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Bank trying to get back the $16 million Marbury owes them

Aug 1, 2011, 8:43 AM EST

marbury_china

New continent, new problems for Stephon Marbury. Well, maybe not new problems. So instead let’s go with “Big Trouble in Little China”

We learn via Deadspin that Wachovia would really like back the $16 million it loaned Marbury’s apparel company a few years ago. And they’d like it now. If the company can’t pay it, they want it from Marbury.

Essentially, Marbury guaranteed a $16-million loan to Starbury, the company. Starbury the company hasn’t paid the loan back, so now Starbury the former Knicks point guard has to. The collateral he put up for the loan only covered a small part of the judgment against him.

That collateral was foreclosed property, according to a lawsuit filed by Wachovia.

Marbury was let go by his first team in China and landed with a second last season, and he remained one of the biggest stars in the Chinese league. He has raved about the business possibilities in China. But are they $16 million possibilities? Marbury better be hoping so. Unless he wants to pay it out of the $151 million he made while in the NBA.

  1. florida727 - Aug 1, 2011 at 1:53 PM

    Let me see if I read this right. The bank accepted his collateral to secure the loan. Doing all of their due diligence of course, they (the bank I mean) verified the worthiness of the collateral, in this case ‘property’. Now that it becomes clear that the property used for said collateral is foreclosed, they want Marbury to personally foot the bill? Good luck with that. Yeah, let’s place the blame on the person the money was loaned to instead of actually holding the bank accountable for their failure to make a proper loan. Of course, it is their business. Why should we expect them to actually do it properly?

  2. pinhead2 - Aug 1, 2011 at 6:32 PM

    Really? It’s the bank’s fault? That’s what you’re going with?

    The bank loans on what at the time are viable properties, and they get a personal guarantee. The properties go into foreclosure (hmmm, wonder how that happened) and the bank then turns to the personal guarantee to collect the remaining balance. And in your mind the bank is wrong to do so.

    Why yes, let’s DO place the blame on the person the money was loaned to instead of blaming the bank for making a loan in the first place. I think I know why you find it difficult to obtain a “proper” loan for yourself.

    What if we took that attitude toward all the TARP loans???? You’re quite the financial visionary.

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