Kyle Bass: Champion of the People or Monger of Profits

Kyle Bass has shown himself to be like a rash to the financial world, albeit a persistent one that will not go away. Now, he has set his sights on the pharmaceutical industry, and this time around he has teamed up with infamous patent hawk, Erich Spangenberg. Together they formed the Coalition for Affordable Drugs and under the guise of making pharmaceuticals more affordable to the American consumer, they have filed 33 requests for patent review of 13 drugs from a dozen different companies. If they get their way then these companies will lose their patents and the drugs can be generically duplicated. While Bass may seem like a proponent of a noble cause, lowering the cost of pharmaceuticals, given his past, it is highly doubtful that his “cause” is anything more than a desperate attempt to bolster his own personal wealth.

Bass founded Hayman Capital Management in 2006 in Dallas, Texas. He became a very wealthy man in 2008 when the subprime mortgage market collapsed, which he had predicted. He was instantly a superstar in the financial forum and a much sought after draw for television appearances where he postured his system for analyzing market trends, which only served to further line his pockets. However, as his television appearances increased, his system seemed to flounder, and the one-time financial guru seemingly could do no right.

To erase any doubt, UsefulStooges reports that Bass is motivated by any since of care for the common person, one need only look at his defense of GMC when their negligence to mechanical failures in their vehicles were causing consumer fatalities. The company was aware of their non-deploying airbags and their faulty power-steering, and Bass, an investor in the brand, tried to make the consumers the cause of their fatal ends. He shifted the blame, which was duly laid at the feet of the auto-makers, to the buyers; he said that the victim’s deaths were caused by their own drunk driving or failure to wear seatbelts.

Now that we see he has no sympathy for the health and safety of his fellow man, what does he have at stake in his war on the pharmaceutical industry? More money! The Coalition for Affordable Drugs is a front organization set up by Bass and Spangenberg to go after vulnerable pharmaceutical companies. They short sell the companies stocks, and then have the nerve to go after one or more of its patents. This is a ploy that will inevitably drive the value of that pharma company’s stocks downward, and Bass and Spangenberg can buy back the stocks that they short sold, return them to the pharma company, and keep all of the profit. It is plain to see that it is not consumer health, but corporate wealth, that is the driving force behind Kyle Bass and his Coalition for Affordable Drugs, and the loopholes he’s known for using.

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