by Staff Writer on May 14, 2012
BREAKING: Phil Falcone’s Failed Wireless Venture LightSquared Has Filed For Bankruptcy [BusinessInsider] LIGHTSQUARED FILES FOR BANKRUPTCY. This has just been reported by Bloomberg. Lightsquared, of course, is the wireless venture of hedge funder Phil Falcone whose fund, Harbinger Capital, owns 96% of the telecom company. Falcone himself has put $3 billion into the company. We saw this coming. Reuters reported earlier today that LightSquared was either going to have to come to an agreement with its investors and creditors over a $1.6 billion loa — this is the company’s second deadline extention. Their source said that bondholders were purposely making demands that they knew Falcone would not accept.
The Best Way For College Student To Land A Job At A Hedge Fund Right After Graduation [BusinessInsider] Everyone knows networking is a big factor in getting that long-awaited job offer—but for possible employment at hedge funds, it’s the ace in the hole that will get you the job. Because hedge funds are so focused on culture and overall environmental “fit” when it comes to hiring new employees, they are more likely to hire someone they know on a more personal basis—that’s why networking is so important, according to Bob Olman, president of the executive search firm Alpha Search Adivsory Partners.
Doug Kass Explains Why He Just Bought JP Morgan [BusinessInsider] It has been a profoundly negative news day for JP Morgan. After announcing a surprise $2 billion loss from a botched hedge last night, the stock dropped precipitously. It is currently down more than 8 percent. But hedge fund manager Doug Kass of Seabreeze saw a unique opportunity. He bought the stock at $38.20 last night after the surprise 5 P.M. conference call. In a post on The Street Kass explains his reasoning
Hedge Funds Are Shadow Banks in Need of Regulation, Bafin Says [SFGate] Hedge funds act as shadow banks and should be added to the list of organizations in need of regulation, according to Raimund Roeseler, head of banking supervision at Germany’s financial regulator Bafin. Shadow-banking definitions by the Financial Stability Board and the Basel Committee are too narrow, Roeseler said. Bafin is working on its own proposals to regulate the sector and will provide them for the discussion at the FSB, he said.