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megimoo
03-19-2009, 05:51 PM
Soros, Dell Join Flowers in Purchase of IndyMac

"Soros wanted IndyMac so Senator Charlie the Smuck Schumer Caused a 'run' on it !"

IndyMac: Mini Bank Run, Thanks to Schumer
IndyMac Bancorp, Inc. felt the pain of a mini bank run this past week, thanks to a leaked letter from New York Senator Charles Schumer that questioned the bank’s solvency and led to widespread press coverage last week, the Pasadena-based thrift said in a filing with the Securities and Exchange Commission late Monday.
“As a result of Sen. Schumer making his letters public and the resulting press coverage, we did experience elevated customer inquiries and withdrawals in our branch network last Friday and on Saturday of roughly $100 million, about 1/2 of 1% of total deposits,” the bank said.

http://www.housingwire.com/2008/07/01/indymac-mini-bank-run-thanks-to-schumer/

WASHINGTON -- The Federal Deposit Insurance Corp. reached a preliminary agreement to sell the remains of IndyMac Bank -- one of the biggest bank failures in U.S. history -- to a team of high-profile investors, suggesting there is private money willing to invest in troubled banks if the government agrees to shoulder heavy losses. Bloomberg News/Landov Christopher Flowers The investment team, which includes affiliates of private-equity chieftain Christopher Flowers, hedge-fund investors George Soros and John Paulson, and computer mogul Michael Dell, will contribute $1.3 billion in capital toward a purchase of IndyMac Federal Bank. The investor group and the government...

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George Soros

Born August 12, 1930 (1930-08-12) (age 78)
Budapest, Hungary
Occupation Entrepreneur, Currency Trader, investor, philosopher, philanthropist, political activist
Net worth ▲ $11.0 billion (Forbes)
Spouse(s) Twice divorced (Annaliese Witschak and Susan Weber Soros)
Children Robert, Andrea, Jonathan, Alexander, Gregory
Website
www.georgesoros.com
George Soros (pronounced /sros/ or /srs/, Hungarian IPA: (born August 12, 1930, in Budapest, Hungary, as György Schwartz) is an American currency speculator, stock investor, businessman, philanthropist, and political activist.

Soros is estimated currently[update] to be worth around $11.0 billion in net worth; he is ranked by Forbes as the 29th-richest person in the United States.

Soros is chairman of Soros Fund Management and the Open Society Institute and is also a former member of the Board of Directors of the Council on Foreign Relations. He is also one of three initial funders of Center for American Progress, and is represented on the board.[4] His funding and organization of Georgia's Rose Revolution was considered by Russian and Western observers to have been crucial to its success, although Soros said his role has been greatly exaggerated. In the United States, he is known for having donated large sums of money in a failed effort to defeat President George W. Bush's bid for re-election in 2004.
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Currency speculation

On Black Wednesday (September 16, 1992), Soros became immediately famous when he sold short more than $10 billion worth of pounds, profiting from the Bank of England's reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or to float its currency.

Finally, the Bank of England was forced to withdraw the currency from the European Exchange Rate Mechanism and to devalue the pound sterling, and Soros earned an estimated US$ 1.1 billion in the process. He was dubbed "the man who broke the Bank of England."

The Times of Monday, October 26, 1992, quoted Soros as saying: "Our total position by Black Wednesday had to be worth almost $10 billion. We planned to sell more than that. In fact, when Norman Lamont said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell."

According to Steven Drobny,[15] Stanley Druckenmiller, who traded under Soros, originally saw the weakness in the pound. "Soros' contribution was pushing him to take a gigantic position," in accord with Druckenmiller's own research and instincts.

In 1997, during the Asian financial crisis, then Malaysian Prime Minister Mahathir bin Mohamad accused Soros of using the wealth under his control to punish ASEAN for welcoming Myanmar as a member.
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Bio:John Paulson
John Paulson reaps billions from the financial crisis
With the plunge in the markets, the hedge fund industry has gone into a tailspin. Even top hedge fund managers -- such as Citadel Kenneth Griffin, Paul Tudor Jones, Steven Cohen and so on -- are having troubles. In fact, there's talk of hedge fund failures, consolidation, and increased regulation. For example, hedge funds may lose 15% of overall assets by the end of 2008. Keep in mind that the average hedge fund is down a stunning 18% this year.

Yet, there are some wily hedge fund managers that are striking fortunes. Perhaps the most notable is John Paulson, who manages Paulson & Co. His fund scored $15 billion in gains last year. Basically, he shorted a variety of complex mortgage securities.

Interesting enough, Paulson's hot hand has continued. That is, his funds have seen increases of 15% to 25% so far this year.

