Thursday, 24 July 2014
Last updated 9 hours ago
May 7 2013 | 11:56am ET
After five years trying to beat the hedge funds hounding his employer, Residential Capital, Thomas Marano may be joining them.
Marano yesterday resigned as CEO of the bankrupt Ally Financial subprime mortgage lender. The former Bear Stearns executive, who has headed ResCap since 2008, may start his own hedge fund.
Marano may also choose to launch a real-estate investment trust, and he said he's been in talks with "very large, New York-based" private-equity firms about starting a mortgage-related business."
"I've been modeling the numbers on [hedge funds and REITs] and I'm intrigued with that possibility," Marano told Dow Jones Newswires. The mortgage business "is a pretty hot space right now, so I'm really looking at those two options," either "doing it on my own or doing it with someone who's got more of the infrastructure established."
Marano is no stranger to the alternative investments world: He owes his old job at ResCap to Cerberus Capital Management, where he was a managing director and which put him in charge of the lender after buying a controlling stake in Ally from General Motors. Marano will remain chairman of ResCap.
Marano's exit comes as hedge funds and other ResCap creditors continue to battle over the company's planned exit from bankruptcy. Ally wants to cut ties with the lender, while some hedge funds want to make the company responsible for some of ResCap's losses. ResCap on Friday sued the Ad Hoc Group of Junior Secured Noteholders, accusing it of seeking $180 million in extra interest payments.
The Ad Hoc Group includes hedge funds Appaloosa Management, Marathon Asset Management and Silver Point Capital.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…