SandRidge Energy Inc (SD)

[Imagineer66]

Think of Wells Fargo as a bad purchaser instead.

until this last line wherein you blew it.
Since when is it thievery for lenders to repossess something the borrower couldn't pay for?

I have no issue with the bondholders or even most of the creditors.

My issue is with Wells Fargo when they promised to buy the oil at $82 and reneged on that promise. I've looked at several of these BK. I got into this game because I did my DD in researching the companies' hedge positions. I bought these stocks long because if they were able to exercises those hedges, they would have been very solvent and profitable. My mistake was thinking that those hedges would be valid. What's hidden deep in the details of these BKs is that those hedges are canceled. This is why WF wanted these BKs.

It's one thing for a loan to go bad for a bank. In the fractional banking world, a bad loan isn't that bad and may be a good thing with the proper accounting, etc. Having to actually honor one's derivatives, that is an entirely different matter. This would have been a real purchase of real goods with real money. That hits a bank's RESERVE. Because of fractional banking a reserve loss costs about 10 times as much. The only way I know of to cancel these contracts is through BK, which can nullify ANY contract. WF didn't want to buy the oil (honor the contract) and forced many of these companies into BK to nullify those contract.

You say, "Pay your bills.". I say, "Honor your contracts."