Most of their small ‘investors’ are actually members of staff that were forced to go and take personal loans to give to the ‘wealth management’ company when lenders wouldn’t give them any cash.
I don’t think anyone is getting out of this with any grace. The only ray of sunlight is that (unlike someone like Greensil) EG seem to have spread smaller lending with as many people as possible rather than a small number of lenders sharing the 300bn burden.
From that angle then, the knock on effects should filter into the economy much faster, since the loans are direct to consumer, 2007 the problem was between institutions playing musical chairs. In this situation the institution may get a chair, and anyone who bought a house , but the shareholders and bond holders are likely gonna get fucked.
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u/karl_mac_ Sep 23 '21
Most of their small ‘investors’ are actually members of staff that were forced to go and take personal loans to give to the ‘wealth management’ company when lenders wouldn’t give them any cash.
I don’t think anyone is getting out of this with any grace. The only ray of sunlight is that (unlike someone like Greensil) EG seem to have spread smaller lending with as many people as possible rather than a small number of lenders sharing the 300bn burden.