In October, Bloomberg’s Stephanie Ruhle, Mary Childs, and Julie Miecamp reported that private equity firm Blackstone
structured a strange financial manoeuvreto pay a company to force it to miss a debt payment, thereby
triggering a credit default swapto the tune of $US15.6 million.
One way to describe this is is, dang, that’s brilliant (and legal). Jon Stewart, famed financial sceptic, had a different take on the Daily Show last night.
“Now I’m sure you’re asking yourself, ‘Hey, I think I saw something like that in Goodfellas, when they get insurance on a restaurant and then deliberately blow the restaurant up,” Stewart says. “But in Goodfellas, it was illegal. In the financial world, it’s above board.”
Later in the segment, correspondent Samantha Bee interviews a reporter at the New York Times, skewering the paper for failing to cover the story. She also meets with members of the BuzzFeed business team to spice up an otherwise dry CDS story with some Nicolas Cage GIFs.
The whole segment is worth a watch.