It was not only investment bankers who made reckless use of cheap credit during the bubble. Some of the world's best-known financial entrepreneurs made fortunes from big bets with borrowed money. As the credit bubble implodes, some of those bets are now turning bad.

Robert Tchenguiz, the flamboyant British investor, is facing estimated losses of up to £1billion thanks to the collapse of the Icelandic banking system. Mr Tchenguiz borrowed heavily from Kaupthing, the Icelandic bank, to finance stakes in British companies including J Sainsbury and Mitchells & Butlers. Under pressure from the Icelandic Government, Kaupthing seized and sold the stakes, crystallising losses of more than £700million for Mr Tchenguiz.

A number of UK-based Russian oligarchs are also believed to have had holdings seized by Icelandic banks. If Russia's move to lend Iceland €4billion was designed to protect the oligarchs, it may be too late. But don't worry too much about Mr Tchenguiz. Friends say he has lots of money left.

And there are plenty of other entrepreneurs with cash looking to profit from rivals' distress.

The buyer of the Mitchells & Butlers' stake was Joe Lewis, the Bahamas-based billionaire, who still has a few bob to spare, despite losing more than £500million by putting into Bear Stearns shortly before it collapsed. Sir Philip Green, the retail magnate, is also said to be looking for cheap deals among the fallout from the Icelandic meltdown. But there is probably no need to rush. There will be plenty of bargains to come.

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