Wednesday, September 23, 2009

Once Bitten, Twice Shy, No?

Today The New York Post is reporting that ex-Lehman President Bart McDade is teaming up with a former Lehman trader Alex Kirk to launch a new fund River Brich Capital. According to the Post:
River Birch could aim to purchase distressed assets and other fixed-income debt, including high-yield securities -- areas in which Kirk has expertise. One source said some of the billions in mortgages and other esoteric securities still owned by the defunct Lehman might be on the radar.
Well, we say Bart McDade definitely should know those mortgages. Afterall he helped Lehman buy them in the first place! As the WSJ had reported earlier, "Bart McDade was one of a team of executives who oversaw Lehman's push into the mortgage business, a move that created billions of dollars in losses and eventually pushed the firm to the brink. On Sept. 15, Lehman filed for bankruptcy protection from its creditors".
Surely the well-meaning River Birch investors are thinking: dosen't everyone deserves a second chance? Especially after they bring down the world's financial system?
Logically speaking...Heck No!

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