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 Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

hughee99

(16,113 posts)

9. So it's quite possible that the loan itself is actually paid back in full, and the bank still

Reply to dixiegrrrrl (Reply #8)

Fri Nov 28, 2014, 05:04 PM

Nov 2014

takes a loss because they speculated on the stability of the oil companies and lost (if the companies were more stable, the debt would sell for more, right)?

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

14 replies

= new reply since forum marked as read

Highlight:

Banks and hedge funds losing big time by the dropping oil prices. [View all] dixiegrrrrl Nov 2014 OP

Gee, I wonder who will end up paying for the losses? louis-t Nov 2014 #1

Will we need to bail them out? Poor dears. Tierra_y_Libertad Nov 2014 #2

Only in America, kiddies - only in America - do taxpayers subsidize 1% profits. closeupready Nov 2014 #3

Actually, their plan is for us to bail them in. dixiegrrrrl Nov 2014 #5

Oh, yes! I remember voting for that! Well.....maybe not. Tierra_y_Libertad Nov 2014 #6

For the new fellow in the game, oh well, for those who have been there for a few years guess they Thinkingabout Nov 2014 #4

Do I not understand loans? hughee99 Nov 2014 #7

Banks loan $$$ and then sell the debt. dixiegrrrrl Nov 2014 #8

So it's quite possible that the loan itself is actually paid back in full, and the bank still hughee99 Nov 2014 #9

If the bank gambled, via derivatives, on the health of the oil company dixiegrrrrl Nov 2014 #10

so we'll probably have another bailout to clear out the savings in gas prices eh? NMDemDist2 Nov 2014 #11

If they lose too much, they'll stop drilling new fracking wells for the foreseeable future NickB79 Nov 2014 #12

I've been hoping the safeinOhio Nov 2014 #13

They will, they have a lot of oil related investments. dixiegrrrrl Nov 2014 #14