It’s a $14 billion loan. That sounds like a lot, but it isn’t. At least for a bank with $1.2 trillion in commercial loans, $14 billion isn’t a lot. And keep in mind that its split up at least three ways. So ~3 to 5 billion per bank going bad wouldnt be a sign of the financial apocalypse.So how can I Big Short the banks on Twitter and get rich?
Don’t get me wrong, these big banks have to be pretty pissed off to be stuck with this crap, but the real cost of the twitter debacle is being associated with this calamity (i.e. reputational risk) and not an actual financial loss.