John Devaney, United Capital Markets: Sub-prime splash

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John Devaney, United Capital Markets: Sub-prime splash

It’s hard to empathize with the faceless investment bank and institutional investor victims of the sub-prime crash. What’s really needed is an individual whose story people can relate to.

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Enter John Devaney, CEO of United Capital Markets, a market maker in structured finance and asset-backed securities, who was once quoted in the newspapers as saying that people who take out sub-prime mortgages to buy their homes are "big idiots".

The multimillionaire executive, whose firm’s books were full of securities backed by sub-prime mortgages, has apparently been forced to sell his 142-foot yacht Positive Carry to raise an extra $23.5 million.

But it gets worse. According to a New York tabloid, Devaney suffered another cruel blow of fate when his 16-bedroom Aspen holiday home sold for $250,000 less than its $16.5 million asking price.

Rumours that other hedge fund managers have been forced to sell vessels such as Market Neutral, Relative Value, Portable Alpha and Triple-A were unfortunately unable to be confirmed

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