You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #49: David Tepper: junk bonds, hedge funds, "distressed" investing (disaster capitalism) [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
suffragette Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-30-11 10:11 AM
Response to Original message
49. David Tepper: junk bonds, hedge funds, "distressed" investing (disaster capitalism)
Looks like he is one of the "investors" profiting from all of our pain

The 10 Greediest People of the Year

5/ David Tepper: This hedge needs clipping

Nobody made more money last year than Americas top hedge fund managers, and no hedge fund manager made more than David Tepper. This 53-year-old former junk bond trader at Goldman Sachs hit a $4 billion jackpot essentially betting, in the middle of the global financial meltdown, that Uncle Sam wouldn't let Wall Street's biggest banks go under.

Tepper is currently doing his best to single-handedly reboot Americas still depressed residential real estate market. In June, he spent $43.5 million to pick up a summer home in the Hamptons that used to belong to former New Jersey governor and Goldman Sachs CEO Jon Corzine. The 6.5-acre beachfront spread sports six bedrooms, a tennis court, and a heated pool -- and rented last summer for $900,000.

The $43.5 million Tepper shelled out ended up the highest price paid this year for a Hamptons home. The total also amounted to about half the record $88 million the hedge fund industry raised for the homeless this past May at the 2010 Robin Hood Foundation dinner, Wall Street's single biggest annual charity gala.

One official at the foundation dubbed that $88 million an act of extraordinary generosity. Others might define extraordinary a bit differently. David Tepper and the rest of the hedge fund industrys top 25 last year together pocketed $25.3 billion. They averaged, each and every business day, over $100 million.

More on him:

US unemployment may be hovering just under 10 percent, but some lucky hedge fund managers won't feel a thing. On Countdown with Chris Olbermann, Chris Hayes, Washington editor for The Nation, discusses the news that the top twenty-five hedge fund managers collectively made $25 billion last year. The top earner, David Tepper, pocketed $4 billion by correctly bidding on banks that the government bailed out with taxpayer money. Moreover, because this income is considered capital gains, these hedge fund managers, like Tepper, will pay fewer taxes than a group of Americans who collectively made $25 billion.

As Hayes explains, the news is an indicator of an environment of extreme inequality and underscores how far we remain from a meritocratic order where people are rewarded for their good ideas. The finance sector should be taking money from savings and channeling it into investments--another failure of Wall Street. In order to really rein in the financial sector we must do three things, says Hayes: "Financial regulation that's serious, that breaks up banks and reduces the size of the sector. We need a financial transaction tax, which will tax some of this money sloshing around in these bets and will reduce the size of the sector. And we also need general tax reform, so that we tax people that make that much money a lot at a much higher rate."
Printer Friendly | Permalink |  | Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC