Short sellers often get a bad rap. After all, these investors seek to make money by identifying stocks that are going lower. That's un-American (sarcasm dripping)!
Well Bill Ackman can hardly be called greedy. He's donating the millions he made shorting MBIA Inc. (NYSE: MBIA) and Ambac Financial Group, Inc. (NYSE: ABK) to charity. Ackman has said that could amount to $400-500 million.
According to Marketwatch, "Ackman isn't the first hedge fund manager to donate subprime-related winnings. Paulson & Co., a $28 billion hedge fund firm that's generated huge returns from the mortgage crisis, is giving $15 million to a new non-profit group that will provide legal help to subprime homeowners facing foreclosure."
It wasn't so long ago that anyone who criticized the valuations being applied to subprime lenders found themselves on the receiving end of vicious criticism. Our own Peter Cohan, a brilliant mind and all-around great guy, had his ethics questioned in comments left on this site, and Herb Greenberg and others were accused of being in the pockets of "naked short sellers".
Hopefully all the short bashers will come rushing to apologize for all the insults they heaped on these investors, some of whom are donating their well-deserved riches to charity.
Ackman donates short-selling profits to charity
Posted Nov 30th 2007 5:30PM by Zac Bissonnette
Filed under: Short stories
Twitter finally reveals revenue ambition, wants to be Google -- but not yet
Google says: Chrome for Christmas
Why is gold marching higher? Ask the central bankers
Reader Comments (Page 1 of 1)
11-30-2007 @ 6:02PM
Callenby said...
Wow a merchant with consciousness! It's really remarkable if this guy is genuinely donating all that money to charity. I salute him for it. Having close friends who had their dreams and investments shuttered and hopelessly rendered homeless by the fraudulent and conniving banks in cohorts with the brokers through the exotic subprime loans, I feel rejuvenated to hear this wonderful news. God does work miracles. Unless this guy was compelled by other forces like the tycoon in "fun with Dick & Jane" leaving him with no option but to dish out the money!!
If the Government can follow suite and bail out the victims of this scam by forcing the banks to eat their own cooking, then perhaps we could reverse the down trajectory the market is currently following.
The alternative is the worst recession in history:
http://www.usstockmarketcrash.info