crankyinvestor

GGP Suspends Dividend in Attempt to Address Liquidity Concerns

in the ass (corr)

GGP Suspends Dividend in Attempt to Address Liquidity Concerns

GGP was doing quite well as long as it could finance long-term assets with short-term paper; now that the credit markets have frozen, that doesn't seem like the best of strategies.
Their executives, particularly Bernie the super-CFO, showed excessive fiscal irresponsibility by taking an already leveraged situation and loading up additional shares personally with short-term margin borrowing. Whatever bets they placed on financing long-term assets with short term financing (sorry for repeating but it's the "original sin" of finance and deserves multiple repetitions) have come back to bite them in the as.

Non-Financials Hit Hardest By the Crisis

GGP took a battering in the market on Monday because it has become a proxy for shorting the credit-starved market.