So, European bankers were wondering, "What can we do with these non-performing, bad loans that we carry on our books?" Well, it seems that they could resort to an old tactic that has worked with certain greedy, grubby investors who are not content with average returns. "If we fatten up the portfolios and sell them at a steep discount, we might catch a few "fish". Let's try Wall Street, they think they're the sharpest tools in the shed and they are always looking for deals."
So, those same European bankers cast about in some likely pools full of hungry fish and sure enough, they got some bites, and landed more than a few big ones.
Like who? Let's make a list:
Cerberus-79.6 Billion euros
Blackstone Capital -53 billion euros
Lone Star -27.6 billion euros
Goldman Sachs - 13.7 billions
Oaktree 11 billion euros
Davidson/Kempner 10,1 billion eu
Bain Capital-10.6 billion eu
CarVal- 15.7 billions eu
Intrum 26.1 billions eu
Banca Ifis 10.7 billions eu
These amounts are less than half of the 600 billion euros in bad loans sold by European banks to eager investors. What a coup! Can you imagine the dancing going on in the financial capitols of Europe? Even the City of London was dumping. Where did these bad loans originate? With the usual suspects: Greece, Italy, Spain, Portugal, France, some from eastern Euro members, too. Now that the world economy is in free fall, it is doubtful that any of these loans will ever pay any return on investment. Too bad for you, Wall Streeters. Take a haircut; take a bath, take a hike. We got you this time; and will get you again, soon. Count on it.
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