Morgan Stanley joins layoffs rush

[Thokkalee]

6 minutes ago, csrcsr said:

Ayya a dasari NYC time zone lo unadu padukonaiyava 

Ni neighbor anukunna anna 😄

[Thokkalee]

4 minutes ago, Picheshwar said:

Deenni mama daggara npa ani eggodtaru ga

NPA is if the business itself is a collateral and the business fails.. in this case, musk put his Tesla stock as collateral.. unless Tesla becomes bankrupt and his stocks becomes worthless, the banks are fine.. they can sell his stock and get back their loan amount.. 

[csrcsr]

1 minute ago, Thokkalee said:

Ni neighbor anukunna anna 😄

Most bewars batch maa pst batch 

[Thokkalee]

6 minutes ago, csrcsr said:

Most bewars batch maa pst batch 

Ma cst batch antha legends 😄

[NotSoBusy]

6 hours ago, csrcsr said:

banks financial firms kuda modal petaru 2 % is not a lot though,

i think mostly ee companies anni last 1 year lo 100-150% lu hikes ichi over hire cheskunna dakota batch motham ni vella10gthunnaru ankunta, FB lo aithe as it is idey aindi

[Sreeven]

6 hours ago, csrcsr said:

Investment bank Morgan Stanley laid off approximately 1,600 people — about 2% of its global workforce — on Tuesday, CNBC reports. The job cuts reportedly impacted “nearly every corner” of the company, though CNBC’s anonymous sources say financial advisors were spared. Annual “cullings” of low-performing employees were common practice on Wall Street prior to the pandemic, and they appear to be making a comeback, with Goldman Sachs, Citigroup and Barclays all recently reducing headcounts. Wall Street bonuses are expected to shrink this year as well.

https://www.linkedin.com/posts/saeed-azhar-a496a516_morgan-stanley-cuts-about-2-of-its-workforce-activity-7006003503198306304-wdjY?utm_source=share&utm_medium=member_desktop

Andulo naku telisina oka old colleague vunnadu..papam vadu ninna open for job ani pettadu

[dasari4kntr]

9 hours ago, Thokkalee said:

I don’t understand the issue here.. the leveraged buyout loan is only 6.5 billion, which is around 15% of the total amount… if he is worth 250 billions, he can easily sell some of his assets and pay off (even if it becomes 10 billions with interest)… if you are taking a loan, you give some of your assets as a collateral and the banks can sell it if you are unable to pay the loan.. this is not anything new.. this is in fact good for the banks as the collateral here is the Tesla stock… 

all these articles and videos talk as if he bought the whole company using a leveraged buy out loan.. 

businessmen start businesses without a penny of their own and banks give them loans with the business as a collateral… musk put in more than half (24 billion, 7 billions from his partners and just 13 billions as a loan, which is 30% of the total valuation)… 

Am I missing something here?? @dasari4kntr 

bro..you only shared this link...

https://www.washingtonpost.com/business/elon-musks-twitter-deal-is-different-than-most-lbos-heres-how/2022/11/12/7c671b64-62b9-11ed-a131-e900e4a6336b_story.html

did you miss this part reading it...

2. What’s a leveraged buyout?

LBOs are acquisitions where debt plays a crucial role. The basic idea is to buy a company through a combination of equity and new debt. But the key is that the acquirer, most commonly a private equity firm, doesn’t borrow the money -- the target company does. LBOs limit the downside for the buyer: If things go wrong, the company goes bankrupt, not the buyer. LBOs also increase the buyers’ upside because they can acquire bigger companies than they otherwise could afford.

 

if company is going bankrupt, why would anyone sell his personal wealth and payoff debt.

you know what is "leverage buy out" other name "OPM" (other peoples money). 

 

8 hours ago, Thokkalee said:

Ledu vaa.. I don’t think I ever abused anyone or talked in an uncivilized manner 😄 you must be unbearable on so many levels for me to start using bad words, which you are definitely not 😂

I am just curious to understand how this is different from how any other businessman would acquire another business… I don’t see anything new here.. it is very difficult to find a business where the buyer put in more than 50% cash and offered his assets as a collateral… 

leveraged loan is only 6.5 billions.. the bonds are labeled as junk because of Twitter’s previous credit rating.. 

