Musk's purchase of X in 2022 for $44 billion has presented significant challenges for the banks involved.

These banks now carry the debt associated with the acquisition, which they typically sell to investors shortly after the deal is closed.

However, in this case, they have been unable to do so, which increases the risk of default.

The situation has been made worse by Musk's extensive changes to the platform, including laying off a significant number of content moderation staff.

These actions, along with a controversial post from Musk, have discouraged advertisers and resulted in a decline in revenue.

As a result, the value of the debt has decreased, causing concerns among financial institutions about the sustainability of their investment in X.