Jul 8, 2019

WeWork seeks credit line of $3B-$4B

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Behind the WeWork founder's $700M "cash out"

WeWork co-founder and CEO Adam Neumann, speaking earlier this year in L.A. Photo by Michael Kovac/Getty Images for WeWork.

WeWork co-founder and CEO Adam Neumann is under scrutiny based on a Wall Street Journal report that he's "cashed out more than $700 million from the company ahead of its IPO through a mix of stock sales and debt."

Behind the scenes: A source tells Axios that around $300 million was in the form of stock sales, most recently via an October 2017 tender offer from WeWork investor SoftBank. The remainder was loans.

BreakdownArrowJul 19, 2019

House votes to suspend debt ceiling through 2021

Illustration: Aïda Amer/Axios

The House voted 284-149 on Thursday to pass a budget that suspends the debt ceiling through 2021 — allowing the government to borrow money for 2 more years — and raises spending caps by about $320 billion.

The big picture: The federal debt exceeded $22 trillion in February and the Congressional Budget Office projects it to reach "unprecedented levels" over the next 30 years if current laws go unchanged. The federal deficit has grown 23% this fiscal year. Thursday's deal passes the buck on the next federal debt showdown until after the 2020 elections.

Go deeperArrowJul 25, 2019

The global debt binge begins anew

Reproduced from Institute of International Finance; Chart: Axios Visuals

The world's debt rose by $3 trillion in the first quarter of 2019 — an almost unprecedented borrowing binge that brought total global debt to $246.5 trillion.

Why it matters: High levels of debt put countries in a vulnerable position in the event of a downturn and could endanger the world's economic recovery, said economists from the Institute of International Finance, which released the study today.

Go deeperArrowJul 15, 2019