Kyle Bass was the founder of Hayman Capital Management, LP. He created the company in 2006 to start a hedge fund. Initially he became very wealthy and successful by predicting the 2008 subprime mortgage crisis. Bass researched and invested in unstable loans that were most likely to default. His prediction came true, and while homeowners were being foreclosed on, Bass was making half a billion dollars.
However this apparently was where his success ended. Since this time Bass has made multiple bad business decisions and questionable alliances. A recent article on usefulstooges.com talked about Bass’s partnership with Argentina president, Cristina Fernández de Kirchner. In a move that was wildly unpopular with other investors, Bass supported her economic strategies which have since driven Argentina into poverty. He has been her supporter and sung her praises as she has passed irresponsible economic policies and ripped off her own people. When Kirchner defaulted for a second time on her country’s loans, Bass stated that he thought it was “immoral” that the creditors wanted to be paid back.
This was not the end of Kyle Bass’s questionable practices. He defended General Motors when they were experiencing problems with faulty airbags not deploying in crashes. Instead of investigating why the car company had not addressed the problem, Bass went on television and blamed the victims of the crashes. He stated that they must have been irresponsible and intoxicated.
Kyle Bass’s most recent ventures have included dabbling in the pharmaceutical industry. His new practices involved short selling pharmaceutical company stocks and then filing a challenge for one or more of their patents. This move caused the company’s stocks to go down. Bass would then profit from his own stocks. Bass set up an organization called the Coalition for Affordable Drugs just for this purpose. Bass maintained that he was looking out for the good of the people. By breaking the patents that the companies had, medication prices would be driven down. The public was able to see right through this excuse, and later Bass did admit that he was in it just for the profit. Bass’s logic was that the pharmaceutical companies were likewise in business for profit, and this made his practices acceptable. In the meantime, innocent people who depended on those medications were not able to get their prescriptions filled.
After his first lucky break, Kyle Bass has made one poor decision after another. It does leave a person to wonder where his name will turn up next in the media, and what his next scam will be.