Bass The Frantic Investments of a Desperate Gambler article.
But the days of Bass being a genius are long gone. Mr. Bass is still a hedge fund manager, and his company, Hayman Capital Management LP, is still betting on risky assets. His track record over the last eight years hasn’t lived up to his image as a genius, however. Bass was an investor and a friend of the former president of Argentina, Cristina Fernández de Kirchner. Cristina Fernández de Kirchner did more to hurt Argentina than to help the economy of the country. When Fernández de Kirchner decided to default on Argentina’s debt bonds Bass and his investors took the huge financial hit.
Argentina wasn’t the only financial debacle Bass has been involved in since he had his five minutes of fame eight years ago. Bass tried to shift the blame away from General Motors to protect his investment when GM faulty airbags and a dysfunctional power steering mechanism caused a number of fatalities. Bass blamed the victims, not GM on national TV.
The most recent legal scam that Bass is championing is shorting pharmaceutical stocks. Bass and his partner contest drug patents, and when that information is made public, the value of stock in the pharmaceutical company that holds the patent drops, and Bass makes a bundle of cash.
Insiders say Bass has lost a lot of money over the last 24 months.