Andy Beal’s bank. did not make any loans between 2004-2008. Now he’s scooping up assets at firesale prices. The difference between Andy Beal, and other banks or hedge funds playing the distressed asset game, is that he’s the 100% shareholder in Beal Bank. Beal plans to expand his asset base to $30 billion over the next few years.
Forbes has a great article, which you should read when you have 15 minutes to spare.
In a nutshell, Andy Beal thinks banks are screwed:
“Banks are on a prayer mission that somehow prices will come back and they won’t have to face reality,” Beal says. And that reality, according to Beal, is going to get a lot worse. “Unemployment is going over 10%, commercial real estate hasn’t even begun collapsing and corporate credit defaults are just getting started,” he says. His prediction: depression, without bread lines this time, thanks to the government safety net, but with equal cost to society.