Real Estate Execs Who Helped Inflate Bubble Now Profit From Its Burst
Dana Rubinstein Oct. 6, 2010, 1:18 p.m.
Whoever coined the phrase “what goes around comes around” clearly didn’t know anything about commercial real estate.
In yet another example of life’s little injustices, two former Deutsche Bank executives who made fortunes lubricating the real estate juggernaut have just landed plum gigs at LNR Property.
The Journal‘s Lingling Wei reports:
Justin Kennedy, ex-head trader of real-estate securities at Deutsche Bank, and Toby Cobb, former co-head of the bank’s U.S. commercial-property lending business, are joining LNR after the firm recapitalized its balance sheet this summer by issuing $417 million in new equity to a group including Vornado Realty Trust, iStar Financial Inc., Cerberus Capital Management LP and Oaktree Capital Management LP.
…The moves by Messrs. Kennedy and Cobb are the latest example of big-name investment bankers and traders who helped finance the commercial real-estate boom moving into new jobs in which they are hoping to make money off the industry’s distress. Jon Vaccaro, who built Deutsche Bank’s commercial-real-estate lending business over the past decade recently has joined Lewis Ranieri, the pioneer of the home-mortgage-bond market, to form a new venture aimed at advising lenders and property owners on working out maturing commercial property debt.
Read the whole rather depressing article here.