WeWork Business Model Is Systemic Risk To Economy, Fed's Rosengren Warns

Zero Hedge | 9/21/2019 | Staff
madalina09madalina09 (Posted by) Level 4
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Mr. Rosengren noted the risks posed by commercial real estate, which have long been a concern of his, as a possible vector to amplify trouble.

Without naming any firms, Mr. Rosengren noted the particular concerns posed by co-working companies. He made this comment as the parent of office-sharing firm WeWork postponed its initial public offering amid investor doubts about its valuation and concerns about its corporate governance.

Firms - Risks - Economy - Trouble - Landlords

Office-sharing firms are particularly exposed to risks should the economy run into trouble, and could wound landlords in the process, Mr. Rosengren said.

"In a downturn the co-working company would be exposed to the loss of tenant income, which puts both them and the property owner at risk if they cannot make...
(Excerpt) Read more at: Zero Hedge
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