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Buying financial institutions is always £1 or $1, I remember barings bank being sold for £1
by celticninja 4y ago
Buying financial institutions is always £1 or $1, I remember barings bank being sold for £1
- vidarh 4y agoNo, it's not not always, or even usually, that. This reflects that it's a failing business (like Barings) where the real cost to the purchaser is taking on the risks and liabilities and injecting whatever capital and effort needed to extract value from the remaining assets. Many sales of solvent banks happens regularly too.
- celticninja 4y agoI meant distressed financial institutions, I should have been more clear.
- helsinkiandrew 4y agoTo be a legal contract in England (and probably anywhere whose laws are based on English commmon law) there has to be an exchange or consideration of a nominal amount between parties. It’s the same concept as why peppercorn rents are paid https://en.m.wikipedia.org/wiki/Consideration#Nominal_consideration https://en.m.wikipedia.org/wiki/Consideration#Nominal_consid... There’s a collection of once mighty companies you could buy for the price of a burger: https://www.bbc.co.uk/news/business-44250900.amp https://www.bbc.co.uk/news/business-44250900.amp