Thornburg Exec Told KSFR Of Plans For Bank; Didn’t Mention Plans To Divert Creditors’ Cash (Updated)
Recently forced-out Thornburg Mortgage CEO Larry Goldstone told KSFR of his plans to start a bank back in March, before the company went bankrupt. Listen to the segment at their site.
The interview, which KSFR’s Bill Dupuy has dredged from the archives, raises some interesting questions.
First: If Goldstone had already announced his intentions on the radio, why was Thornburg Mortgage’s then-spokeswoman so cagey when SFR reported on the new company’s existence later in the summer? One likely explanation: Because, as the Justice Department has charged, the new company’s employees were being paid with money that belonged to the bankrupt company’s creditors.
The Journal North managed to raise Goldstone on the phone for their front-page story today, but he didn’t say much. Over at the Santa Fe Review, George Johnson uses personal experience to explain the nut of this story: “the $8,000 I invested in the company is now down to $6, while Mr. Goldstone is still receiving $188,000 a month from the bankrupt company.”
And from the paper whose business writer quoted the company’s founder in 1995, “Thornburg makes a compelling argument that a crisis large enough to shake the mutual fund industry to its core is not very likely”; the paper that editorialized in 2004, “The community should be glad [Thornburg] didn’t grow weary of NIMBYism and forsake Santa Fe for Santa Barbara or some other la-di-dah address”; and the paper that declared Thornburg Mortgage “back in the game” just before it went bust?
Crickets.
Updated Sept. 18, 7 am: There we go. How does Bob Quick spell FU? “Their resignations…first reported by Reuters.”
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September 18th, 2009 at 8:29 am
Hey Cory, if you knew in 1995 or 2004 (or whenever you saw the future) this would happen, why didn’t you warn people? Or is that why you’re so scowly — because your mastery of hindsight didn’t quite let you see this was coming? You’d be really good if you weren’t so distracted and pissy.
September 18th, 2009 at 8:33 am
Hey Cory, if you saw the future in 1995, 2004 (or whenever you knew this was coming), why didn’t you warn people? Or are you so scowly because you’tr mastery of hindsight didn’t quite let you see the future? You’d be great if you weren’t so pissy.
September 18th, 2009 at 8:41 am
It’s a little obtuse to pretend the New Mexican isn’t part of the Thornburg story, Rich. Please go back and find me some examples of their critical reporting on the company. The totality of coverage was and remains PR. I’ll bet people who lost money because they believed what they read in their local newspaper over the years are more scowly and pissy than me.
October 11th, 2009 at 9:41 am
Corey may want to keep following the story. Below is a link that provides detail on the executive resignations. See docket 433.
http://chap11.epiqsystems.com/docket/docketlist.aspx?pk=568d7f13-b348-425d-8a36-2200086ed550