Falcone Faces Senate Document Request, May Have To Testify

Oct 7 2011 | 11:52am ET

Harbinger Capital Management's ambitious wireless venture said it is considering a document request from a Sen. Charles Grassley (R-Iowa), who is seeking information about the firm's ties to the White House.

LightSquared said it has "Sen. Grassley's request under review." The ranking Republican on the Senate Judiciary Committee has asked for records of Harbinger's communications with White House officials about LightSquared, which won a crucial waiver from the Federal Communications Commission earlier this year.

Grassley and other Republicans have suggested that the waiver was granted because of Harbinger founder Philip Falcone's donations to Democrats. Falcone and LightSquared have denied those allegations, the latter noting that the original approvals for LightSquared came during the George W. Bush administration and the former claiming to be a registered Republican.

Grassley's request may not be the only one Falcone has to deal with from Capitol Hill. Members of the Senate Agricultural Committee may call him to testify about Harbinger's investment in LightSquared.

LightSquared, for its part, continued to move forward with business as usual. On Wednesday, CEO Sanjiv Ahuja told Dow Jones Newswires that the company would need to raise $3.5 billion to be cash-flow positive over the next two years, although the company is not actively raising money.

"We are absolutely confident we can raise the capital that's needed," Ahuja said. He said the company was equally confident that it could deal with the global position system interference issues that have plagued the company.

"We are absolutely confident that we can design a network that can live harmoniously with the GPS network and the GPS devices that are out there," he said.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.