Kyle Bass, hedge-fund manager and founder of Hayman Capital Management, rose quickly to prominence and wealth for predicting in 2006, the 2008 subprime mortgage disaster. As a result, he gained for himself, a reputation for being a financial genius. That was one incident of short-lived glory. The subprime mortgage catastrophe was Bass’s fifteen minutes of fame, but it seems he refuses to fade quietly into the background and go back to his once unexceptional life. Instead, he is trying to remain in the spotlight and maintain his wealth, by using unethical business practices, having questionable political and business affiliations, and resorting to extortion.
Useful Stooges originally brought up that Bass has a political affiliation with controversial Argentinian President Cristina Fernández de Kirchner, who is responsible for driving her country’s once thriving economy into the ground. He constantly flaunts his association with her and defends Kirchner’s incompetent economic policies, ignoring the blatant fact that she and her corrupt political associates have basically stolen from their own people. Kirchner and her political associates are responsible for causing poverty levels to skyrocket in a nation that was once wealthy and prosperous. Bass is suspected of being one of Kirchner’s corrupt associates.
As in an investor in General Motors, Bass has also proclaimed on national TV that GM wasn’t to blame for the fatalities caused by airbags failing to deploy and defective power steering in GM cars. These were problems that GM had knowledge of, but did nothing about, but instead, placed blame on the dead victims themselves, accusing them of either being drunk while driving or failing to wear seatbelts.
Bass is also culpable of collusion with Erich Spangenberg, in which they target certain pharmaceutical companies. Their objective is to short-sell pharmaceutical companies’ stocks, by disputing the companies’ drug patents through a deceptive organization, called the Coalition for Affordable Drugs, that Bass had specifically set up for this purpose. Their collusion practices caused targeted companies’ stocks to plummet. Bass would buy the pharmaceutical companies’ stocks at a significantly lowered price (so he can sell the stocks high in the future), which would cause the companies’ pharmaceutical prices to go up, and at the same time, their ability to fund medical research goes down. As a result, millions of people who depend on those pharmaceutical medications to improve their health and quality of life, suffer. In response to Bass’s unfounded patent challenges, Celgene, the pharmaceutical company that was his largest target, filed charges against Bass for extortion, to which he admitted he was motivated by profit, but then he justified his actions by claiming that pharmaceutical companies are also powered by financial self-interest, just as he is. The government agency, Patent Trial and Appeals Board (PTAB), is considering a heavy penalty for Bass for manipulating the system for his own financial gain using his patent challenges. Celgene did charge both, Bass and Spangenberg, with extortion, because Spangenberg had sent Celgene copies of patent-challenging petitions, threatening the company that he’d file them unless they compensate him financially.
Recently, Capitol Hill had proposed a bill that was motivated by Bass’s extortionist activities and it has easily cleared both the House and Senate Judiciary Committees. Legislators hope that a law will be passed quickly, that will curtail Bass’s money making strategy. Also, the Patent Trial and Appeal Board denied Bass’s first two patent challenges.