Fortress’s Unwanted Fortress

Fortress Investment Group LLC (FIG) fell the most since it went public in February on concern that mortgage-related losses will hurt profits. Fortress plunged $2.43, or 11 percent, to $19.62.
Bloomberg Nov. 1 2007

Largely overlooked amongst the more compelling financial headlines of recent weeks is the continuing slow-motion financial meltdown of Michael Jackson that will—unless Ken Griffin or similar comes charging to the rescue—likely see the Fortress real estate portfolio expand to the tune of one less-than-highly-desirable Southern California residence.

The creepy pop diva has defaulted on a $23 million loan, secured by the Neverland ranch. Fortress is reportedly trying to unload the loan but, stunningly in today’s market for inadequately-collateralized mortgage obligations, hasn’t found any takers. The property’s value was assessed last year at just over $17 million, a number that is unlikely to have increased since.

Fortress will, at least, be able to take a tax deduction on the...oh, never mind. Taxes? Fortress? Just kidding!

Jackson Defaults on $23m Loan
By Roger Friedman
Fox News Oct. 26 2007