Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Environment & Energy

FBaggins

(26,721 posts)

2. You're missing a step

Reply to msongs (Reply #1)

Fri Apr 10, 2020, 09:33 AM

Apr 2020

Step one was - "Loan company ABC $500 million to purchase and develop land to produce oil - collateralized by that improved land"

They aren't "getting the assets back"... they're taking the collateral. But the collateral is no longer worth enough to repay the loan.

That's a loss... not a win win.

Edit history

Please sign in to view edit histories.

3 replies

= new reply since forum marked as read

Highlight:

U.S. banks prepare to seize energy assets as shale boom goes bust [View all] Eugene Apr 2020 OP

so banks will get the assets back AND a huge fed bailout. its a win win for them nt msongs Apr 2020 #1

You're missing a step FBaggins Apr 2020 #2

It's a big gamble by the banks Finishline42 Apr 2020 #3