Morgan Stanley CEO James Gorman defends Elon Musk amid layoffs and chaos at Twitter - and says he's not concerned about the bank's massive loan to the Tesla exec
Morgan Stanley's chief executive James Gorman defended Elon Musk in an interview Thursday, about a month into the Tesla exec's tenure as CEO of the social media firm.
Morgan Stanley was the lead bank on the massive $12.5 billion debt financing to facilitate Musk's takeover of Twitter, which closed at the end of October. But as equity and debt markets weather intense volatility, many of the traditional buyers of risky debt have pulled back. According to reports in early October, the banks backing Musk's takeover were already facing steep losses as they struggled to offload the debt to other investors.
"Regarding Twitter's reduction in force, unfortunately there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required," MuskGorman is not concerned about about the bank's loan to Musk, however. Musk's experience running successful and"innovative" companies across electric vehicle, space exploration, and infrastructure industries speaks for itself.
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