108 search results for "cmbs"

David Stockman: Extended Stay And The Wall Street Meth Labs

by David Stockman •  • Comments Off on David Stockman: Extended Stay And The Wall Street Meth Labs

Wachovia and other banks funded the $7.4 billion debt portion of the Extended Stay LBO, knowing the company was worth only $4.8 billion at the most. The loan was then rolled into structured finance securities – “designed to turn a sow’s ear into a silk purse,” David Stockman writes – and stuffed into the Wall Street meth labs until the very end.

David Stockman: Monetary Central Planners And Financial Manias

by David Stockman •  • Comments Off on David Stockman: Monetary Central Planners And Financial Manias

“One of the hallmarks of financial manias is that propositions which are perfectly absurd nevertheless get widely embraced by those caught up in the excitement,” writes David Stockman – in this case, Blackstone’s LBO of Extended Stay Hotels, and its subsequent sale at a ridiculous three times replacement cost, funded by Citibank … a pre-packaged scam.

David Stockman – Bernanke’s (Untough) Love Child: The $27 Billion Affair At The Hilton

by David Stockman •  • Comments Off on David Stockman – Bernanke’s (Untough) Love Child: The $27 Billion Affair At The Hilton

The idea that LBOs carry massive debt that is never paid down, leaving behind “financial zombies on the ragged edge of insolvency,” defies historical principles of LBOs, writes David Stockman. Blackstone’s LBO of Hilton Hotels is one of these “free market defying zombies” – “one global business slump away from bankruptcy.” And it just filed for an IPO.