This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Christopher Flowers Finds the Bloom May Be Off

Stocks in this article: GSBAC

But Shinsei has struggled in the past two years, in part because of investments in Flowers' private equity funds, Bloomberg News pointed out in an article last week. And, according to The Wall Street Journal, Shinsei still hasn't paid back Japanese taxpayers for bailing it out in 1998. The paper says shares would need to reach 745 yen to make the government whole -- more than 800% above their Wednesday close of 81 yen.

Fed officials might also look to Europe, where the chess-playing Flowers is involved in a battle of wits with the German government over the future of Hypo Real Estate. Flowers invested $1.3 billion in Hypo in June at 22.50 euros -- an investment that now looks to be nearly worthless, with Hypo on the verge of nationalization. Flowers has said he wants to retain a stake rather than have the government buy him out.

Done Deals
Indymac
Hypo Real Estate
IndyMac
2009
Hypo Real Estate Holdings AG -2008
HSH Nordbank
Shinsei
HSH Nordbank AG
2006
Shinsei
2000 & 2008
NIBC
NIBC
2006 & 2008
 
Near Misses
Merrill Lynch
Sallie Mae
Merrill Lynch
2008
Sallie Mae
2007
Lehman Brothers
AIG
Lehman Brothers
2008
AIG
2008
Washington Mutual
Bear Stearns
Washington Mutual
2008
Bear Stearns
2008

Flowers declined to comment on either Hypo or Shinsei to TheStreet.com. But while it has been a rough year for his investments, Flowers sees tremendous opportunity amid the wreckage.

"Governments everywhere -- this government and around the world -- are going to own a lot of stuff, and they're going to be not very adroit and not very commercial as they work their way out of that," Flowers said at Source Communications breakfast. "That's what history has shown, and therefore, just like the Resolution Trust Corp. in the early '90s and buying busted banks from the FDIC and so forth, there's going to be a lot of money to be made around the edges of this crisis in corporate restructurings."

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs