FCC Pulls Plug On Falcone Venture
LightSquared, Philip Falcone’s visionary wireless network, and personal money-pit, is done.
The Federal Communications Commission, late Tuesday night, parroted the U.S. Commerce Department’s conclusion that the national wireless communications scheme would interfere with existing Global Positioning System devices.
Though LightSquared “profoundly disagrees” with the FCC’s conclusion because it “jeopardizes private enterprise, jobs and investment in America’s future,” chances are America will be just fine. Falcone’s Harbinger Capital, though, has taken some hits. The firm’s biggest fund lost 47% of the value on investments in LightSquared last year.
The fund has contributed $2.9 billion of its roughly $9 billion purse to the venture.
Goldman Embroiled In Insider-Trading Scandal, Again
As if Goldman Sachs didn’t have enough on its plate trying to beat back the Volcker Rule, today one of the firm’s Hong Kong-based technology analysts is under investigation for leaking insider information to hedge funds.
Henry King, who took a leave of absence after a trip to the U.S. last month, had been co-head of Asia Technology Research. Another Goldman denizen, Rajat Gupta--a former director at the firm--was embroiled in the same scandal.
Gupta’s trial, according to The Wall Street Journal, is set for April. His lawyer calls the charges “totally baseless.”
Paulson Lobbies For Hartford Spin Out
John Paulson’s fund has been hemorrhaging money faster than a sailor at Fleet Week but that doesn’t mean he can’t tell asset managers how to run their business.
Paulson’s sent a proposal to Hartford Financial Services Group’s shareholders and CEO making the case for selling spinning off its property and casualty insurance arm. His firm, Paulson & Co., has an 8.4% stake in Hartford Financial.
The value of Hartford’s stock increased by almost 6%, suggesting either investors remain enthralled by Paulson despite his funds’ recent issues or he’s on to something. Either way, Hartford put on the kid gloves to deliver a polite smackdown.
“While there are challenges to successfully executing a separation,” the firm noted in a written statement, we welcome Paulson’s views and look forward to a continued dialogue with him and other shareholders.”