It shows they don't vet their CEOs very well.

Or they were aware, and they conclude that someone's behavior as a homeless 17 year old has little if any bearing on their aptitude in running a company 30 years later.

"But although the cliche says that power always corrupts, what is seldom said ... is that power always reveals. When a man is climbing, trying to persuade others to give him power, concealment is necessary. ... But as a man obtains more power, camouflage becomes less necessary.”

You expect them to go through 30-year old records on their creditors? Have you ever gotten a loan that required interviews with the people you went to high-school with?!?!

I mean, you're not getting millions of dollars of funding. Also, people get rejected from 100k house loans for much less than this...

Yes. And for routine security clearances, people I went to school with are certainly interviewed or at least scrutinized.

If a company's investing 100m in a company where directors likely need security clearances etc (I mean, I don't know if they do, but given the industry I would assume so), then, er, yeah, I'd expect a pretty thorough background check.

...and they probably do do a background check - one that he would have PASSED.

Well it was obvious after WeWork.