Blackstone & Codere

  • Aired:  12/04/13
  •  | Views: 81,750

Samantha Bee investigates the shady-yet-totally-legal business dealings of a private equity firm called Blackstone. (7:00)

[CHEERS AND APPLAUSE]>> Jon: WELCOME BACK.

AS WE LEARNED IN THE LASTSEGMENT, NO ONE WHO COMMITS

THESE FRAUDULENT FINANCIAL DEALSAND CORPORATION THINGS GOES TO

JAIL WHEN THEY DO SOMETHINGILLEGAL.

DID YOU KNOW THAT THEYALSO DO NOT GO TO

JAIL FOR DOING THINGS THATSHOULD BE ILLEGAL BUT FOR SOME

REASON ARE NOT AT ALL ILLEGAL.

IT'S TRUE.

CASE IN POINT.

A FEW WEEKS AGO BLOOMBERG NEWSBROKE AN UNBELIEVABLE STORY.

IT'S A TALE OF TWO COMPANIESFIRST BLACKSTONE THAT SOUNDS

LIKE IT SHOULD BE AN EVILWIZARDS CASTLE BUT ACTUALLY A

PRIVATE EQUITY FIRM.

SO SAME DEAL.

THE SECOND COMPANY CODERE THATRUNS BETTING PARLORS AND

RACE TRACKS ALL OVER EUROPE.

CLASSY.

EARLY THIS YEAR BLACKSTONEBOUGHT SOMETHING CALLED A CREDIT

DEFAULT SWAP ON DEBT THAT CODEREOWED TO A THIRD PARTY WHICH

MEANS BLACKSTONE WOULD MAKEMONEY IF CODERE BLEW A LOAN

PAYMENT TO THE OTHER GUYS.

THEN A SHORT TIME LATERBLACKSTONE OFFERED CODERE A $100

MILLION WITH THE CONDITION THATTHEY PAY THE OTHER LOAN TO THE

OTHER COMPANY LATE.

THE LOAN BLACKSTONE HAD ALREADYBET THEY WOULD PAY LATE.

BLACKSTONE BACKS THEM AND THEYPAY LATE.

THE CREDIT DEFAULT SWAP ISTRIGGERED

AND BLACKSTONE COLLECTS $15MILLION IN INSURANCE MONEY.

I'M SURE YOU ARE ASKING YOURSELFHEY I THINK I SAW

THAT IN GOODFELLAS WHEN THEY GETINSURANCE ON A RESTAURANT AND

DELIBERATELY BLOW THE RESTAURANTUP.

IN GOODFELLAS IT'S ILLEGAL.

IN THE FINANCIAL WORLD IT'SABOVE BOARD.

FOR MORE WE TURN TO SENIORCORRESPONDENT SAMANTHA BEE.

SAM, THIS IS INSANE.

SO WHEN A DEAL LIKE THIS GOESDOWN.

HOW MUCH COVERAGE HAS THISINCREDIBLY EGREGIOUS

BEHAVIOR GOTTEN ON THE24 HOUR NEWS NETWORKS?

>> ZERO.

>> Jon: NOTHING?

>> WAIT THERE WAS UM, NOTHING.

>> Jon: REALLY?

600 TELEVISION CHANNELS THREE 24HOUR NEWS NETWORKS.

>> AND NO STORIES BUT IT'S(bleep) CRAZY.

THEY ARE NOT GOING TO GET AWAYWITH IT.

WHAT BLACKSTONE DID WAS CLEARLYA HUGE STORY BUT THE BUSINESS

NETWORKS EAGER YOUNG REPORTERSHAVE BETTER THINGS TO EXPLAIN.

I WENT TO THE "NEW YORK TIMES"THE PAPER OF RECORD TO FIND OUT

WHY ALL THOSE TV (bleep)WOULDN'T COVER IT.

THIS IS A COMPLEX STORY AND ITTAKES A LOT TO UNPACK IT.

TATHERE'S SORT OF A RULE THATIF YOU

CAN'T DESCRIBE IT IN TEN SECONDSIT'S NOT SOMETHING THEY WANT TO

COVER.

>> I TAKE IT AS A CHALLENGEAND --

>> CAN I JUST LAY OUT THE FACTS.

>> TEN SECONDS. GO.

>> BLACKSTONE LOANED MONEY TO ASPANISH GAMBLING PARLOR COMPANY.

THEY BOUGHT INSURANCE.

>> TIME IS UP.

THAT WAS TERRIBLE LET ME TRY.

RICH (bleep) WANT ALL THEMONEY FOR THEMSELVES.

