Musk puts pressure on banks

Banks that have agreed to finance Elon Musk's takeover of Twitter (TWTR) face the possibility of big losses as Tesla's chief executive changes, however, to take over the company.

The $44 billion deal, which Musk had previously tried to walk away from, would be paid for in part with about $13 billion in debt from seven banks, including Morgan Stanley (MS.US), Bank of America (BAC.US), Barclays (BARC.UK), BNP Paribas SA (BNP.FR) and Societe Generale SA (GLE.FR).

As is typical in leveraged buyouts, the banks planned to unload the debt rather than hold it on their books, but declines in the markets since April mean that if they did so now, they would expose themselves to hundreds of millions of dollars worth of losses

Source: xStation 5