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Deepcapture - Einhorn & New Century


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Deepcapture does a story on David Einhorn's involvement with New Century.  While I have no idea if Einhorn ever had anything to do with profiting from New Century's demise, I have always wondered why he never addressed the subject of New Century...not in presentations, nor in his book. 




I asked Herb Greenberg in early 2007 why he wasn't covering New Century?  If his relationship with David Einhorn was preventing him from discussing New Century, as he was writing vigorously about Novastar at the time. 




No one ever wrote about New Century until now.  Strange!  The failure of the second largest mortgage lender in the U.S. received no press from all the journalists who were so vigilant on other companies that were heavily shorted...Eavis, Greenberg, Bethany Mclean, Joe Nocera, Fabrice Taylor...you name them, they didn't write a story!  Cheers!



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What an eye opener!  I must confess I have been slow to get onboard the evil shortsellers conspiracy bandwagon, but now I'm convinced.  Imagine, all these long/short geniuses have ties going back to Michael Milken and a number to Madoff!  This article explains the background for one of the most astonishing occurrances:  when Tilson put a pickled lawyer from Millberg Weis on stage to talk about how they trash companies with class action lawsuits.  Now it all makes sense.

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Reading between the line it certainly looks like a group blew up New Century on purpose and it is likely they have been active in buying the pieces from the wreckage at cents on the dollar. It is sad how enuff dough washes away all sins in the publics eye, Joe Kennedy was a boot-legger and a stock manipulator yet he became Ambassador to Britain and first chairman of the SEC. In Canada we have the example of the Bronfmans who were active bootleggers yet the second generation became the penultimate members of the CDN. establishment. Millken I believe has a lifetime ban from acting as a director of public co''s yet he appears to find others who will do his bidding. Reading some of the stuff on Deep Capture is like reading a book review of "How to destroy the capitalist system for fun and profit"

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Sorry, but there is a bit of revisionist history in there about NEW century going down.  Maybe Einhorn was involved, but the shock that took them down was a raft of early payment defaults which lead to them being forced to buyback their mortgages that were sold with money they of course didn't have.


It wasn't an accounting restatement.


I've long thought that Einhorn used NEW for some nefarious thing though... his position and silence after the fact don't gel with me... but maybe he's just afraid of getting sued...



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