In fact, if he can maintain this pace, Paulson will have personally amassed a $3.5 billion over the past two years.
Oh, and Paulson has 70% of his assets in cash right now. In other words, when the markets settle, he'll be a nice position to capitalize on things -- and make even more money for himself.
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megimoo
03-19-2009, 05:54 PM
Soros, Dell Join Flowers in Purchase of IndyMac part 2
bio:Christopher Flowers

J. Christopher Flowers (born October 27, 1957) is a billionaire who runs JC Flowers & Company.

With Ripplewood Holdings, he bought Long-Term Credit Bank of Japan in 2000 and renamed it Shinsei Bank. He is currently seeking to buy a third of Shinsei Bank after it was forced to write down $107m (Y72m) in losses from the 2007 Subprime mortgage financial crisis.

Because of Flowers refusal to sell his 24% stake in Hypo Real Estate, the German government is currently proposing a temporary law allowing expropriation.
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Hypo Real Estate
Founded 2003
Headquarters Munich, Germany
Key people Axel Wieandt (CEO and Chairman of the executive board), Michael Endres (Chairman of the supervisory board)
Industry Financial services
Products Commercial property financing, infrastructure and public finance, capital markets and asset management
Revenue Euro's 906 million (2007)
Profit ▲ Euro's 504 million (2007)
Total assets Euro's 400.2 billion (2007)
Employees 2,000 (2007)
Website www.hyporealestate.com
The Hypo Real Estate Holding AG (FWB: HRX) is a holding company based in Munich, Germany which comprises a number of real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset management. Hypo Real Estate is the second largest commercial property lender in Germany.[2]

The bank originated in 2003 from the real estate financing business of HypoVereinsbank. It employs about 2,000 people and was one of the 30 members of the DAX stock index of the largest German companies between December 2005 and December 2008, before the shares were demoted to the MDAX. In 2007 it acquired public finance company Depfa Bank.[3] The company remains a legal entity as a wholly-owned subsidiary of the Hypo Real Estate Group.

The firm was bailed out by the Bundesbank and other German banks in October 2008 in the midst of the global financial crisis.
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bio:Michael Dell

Wealth and personal life,As of 2009, Forbes estimates Dell's net worth at $12.3 billion.
Dell currently resides in Austin, Texas with his wife, Susan, and their children,[9] Kira, Alexa, and fraternal twins Zachary and Juliette.

Philanthropy
On May 15, 2006, The University of Texas at Austin announced a $50 million grant from the Michael and Susan Dell Foundation to "bring excellence in children's health and education to Austin". The grant will enable the construction of three new facilities at the university. The first is the Dell Pediatric Research Institute which is expected to complement the new Dell Children's Medical Center nearby. The second is a new computer science building on the UT campus named Dell Computer Science Hall. The third is the Michael and Susan Dell Center for Advancement of Healthy Living, which is intended to address issues that affect healthy childhood development.

In 2002, he received an Honorary Doctorate in Economic Science from the University of Limerick, in honor of his investment in Ireland and the local community along with his support for educational initiatives.

Political lobbying and contributions
In 2005, Susan and Michael Dell were among 53 entities that each contributed $250,000 (the maximum legal donation) to the second inauguration of President George W. Bush.
MSD Capital
In 1998, Michael Dell founded MSD Capital LP, a private investment firm, to invest in various small companies on Dell's behalf. According to reports, the firm tends to invest in "late stage" investments rather than early in a company's startup.

Feud with Steve Jobs
Michael Dell had a public war of words with Apple, Inc. CEO Steve Jobs, starting when Jobs first criticized Dell for making "un-innovative beige boxes". On October 6, 1997, when Michael Dell was asked what he would do if he owned then-troubled Apple Computer, he said "I'd shut it down and give the money back to the shareholders."[16] In 2002, Dell's online store started selling Apple's iPod music players.[17] They stopped selling iPods in 2003, due to contract issues between Dell and Apple.[18] On January 13, 2006, Apple's market capitalization surpassed that of Dell.[19]
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Bio: IndyMac Federal Bank
For the FDIC, a Servicing Transfer of Historic Proportions

For all of the press that the failure of IndyMac Bank has generated in recent weeks — it was the largest thrift and the second largest financial institution to ever have failed, after all — it’s what hasn’t gotten press at all thus far that is much more likely to be the largest test of resources at the Federal Deposit Insurance Corp., as it seeks to sell off the bank’s assets.

Consider that IndyMac held the nation’s 8th largest residential mortgage servicing portfolio, at $200.7 billion by the end of the first quarter, according to statistics compiled by Inside Mortgage Finance.

Now consider that the FDIC is tasked with managing the single largest servicing transfer tied to a failed bank in history — and by a long shot, too. It’s not even close. The next closest comparison would be Superior Bank, which failed in July 2001 and serviced a $3.7 billion portfolio of securitized subprime mortgages, eventually sold to former Bear Stearns & Co. subsidiary EMC Mortgage Corp. in February 2002.

But this isn’t a $3.7 billion servicing portfolio. This is more than 50 times larger.

Understandably, more than a few MBS investors have been on edge in recent weeks as the future of the servicing portfolio remains up in the air; $184 billion of the loans in the servicing portfolio were sold or securitized, with IndyMac retaining servicing rights. The future of the portfolio will likely remain in limbo for some time longer, as well, as FDIC officials sort through their options for selling off the portfolio.