Thursday, 18 September 2014
Last updated 5 hours ago
Jan 2 2008 | 11:18am ET
The subprime debacle was good to the Blackstone Group in 2007, as the private equity giant was called in to advise some of the biggest casualties of the collapse. But this year is starting out somewhat differently: Blackstone’s lenders were not so lucky last year, and that’s forced the firm to pull the plug on a $1.8 billion buyout.
PHH Corp., the New Jersey mortgage and vehicle-leasing company which Blackstone and General Electric had agreed to buy and divide between them, said the deal had fallen apart, after Blackstone was unable to come up with the financing for its half of the arrangement. The company said it would seek a $50 million break-up fee from Blackstone.
The deal, under which GE would have bought PHH and then sold its mortgage unit to Blackstone, first ran into trouble in September, when both JPMorgan Chase and Lehman Brothers warned Blackstone that they might have to renege on the promised financing. Blackstone’s inability to come up with the money also sinks GE’s purchase of PHH.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.