On 12th March 2008, some minutes past 9 am, a reporter David Faber was having an interview with Bear Stearns chief Alan Schwartz. David Faber asked Alan Schwartz to respond to looming reports that Goldman Sachs was not going to accept the counterparty risk of Bear Stearns. He responded by saying that Bear Stearns counterparties were still trading with it. Shortly after the interview, it was announced that Goldman was still in business with Bear Stearns. However, people had already lost their confidence in Bear Stearns and as such its ability and potential to make it and survive was gone. In addition to this, by evening Bear Stearns’s power to borrow in the overnight purchase market was gone.
Kyle Bass has been described as a desperate gambler who makes frantic and erratic investments. This was not how Kyle Bass started out. Kyle Bass made his fortune in 2008 when he correctly predicted the 2008 subprime mortgage crisis. He was described as some sought of genius who would always get everything right. Unfortunately things have not been good for Kyle Bass. As time went by, his magic touch slowly faded way. He has constantly made bad calls day in day out. Despite making the bad calls and wrong investments, Kyle Bass has also made some alliances that have been described as unsavory.
Wikipedia indicates that Kyle Bass has been praising Argentinian despot Cristina Fernandez de Kirchner. Despite the fact that she defaulted on the country’s sovereign debt twice in a span of thirteen years. He has defended and rationalized her actions. When a New York court ruled that Argentina was in no position to escape it creditors and had to pay all its creditors, Bass vehemently defended Kirchner’s side saying that this was an act of holding poor countries as hostages. Kyle also has business ties with the late Chris Kyle. His widow is currently suing one of Bass’s employees of unethical behavior.
He also had it rough when his campaign to eradicate some drugs patents was rejected by the U.S Patent and Trademark Office. This was after it failed to accept a review request filed by Kyle Bass on Acorda Therapeutics Inc drug called Ampyra. Questions are being raised of what awaits Kyle Bass. People are watching to see what his plans are and the kind of business ties and agreements he will get into.