Comment on Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis

• gwindli@lemy.lol ⁨2⁩ ⁨months⁩ ago

  [deleted]

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  • Blue_Morpho@lemmy.world ⁨2⁩ ⁨months⁩ ago

    Again why does the bank care? The article claims the bank gets interest and has Tesla shares as collateral. If Musk doesn’t pay they take the shares. So how are they losing?

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    • trolololol@lemmy.world ⁨2⁩ ⁨months⁩ ago

      Boo hoo either Elon loses or the bank. Anyways.

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      • Blue_Morpho@lemmy.world ⁨2⁩ ⁨months⁩ ago

        I was hoping for some details to explain the mystery.

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• AA5B@lemmy.world ⁨2⁩ ⁨months⁩ ago

  The bank cares because

  • he can’t sell $13B in stock without crashing the value - he can’t pay it off fast
  • someone with that much ownership has serious restrictions on how they can sell. Again, limiting ability to pay off loans
  • banks generally don’t keep loans, they originate and sell. But no one will buy with those restrictions

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  • Blue_Morpho@lemmy.world ⁨2⁩ ⁨months⁩ ago

    It was 2 years ago. Interest payments are continuous, not sudden. If he owed money he would sell a little every month to pay the loan. Yes it would lower the price. The bank doesn’t care, they are being paid.

    Yes large ownership sales are filed quarterly. It’s not a surprise loan. The payments are due monthly.

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