Why Kyle Bass’ Attendance Of The 2016 New Establishment Summit Is Controversial

The 2016 New Establishment Summit will be held on October 19th and 20th in San Francisco, California. There are a bevy of high-profile speakers that will be featured at this year’s event. The CEO of Amazon.com is set to attend, as is the Vice President of Apple. But perhaps the most controversial attendee of the event will be a man by the name of Kyle Bass.

In 2008, before the September financial crisis, Kyle Bass worked for Bear-Stearns. Until Bass left them, they were one of the top investment banks on Wall Street. After Bass’ employment relationship with Bear-Stearns collapsed, he let some information out to a journalist who asked a probing question the following Monday. By Friday of the same week, Bear-Stearns had lost so much stock value on Wall Street, J.P. Morgan-Chase was forced to buy them out. This would prove the first domino which would eventually topple all five big investment banks in September. Bass didn’t set the dominoes up to fall, but he certainly seems to have set the chain reaction into motion. It is less remarkable that he made a fortune by short-selling against sub-prime loans later that year when one considers his earlier involvement with Bear-Stearns.

UsefulStooges reported that Kyle Bass runs a hedge fund called Hayman Capital Management out of Austin, Texas–though, Bass is originally an Argentine; which somewhat explains his relationship to that country’s socialist despot, Cristina Fernandez de Kirchner. De Kirchner has defaulted Argentina on two separate occasions. Thirteen years was all it took her to make these historically bad leadership calls. Yet Kyle Bass never criticizes her actions. Does this mean his economic ethic is in some way congruent to hers? That is exactly what many have begun to speculate. Considering that he runs a hedge fund–which is a type of financial account nicknamed a “vulture” fund because it steals the life from dying organizations–and that the primacy of his history involves undercutting existing financial powers for his own personal benefit, it only makes sense that some would conclude Bass’ financial core has a socialist component. That he is speaking at the 2016 New Establishment Summit should be a concern to anyone cognizant of current financial politics.