ROYAL BANK OF SCOTLAND VENTURE CAPITALISM
You have two cows.
You sell three of them to your publicly listed company, using letters of
credit opened by your brother-in-law at the bank, then execute a
debt/equity swap with an associated general offer so that you get all
four cows back, with a tax exemption for five cows.
The milk rights of the six cows are transferred via an intermediary to a
Cayman Island Company secretly owned by the majority shareholder who
sells the rights to all seven cows back to your listed company.
The annual report says the company owns eight cows, with an option on
You sell one cow to buy a new president of the United States, leaving
you with nine cows.
No balance sheet provided with the release.
The public then buys your bull.
When the going gets weird, the weird turn pro. - Hunter S. Thompson
24 April 2009
Economic systems explained on the "you have two cows" model
An update to a very old joke: