What’s a investment bank not to like?: 1) aggressively and unsustainably pursue subprime mortgages; 2) bail out of the subprime mortgage market before it collapses; 3) watch economy slide over a cliff as housing market collapses; 4) watch foreclosures rise, precipitously; 5) buy foreclosed home at fire-sale prices; 6) form publicly-traded companies holding large portfolio of foreclosed-now-rental homes; 5) make more money off the destruction one creates. And with the launch of an IPO, some investment bank has to represent it, eh?
The post discusses Silver Lake, but the scent of Goldman Sachs is behind it and the Fundamental REO Access fund. There are also murky links to Goldman’s foreclosure machine, its subsidiary MTGLQ Investors, LP, and the connection between MTGLO and Power Receivable Finance, LP. If anyone can shed light on the connections between Goldman’s foreclosure activities and its backing of the rental housing market, feel free to add to the discussion.
Update 1.8.2012: More secret Goldman operations emerge: Special Situations Group (SSG) and Multi-Strategy Investing (MSI).