> Nearly two years on, investment banks have been unable to offload the debt, tying up precious capital and limiting their ability to originate and finance more deals.
> indications from at least one bank show that this is affecting the lenders’ bottom line.
> The cut was so severe that almost a quarter of the bank’s 200-plus managing directors quit once they had collected it.
Amazing, I had no idea it was so bad. This could play a non-insignificant role in an economic downturn, as tying up capital is a sure way to disrupt the economy in such a way as to lead toward a depression.
> indications from at least one bank show that this is affecting the lenders’ bottom line.
> The cut was so severe that almost a quarter of the bank’s 200-plus managing directors quit once they had collected it.
Amazing, I had no idea it was so bad. This could play a non-insignificant role in an economic downturn, as tying up capital is a sure way to disrupt the economy in such a way as to lead toward a depression.
https://en.wikipedia.org/wiki/Great_Depression#Origins