Dems worry about a subprime billionaire in Florida

[Perky]

http://www.politico.com/blogs/bensmith/

Florida Billionaire Jeff Greene appears to be on the verge of jumping into that state's Democratic Senate primary, adding a hurdle to Kendrick Meek's underdog.

In some circumstances, Democrats might be thrilled to have a wealthy local figure rescue the party from Meek's candidacy, which hasn't caught fire -- but this isn't that case. National Democrats view Greene as a distraction and a disaster, with money enough to cause trouble but too much baggage to win. He's being advised by Joe Trippi and Doug Schoen, who didn't respond to questions about his plans or whether he's hired them for a Senate race.

But Democrats are concerned enough that one sends over a file focusing on the fact that he made much of his fortune on the very financial instruments being scrutinized for causing the financial crisis.

In particular, the housing market collapse made Greene -- according to the Los Angeles Business Journal -- one of the city's richest residents. (Florida isn't his only home.)

Greene made his debut in the list's 18th place "thanks to an enormously successful bet against the housing market. Greene bought credit default swaps that rose in value as subprime mortgage-backed securities defaulted, pushing his net worth to $1.6 billion," the paper reported.

He reportedly made between $500 million and $800 million on the bets.

His inspiration in the investment? CNBC reported in 2008 (under the headline, "Real Estate Mogul Jeff Greene: The Man Who Shorted Subprime"):

Greene says that two years ago, he asked a friend, hedge fund manager John Paulson, about a hedge. Paulson said he was starting a fund to short subprime bonds through credit default swaps. 'I asked him, 'John, can I do this on my own?' He says Paulson told him, 'You won't get approved.'


Paulson, of coruse, is the trader at the center of the allegations against Goldman Sachs, though he hasn't been charged with anything.

"I've never had more fun than now," Greene told Forbes in October, 2008.

All this before you get to the colorful parts of the file: Mike Tyson was the best man at Greene's wedding, and Heidi Fleiss lived with him for a time, platonically.

"She's a nice girl. I've had her over to Passover dinner with my mom," he was quoted as saying.

[flpoljunkie]

1. You gotta be kidding me! Rich folks always ripe pickins for political consultants!

[monmouth]

2. Hahaha, he won't go anywhere. Joe Trippi?? Nah...n/t

[RandomThoughts]

3. Poison Pill?

Run a billionaire as a Democrat, then get it lots of press coverage?

But I would guess that is what they are worried about, the media making it sound like Democrats are the rich party.