You call her up and ask her for more money a margin call but she, sensibly, doesnt answer the phone. He seasoned his analyses with humor and a nerdy, confident tone. When I was an investment banker, one thing that I did was pitch convertible bond offerings to companies. by Paul Ford, earlier) . Terrible. At 44, the former Latin teacher turned corporate attorney turned Goldman Sachs banker turned blogger isnt quite sure how to deal with his newfound notoriety. Matt Levine has a specific tone to his articles, but I find that he does an incredible job of breaking down really . It was like this long, Matt-type silence, and then kind of a sigh, and then: OK, Mr. Shipley recalled. That is not in itself a reason for a run on FTX! Microsoft is preparing to lay off thousands of staff in multiple divisions starting as soon as Wednesday, according to a person with knowledge of the situation. Finance journalism isnt known for its writerly voices. I'm hoping to rely on loyal readers rather than erratic ads. To contact the editor responsible for this story: It was a cleareyed, colorful distillation of something almost no one had contemplated. This is the story of his ascension. FTT is a bet on FTXs future profits. Be part of a community of people who share your interests. There's a paywall, but you can read the article for free by registering an account or maybe without doing that. The first source of tension occurs when the man gets onto the escalator in his building lobby and forgets what he has in a shopping bag hes holding. And often I will have made fun of them, and they'll be like, 'That was p Mr. Levine got the job, paying something north of $50,000. He goes into the balance sheet including the Serum tokens. [1][4], In 2011, Levine started writing about economics and finance for the financial news site Dealbreaker. And a surprising subset of them will email me. Then he went to Yale Law. I dont know, but let me speculate a little bit. 2016, 2017 and 2018 It would go out of business in fairly short order. This means that funds are available to our customers 24 hours a day, 7 days a week, 365 days of the year. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen . Ledgers, Bitcoin, Blockchain, in which he lays out the basics of Bitcoin's technology. Matt Levine is a columnist for Bloomberg News covering finance and business. I have a daily newsletter called Money Stuff, which you can read here and subscribe to here. [4], When asked about the possibility of switching to a paid version similar to Ben Thompson's Stratechery Levine said that he enjoys the heightened fame of writing a free newsletter as it reaches more people than a paid newsletter.[6]. The mysterious outage of Tweetbot and other third-party Twitter clients that began Thursday night was an intentional suspension, according to internal messages viewed by The Information. Matt Levine is a finance columnist for Bloomberg News. Any institutional lending activity at Coinbase is at the discretion of the customer and backed by collateral. Matt Levine runs the " Money Stuff " newsletter, one of the most irreverent and informative guides to the absurdities of the financial world. Money Stuff. 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. Matt Levine. Each side does this because they believe that ultimately the size of the risk correlates directly to the scale Former Instacart CTO Mark Schaaf Joins Retool As COO, Semafor to Buy Back Back $10 Million SBF Stake, Klarna Exec Joins Farfetch in Leadership Reshuffle. But FTX doesnt have their money; it has FTT, and a loan to Alameda. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. If you are a Tesla shareholder, or anyone else really, it is hard to care that much about Elon Musk dumping $4 billion of Tesla stock in November 2022. Get back to work. Binance has never used BNB for collateral, and we have never taken on debt. FTX's Balance Sheet Was Bad - by Matt Levine. But who are the lenders? Roughly 5,000 words later on a long-winded day, he files Money Stuff to his editor, and its sent to subscribers around noon. Expert Institute Award for Best Legal Tech Blog He wants things to work in an engineer-y way, and he butts up against things that run in a lawyer-y way. You can imagine a lawyer trying to tell Musk, about his SEC settlement, for instance, that he ought to act in a good-faith way toward regulators and not piss people off. A lawyer and former Goldman Sachs investment banker, Levine has firsthand experience in the complicated world of high finance. Tiger Global Slashes Value of Private Tech Bets by Billions, Documents Show. There is a timing problem. One of the most successful and controversial athletes of his generation, Alex Rodriguez built a real estate empire over two decades. 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. As he ascends, he reflects on the lives of his friends and his own lifes course. ext. Also the Celsius bankruptcy estate and the FTX risk engine. It read like a bedtime story about West Texas Intermediate Crude. This is Matt Levine at Goldman, and also Matt Levine at Goldman.. So much business is about personal relationships, and texting and WhatsApp can feel more personal than your firm email account. Billionaires read Money Stuff. Click to read Matt Levine, a Substack publication with hundreds of readers. Now, he's accelerating his move from player to team owner. Much further down are sidewalks, followed by friends are unworthy of me, and way at the bottom, with a yearly occurrence factor of 0.5, birds regurgitate food and feed young with it and Kant, Immanuel.. Also a Carvana debt truce, a Tesla margin loan, title paper and AI Money Stuff. Some possibilities: One popular, odd theory of Musks deal for Twitter is that he just wanted to diversify his Tesla holdings.
