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A comment on Wirecard CEO exits as search for missing billions hits dead end in Asia. Parent comment

Re:Wirecard CEO exits as search for missing billions hits de... by mschuster91 on Friday June 19, 2020 @09:39AM (#23574408)
> 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-persona...

And Deutsche Bank is a big player in this kind of business, remember their involvement with Trump?

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Re:Wirecard CEO exits as search for missing billions hits de... by weego on Friday June 19, 2020 @03:47PM (#23578215)
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.
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Re:Wirecard CEO exits as search for missing billions hits de... by murph-almighty on Friday June 19, 2020 @10:45AM (#23575023)
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)?
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Re:Wirecard CEO exits as search for missing billions hits de... by throwaway98797 on Friday June 19, 2020 @11:04AM (#23575202)
Depends on advance rate. Loaning 20% of the value of the collateral seems pretty safe on average.
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