Odd Lots: The Unbearable Brightness of Being a Shadow Bank

A conversation with Dan Zwirn.

At 33, Zwirn had a killer hedge fund and a $700 million personal fortune.

Photographer: Thomas Prior/Bloomberg
Odd Lots

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Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.

A high-flying hedge fund manager lost everything back in 2007 after an accounting scandal prompted investors to pull money from his $12 billion fund. Almost a decade later, Dan Zwirn has been cleared of all wrongdoing by U.S. securities regulators and is busy rebuilding his investment empire, specializing in lending to companies that don’t usually have access to traditional bank financing.

Zwirn’s new fund, Arena Investors LP, is one of a crop of so-called shadow banks seeking to plug a financing gap exacerbated by the financial crisis and new regulation. Max Abelson of Bloomberg News co-hosts this week’s episode, in which we talk the pros and cons of non-bank financial intermediation.







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