The Shocking Collapse of America’s Auto Parts Giant
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Collapse of an auto parts giant first brands, shocking bankruptcy. Then again, a few several weeks ago, we reported on Tri-Color and that bankruptcy auto subprime auto lender. I’m gonna tell everybody something that’s kept me, kept my clients out of trouble, kept us out of trouble. And here’s one to grow on.
A lot of lot of real they call themselves real smart people on Wall Street. yes. Look at the degrees on the walls and look at where they went to graduate school and all this crap. And they come up with all sorts of funky ways of financing things. They’re financial engineers. You see? Yeah, I guess maybe I’m you know, they try to explain stuff. I’ve been in these
meetings, know, various different things over the years. Not anymore. I don’t go to him anymore. I laugh at the stuff. There’s a scene. There’s a scene in a movie big with Tom Hanks and Tom Hanks is a caddy. He’s a little boy in an adult body, but he ends up becoming an executive. If you haven’t seen the movie in a toy company. And again, one of the wizards of smart, one of the wizards of smart, one of the
The top executives there are ones with the with the fancy degrees on the walls, you know, real smart ones there is basically pitching a toy, pitching a new toy that the toy company is going to put out to all the other really smart executives in the room. And Tom Hanks, his character and boy in an adult body, raises his hand. I don’t get it. I don’t get it.
thought the toy that they were pitching was stupid. How is it fun? Basically went off. I don’t get it has served me well. Served me well, served my clients well, served my family well. If I don’t understand it, if it doesn’t make any sense to me, I’m staying a flip away from it. That’s for darn sure.
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I look at the financing behind this.
Auto parts giant this first brands. Two billion dollars just went missing. How does that happen? I don’t know. It did. It’s almost like that South Park skit during the Great Recession. And it’s gone. Two billion dollars gone missing. And you got all these various different stories how this is.
gonna pan out. And then again, you got others that are blowing it out of proportion thinking, oh, this is a Lehman Brothers moment. Now Lehman Brothers had $200 billion in debt. First Brands got a levered, over levered auto parts company. They got $6 billion in debt. And yeah, there’s probably fraud involved with this, but it’s Wall Street when is there not fraud involved with something.
Shouldn’t surprise you take a look read some of the stories look at how these things are structured look at how Wall Street puts us together again, this is again all these these real smart super smart people all smart schools working at UBS and Jeffries You couldn’t see this I took a look at this and I said you got to be kidding me I’m gonna say my I mean I’m trying to think I mean
I want to go ahead and borrow a couple billion dollars and see what I can do with it. I mean, are you kidding me? Giving away cash on Wall Street. I don’t understand. I don’t understand if it’s a… I don’t understand how they do… It’s how they account for things, how they put these things on their books. And this is part of the problem. It’s part of problem with how a lot of corporate America is run, how publicly traded…
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companies are run and based upon next quarter’s earnings. And we got to beat that. And we’ve got to how we go about accounting for certain things on our books to make our numbers look better than they actually are. It’s some, they’re gimmicks, quite frankly. You want to find something interesting about this too. BDO, you hear the commercials, oh, yeah, we got BDO. Well, we’re gonna call BDO, accounting consulting firm, BDO. We’re gonna talk about a conflict of interest here. BDO.
was first brands, was their auditor. Right at this point in time, okay, if you’re utilizing BDO after learning this and you still want to use them, well, you know, there’s something wrong with your medulla oblong god. I just got to say that. Anyway, their first brands auditor, okay? Issue, $2 billion went missing, yet BDO issues a clean,
bill of health.
Huh. But what’s interesting was is that, okay, you want to talk about crooked shit? Okay. Apollo, private equity company, Apollo, Apollo Global, profited by, remember those credit default swaps? Remember credit default swaps? That’s just how certain investment firms made money selling after selling crappy products to their clients.
then they would buy credit default swaps on the products that they sold knowing that they were going to collapse. Well, Apollo did that very thing, shorting, synthetically shorting first brands loans. you want the crooked thing is, is that it just so happens that BDO’s largest lender
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is Apollo.
Yeah, again, like I said, I report on this stuff. I have to talk about this stuff here in the program. And yes, I feel like I have to take a couple showers, extra showers a day dealing with all of these dirt bags. But again, this is the reality of the terrain. Watchdogonwellstreet.com.
