The WSJ reported on Tuesday that the debt for Musk's Twitter purchase has been stuck on banks' balance sheets, eating into the ability to fund other deals.
  • Elon Musk’s Twitter acquisition ended up being the worst financing deal for banks since 2008, the WSJ said.
  • The $13 billion in loans Musk took out have been stuck on banks’ balance sheets.
  • The loans have cut into pay for bankers and lenders’ ability to finance other deals, the Journal reported.
  • AA5B@lemmy.world
    0·
    3 months ago

    The bank cares because

    • he can’t sell $13B in stock without crashing the value - he can’t pay it off fast
    • someone with that much ownership has serious restrictions on how they can sell. Again, limiting ability to pay off loans
    • banks generally don’t keep loans, they originate and sell. But no one will buy with those restrictions