The Contrarian Banker Who Avoided Bad Loans... And Is Now Buying Up The Scraps

from the no-gov't-money-needed dept

While we've wondered why those who made such bad bets on Wall Street are getting bailed out and even relied upon to save the economy, Forbes has found one of the guys who knew better: Andy Beal. A banker in Texas who basically stopped taking on any new loans for years as he thought things were going out of control. In fact, he barely worked at all -- stopping by just a few hours a day, playing board games with his staff, and even laying off about half of his employees. He did this while waiting for the market to collapse, knowing that things were way out of control. In return, he got investigated by regulators, who couldn't understand why he wasn't joining in the fun.

Of course, now that things have collapsed, he's buying up distressed assets for pennies on the dollar, and wants to buy more, planning to become a huge bank. Oh, and all that government money that's supposed to help those private companies who are buying up these assets? He doesn't qualify for most of it (no more than a token amount that's not even worth taking). Instead, it's really designed for the folks who screwed things up in the first place. This guy -- who actually saw what was going on, and prepared for it, now has to compete against those who screwed up and are being handed billions by the government.

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  1. identicon
    mike, 7 Apr 2009 @ 11:46am


    congress is stupid, but our republic is working as designed. our elected representatives are economically ignorant because the constituents that elected them are economically ignorant. votes are just bought with promises and populism. they always were but now the overwhelming majority is now that americans are so ignorant. they don't understand how a world economy functions, they don't save for a rainy day because the last time it rained was so long ago, or for anyone 30 and under they have simply never seen one.

    the inflation is coming, the government will not let deflation happen and will replace personal spending with government spending. also as the world moves away from the dollar standard there will be much less of an appetite for our debt. dollars abroad will be cycled into our economy for our goods, all the dollars we were hoping would stay untouched back in a dark area of other central banks. the chickens will soon be coming home to roost.

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