Jim’s Daily Rant. Why Is BlackRock In Bankruptcy?
It has been reported that Blackrock has filed bankruptcy for reorganization. Why?
They are one of the world’s largest corporations, we are told. Why in reorganization?
I haven’t reported much on this story because large corporations sometimes file for reorganization to prevent future problems; they get to renegotiate contracts outside of lawsuits.
Today Bix weir in his podcast said “Blackrock is getting killed in its silver contracts.” Is this one of the reasons for the bankruptcy? Recall that bankruptcy prevents all creditors from filing future lawsuits against the bankrupt party. I will bet there are tons of derivatives involved they don’t want to pay out as well.
Are owners' of paper silver about to get screwed?
P.S. That has always been the problem with paper ETFs and derivatives, you never know who you are betting against because the contracts are sold over and over to new parties.