This puts a smile on the face today. It's the German government sticking it to private equity firm J.C. Flowers. For the most part we applaud American finance and ingenuity and take a special pride in our ability to get deals done.
What we don't like is when these firms attempt to steamroll corporations (or governments) into action for self serving purposes or to cover their own bad judgment. If you don't like a company, then pull your money out. If you don't like their fundamental business, pull your money out. If you want them to pay a special dividend for no reason at all except for you to soak up their surplus cash, then pull you money out. And if you made an investment, and it goes sour, take your lumps and don't try to rook the taxpayer, even if German and not the home team.
Here we have J.C. Flowers attempting to have the German government lend them a helping hand with their 1.5 billion investment in failing German firm Hypo Real Estate. While other investors are willing to take a stub of money as compensation for shares, Mr. Flowers himself is holding tight, and threatening lawsuits.
Yes I am sure the Germans will get right on that, bending down to smell the dandelion flowers before pulling them from the lawn.
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