Distressed investment firm MatlinPatterson is striking back against UK newspaper The Telegraph, following an article in which firm chairman Mark Patterson is described as calling the U.S. Treasury’s public-private partnership program (PPIP), “a sham.” Kind of striking charge, given that MatlinPatterson invested alongside Treasury (via TARP) in troubled Michigan bank Flagstar Bancorp Inc. (NYSE: FBC).
In a letter earlier today to limited partners, Patterson wrote:
The article is an unfortunate and complete fabrication and a mischaracterization of our position on public-private investments generally and MP Thrift’s Flagstar investment in particular. We have demanded a retraction from The Telegraph, and the article has been removed from its website while an internal investigation is conducted. Nonetheless, we want to ensure that our Limited Partners hear our views on these matters directly.
Indeed, the only record of the story we can find at this point is in the blogosphere (excerpts here). The Telegraph even seems to have pulled the story from Factiva, in a sort of Big Brothery move (future historians are going to have their hands full with today’s electronic “here today, gone tomorrow” reporting). What follows is a copy of the letter MatlinPatterson sent to The Telegraph: