Buying a bank?
I just saw the guy asking if it's illegal to short a bank and withdraw their cash, so I'm wondering something along the same lines:
If, hypothetically, I take a loan from a bank (a big loan) and then I buy the bank, to whom do I owe money? Wouldn't I be better off than before as mywill be the same but I would also own a bank?
Correct me if I may be wrong, but I could even pardon my loan and interests and owe nothing to the bank (it will be a loan to a shreholder) leaving me literally with the same net worth as before AND A BANK?
I'm sure there are some fallacies and financial weaknesses in my argument, but no matter how hard I try it, I can't see find any besides the fact that I may be limited to borrow only 60-80%, but for the sake of the discussion, assume 100%).
Moreover, to stretch it further, could a PE fund go to a bank and say: I want to buy you and I want you to finance 80% of myof your loans, and you will also be the collateral, in other words, the same bank that lends you is the COLLATERAL). This may be an right?
What the theory and practice has to say about this? Couldn't really find such discussions in books.