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The thing I was surprised about is that they survived! After all that they still got a $400 million cash bailout!
by jonplackett 3y ago
The thing I was surprised about is that they survived!
After all that they still got a $400 million cash bailout!
- m_0x 3y agoIt wasn't a bailout, it was investment money. Bailout could imply government throwing a lifeguard
- kaashif 3y ago> It wasn't a bailout, it was investment money. Almost all bailouts are investments, whether it's a government or private bailout. The investments are questionable sometimes, but they're still investments.
- leoqa 3y agoThe nuance is a) what happens to existing equity stakeholders and b) does the bailout have to be repaid. If the answer is nothing and no, then it’s a bailout philosophically. If the existing investors get diluted then they’re in part paying for the new capital injection.
- deleted 3y ago[deleted]
- ben-gy 3y agoIt wasn’t a bail out, it was an opportunity for investors to get great terms on equity at a crucial juncture for the company.
- swores 3y agoA government bail out isn't the exclusive use of the phrase "bail out", it was both a bail out and an opportunity for investors to get great terms on equity.
- xcv123 3y agoThey were probably worth much more than $400M before the failure so it was a good investment opportunity. They would have been a money printing machine aside from this one major fuckup.
- nly 3y agoTheir IP (proprietary trading algos) etc were probably worth a lot at the time. These days probably not so. I wouldn't imagine there are any market makers left in NYSE and NASDAQ who aren't deploying FPGAs to gain a speed edge.