• Elon Musk’s Twitter acquisition ended up being the worst financing deal for banks since 2008, the WSJ said.
  • The $13 billion in loans Musk took out have been stuck on banks’ balance sheets.
  • The loans have cut into pay for bankers and lenders’ ability to finance other deals, the Journal reported.
  • @AA5B
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    12 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
    • @Blue_Morpho
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      12 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.