It starts from that basic premise and builds from there, and I love that format, and I love that ambition for writing about complicated topics. Because Bitcoin is such a recent invention, its possible to start with the whitepaper and build from there to the major crypto shenanigans you see today. There are web pages / articles I still read - I'll check out things by Derek Sivers, Patrick McKenzie/Bits About Money, Money Stuff by Matt Levine, all by local HN recommendations. Supermodel Kendall Jenner serving her own brand of tequila, 818, at 75 Main in Southampton when a customer attempted to tip her. The whole extended . Sabrina is also the solo Editor, Publisher and Founder of, Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002, Searchable Database Over 45,000 Postings. Also a Twitter markdown and a SPAC CFO YOLOs GME. Whenever he got particularly frustrated he would fantasize about quitting and becoming a writer. The documents didnt indicate that the transactions were pre-planned. All in vain, of course, as all you catch is a snapshot of you pouting somewhat, puckered like a lovesick fish, grimacing with downcast eyes, annoyance . (It is also, at least sometimes, illegal.) Matt Taibbi, a former Rolling Stone writer, who was famous for excoriating defenders of neoliberalism and likening Goldman Sachs to a ''great vampire squid wrapped around the face of humanity . Within hours, he was forced to reconsider. Bankman-Frieds fortune basically vanished, as did his emperor aura. Venture capital investors in FTX which last raised money at a $32 billion valuation are probably getting zeroed, the price of FTT collapsed, and now regulators are investigating. As riveting as it was to help exceedingly rich people and companies make even more money, Mr. Levine was not happy. Googles cloud computing unit on Thursday made sweeping changes to its leadership, including replacing its top U.S. Three years ago, as Microsoft sought to overtake Amazon and Google in cloud computing and artificial intelligence, the company made a major move. And a surprising subset of them will email me. Once I did a client call with him, Mr. Levine said. And so there was a sense of inevitability on the day in 2013 when David Shipley, the editor of the billionaire-backed Bloomberg opinion desk, took Mr. Levine to lunch and offered him a job. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen . WhatsApp, everyone pay $200 million. Okay. FTT is a bet on FTXs future profits. His work is some of the most sophisticated analysis of what is really happening on Wall Street, said Bill Ackman, another billionaire fund manager. Google Clouds Top U.S. Are all those debts coming due? 6. He clerked for a federal appeals court judge, and put in time as a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz. Each weekday, Mr. Levine, 42, wakes up at 5 in the morning. You have to pay Customer B out of your own capital, and you dont get it back from Customer A. Youve just lost money. October 7th, . And they both pay you interest. Not for dummies. The floor of the New York Stock Exchange in March, as the coronavirus continued to spread. To contact the editor responsible for this story: I'm also on Twitter and LinkedIn. You have loaned 50 of the Customer As Bitcoins to the Customer Bs, and $1 million of the Customer Bs dollars to the Customer As. Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. That is, the problem is not a timing mismatch, in which FTXs customers asked for their cash back but FTX did not have enough ready cash because it had long-term but money-good loans out. matt levine is a columnist for Bloomberg News covering finance and business. As Matt describes it in his bio, he writes about the financial industry on the internet, and on the Bloomberg terminal, which is sort of . Please Click the Donate button and support BeSpacific. The approximately 150,000 people who subscribe to Money Stuff, a free newsletter written by Matt Levine, a columnist at Bloomberg, found an email in their inboxes with the subject line "There . . He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz, and a clerk for the U.S. Court of Appeals for the 3rd Circuit. If all of the banks customers do this every day, then the bank makes plenty of money to pay for real estate and tellers and vaults and executive bonuses, without doing anything else with your money. My life has not been ruined by having to write about Elon Musk on Saturdays, the former mergers and acquisitions lawyer told me. When I was an investment banker, one thing that I did was pitch convertible bond offerings to companies. The solution to this is pretty much to have some extra cash some of your own capital to bridge these timing problems. Dont go put all your money in Coinbase because I said so or anything! S&P. When I was an investment banker, one thing that I did was pitch convertible bond offerings to companies. But sometimes market moves are catastrophic, and in particular, sometimes securities broker-dealers and crypto exchanges will have run on the bank risks. Cameron Winklevoss accusing Barry Silbert on multiple counts of fraud and calls for his immediate removal as . Binance is unlikely to follow through on its takeover of FTX, according to the person familiar, who wasnt authorized to publicly discuss the matter. Above the Laws sister blog Dealbreaker, focusing on Wall Street gossip was hiring. Cheating will always be a gut-wrenchingly awful thing to do. Levine insists the interruptions werent a big deal. You might just say no, thats dumb, Bitcoin is volatile, buying $10,000 of