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That might be true for a house or a small scale loan, but once you are dealing with billions I doubt that’s the case. I assume that it works as follows: you hav
by dtnewman 5y ago
That might be true for a house or a small scale loan, but once you are dealing with billions I doubt that’s the case. I assume that it works as follows: you have $1b in stock, Bank gives you $500m line of credit. If stock goes down enough they force a sale, but they only sell against what you have actually Utilized in your line of credit. If you are Mark Zuckerberg and worth more than $100 billion, you probably don’t have any issues. If you add up all of his houses and planes and cars it probably doesn’t add up to more than 1% of that. He’s fine.