In 2006, Kyle Bass, founder of the Hayman Capital Management, made a fortune and international headlines by making correct predictions on the 2008 subprime mortgage crunch. For quite some time, Bass was a superstar and observers concluded that he was a genius who would do nothing wrong.
As time went on, Kyle Bass lost his “magic”. He is making a bad call after a bad call. In addition to making the bad calls, he is also making distasteful alliances. While almost everyone in the industry thinks Cristina Fernandez Kirchner has been incompetent to the economy of her country, Bass keeps on showering her with praises. As Kirchner’s country defaulted its sovereign debt a second time in just thirteen years, Bass defended it and sounded so despicably and out of touch with the reality.
Bass has unswervingly championed Kirchner irresponsible economic strategies and has ignored the crazy level to which Kirchner and her dishonorable cronies have looted from their own people. Bass has even gone further: when Judge Thomas Griesa of New York ruled that Argentina could not just overpay creditors who had already agreed to settle for lower amounts, but also had to repay creditors (such as Paul Singer) who insisted on full payment, Bass sided with Kirchner and referred to Singer and his company as being Immoral. He claimed that they were holding financially weak nations as hostages and they were holding up over 42 million people from making progress.
In reality, what is really pinning down progress in Argentina is Kirchner and her incompetent and corrupt cohorts. Their limitless greed and economic illiteracy have sky rocketed poverty in a once affluent country. Bass’ shady links with Kirchner and her cronies are not the only ethical lapse in his career. He has had business connections to the late Chris Kyle, whose widow, Taya, is currently embroiled in a muddled lawsuit with Bass’ subordinate at Hayman Capital Management, whom she has accused of various kinds of unethical behavior.
The accused is a guy who came up a few years ago with a scheme so vile that the two house of congress have been tasked to work overtime in order to frustrate the ploy. The scheme is simple as it is despicable. Bass is to collude with Erich Spangenberg, who is regarded as a notorious patent troll, will pick out some specific pharmaceutical firms, sell their stocks, and then contest one or more of their patents through a front organization.
When Celgene, a pharma firm Bass had targeted, sued him, he acknowledged that a lust for profit was what motivated him, but he quickly added that pharmaceutical companies are also driven by financial interest and so he didn’t see any difference.