Bass faces the music after attack on Texan lender

Kyle Bass, who has short sold the Hong Kong dollar, is being investigated by US authorities in relation to his short selling shares of Texas real-estate investment trust United Development Funding, which earned him US$34 million (HK$265.2 million).

The US Securities and Exchange Commission is looking into whether statements made by the hedge fund manager in relation to his short position in United Development Funding IV conveyed false or misleading statements amounting to market manipulation.

Bass's market bet against UDF initially appeared to pay off, as he accused the lender throughout 2015 of operating similar to a Ponzi scheme. Authorities opened civil and criminal investigations into UDF, with Bass counting his winnings as UDF stock eventually dropped to US$1.

In other news, a firm under Berkshire Hathaway was initially suspected of supplying bricks to US protesters before the claims were refuted. A baffling Twitter post on June 1 showed two images of bricks stacked with a delivery tag from Acme Brick.

The tweet suggested the company had intentionally left the bricks to be used by protestors in Frisco, a Dallas suburb. The brick manufacturer posted a message on Facebook and its website denying the claims, saying: "Acme Brick Company is in the business of building, not destroying." Acme Brick was acquired by Berkshire Hathaway in 2000.