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You -- -- today in the Wall Street Journal but a letter to today's journal from Wilbur Ross the billionaire investor and chairman C -- WL Ross and company.
-- if he spoke out about the Obama administration's role in the General Motors bankruptcy sticking up for the administration he wrote.
Complaints about government favoring the GM voluntary employees' beneficiary association that's -- these -- unions.
Over unsecured bondholders has lots of emotion.
But no substance.
I have restructured hundreds of billions of dollars of insolvent companies he goes on to say in my case no one -- because I was a private investor.
With only a profit motive but that is no reason to question a similar decision by the Obama administration.
Why does he take this opinion right now well in a Fox Business exclusive Wilbur Ross joining me on the phone right now will -- -- there good to hear from him.
-- you -- very well up before we get to that actually I've got to get a comment from you about the news of the day of course.
Assured Guaranty that is stop that -- actually invested in certainly and you're a big investor.
It's moving today it's moving higher on news that it's doing well enough that it won't need your -- to make an acquisition can you comment on that a little bit what's going on there.
You know we put quite a bit of money into it about a year and a quarter ago.
And when the F does say acquisition came up.
They needed a back stop for 360.
What they have the veteran back in that we didn't care.
But I agreed to provide -- to them but the maximum price is so great men have dollars per share.
Yes they're very very -- to do and underwriting and but they upside is that quite a bit.
From that I'm a -- but they brought without it no weapon.
And my impression is that trading even higher right now.
-- in fact let me just quickly check I think we showed it on the screen a minute ago but eight GO is trading at about it's up a good -- of percentage here so it's a three and a quarter percent at 1145.
At the moment okay let's get to your letter to the editors over the Wall Street Journal where.
-- stick up for the Obama administration and it's so interesting because it's a refreshing position I think for some people who.
Have -- a lot to the bondholders who were very upset understandably but he's saying not understandably.
But that bankruptcy is is very Darwinian in the way it plays out for people who were involved can you explain your your thought on that you -- And then that -- have the ability to motors' bondholders were unsecured creditors.
And there's certainly correct that the people.
And the other claims also -- perfectly -- people -- have been.
But I was trying to be grateful that we've only podium.
And it's -- There and conviction for him in the bankruptcy.
And and to provide -- your organization's.
Finances when it came out -- of government.
But the bug problem but I actually have -- -- just.
How -- they get themselves out of this problem.
And let them are really believe the only way they could do it would be band together and come up put -- -- care.
So that -- and state General Motors didn't -- the government financing.
The and criminal defense and then they could call -- shot.
But the idea of that come somebody who has book and -- up on him as the government because.
The big bondholders although Israelis.
Those look a little like the plan -- an affair where I am.
And it's better just liquidate.
But it didn't have a real alternative -- Then bankrupted our.
-- otherwise ridiculous so that was Darwinian is -- it makes you of the fittest of the mall.
And the only guy who really brought a new cash to those are the -- pick up.
What's the government -- you're not worried -- that -- set some type of bad precedent for future bankruptcies.
Well I wouldn't -- more victims says my good prep and there's not that have government involved at all.
The difficulty here was that the amounts of money you are so enormous.
And then you risk so.
No no private sector people were willing to put the money you have not the business realities of the tell I don't the president didn't send.
I think is much better for private practice just to function on the -- Here they didn't appear to be an alternative.
Let's talk about the administration's regulatory proposals that have just come out how would that if at all affect you when do you applauded do you support -- do you think that it needs tweaking or you completely against it.
I get all of the above but none of -- how.
Bit of its -- sort fairly broad brush it Beckley well will be the oversight I was the new committee.
Exactly where do you draw up a lot in between deserve the -- committee and all that so it was all -- -- the Google is very often.
In the details here.
But but I think are good.
-- -- that the idea make it but -- -- newspaper.
As some skin in the game it was a very good.
Good okay and I have to ask you to because you know the US government.
Going to mortgages right now it was encouraging a lot of lenders to rework troubled loans.
You of course have the American Home Mortgage service which was reworking a lot of loans and I was.
-- -- to bite your recidivism rate that is the rate at which of reworked loan.
What is your rates so -- what are you doing right you've got a rate of below 20% meaning.
And loans that had been reworked by you guys have failed at a much lower rate because I think the national average is something more like fifty to 60% where the second time around it fails again.
What are you going right.
But it definitely could but -- will be -- and there are a couple.
But it prepares to make sure if that didn't but come on let the ball over the -- I don't know.
It depend not like a -- And the state of mind as much as -- -- and -- but you know but we're gonna really just as children through mentality.
That doesn't matter how you -- Could the American be -- But we try to distort the because it is expensive.
And very in this session for everybody.
To modify a moment goes by very very quickly.
We've we've lived here mother 56000.
And even though our portfolio.
And it was -- about during the year we look -- -- -- a book about our.
Okay good -- you -- -- so we better go I know you know you couldn't make it on the flight that's why we didn't have you in person but Wilbur Ross joining us on the phone at WL Ross and company thanks -- good day.
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