[email protected] . [1], Levine graduated Harvard University, where he majored in classics, and Yale Law School. If one of the banks main assets is its own stock is a leveraged bet on its own stock then it is easy to bankrupt it by shorting its stock. The Crypto Financial System, in which he discusses financial technologies such as exchanges, stablecoins and . Dont go put all your money in Coinbase because I said so or anything! When we hear on the news "$8 billion collapse!" it's all fake because of crap like the Serum tokens. Matt Levine / Bloomberg: The deep problem with SPACs is the sponsors' and warrant holders' cuts, paid by the target company or the SPAC shareholders, leading to a bad deal for both . You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. Robinhood Markets Inc. is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones. The Difference Is That Biden Gave the Documents Back, That Giant Sucking Sound Is theExit From US Stocks, Europe Is Winning the Winter War by Sheer Luck, For Ukraine to Win the Maneuver War, Germany Must Move First. 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. 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. View stories on our mobile app and tune into our weekly podcast. bloomberg.com. Sales Execs Depart in Shakeup as Profits Remain Elusive, By Jon Victor, Kevin McLaughlin and Amir Efrati, Microsoft + OpenAI: Inside Techs Hottest Romance, By Erin Woo, Aaron Holmes and Jessica E. Lessin, What OpenAIs Bonkers Deal Structure Means For Silicon Valley, Musks Twitter Intentionally Suspended Tweetbot, Third-Party Apps, Messages Show, Microsoft Prepares to Lay Off Thousands of Employees, Including in Azure-Related Units, Twitters Efforts to Court Advertisers Turns Them Off. Dylan LeClair / @dylanleclair_: Heavy hitting stuff. The US Securities and Exchange Commission and Commodity Futures Trading Commission have concluded that thats illegal, and fined all the banks for doing it, because they all did it. 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 . Each of them is overcollateralized you only lend Customer A half the value of her Bitcoin, and you only lend Customer B half the value of his dollars so you feel pretty safe. Some of Mr. Levines friends were writers, including David Lat, a fellow Yale Law School graduate who founded the seminal legal blog Underneath Their Robes, about the superhotties of the federal judiciary, and the slightly more professional Above the Law. Tesla Inc. Chief Executive Officer Elon Musk sold at least $3.95 billion of the electric-vehicle makers shares just days after closing his buyout of Twitter Inc. Musk unloaded 19.5 million shares, according to regulatory filings on Tuesday in New York, his first disposals since August. So you have $100, which you exchange for 99, which you exchange for 98, which you exchange for $97, etc., paying the bank $1 each time. Comments disabled. Clients of WPP-owned GroupM, the worlds largest ad-buying firm, have cut their spending on Twitter by between 40% and 50% since Elon Musk took control of the company in late October, according to people familiar with the matter. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. Anyway it is still early and confusing but that seems to be the story of FTX. But the most informed view is probably that of CZ himself, who tweeted this morning: 1: Never use a token you created as collateral. Today's Master Minds: Mark "The Beast" Labbett, LaKedra Pam, Ryan Chaffee. 5. Above the Laws sister blog Dealbreaker, focusing on Wall Street gossip was hiring. If the price of Bitcoin falls by 90%, Customer B will be thrilled. Martin Shkreli tells Do Kwon Jail is not that bad.. If the tenants pay more in Could you just lend me $10,000, secured by my $20,000 of Bitcoin? You can subscribe at. Download. Do you think that there is a big financial firm in the US that got through the entire pandemic without any employees doing any business over WhatsApp or text messages from their personal phone? He structured derivatives agreements that let companies and other Goldman clients buy and sell stocks using a variety of methods meant to help them reduce their taxes or get a better price. (With one exception: Bank of America Corp. paid a bit more for being a bit more culpable.) A $2.16 billion pile of FTT collateral., There are more FTX tokens among its $8 billion of liabilities: $292 million of locked FTT. (The liabilities are dominated by $7.4 billion of loans.). 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. Left Coast Crime is an annual conference organised by mystery fiction fans for mystery fiction fans, first held in San Francisco in 1991. 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 Theres Nowhere to Put the Oil.. There is even an RSS. Once I did a client call with him, Mr. Levine said. He once took a term that appeared in a lawsuit a cash-settled forward purchase agreement for Citigroup shares with downside protection in the form of a put option at the same price as the forward and gave it the acronym CSFPAFCSWDPITFOAPOATSPATF. And they both pay you interest. I dont want to sell my Bitcoin, because I am a true believer and also do not want to realize gains for tax purposes. 2: Dont borrow if you run a crypto business. But the timing problem is also connected to a real economic risk. This sounds like a bad business model: The bank needs to pay for real estate and tellers and vaults, and it is not doing anything with your money. I used to write at Dealbreaker. Money and stuff. Sure, he was at Sesame Place, the theme park just outside Philadelphia, with his kids when Musk announced his Twitter bid, and then stayed up until midnight that night to get his newsletter, Money Stuff, out. But it is also a crypto token, which means that a customer can come to you and post $100 worth of FTT as collateral and borrow $50 worth of Bitcoin, or dollars, or whatever, against that collateral, just as they would with any other token. We provide retail and commercial loans to qualified customers secured by their crypto asset holdings on our platform, which exposes us to the risk of our borrowers inability to repay such loans, says a risk factor in. He knows his stuff, Mr. Shteyngart said, praising Money Stuff as cogent, insightful, dryly funny at times as in, Can you believe this stuff is happening?. Matt Levine (born 1978) is a columnist for Bloomberg News covering finance and business. He never joined an elite social club or spent six figures on a Hamptons summer rental. Well, you have to borrow it too. Well, I can, using futures, but futures are just a synthetic form of the leveraged transaction in the text. Matt Levine's Money Stuff: Not Everything Is Insider Trading - Bloomberg. 3. Log in to access all of your BLAW products. Technology's news site of record. I'm here to make sure you don't give up, because I think there's always something that's working and this show is all about helping you identify those trends and learn to find them on your own. 3. People put a price on oil they think it has value and want to own it at that value but they also put a price on not having it now, he wrote. : Bank of America Corp. paid a bit more for being a bit more culpable. ) sensibly doesnt. Sent to your inbox daily to trade stock ( and options, and:... Read matt Levine is a columnist for Bloomberg News covering finance and business feel more personal than firm... Economics and finance for the financial News site Dealbreaker our weekly podcast possibilities. 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