I disagree with htran when he/she writes: "there is no reason for the bank to keep this BNB beast alive". This is completely wrong and is one of the reasons that the banks are keeping BNB alive. Most of BNBs income comes from management fees associated with it's satellite funds, many of which have unbreakable management contracts. However, I understand that if the plug is pulled on BNB then these unbreakable management contracts will be broken or can be broken by the satellites. This means that once the plug is pulled, the value of BNB will drop significantly. It is not in anyones interests to pull the plug, this will simply result in greater losses for the banks, note holders and share holders. Whether or not the BNB management were aware of it or not, the structure they have built within BNB and its satellites was genius for survival.
BNB Price at posting:
18.0¢ Sentiment: None Disclosure: Held
