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No, because he isn't spending the money. He borrows 13M, and then the 13M just sits in an account, doing nothing, or earning say, the risk-free rate. There's no
by darawk 8y ago
No, because he isn't spending the money. He borrows 13M, and then the 13M just sits in an account, doing nothing, or earning say, the risk-free rate. There's no risk for the lender, because the money isn't going anywhere.
- Maro 8y agoExcept if the money gets used for reimbursements/damages that the new startup bank has to pay if it's mismanaged --- that is one of the reasons the money needs to be there, I assume.
- deleted 8y ago[deleted]