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Re: But wait, there's more
Quote:
Originally Posted by sebastian_dangerfield
You don't know much about workouts.
Banks hate taking assets. If there is no buyer for real estate or equipment against which the bank is collateralized (and indeed PE would be one of the sole sources of capital able to do so) the bank has two choices:
1. Auction collateral at huge loss; or,
2. Workout the loan
You're correct that BofA or WF aren't initially going to workout much for smaller businesses. But regionals and community banks will do so. And over time, as huge # of businesses become distressed, big banks will do so as well. Having a loan in workout on the books is preferable to realizing loss (particularly where bank would be realizing huge # of losses at once).
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I'm just grateful that I could give you a chance to shine with your knowledge about workouts.
What you're saying is, taking away people's cars will force them to take city buses more, because they really don't want to walk. Taking away people's cars leaves them worse off, though.
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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