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Bank of America CEO isn't nervous about investing in the Twitter agreement

Twitter investment isnt a concern for Bank of America CEO

November 2, 2022: The CEO of Bank of America, the financier of Elon Musk’s Twitter seizure, doesn’t appear nervous regarding the deal.

On Thursday, Musk became the owner of Twitter. One of the investors in the deal, Binance, said that the acquisition has stopped.

Following Musk’s announcement to purchase Twitter in April, he made sure of equity financing from an array of investors, including technology firms, and debt financing from several investment banks, such as the Bank of America.

But with the rout in technology stocks and investors cautious about risky assets, that debt could be hard is selling to investors, which meant the banks might have to secure the debt.

On Wednesday, the Wall Street Journal reported that the investment banks may hold onto the debt until the coming year before selling it. Credit analytics company 9fin estimates the banks could experience losses of $500 million if they sell the debt in the current environment.

On Friday, Bank of America CEO Brian Moynihan looked unfazed.

When asked if he would lose sleep regarding the deal, he added. “I’ve got experts that handle the clients, and I won’t sacrifice the sleep on them. I lose sleep for many of the different things, but not for that,” he further said.

The Wall Street Journal says the banks say to finance the deal have begun releasing the funds into an escrow account. When the acquisition closes, Musk will manage the funds to finance the deal.

No official confirmed that the deal has been completed yet, but Musk says it is closed, tweeting, “the bird is freed,” which refers to Twitter’s blue bird logo.

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