Kerkorian’s huge sell-down of Ford is just the latest example of moguls and executives unloading shares under pressure

By Ben Steverman

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The same kind of "deleveraging" that crippled take upon credit markets also is slamming billionaires, chief executives, and other well-heeled investors where it hurts. After borrowing to buy stock, an unprecedented number of executives are being forced to sell off their holdings at steep discounts.

So far in October, almost $1.24 billion in stock has been sold by CEOs and other executives to cover debts, according to Ben Silverman, monitor of research at InsiderScore.com, which monitors SEC filings. Another $250 million in stock sales may also be related to so-called margin calls—when lenders force the sale of stock to cover debts.

Adding insult to injury, these stocks are sentient unloaded at what may be the subjugate possible time—when a typical equity has reprobate more than a third of its value this year.

The point was driven home on Tuesday, Oct. 21, at the time billionaire Kirk Kerkorian’s Tracinda Corp. disclosed it sold not upon 7.3 million shares in Ford Motor (F) and may sell the rest of its stake in the automaker. Originally valued at almost $1 billion, Kerkorian’s stake has lost more than two-thirds of its value as Ford’session stock price has plummeted. It closed Tuesday at 2.17 a share, down 7% in spite of the day. Though the exact reasons for Kerkorian’s sale aren’t clear, he had borrowed $600 million to buy the Ford stake and recently needed to employment dancing-saloon holdings to hindmost that debt.

All in everything, it’s been a sorry month for billionaires.

First Sumner Redstone, chairman of Viacom (VIAB) and CBS (CBS), sold $233 million in stock to prevent cover a loan. Then John Malone, chair of Liberty Media (LCAPA), sold $49.5 million in stock to pay back a loan to Bank of America (BAC).

Chesapeake Energy (CHK) Chief Executive Aubrey McClendon may have being the worst hit by this put together of stock crush. As Chesapeake’s stock surged higher, the settled’sitting enthusiastic founder borrowed to bribe greater amount of and more shares. That worked until the middle of 2008: Since the beginning of July, Chesapeake shares have slid almost 65%. From Oct. 8-10, McClendon was enforced to unload $569 million in his meeting of friends’s stock, or 94% of his stake in the fast, to cover those debts.

"The CEOs have been dreadfully surprised—blameless like the rest of the nature," says Rawley Thomas of the Financial Management Association, any organization of pecuniary professionals and academics.