More European Unforeseen Consequences?
For 3 years, (since the 2008 crisis) banks have been acquiring equity stakes in British companies.
That is grinding to a halt.
Banks will be cutting losses in order to get their money out – especially from weak companies, resulting in more businesses going into administration.
Maturing Private Equity Loans will be a major problem for both British and Euro economies.
There are nearly £300 billion Euros in Private Equity Loans.
How much of that will the banks go after?
……..and is it yet another example of the Law of Unforeseen Consequences?