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Source: Global Market Report

Musk's $44 billion acquisition of Twitter in 2022 reportedly leaves Bank of America, Morgan Stanley and several other large banks with about $13 billion in outstanding liabilities, making it the worst deal experienced by the seven major financial institutions that financed the transaction since the global financial crisis.

The deal has now accumulated about $13 billion in so-called “overhang debt,” or loans owed to banks that have not yet been sold, in part because the value of the underlying assets has fallen sharply due to weak performance.

It’s the largest pending deal since the market turmoil that followed the collapse of Lehman Brothers about 16 years ago and one of the largest pending deals ever, according to Pitchbook data.

The loans have also remained on bank balance sheets longer than any other outstanding loan since the 2008-09 financial crisis, at about 20 months and counting. By comparison, most of the troubled loans after the financial crisis were sold within about a year.