A few weeks ago, we had a little chat about James Glover, the RBSGC managing director who, being pretty ticked about the subpar compensation situation for the past few years, decided to help himself to a bonus (he did so by having junior employees submit wires that would normally go to a counterparty to pay for trades, and then approving them to, instead, go to his personal account). Unfortunately, G-Love's genius plan, which went on for months, was found by the damn chippies running the place and their infernal "internal controls." They escorted him out of the building and turned the matter over to "law enforcement." A lot of people back at the ranch were pretty miffed about what happened, especially on the legacy Greenwich Capital side (where The Glove worked for many years), because they apparently felt like it gave the RBS people ammo to throw it back in their faces, and somehow hurt the argument that "GC employees are better than everyone else" at the palace on I-95. But they may have been judging too harshly! It turns out Jimbo had a really good reason for "stealing" the money (if you want to put that sheen on it). Beyond the fact that he was miffed about the bank taking away cash bonuses last year, Glover had just built a nine-bedroom, five-bath ski house in Windham, NY (we'd previously been told it was Vermont), which he couldn't *exactly* really afford (but if one of you can, it's now on the market for $1.1 million). The other reason G-Love made it rain without permission was that he had a dream. A dream to build ski houses for everyone. Greenwich Time reports:
Many also knew about [Glover's] dream to build beautiful luxury mountain homes in his favorite ski town, Windham, N.Y. Glover has a second home he shares with his sister, Janet Glover, in Windham. But just three weeks ago, after his separation from RBS, he put the home up for sale. A Windham neighbor told Greenwich Time they were surprised he was going to sell the house considering he just finished an addition. The nine-bedroom, five-bath ski house is appraised for around $800k and listed at $1.1 million. Glover’s neighbor and local Realtor, Carol Shaw, told Greenwich Time she thinks he’s priced it to sell right away. You see, in June 2008 Glover took out a very large building loan and security agreement against the house and another piece of land in Windham from Port Chester-based USA Bank. Building loans are typically due in 18 months to two years and the pressure to pay this one off was mounting. If not paid off on time, the Glovers could risk losing their home and other Windham real estate investment. Glover had partnered up with Thomas Poelker, a builder in the upstate New York resort community, to develop a luxury subdivision near the Windham ski resort. According to people familiar with the transaction they bought the undeveloped 75 acres of land for around $1 million a few years ago. It was subdivided into 9 lots, a road was built into the area, and one 10,000 square foot spec house is under construction.
One lending financier who spoke on the condition of anonymity because the deal is private, told Greenwich Time that Glover came to him a few months ago and said he was really worried about the balloon payment coming due on the $3.6 million dollar loan he took about against the second home in Windham to help finance the luxury development. While he was still employed with RBS, the financier told him he would have to try to do a workout with the bank, and that refinancing wasn’t likely. The unfinished spec house has been for sale for a year for $5.9 million. According to a local Realtor, no spec-built luxury home has ever been sold in the area for more than $2 million. Many locals question if this level of luxury second home living will find a willing buyer in this economy. USA Bank would not comment on whether it will foreclose or do a workout if Glover can’t make his loan payment. When we reached Janet Glover, James’s sister who co-signed on the loan, she would not comment on how they plan to make the payments.