Saturday, December 20, 2008

The Crooks You've Probably Never Heard Of

There are crooks and then there are the savvy crooks. The savvy ones don't leave paper trails, but because of SEC regulations, this one did.

Have you ever heard of Cerberus Capital Management? I hadn't until I heard about them on the news the other night. Cerberus used to own Mervyn's Department Stores. Yes, that Mervyn's, the ones who are now bankrupt and putting people out of work. The buyout deal "allegedly" stripped the most profitable part of Mervyn's, it's real estate, and left the stores to go under (this is still in the courts right now).

Source: Making a Bundle on Mervyn's by the Wall Street Journal.

Now, Cerberus owns parts of Chrysler and parts of GMAC. Where do you think some of that bailout money is going to go to? The employees? Only time will tell on this one.


How Hedge Funds and Private Equity Hurt Us by The Nation

Cerberus: Auto Bailout's Other Beneficiary by The

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