Re:Bill Hwang of Archegos Capital lost $20B in two days
by nradov on Wednesday May 12, 2021 @02:45PM
(#27133720)
It's not that simple. Banks have tighter lending standards for LLCs. It's not like any random person can form an LLC, borrow money from a bank or brokerage, YOLO it in the stock market, and walk away if the bet goes bad. In reality the lender will usually demand significant collateral and/or require the LLC owner to accept personal liability. LLCs have their uses but they aren't financial magic.
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