Wild minority owner Falcone in a bankruptcy investment pickle
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09-13-2010, 11:15 AM
Originally Posted by
The markets definitely can be a bigger gamble than casinos. The whole "run amok" statement since deregulation is a bit misleading since the big cause of the subprime meltdown was due to Fannie Mae and Freddie Mac, US Government Agencies (not financial institutions) deciding to get in on the super risky market and also offering no doc mortgages and easing their requirements. Until that happened, it was a tiny fraction of the market and would have been easily handled. Thank You Barney Franks.
There's more than enough blame to go around. I still think the "real" problem is the decline in real income and that job creation is replacing higher paying jobs with lower value ones. Imo, the rest is just the unintended consequences from trying to manage these things--- preserving Americans' [unrealistic] consumption expectations.
Now, for the casino, since there seems to be difficulty in selling ownership stakes in clubs nowadays (Carolina, St. Louis, Phoenix, Dallas), I am not sure the BoG doesn't give some kind of waiver or puts some type of condition on the ownership, such as no say in day to day operations, personnel decisions, etc. in either business.
Samueli was allowed to own the Ducks while he was convicted of a federal crime (misdemeanor???), but he had to separate himself from governance. Falcone has a whopping 40% of a team that sold for $260 M, so I can see that he'll more than likely find a way to
his way through both of these things, and that the league would work with him. That's $104M. Too bad he's not interested in buying a team on his own.