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Musk's Twitter deal may be banks' worst leveraged buyout since 2008
- smarm52 2y ago> Nearly two years on, investment banks have been unable to offload the debt, tying up precious capital and limiting their ability to originate and finance more deals. > indications from at least one bank show that this is affecting the lenders’ bottom line. > The cut was so severe that almost a quarter of the bank’s 200-plus managing directors quit once they had collected it. Amazing, I had no idea it was so bad. This could play a non-insignificant role in an economic downturn, as tying up capital is a sure way to disrupt the economy in such a way as to lead toward a depression. https://en.wikipedia.org/wiki/Great_Depression#Origins https://en.wikipedia.org/wiki/Great_Depression#Origins
- mnky9800n 2y agoIf you are interested in narrative films about leveraged buyouts I recommend Barbarians at the Gate: https://en.wikipedia.org/wiki/Barbarians_at_the_Gate_(film)#:~:text=It%20tells%20the%20true%20story,and%20CEO%20of%20RJR%20Nabisco.&text=Barbarians%20at%20the%20Gate%20received%20generally%20positive%20reviews%20from%20critics https://en.wikipedia.org/wiki/Barbarians_at_the_Gate_(film)#.... I watched this a while ago on YouTube: https://youtu.be/Z3HiONtjZSM?si=HQPNiA2dBLk4qqeT https://youtu.be/Z3HiONtjZSM?si=HQPNiA2dBLk4qqeT It was a made for TV movie about the true story of rjr Nabisco trying to go private through a leveraged buy out because their cigarettes and how everyone everywhere was greedy. It's kind of absurd how greedy and stupid everyone is in the movie.