For months now, the Harbinger Capital hedge funder has been assuring investors everything is fine, despite the fact that the SEC investigated him for borrowing $113 million from his company to pay taxes, and the fact that he had to mortgage his art collection. He's been trying to shore up support because investors in his $6 billion hedge fund have been fleeing by the billions. About half of the fund, which was once worth $26 billion after the subprime crisis, is invested in developing a new, superfast wireless network called LightSquared. But there's a problem. From the Post:
LightSquared proposed in a letter to the Federal Communications Commission a "middle ground" solution to complaints that the upstart will interfere with commercial navigation devices used by tractors, high-tech air-traffic controls and the military.
If they can't resolve the problem to the FCC's satisfaction, Harbinger's $2.9 billion investment in LightSquared could be all for naught. Can you imagine, Lisa Maria Falcone may lose her dress money just because of a few farmers, the air safety of our nation's airports, and our mere national security? That just doesn't seem right.
Falcone begs FCC [NYP]