Late last week, it was reported that in Phil Falcone had loaned himself $113 million from one of Harbinger Capital's funds, where redemptions had been suspended, in order to pay personal taxes. The hedge fund manager said he checked with his lawyers before borrowing the money but investors still were fairly miffed anyway. Goldman Sachs pulled its entire investment, as did Blackstone, and one client informed Reuters, "You can't treat the fund like a personal piggy bank to pay taxes. I don't know that there is really anything illegal about it, but it is certainly disgustingly immoral and shows a complete lack of fiduciary care."
Which is why the sensitive ones in the bunch should be thrilled to hear that the next time Falcone needed a little money, he simply went to the bank and asked for some coin to tide himself over, rather than taking it out of their pockets and risking another lecture from mom and dad about "right" and "wrong."
Earlier this month, Falcone and his wife posted some of their "fine art" as collateral for a secured five-year loan from Bank of America, public records show. The so-called security agreement between Bank of America and the Falcones was filed with the New York Secretary of State's office on Nov. 4.
It's unclear how much Lisa and Phil borrowed, what the terms were, and what they needed the money for, though naturally it could be anything from renovations to their townhouse (where Lisa's closet is slated to include a wine bar), outfits, snacks for Wilbur, the family's piano playing pig (who doesn't perform unless his dressing room is stocked with Dom and truffles), or a down payment on Little People for this year's investor dinner, in which case some ungrateful pricks are gonna feel pretty bad pretty soon for not realizing PF was using the money to plan a surprised for them.**
Falcone Applies For Another Loan [Reuters]
**Also unclear: how much more money Falcone is going to need in the future and since he apparently can't take it from investors again-- hilarious as that would be-- it falls to us. I'll set up a PayPal account later today and let everyone know when it's open for donations.