Based on the structure laid out in public filings, the commitments would likely be replaced by $6.5 billion of leveraged loans, $3 billion of secured junk bonds and $3 billion of unsecured junk bonds.

https://www.washingtonpost.com/business/elon-musks-twitter-deal-is-different-than-most-lbos-heres-how/2022/11/12/7c671b64-62b9-11ed-a131-e900e4a6336b_story.html

DEBT means leverage loans + senior bonds (secured) + junior bonds (unsecured)

He (elon) and some co-investors (friends) put up their own money for most of the 44 billion. The remaining amount, 13 billion, was borrowed from a group of banks. That's the money Twitter is now on the hook for.

as you mentioned in above... $6.5 leveraged loans + $3 secured + $3 unsecured = $12.5 (around #13)

now these bonds are no one favorite so no one buying so they became hung deal (google this word for more details..)

banks has to bear that loss...which could lead to more layoffs..etc

8 hours ago, Thokkalee said:

The only issue I see is with the low revenue of Twitter which I guess will slowly increase eventually.. Twitter never had great earnings and it always underperformed compared to the other social media companies..

per day expenses is 4 million..

twitter is 16 years old, but it's not exactly mature and stable. It hasn't made an annual profit since 2019. And its revenues depend on online advertising, which, lately, has been pulling back. It's a volatile industry....its not worth of a company to go for leverage buyout...

i dont how banks didnt see it...in the first place...

8 hours ago, Thokkalee said:

I saw the video.. I still don’t get what the issue here is.. Musk is rich enough to sell his assets and clear the loans.. he can even shut down the company and write off the whole 50 billions.. and can still be fine.. businesses fail all the time.. 

economic climate has changed and many companies are cutting down costs and laying off people.. the only issue is that he is always in news and every step of his is watched and analyzed.. 

telling again....

musk or any other business man doesnt sell other business/wearth to fix other business...in leverage buy out...

you can completely remove that thought in your mind..i am saying it confidently...

kunti gurram meeda evadu bet veyyadu...do you sell other shares on proft and invest that amount to buy dip which are in lossess..?

 

intha cheppina...he will do miracles ante...nenemi cheppalenu...

[Thokkalee]

1 hour ago, dasari4kntr said:

bro..you only shared this link...

https://www.washingtonpost.com/business/elon-musks-twitter-deal-is-different-than-most-lbos-heres-how/2022/11/12/7c671b64-62b9-11ed-a131-e900e4a6336b_story.html

did you miss this part reading it...

2. What’s a leveraged buyout?

LBOs are acquisitions where debt plays a crucial role. The basic idea is to buy a company through a combination of equity and new debt. But the key is that the acquirer, most commonly a private equity firm, doesn’t borrow the money -- the target company does. LBOs limit the downside for the buyer: If things go wrong, the company goes bankrupt, not the buyer. LBOs also increase the buyers’ upside because they can acquire bigger companies than they otherwise could afford.

 

if company is going bankrupt, why would anyone sell his personal wealth and payoff debt.

you know what is "leverage buy out" other name "OPM" (other peoples money). 

 

DEBT means leverage loans + senior bonds (secured) + junior bonds (unsecured)

He (elon) and some co-investors (friends) put up their own money for most of the 44 billion. The remaining amount, 13 billion, was borrowed from a group of banks. That's the money Twitter is now on the hook for.

as you mentioned in above... $6.5 leveraged loans + $3 secured + $3 unsecured = $12.5 (around #13)

now these bonds are no one favorite so no one buying so they became hung deal (google this word for more details..)

banks has to bear that loss...which could lead to more layoffs..etc

per day expenses is 4 million..

twitter is 16 years old, but it's not exactly mature and stable. It hasn't made an annual profit since 2019. And its revenues depend on online advertising, which, lately, has been pulling back. It's a volatile industry....its not worth of a company to go for leverage buyout...

i dont how banks didnt see it...in the first place...

telling again....

musk or any other business man doesnt sell other business/wearth to fix other business...in leverage buy out...

you can completely remove that thought in your mind..i am saying it confidently...

kunti gurram meeda evadu bet veyyadu...do you sell other shares on proft and invest that amount to buy dip which are in lossess..?

 

intha cheppina...he will do miracles ante...nenemi cheppalenu...

Thanks bro.. I will read more about LBO’s to better understand it.. 

I don’t expect/hope Musk to do any miracles and turn around the company.. he made a very bad bet by buying Twitter (for a big premium) and he should have bought a better one that is worth his time.. I think he is putting off many people with the way he is trying to impress the right wing with his actions.. 

my only point was that he is rich enough to write off this whole amount and shut it down if it doesn’t work.. banks will lose the money too if that happens.. 

[Anta Assamey]

Mottam @csrcsr ee chesadu ... 

[VakeelSab]

12 hours ago, csrcsr said:

banks financial firms kuda modal petaru 2 % is not a lot though,

@csrcsr how is the work culture in morgan stanley. Work vuntunda free ga vunchutaraa

[csrcsr]

31 minutes ago, VakeelSab said:

@csrcsr how is the work culture in morgan stanley. Work vuntunda free ga vunchutaraa

idea ledu bro no friends

[pakeer_saab]

44 minutes ago, Thokkalee said:

Thanks bro.. I will read more about LBO’s to better understand it.. 

