WeWork’s Once Robust Cash Reserves Have Dwindled, Raising Chances of Default

Re:WeWork’s Once Robust Cash Reserves Have Dwindled, Raising... by LASR on Friday December 16, 2022 @03:12PM (#34019670)

So 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.

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Re:WeWork’s Once Robust Cash Reserves Have Dwindled, Raising... by digitaltrees on Friday December 16, 2022 @03:50PM (#34020172)

Yes. 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.

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Re:WeWork’s Once Robust Cash Reserves Have Dwindled, Raising... by bombcar on Friday December 16, 2022 @03:53PM (#34020221)

You 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.

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Re:WeWork’s Once Robust Cash Reserves Have Dwindled, Raising... by mtwshngtn on Friday December 16, 2022 @04:02PM (#34020332)

Charles 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 [1]: https://www.fidelity.com/trading/fully-paid-lending

Disclaimer: i am not a fiduciary, nor a financial professional. this is not financial advice.

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