JPMorgan, the lead banker in The We Company ’s IPO, will reportedly share $122m in fees with other banks. The firm also led a deal to extend a $6bn debt package to WeWork and extended loans worth more than $40m to Adam Neumann personally. Chairman and CEO Jamie Dimon was formerly co-CEO of Salomon Smith Barney, a role he held when that bank began a relationship with WorldCom’s Bernie Ebbers. A relationship that cost Salomon Smith Barney’s parent Citigroup billions of dollars to settle a legal case and saw Ebbers sentenced to a 25-year prison term, according to Wall Street on Parade. The news site draws parallels between WorldCom and WeWork suggesting Salomon Smith Barney had a conflict of interest when bringing WorldCom to market and that perhaps JPMorgan’s involvement could be seen as an attempt by its former boss to profit from his own downfall.
JPMorgan, the lead banker in The We Company’s IPO, will reportedly share $122m in fees with other banks. The firm also led a deal to extend a $6bn debt package to WeWork and extended loans worth more than $40m to Adam Neumann personally. Chairman and CEO Jamie Dimon was formerly co-CEO of Salomon Smith Barney, a role he held when that bank began a relationship with WorldCom’s Bernie Ebbers. A relationship that cost Salomon Smith Barney’s parent Citigroup billions of dollars to settle a legal case and saw Ebbers sentenced to a 25-year prison term, according to Wall Street on Parade. The news site draws parallels between WorldCom and WeWork suggesting Salomon Smith Barney had a conflict of interest when bringing WorldCom to market and that perhaps JPMorgan’s relationship with The We Company could be similarly conflicted.