I don’t expect/hope Musk to do any miracles and turn around the company.. he made a very bad bet by buying Twitter (for a big premium) and he should have bought a better one that is worth his time.. I think he is putting off many people with the way he is trying to impress the right wing with his actions.. 

my only point was that he is rich enough to write off this whole amount and shut it down if it doesn’t work.. banks will lose the money too if that happens. 

a man with innovative spirit as Elon will always have plan B in every step they take, i think he may have Plan C and D E as well, that is what makes such folks to even see success in failures

he is trying to impress right wing as people who spend their time in left wing mainstream media

right wing is used in negative connotation as if calling someone right wing makes them appear as more intelligent

twitter has been extremely biased against narrative that don't align with leftist ideology, there has been no account suspensions of any leftist ideas or persons except conservative accounts both in US and India

suspending sitting president and spokesperson what something should have never been done

Elon is making it a true free speech platform. leftist suckers can go and cry at fake media

[mamami]

13 hours ago, csrcsr said:

banks financial firms kuda modal petaru 2 % is not a lot though,

Recession prioritized  or waiting in the backlog ?

[pakeer_saab]

42 minutes ago, VakeelSab said:

@csrcsr how is the work culture in morgan stanley. Work vuntunda free ga vunchutaraa

banks will get more unpredictable when the economic climate goes bad, they are most at risk during the later stages of recession than the initial stages

2008 crisis actually started in Dec 2007, banks started failing by September 2008

layoffs will be more on the tech side this time in initial stages and then get into construction, and banks later

 

 

[dasari4kntr]

24 minutes ago, pakeer_saab said:

a man with innovative spirit as Elon will always have plan B in every step they take, i think he may have Plan C and D E as well, that is what makes such folks to even see success in failures

he is trying to impress right wing as people who spend their time in left wing mainstream media

right wing is used in negative connotation as if calling someone right wing makes them appear as more intelligent

twitter has been extremely biased against narrative that don't align with leftist ideology, there has been no account suspensions of any leftist ideas or persons except conservative accounts both in US and India

suspending sitting president and spokesperson what something should have never been done

Elon is making it a true free speech platform. leftist suckers can go and cry at fake media

 

NPR podcast transcript...

 

TACK: Plan A was to - you know, Elon buys the business, and we offload the debt, and we all make a lot of money. That's Plan A.

WOODS: All right. So Plan A implies a Plan B, which, I think, is where we're heading.

WONG: Stay tuned.

WOODS: That was all back in April. And of course, Elon spent the next six months criticizing Twitter. He was threatening to back out of the deal. He was fighting the company in court. But, you know, he did go through with this buyout, and that kicked off the chaos that we're seeing in the last month with these mass layoffs and the fleeing advertisers. And just this week, Elon picked a fight with Apple. He was saying the company had mostly stopped advertising on Twitter.

WONG: Tim Cook, by the way, did not take the bait - not that I've seen so far. But this possible loss of advertising revenue from Apple and others could seriously hurt Twitter's ability to keep up with its debt payments. That's one part of Plan A that's looking kind of shaky.

WOODS: And as for the layoffs, well, cost cutting is typically pretty common in these kind of buyouts. In fact, investment firms have acquired this kind of nasty reputation for gutting companies when they take over, like laying off workers and selling off assets.

WONG: But Carl says firing half of the company's employees within the first couple of weeks, like Elon did at Twitter, that's not trimming fat; that's cutting into vital organs. So that's another part of Plan A gone sideways.

WOODS: Then there's the $13 billion in financing, which is now sitting on the books of these investment banks. Under Plan A, these loans would be sold off to other investors. But between when the banks committed the money and when Elon actually took over Twitter, financial markets took a turn for the worse. Investors got skittish. And now the banks can't find buyers for this debt. These banks are stuck with the loans on their books. And in corporate finance terms, this is known as a hung deal or a hung bridge.

TACK: Nobody wants the hung bridge. But the worst is not a hung bridge; it's a bridge to nowhere.

WONG: A bridge to nowhere because it's unclear whether Elon is now on Plan B, C, XYZ or if there's any plan at all for Twitter. The banks might not get all of their money back.

TACK: If Elon Musk came in and made some changes and the advertisers said, this is great, and users piled in and the market was just bad, well, that's a hung bridge. We're going to wait until the market clears up, but then, we're going to be able to sell it. The problem here is not just that the bond market is bad; it's that Elon Musk has torched the company.

WOODS: Despite this ongoing mayhem at Twitter, Carl says the company probably has a few years before it runs into any real trouble paying back the $13 billion. And if that happens, Twitter could try to refinance its debt.

WONG: Elon has already talked about bankruptcy. If that were to happen, the banks could go after Twitter's assets, not Elon's, because, remember, he's not the one who borrowed the money. Twitter did. He could, however, lose the 20-some billion dollars of his own money that he put into the deal.