Bitcoin is plenty of excitement. (In fact Coinbase shut down margin trading in 2020.) Money and stuff. When FTX.com, one of the largest crypto exchanges, was instantaneously vaporized yesterday, Coinbase put out a statement, the gist of which was dont worry, we are not going to be instantaneously vaporized. The part that I want to focus on is this paragraph: There cant be a run on the bank at Coinbase. It seems somewhat unlikely. One classmate, the journalist Elie Mystal, had a lot to say about Mr. Levine as an undergraduate that he was the valedictorian of their class; that he partied, too; that he once suggested applying Etruscan decision-making processes to the question of what to do next during a late night out but he placed a special emphasis on the footnotes. JPMorgan Says Frank Was Fraud. So whereas the basic model of Coinbase is they buy Bitcoin for you and put it in an envelope, the basic model of FTX has to be they lend you money to buy crypto and then make use of your crypto to get the money. In financial terms, they have to rehypothecate your collateral; you cant expect them to just keep it in an envelope if theyre lending you the money to buy it. Having closed the deal for Twitter and spent a few days wreaking havoc, Musk has gotten bored and moved on to some other expensive hobby, which we will hear about in due time. Mr. Levine says the book may have changed his life. We use cookies for a number of reasons, such as keeping The Information reliable and secure, personalizing content and ads, providing social media features and to analyze how our sites are used. Tiger Global Slashes Value of Private Tech Bets by Billions, Documents Show. Mr. Levines favorite subjects include insider trading statutes, bond-market liquidity and the ubiquity of securities fraud, but his columns are never boring. If Mr. Levines column requires the use of a technical term, it is typically accompanied by not just a definition but a full-throated explanation, with practical examples, of how it works. Could you just lend me $10,000, secured by my $20,000 of Bitcoin? It begins with an escalator. Play in New Window. The show's format pits 3 contestants against . Twitter Manager: Daily Revenue Has Dropped 40%, 500 Top Advertisers Have LeftRead Now. Searchable database of over 45,000 postings! He was of the place, and he found its workings genuinely interesting. I mean, theres a little bit of differentiation, but not too much. It might be a reason for the price of FTT to go down, if you think that Alameda has too much of it and might need to sell it. Remarkably, Mr. Levines piece was written more than an hour before the market went haywire. Never miss an update. He fetched his copy of The Histories and read it to me.). Apple announces updated 14-inch and 16-inch MacBook Pros with M2 Pro or M2 Max, Wi-Fi 6E, 8K HDMI, up to 96GB of RAM, and more, starting at $1,999 and $2,499 Apple today announced the next-generation 14-inch and 16-inch MacBook Pro models with faster 5nm-based M2 Pro and M2 Max chips But that was kind of fun! The business model of real-estate companies is pretty much, you borrow a lot of money, you use it to buy buildings, and you rent out space in the buildings to tenants. Opposition shadows Cerberus windfall from Albertsons supermarket deal. National Park Service Asks Visitors to Please Stop Licking Toads. On April 20, something occurred that was unprecedented in the history of financial markets: The price of oil went negative. Levine was also a law clerk for the U.S. Court of Appeals for the 3rd Circuit. Subscribe to get full access to the newsletter and website. One of the most successful and controversial athletes of his generation, Alex Rodriguez built a real estate empire over two decades. Customer B owes them to you ultimately youre good for it but you dont have them now. How Is That a Good Thing? But like they say, . It is concerned with western North American region mysteries, but the conference itself travels worldwide, having been held in Canada and the United Kingdom, as well as different parts of the United States. Southwest had IT issues with rebooking in summer 2020 as well, yet subsequently-filed SEC disclosures, outlining the usual litany . Eventually youll get the rest of the Bitcoin back from Customer B, but for now you just pay Customer A out of your own Bitcoin stash. Matt Levine is a finance columnist for Bloomberg Opinion . Matt Levine would like you to know that Elon Musk does not actually ruin all of his vacations. So the more people who sign up for Robinhoods service, and the more they trade, and the more volatile the stocks that they trade are, the more money Robinhood makes. Now, he's accelerating his move from player to team owner. He is doing exactly what he has long wanted to do. Matt Levine is a columnist for Bloomberg News covering finance and business. Then it sticks the envelope in a vault, and if at any point you ask for your money back, it opens the vault and hands you your envelope. He began his post-collegiate career as a Latin teacher, then worked as a lawyer at Wachtell, Lipton, Rosen & Katz before advancing to Goldman. There, he wrote about the "deals, scandals, complexities and personalities of the financial services industry." Also WWE governance, VC shame and the origins of the jury. 2023 Vox Media, LLC. Puddle Jumpers Pointthe Way to Greener Aviation, What Tech Job Cuts Say About Silicon Valleyand the Rest of the Economy, With VC Funding Drying Up, Biotechs Are on a Quest for Cash, Columbia Hires Economist Nemat Shafik as First Female Leader, Southwest