banks
Strategic Concepts & Mechanics
Primary Evidence
"Risley doesn’t fund his investments using only his own money, pulled from some bottomless supply of cash. “We couldn’t grow as fast as we have grown by doing that,” Stan Spavold, CFFI Ventures’s president, explained. Much of Risley’s investing is done with borrowed money, primarily from banks. “We are a net borrower,” Spavold added. “We don’t maintain a pool of liquid assets. We are fully deployed in our investments.” Gains produced by those investments are redeployed into new ventures, continuing the cycle. “We don’t look for investments that are going to return 8, 9, 10 percent a year. We are looking for investments that are going to return a multiple of our investment,” Spavold explained. “We’re not going for singles. We’re looking for doubles, triples, and occasionally a home run.”"
"In order not to immediately weaken the person they have chosen, the government agrees to spread out its recoveries (554 million in taxes to be collected) over three years. As for the privileged creditors (social security and banks with guarantees) to whom the Boussac-Willot group owes 955 million, they authorize Arnault to stagger repayments over thirteen years."
"The banks were lenders in many of Drexel’s deals, but their loans were generally short-term and secured. Without Drexel to place the unsecured, subordinated debt, these deals would never have happened. And while other investment banking firms now were eager to play Drexel’s part, the megadeals spawned securities—junk bonds—in amounts that no investment-banking firm but Drexel could sell."
"We raised money from everywhere—banks, insurance companies, publishers, Wall Street, anyone with capital—to fuel TCI’s growth, because I knew the advantage would go to the biggest company. Scale economics drove every decision."
"In Russia, I was able to get out in time. This time, I was too deeply entrenched. As an investor, I was being chased by banks every day. ‘What do you want to do next?’ they would ask. ‘Want to deal in real estate? We’d love to help you. Can we lend you some money?’ The banks were hugely overbor-rowed themselves and yet chasing new opportunities to lend. We should have spotted the dangers of the situation a mile off."