Wednesday, June 10, 2009

Fontainebleau Las Vegas Files For Bankruptcy

The $3 billion Las Vegas casino which Zero Hedge discussed at length previously (must read for anyone curious how big banks now decide which companies get to live or die), has thrown in the towel. Deutsche Bank's strong arming tactics have won yet again: that other bloated monstrosity, the Cosmopolitan, will now be safe knowing that its biggest competitor on the crappy side of the strip will likely face liquidation. So bring on those "massive" $19.95 RevPars to the depressionary mecca of gambling: they will surely generate recoveries in the teens on DB's investment. It is not even a question that in the meantime the German bank will find a way for American taxpayers to eat the loss.

Now, if the uber-leveraged house of Ackermann can just find a way to prevent S&P and Moody's from downgrading several hundred billion in CMBS, then the bank will sleep soundly at night, knowing that its worthless CRE exposure won't implode for a good several more months. Sphere: Related Content
Print this post
blog comments powered by Disqus