Cerberus Capital certainly has the "anti" Midas touch, doesn't it? A few years back the hedge fund giant bought Chrysler which is expected to file for bankruptcy protection any day now. But wait, there's more -- and it's all mortgage-related. Twenty-four months ago its subprime division, Aegis Mortgage, went BK. And wasn't it Cerberus that bought a controlling stake in Residential Capital Corp., which recently avoided bankruptcy at the 12th hour? I believe that was Cerberus. And wasn't Cerberus (for a while) itching to buy now defunct subprime lender Option One from H&R Block? Yep, that was them too. And here's one more Cerberus incident: back in 1998 the hedge fund bought bonds in Cityscape Financial, a once high flying subprime lender that -- you guessed it -- went bankrupt too. We heard that investment actually worked out okay. All-in-all, nice track record there, Steve (Feinberg)â¦
Loan Think
What We're Hearing
Published April 30, 2009, 5:00 a.m. EDT
1 Min Read
