3 ms·
> It’s no different than a company issuing bonds to buy back its own equity. Which was illegal until 1982 and could be made illegal again.
by HWR_14 8mo ago
> It’s no different than a company issuing bonds to buy back its own equity.
Which was illegal until 1982 and could be made illegal again.
- JackFr 8mo agoA firm can be capitalized by debt or equity. They can have a public offering to and sell share to retire debt. They can issue bonds and use the money to buy back shares. There shouldn't be a moral component to this. That being said, it seems criminal to take an enormous management fee while sending a company into bankruptcy.