March 3, 23 2009 – New York, NY – Charles Gradante, Co - Founder of Hennessee Group LLC, interviews with Suzie Gharib on PBS Nightly Business Report.
Noteworthy highlights from this particular interview include comments about the stabilization of the financial crisis in the wake of the 2008 credit crisis. In the March 2009 time frame the Department of Treasury implemented a program to sell risky bank loans to private investors. Gradante stated that the intent of the treasury plan was to get bad loans off of the books of the banks and to stimulate bank lending, all in an effort to create a "win-win"for banks, private investors, and taxpayers.
Bank stocks rallied over 20% on the news of the Treasury Reserve Plan. Gradante also states that the banks could recover most, if not all of their write down on these loans since the banks are sharing in the profits which can be as much as 18% annualized.
Gradante also points out that hedge funds and other private investors ae not getting a risk free deal. The loans are non-recourse loans so a hedge fund stands to lose all of its investment if the loan goes into bankruptcy.