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This was covered in WeCrashed (and not sure how entirely accurate it is) but JP Morgan gave him a huge line of credit with his shares as collateral.
by twostorytower 4y ago
This was covered in WeCrashed (and not sure how entirely accurate it is) but JP Morgan gave him a huge line of credit with his shares as collateral.
- LASR 4y agoSo he didn't cash out. Didn't pay cap-gains on those. Yet, generated cashflow from the shares. As a common person, I've been looking into this myself with my RSUs and option grants. But there aren't credit lines that banks offer using equity as collateral for the common person. I guess when your net worth is high-enough, you can pull anything off with the banks.
- digitaltrees 4y agoYes. Ultra high net worth individuals actually have separate banks within the banks. They will have a private banker for their accounts. And the private bank often has a separate balance sheet and policies.
- bombcar 4y agoYou have to be big enough that a bank will take time to work it out by hand; and I suspect the bank that gave him the loans was also prime on doing business with WeWork (and potentially an IPO). The closest "normal" people can get to this is with real estate.
- mtwshngtn 4y agoCharles Schwab Pledged Asset Line [0]? equities as collateral, gain a line of credit. Fidelity Fully Paid Lending Program [1]? not quite what you're looking for, but still generate cashflow from owned equities. [0]: https://www.schwab.com/pledged-asset-line https://www.schwab.com/pledged-asset-line [1]: https://www.fidelity.com/trading/fully-paid-lending https://www.fidelity.com/trading/fully-paid-lending Disclaimer: i am not a fiduciary, nor a financial professional. this is not financial advice.