Phil Falcone Forced to Find a New Way to Pay the Bills


Keeping your lady in fine-feathered ensembles, hiring little people to give your kid's Wizard of Oz–themed birthday that special something, financing a top-to-bottom renovation of a $50 million mansion, and training a pig to sing and dance doesn't come cheap, obviously, which is part of the reason Harbinger Capital founder and on-paper billionaire Philip Falcone found himself in an awkward position when the IRS came a-calling last year, asking for $113 million. "I typically keep all my money in the fund,” he explained to the Times. “I didn’t have $100 million lying around.” So he gave himself a little loan from said fund, figuring it was no biggie. But then investors got all bothered: like Goldman Sachs, which pulled its entire $120 million investment out of the fund, followed by the New York State Common Retirement Fund — which doesn't need any trouble, thanks very much — pulling $41 million, and now Falcone has found himself the subject of a federal inquiry. So now, with his personal piggy bank off limits, the Falcones have had to go the more traditional route:

Earlier this month, Falcone and his wife posted some of their "fine art" as collateral for a secured five-year loan from Bank of America (BAC.N), public records show.

Hopefully that wireless deal Harbinger's betting the farm on will come through. If not, there's always the 'rents.

REFILE-Falcone applies for another loan, clients fume [Reuters]