One Massive Mistake
Did HOOPP save the day or toss cash into a black hole?
Home Capital Group has been in the news lately, mostly due to its stock crashing over 60% in one day. I guess that sort of thing will get you in the news. The cause of the crash? HCG announced that it had secured a $2 billion loan with terms that would make the most predatory loan shark blush.
Home Capital said the credit line is intended to “mitigate” a sharp drop in Home Trust’s high-interest savings account balances, which sank by $591 million from March 28 to April 24, at which point the total balance was $1.4 billion. Home Capital warned on Wednesday that further outflows are anticipated.
