Famed shortseller John Paulson, who earned one of Wall Street's biggest paydays betting on the collapse of mortgage-backed bonds, is following that with a bet that he can recoup millions more from lenders that sold the soured securities.
Paulson & Co. has acquired the right through bankrupt mortgage company ResCap to sue banks and others that sold faulty mortgages in the run-up to the financial crisis in 2007 and 2008, The Post has learned.
The hedge fund has amassed a "significant" minority position in ResCap Liquidating Trust, which since December has filed suits claiming $9 billion in mortgage loan losses, according to sources close to the situation.
Paulson & Co. also holds one seat on the five-member board of the trust, which is tasked with unwinding what remains of the defunct mortgage company.
In recent weeks, the trust has asked the New York State Supreme Court to move some of its suits to Manhattan bankruptcy Judge Martin Glenn, who oversaw ResCap's bankruptcy and liquidation plan.
If successful, the trust could get a quicker resolution — and recovery.
Paulson, who famously made $4.9 billion shorting the housing market, is working with law firm Quinn Emanuel Urquhart & Sullivan to bolster the odds of recovery, sources said.
The ResCap trust could recover anywhere from 10 percent to 40 percent of the $9 billion in claims — with damages ranging from $900 million to as high as $3.6 billion, sources estimated.
"If I was a betting person, I'd say Paulson will make money," a source close to the situation said.
Paulson & Co. boosted its position in the trust by acquiring mortgage insurer MBIA's stake for roughly $8 a share. A 40-percent recovery would be equal to about $32 per share, a source said.
The hedge fund initially acquired much of Rescap's stake in the liquidating trust in exchange for forgiving unsecured debt. Then, in December, troubled MBIA sold its stake to Paulson raise cash, sources said.
ResCap was the mortgage lending arm of GMAC, now known as Ally Financial. The government pumped $17 billion in taxpayer funds to bail out Ally, which was eager to dump its troubled mortgage unit.
Rescap filed for bankruptcy in May 2012 under mounting loan losses and a flood of lawsuits from investors demanding that the unit buy back billions in bad mortgages.
ResCap — which bought roughly half the mortgages it serviced from banks and others — has paid out paid $12 billion to settle claims. In turn, the trust for the defunct company is now suing those that sold it toxic mortgage.
In the suits, ResCap claims that banks and other firms, including PNC Financial Services and SunTrust, promised to cover any mortgage loan losses, sources said.
ResCap is taking a different approach than most investors burned by the housing collapse. So far, most have tried to recoup their mortgage losses by claiming that the loans packaged into securities were faulty.
Paulson, MBIA, PNC and SunTrust declined comment.
Anda sedang membaca artikel tentang
Hegie Paulson seeks new mortgage payday
Dengan url
http://solusiagarsehat.blogspot.com/2014/03/hegie-paulson-seeks-new-mortgage-payday.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Hegie Paulson seeks new mortgage payday
namun jangan lupa untuk meletakkan link
Hegie Paulson seeks new mortgage payday
sebagai sumbernya
0 komentar:
Posting Komentar