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Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis
(www.businessinsider.com)
this post was submitted on 21 Aug 2024
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Economics
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I wonder what part of the deal is causing a loss? A loan under no normal circumstances can lose money. They gave Musk $13B that he had to pay back with interest. As collateral he had to put up Tesla stock. How can that lose money?
If Musk has to sell Tesla stock to pay back the loan, what does the bank care? There is something not being reported about the loan terms that they could lose money.
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?
Boo hoo either Elon loses or the bank. Anyways.
I was hoping for some details to explain the mystery.
I'm curious too my popcorn is ready. I'm cheering for the "both can f themselves" side.
The bank cares because
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.