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Local Man Gets Bargain Of A Lifetime On Neighbor’s House

It may not be Palm Beach, but one Richard Baker still seems to have gotten a pretty sweet deal on the 18,000-square-foot, two-elevator, two-pool, seven-garage dream house of somebody else.

Richard M. Fuscone, a retired bond executive from Merrill Lynch, conceived of it as a career-topping home. Indeed, an insurance company recently valued it at $32 million. But it ended up in the hands of his neighbor, Richard A. Baker, the chief executive of the firm that owns Lord & Taylor and Saks, who snapped it up for $8 million after Mr. Fuscone had to declare bankruptcy in 2010….

Court filings show that Mr. Fuscone asked the judge in 2010 for more time to sell his home for the $15 million he thought it was worth. Russian billionaires and Middle Eastern investors, he said, could well come up with an offer soon. But he needed time — and more money.

“It has become a dire situation,” Mr. Fuscone said in a plea to the court to borrow $500,000 to meet his expenses. “The only source of liquidity is whatever my wife is able to sell in terms of personal furnishings.”

But when no buyers surfaced, Mr. Fuscone and the bank worked out an agreement whereby the house was sold to a hedge fund, which, several months later, sold it to Mr. Baker for $8 million.

The Tale of the $8 Million ‘Bargain’ House in Greenwich [DealBook]
Why Palm Beach, Florida Is The ‘New Greenwich’ For Wall Streeters [BI]

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10 Responses to “Local Man Gets Bargain Of A Lifetime On Neighbor’s House”

  1. Curious Texan says:

    Seems Rick has surfaced at Berkshire Capital. Anyone know anything about these guys?

    • M. Forbes says:

      Ya, they're an outfit that looks to use the name recognition of berskshire hathaway amongst still inexperienced business people to affect the imprimatur of Warren Buffet in the hopes of gaining some low level businbess deals.

  2. Guest says:

    maybe if he'd taken and passed CFA Level 1 he could have avoided this situation. Just sayin'

    – guy with absolutely no life

  3. Guest says:

    The smart guy, after making that kind of money in freaking debt capital markets of all things, would realize the extraordinary run of good luck he'd had, diversify his savings, hedge the concentrated stock, and try not to do anything stupid.

    • Quant me maybe... says:

      The smart guy, after making that kind of money in freaking debt capital markets of all things, would realize the extraordinary run of good luck he'd had….

      HAHAHAHAHAHAHA….

      I'm sure he didn't see it as luck. It was skill! His awesomeness.

      > Guy who doesn't know why anyone would want a house that big. Imagine all the shit your wife would have to buy to fill that thing.

  4. zbtalum says:

    I dodged that one. I will have Alex make some pasta with anchovies for the poor guy.

  5. PippyLongSausage says:

    Dear Guest,
    http://cdn.niketalk.com/8/85/857bb21c_stop-postin

    Sincerely,
    Everyone

  6. Bill Nye says:

    You definitely exhibit the retard gene though.

    -UBS Gene Quant