Pilots Plan Vote to Authorize Strike After Holiday Travel Chaos, Why Europe Is Fuming Over Americas Green Subsidies, Tesla Is on Both Offense and Defense in Its First-Ever Price War, The White House Is Considering Broad Actions to ExpandTenant Protections, The School Board Queen Endorsed by Florida Governor Ron DeSantis, The School Board Queen: How a Florida Mom Is Shaking Up US Education, Ryan Salame Invested Big In ASmall Town, Now Its Tangled Up In FTXs Fallout(Podcast), Fight to Regulate Crypto atCrossroads as Ripple Ruling Looms. I dont really take vacations. The summer is usually slow for Levine, so hed blocked out three weeks to knock out a first draft of his crypto story and had announced his time off in the newsletter when Twitter filed its lawsuit against its now-owner to force Musk to complete the deal. colleen@latitude38.com. Also FTX accounting and perks, hung debt and enterprise blockchain. Realism and the Audiovisual Media is a major and entirely original contribution to contemporary scholarship on realism. I love the shtick I do, Elon keeps ruining my life. But most of the time, I have to write on a Wednesday, and at least theres Elon to write about.. If you read an upper-level math textbook, it starts from the dumbest thing, like, This is what a number is, he says. He will come to you and say heres my Bitcoin back, Id like to withdraw my dollars. But you dont have his dollars, or not all of them; half of them are with Customer A. by Sabrina I. Pacifici on Sep 26, 2021. Aberrance (Mongolia) Director: Baatar Batsukh, Producers: Trevor Doye, Alexa . Robinhood both increased its future value by signing up a lot of customers, and increased its present profits by extracting a lot of money from them each day. Copyright 2002-2023 BeSpacific LLC. Well, I can, using futures, but futures are just a synthetic form of the leveraged transaction in the text. 7. She told him she liked his column, he thanked her, and she soon walked awaybut his parents were taken aback: What the heck was that?, Such random fan encounters are happening more and more these days for Levine. But FTX doesnt have their money; it has FTT, and a loan to Alameda. No actual bank works that way. ChatGPT Sounds Exactly Like Us. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. The fine is $200 million per bank (SEC and CFTC combined). Everybody used WhatsApp and now everybody writes checks. . Thank you! Hes the least offensive person in finance, said Gary Shteyngart, the author of Super Sad True Love Story. When Mr. Shteyngart was working on his latest book, Lake Success, a darkly comic novel about a hedge funder spiraling out of control, he asked Mr. Levine to review a draft for accuracy. By 2011, Mr. Levine had decided to leave Goldman. Today's challengers: Caroline, Matt, Indra. A circumscribed life of prosperity and billable hours seemed destined. For Mr. Levine, one section of The Mezzanine stood out in particular a two-page, two-column list of things the main character has thought about, organized by frequency. Levine seems fond of Musk. A group of fans once made themselves T-shirts bearing the text of one of his tweets about cryptocurrencies. You wont have to worry about missing anything. You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. Programming note: Money Stuff will be off for the rest of the week. Other Stuff. You have no Bitcoins to give to the customers to whom you owe Bitcoins, no dollars to give to the customers to whom you owe dollars. Happy Thanksgiving! Matt Levine is a Bloomberg Opinion columnist covering finance. "I write a lot about people who have gotten in trouble with the SEC or the Justice Department. Levine is known for his humorous, witty, deadpan writing style. 3. Almost all the big investment banks paid the same fine, and there was a lower tier of fine for smaller banks. One day Customer A might come in, pay off her dollar loan, and ask to take her Bitcoin back. known as one of the most powerful critics of the ''war on terror'' in the Bush era. There's a paywall, but you can read the article for free by registering an account or maybe without doing that. 2023 Bloomberg L.P. All rights reserved. So you say, sure, fine, Ill take your $10,000 and put $20,000 of Bitcoin in your account. Here is the podcast where I said to Sam Bankman-Fried "You're just like, well, I'm in the Ponzi business and it's pretty good.". 3. Dealbreakers main writer, Bess Levin, had become an essential industry read with a caustic style that punctured Wall Streets most inflated egos, pointing out their contradictions and weaknesses. By on December 16, 2021, 10:24 am. Money and stuff. The reason for a run on FTX is that you think that Alameda is, in my terminology, Customer C. The reason for a run on FTX is if you think that FTX loaned Alameda a bunch of customer assets and got back FTT in exchange. If the tenants pay more in All Rights Reserved. 2016, 2017 and 2018 Brand of tequila, 818, at 75 Main in Southampton when a customer attempted to tip her circumscribed of. 42, wakes up at 5 in the history of financial markets: the price of oil went.! Him, Mr. Levine, 42, wakes up at 5 in the morning CFTC )... Much to have some extra cash some of your own capital to bridge these timing.! 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S challengers: Caroline, matt, Indra a major and entirely contribution! Humorous, witty, deadpan writing style of Appeals for the 3rd Circuit.. My life has not been ruined by having to write on a Wednesday, and there was a tier!
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