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Also last year Deutsche Bank gave the CEO a €150 million personal loan using his Wirecard stock as collateral. This isn't a case of a few errors and lack of a

by weego 6y ago

Also last year Deutsche Bank gave the CEO a €150 million personal loan using his Wirecard stock as collateral. This isn't a case of a few errors and lack of a little due diligence.

jansan 6y ago
Just for the record, Deutsche Bank is a private company with the majority of stocks owned by non-German investors. It is not to be confused with the Bundesbank, which is something like the German FED.
- mancini0 6y ago
  it's a public company, its shares are tradeable on exchanges
  - fermigier 6y ago
    "Private" and "public" companies don't have the same meaning in our side of the Pond. In France, "public" = "state-owned" and "private" = "not public".
- hef19898 6y ago
  Oh, wasn't aware of that. Not that I'm surprised that is Deutsche Bank. They have a long track record of shady dealings reaching back to, as far as I remember, the 90s.
  - netsharc 6y ago
    "Bank of America", anyone? (Just talking how that name could also be misunderstood, I have no idea if they're scumbags or not).
mschuster91 6y ago
> Also last year Deutsche Bank gave the CEO a €150 million personal loan using his Wirecard stock as collateral. That kind of stuff is pretty common though, Elon Musk has about 15 billion dollars, 100x that amount (!), of his Tesla stocks posted as collateral for personal loans: https://www.theverge.com/2020/5/8/21252487/elon-musk-personal-finances-billionaire-wall-street-journal-go-read-this https://www.theverge.com/2020/5/8/21252487/elon-musk-persona... And Deutsche Bank is a big player in this kind of business, remember their involvement with Trump?
- murph-almighty 6y ago
  Honestly why do banks accept this collateral when underwriting a loan? Stocks are known to be volatile, aren't there more stable assets you should collateralize (e.g. inventory, real estate)?
  - throwaway98797 6y ago
    Depends on advance rate. Loaning 20% of the value of the collateral seems pretty safe on average.
- weego 6y ago
  It's common, but the problems at Wirecard have been public for a long time and will be even more well known in the industry so you would imagine that due diligence would have questioned the potential value of his collateral against such a loan.

by weego 6y ago

Also last year Deutsche Bank gave the CEO a €150 million personal loan using his Wirecard stock as collateral. This isn't a case of a few errors and lack of a little due diligence.

jansan 6y ago

Just for the record, Deutsche Bank is a private company with the majority of stocks owned by non-German investors. It is not to be confused with the Bundesbank, which is something like the German FED.

mancini0 6y ago
it's a public company, its shares are tradeable on exchanges
- fermigier 6y ago
  "Private" and "public" companies don't have the same meaning in our side of the Pond. In France, "public" = "state-owned" and "private" = "not public".
hef19898 6y ago
Oh, wasn't aware of that. Not that I'm surprised that is Deutsche Bank. They have a long track record of shady dealings reaching back to, as far as I remember, the 90s.
- netsharc 6y ago
  "Bank of America", anyone? (Just talking how that name could also be misunderstood, I have no idea if they're scumbags or not).

mschuster91 6y ago

> Also last year Deutsche Bank gave the CEO a €150 million personal loan using his Wirecard stock as collateral. That kind of stuff is pretty common though, Elon Musk has about 15 billion dollars, 100x that amount (!), of his Tesla stocks posted as collateral for personal loans: https://www.theverge.com/2020/5/8/21252487/elon-musk-personal-finances-billionaire-wall-street-journal-go-read-this https://www.theverge.com/2020/5/8/21252487/elon-musk-persona... And Deutsche Bank is a big player in this kind of business, remember their involvement with Trump?

murph-almighty 6y ago
Honestly why do banks accept this collateral when underwriting a loan? Stocks are known to be volatile, aren't there more stable assets you should collateralize (e.g. inventory, real estate)?
- throwaway98797 6y ago
  Depends on advance rate. Loaning 20% of the value of the collateral seems pretty safe on average.
weego 6y ago
It's common, but the problems at Wirecard have been public for a long time and will be even more well known in the industry so you would imagine that due diligence would have questioned the potential value of his collateral against such a loan.