Did the Banks due do diligence to make sure Valeant can pay its debts? Doesn't this look a lot like the housing bubble where banks gave out large sums of money with little down to people who could not pay?
If I could buy all the businesses in a small town with nothing but bank loans without any collateral and then bulldoze the town buildings and build a big superstore that is much more efficient but lays-off half of the work force of the town, is this OK?
It is only OK if the big superstore is not in debt up to its nose and has a chance of paying back its loan. If it goes bankrupt we all lost a nice small town for a large box of a store that has to be gutted to pay off its debt in a bankruptcy sale.
Is Valeant the next Wallmart of the pharmaceutical industry? There are a lot of Mom and Pop departments at B+L that prefer not to have to put on a blue apron and with a sign on it How may I help you? Are the banks really taking the risk here on a company that could work or are they just playing the system to screw the little guy and the government on another bad loan? Worth thinking about? Perhaps it is time to pass a national law against poor bets by banks with taxpayer money?
If I could buy all the businesses in a small town with nothing but bank loans without any collateral and then bulldoze the town buildings and build a big superstore that is much more efficient but lays-off half of the work force of the town, is this OK?
It is only OK if the big superstore is not in debt up to its nose and has a chance of paying back its loan. If it goes bankrupt we all lost a nice small town for a large box of a store that has to be gutted to pay off its debt in a bankruptcy sale.
Is Valeant the next Wallmart of the pharmaceutical industry? There are a lot of Mom and Pop departments at B+L that prefer not to have to put on a blue apron and with a sign on it How may I help you? Are the banks really taking the risk here on a company that could work or are they just playing the system to screw the little guy and the government on another bad loan? Worth thinking about? Perhaps it is time to pass a national law against poor bets by banks with taxpayer money?