I HAVE SEVEN SECONDS LEFT.

BABA BOOEY.

BABA BOY.

DONE.

LIUCKILY THEY WERE WILLINGTO BLOW THE WHISTLE ON

BLACKSTONE'SMALFEASANCE. THIS IS

A HUGE STORY HOW DOESTHE "NEW YORK TIMES" COVER IT?

>> "NEW YORK TIMES" DIDN'TCOVER IT.

WHY, WHY DIDN'T YOU COVER THESTORY?

>> WE'RE BUSIER THAN ONE ARMEDPAPER HANGERS COVERING THE

MISCREANTS THAT WE IDENTIFY.

THIS IS ANOTHER DAY ON WALLSTREET.

>> A FRONT PAGE STORY WOULD BEHEDGE FUND WITH EVIL SOUNDING

NAME DIDN'T DO ANYTHINGUNDINGTERRIBLE TODAY.

>> I'M DROWNING IN MATERIAL.

>> WOULD YOU COVER IT IF WESNUCK IT INTO A GAY WEDDING

ANNOUNCEMENT.

>> NOT MY DEPARTMENT.

>> I GUESS THEY ARE TOO BUSYRUNNING STORIES ON POOP FACIALS.

IF TV AND PAPERS DIDN'T HAVE THESTONES FOR IT MAYBE THE WEBE THE

WOULD.

SOMEBODY TELL CHRIS BROWN TOPUNCH BLACKSTONE OR I'LL GO TO

THE PROS.

PITCH ME YOUR BEST IDEAS.

I NEED THEM TO BE TWERK ANDMOSTLY I NEED THEM TO BE

AMAZEBALLS. YOU NERD GO.

>> I FEEL LIKE ANY TIME WE GETTHE CHANCE TO USE A CRAZY

NICHOLAS CAGE PHOTO IN A POST.

>> I LOVE THAT ALREADY.

>> WHAT THEY DID WAS LIKE THEPLOT OF SAW.

>> I LIKE IT IT'S DARK.

>> LIKE DISNEY PRINCESSESDISNEY PRINCESSES EXPLAIN THE

BLACKSTONE STORY.

>> FULL OF GREAT IDEAS.

HOW ABOUT THE BLACKSTONE CREDITDEFAULT DEAL IS JUST

LIKE ROSS ANDRACHEL FROM FRIENDS.

>> OH, MY GOD I THOUGHT I WASTALKING TO YOUNG PEOPLE.

WHY NOT DO A POST ABOUT JOANIEAND CACHIE.

THEY WEREN'T GETTING IT.

WHAT I NEEDED WAS A LOCALNEWSMAN, CATASTROPHIC WEATHER

AND THIS STORY WOULD BE EVERYWHERE.

I HOPE YOU CAN HEAR ME OVER THESTORM.

BLACKSTONE LOANED A $100 MILLIONTO A STRUGGLING SPANISH COMPANY

CODERE.

WHAT MAKES IT INTERESTING ISTHAT THEY WANTED CODERE TO

DEFAULT ON THE LOAN...

THIS IS RIDICULOUS.

>> YOU ARE SELLING IT.

GET BACK HERE.

YOU KNOW YOU WANT THIS.

>> ALL RIGHT TIME TO GO VIRAL.

COMMENCING YOUTUBE DEF-CON1.

GET IN HERE AND DO SOMETHINGADORABLE NOW.

GO.

OKAY THE KITTENS ARE NOTLISTENING TO ME.

I HAD TRIED ALMOST EVERYTHING.

HEY, HOW DO YOU LOSE PAGE VIEWS?

THERE'S NOTHING BETTER THANKITTENS.

♪ I CAME IN WRECKING BALL >> EXCEPT FOR THIS.

I KNEW WHAT I HAD TO DO [.

♪ BLACKSTONE LOANED MONEY TO THIS

OTHER COMPANY CALLED CODERE ANDGOT THEM TO PURPOSELY MISS A

DEBT PAYMENT TRIGGERING A CREDITEVENT SO BLACKSTONE COULD CASH

IN ON A CREDIT DEFAULT LOAN THEYMADE BETTING THEY WOULD DEFAULT.

BLACKSTONE NETTED $15 MILLIONOUCH.

AND IT WAS TOTALLY LEGAL ANDTHESE ARE THE KIND OF SHADY

DEALS THAT GOT US INTO THERECESSION INTO THE FIRST PLACE.

ARE YOU LISTENING NOW?

IS THIS WHAT YOU WANTED?

DRINK IT IN (bleep).

[ LAUGHTER ]>> Jon: SAMANTHA BEE.

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