Aug. 21, 2014

This Week's SFR Picks

Newsletters

Choose your newsletter(s):
* indicates required

SFR Events

Special Issues

 

 

Thornburg Exec Told KSFR Of Plans For Bank; Didn't Mention Plans To Divert Creditors' Cash (Updated)

September 17, 2009, 12:00 am
By Corey Pein
Recently forced-out Thornburg Mortgage CEO Larry Goldstone told KSFR of his plans to start a bank back in March, before the company went bankrupt. Listen to the segment at their site.

The interview, which KSFR's Bill Dupuy has dredged from the archives, raises some interesting questions.

First: If Goldstone had already announced his intentions on the radio, why was Thornburg Mortgage's then-spokeswoman so cagey when SFR reported on the new company's existence later in the summer? One likely explanation: Because, as the Justice Department has charged, the new company's employees were being paid with money that belonged to the bankrupt company's creditors.

The Journal North managed to raise Goldstone on the phone for their front-page story today, but he didn't say much. Over at the Santa Fe Review, George Johnson uses personal experience to explain the nut of this story: "the $8,000 I invested in the company is now down to $6, while Mr. Goldstone is still receiving $188,000 a month from the bankrupt company."

And from the paper whose business writer quoted the company's founder in 1995, "Thornburg makes a compelling argument that a crisis large enough to shake the mutual fund industry to its core is not very likely"; the paper that editorialized in 2004, "The community should be glad [Thornburg] didn't grow weary of NIMBYism and forsake Santa Fe for Santa Barbara or some other la-di-dah address"; and the paper that declared Thornburg Mortgage "back in the game" just before it went bust?

Crickets.

Updated Sept. 18, 7 am: There we go. How does Bob Quick spell FU? "Their resignations...first reported by Reuters."

 

comments powered by Disqus
 
Close
Close
Close