4 ms·
That's missing a lot of steps... Like how to profit by not being paid back for the money you loaned!
by whatshisface 3y ago
That's missing a lot of steps... Like how to profit by not being paid back for the money you loaned!
- mrcode007 3y agoIt’s siphoned off the acquisition target
- adgjlsfhk1 3y agothe business goes bankrupt and the bank is ahead of customers and employees in line for who gets paid first.
- whatshisface 3y agoSo the scheme is to get in debt to unsophisticated lenders (employees and customers), take the money out, and finally default?
- deleted 3y ago[deleted]
- Spooky23 3y agoThe initial lenders aren't idiots. This is a multi-billion dollar business. They sell the obligation to another sucker, who will often bundle it with a bunch of other debt (good or bad) and sell it to institutional investors. Your 401k in 2008 or whatever had some shitty balanced fund that held 0.5% of assets in some toxic shit like Sears/K-Mart for the "high yield" portion of the fixed income component. So you make some money on government, agency and Apple/Exxon bonds, and get a high yield on K-Mart that goes poof a year later.