bank
Strategic Concepts & Mechanics
Primary Evidence
"The key here is that the partner will buy shares loaned by, in Garantia’s case, the bank’s treasury, and then pay for them with future bonuses."
"Debt interest arises because the owners create a structure where all the costs of a company purchase as well as the loans are transferred to the acquired company. Hasse takes as an example a purchase with a loan of five billion kronor. For simplicity’s sake, let’s say it’s financed by a single bank, in reality it is usually several types of credits."
"Debt interest arises because the owners create a structure where all the costs of a company purchase as well as the loans are transferred to the acquired company. Hasse takes as an example a purchase with a loan of five billion kronor. For simplicity’s sake, let’s say it’s financed by a single bank, in reality it is usually several types of credits."
"The idea was to use other people’s credit. First he would go to an oil company and persuade it to grant him a long-term charter to haul its petroleum. This done, he would go to a bank, where, using the charter as collateral, he’d take out a loan to obtain a ship to haul the petroleum. Instead of paying D.K., each oil company would make the charter payments directly to the bank, which would deduct the loan payment and put whatever was left into Ludwig’s account."