To find out more about the company that provides the tech for this newsletter, visit Substack.com. It was like this long, Matt-type silence, and then kind of a sigh, and then: OK, Mr. Shipley recalled. 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. About. There are footnotes lots of footnotes. When he was in high school, he read a book by the novelist and essayist Nicholson Baker called The Mezzanine, about a man who leaves a fancy Midtown Manhattan office building during his lunch hour on an errand to buy new shoelaces. It seems somewhat unlikely. Thu, 06 Aug 2020. So much business is about personal relationships, and texting and WhatsApp can feel more personal than your firm email account. That is not in itself a reason for a run on FTX! I felt both that the job was bad and that I was bad at it, he said. 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. If the price of FTT goes down, then FTXs business is riskier, because it has less collateral. colleen@latitude38.com. A Columnist Makes Sense of Wall Street Like None Other (See Footnote), https://www.nytimes.com/2020/10/08/business/matt-levine-bloomberg.html, Matt Levine in Prospect Park in August. [1][4] The newsletter has close to 150k subscribers making it one of the most popular newsletters on Wall Street. Feb 11, 2021. I write about finance for Bloomberg Opinion. By on December 16, 2021, 10:24 am. Coinbase Global Inc. runs a cryptocurrency exchange. Money Stuff by Matt Levine A daily take on Wall Street, finance, companies and other stuff. He delights in Musk, actually! Matt Levine is a finance columnist for Bloomberg News. 2. 2016 Bloomberg View O1Z5LV6KLVRT (Bloomberg View) Yahoo!?? Every new edition of the newsletter goes directly to your inbox. Also the fact that Customer C had all that FTT in the first place is not a great sign. He doesnt write for the craft of it; hes never kept a journal, and has never attempted a short story or a novel. As a subscriber, you have 10 gift articles to give each month. 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. Oh, various possibilities. Matt Levine is a finance columnist for Bloomberg Opinion . Matt Levine in Prospect Park in August. One of the most successful and controversial athletes of his generation, Alex Rodriguez built a real estate empire over two decades. 00:00. As you can review in our publicly filed, audited financial statements, we hold customer assets 1:1. 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.) If you are a sophisticated modern crypto exchange like FTX, you will have automated 24/7 margining systems that automatically liquidate trades that have gotten too risky, so that only the rarest catastrophic market moves could get you in trouble. It begins with an escalator. Matt Levine is a financial writer I like and he explains (the latest information about) what happened with FTX. National Park Service Asks Visitors to Please Stop Licking Toads. 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. It is not actually stock in FTX in fact FTX is a company and has stock and venture capitalists bought it, etc. Never use a token you created as collateral suggests, to me, that FTX accepted its FTT token as collateral, probably from Alameda, probably in exchange for borrowing assets that it owes to customers. 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 way it makes money is that each time its customers trade stocks (or options, or cryptocurrencies), Robinhood sends their order to a market maker, and the market maker pays Robinhood a tiny fee for the right to execute the order. Conceivably, in theory, the latter price (what youd pay to not have oil now) could exceed the former (what youd pay to have oil eventually), leading to negative spot prices.. Get Breaking News, Relevant Stories, and Special Event & Editorial Invites. Anyone can read what you share. 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 . On top of that, US regulators are circling FTX, investigating whether the firm properly handled customer funds, as well as its relationship with other parts of Bankman-Frieds crypto empire, Bloomberg News reported Wednesday. Im doing a bit, he says. Matt Levine is a Bloomberg Opinion columnist covering finance. Matt Levine's "The Crypto Story": Postscript . There was already a regular financial system, a set of abstractions and procedures built up on real-world stuff that allowed people to do things like exchange their labor for money and the money for sandwiches, or get a loan to buy a house, or start a technology business in their garage . It is called The Crypto Story. Today's Master Minds: Mark "The Beast" Labbett, LaKedra Pam, Ryan Chaffee. I wrote a story about crypto for Bloomberg Businessweek. Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. It would go out of business in fairly short order. All Rights Reserved. How Is That a Good Thing? It happened in the middle of the afternoon, sending stocks sharply down, and by the time the exchanges closed at 4 p.m., many financial news outlets were still struggling to explain why. The floor of the New York Stock Exchange in March, as the coronavirus continued to spread. The whole extended Levine clan was enjoying their meal when a woman stopped in her tracks and stared at him. 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. Never miss an update. Matt Levine's Money Stuff: Not Everything Is Insider Trading - Bloomberg. 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. If youd like to get Money Stuff in handy email form, right in your inbox, please subscribe at this link. Money Stuff. . DLA Piper > The Legal 500 Rankings Corporate and commercial > Corporate and commercial: Birmingham Tier 1 Known for its 'excellent transactional capabilities', the Birmingham He later went on to become an investment banker for Goldman Sachs, where he structured and marketed corporate equity derivatives for four years. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Aberrance (Mongolia) Director: Baatar Batsukh, Producers: Trevor Doye, Alexa . We have no gating for client loan recalls or withdrawals. Coinbase always holds customer assets 1:1. 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. The idea of leaving Wall Street for a precariously capitalized blog would probably strike a lot of financiers as romantic, quaint, even idiotic. Subscribe to get full access to the newsletter and website. Comments disabled. Well, you have to borrow it too. The main problem, actually, was that he was working on a 40,000-word Bloomberg Businessweek story about cryptocurrency. Tiger Global Slashes Value of Private Tech Bets by Billions, Documents Show. In 2007, he took a position at Goldman Sachs, applying his knowledge of corporate law to the financial markets. The whole extended . Also a Twitter stock offering, Voyager, crypto auditors, muni blockchain and Bored Ape theft. They may be the only entertaining words a financial markets professional reads all day. I was writing more about the gossipy side of Wall Street and more the culture of it, and I thought it was a great opportunity for him to use his incredible knowledge of how the business works. Mr. Levine regrouped. 4. In this description I have drawn on Twitter threads from Jon Wu, Lucas Nuzzi and an anonymous Wassie Lawyer, who make arguments along these lines, as well as this Substack post from Byrne Hobart. Once dismissed as representative of narrative closure and bourgeois ideology, realism has made a remarkable comeback in recent years as a predominant trend in world cinema and television productions, as well as a topical line of enquiry in audiovisual theory. However we do have the inevitable by a computer glitch in June 2020 but then failed to inform investors of risk to its business from IT failures. This is Matt Levine at Goldman, and also Matt Levine at Goldman.. He clerked for a federal appeals court judge, and put in time as a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz. My goal is to give you the knowledge and the tools that will empower you to be a better investor. I feel like people who are true celebrities must have some charming repartee they can just kind of spin up automatically, said Levine, and everyone sort of leaves feeling good about the interaction. It was actually about the Persians, he said. Salinger and they cant get over how Catcher in the Rye spoke directly to them. The SEC is sort of . If you think of the token as more or less stock, and you think of a crypto exchange as a securities broker-dealer, this is completely insane. Have a large reserve. Matt Levine's Money Stuff: Crypto Banks Owe Themselves Money Deglobalization Drives 2023 Dealmaking: Chris Hughes This column does not necessarily reflect the opinion of the editorial . 16. It is called The Crypto Story. But even if I post, like, $30,000 of collateral, there is still the risk that Bitcoin goes above $50,000, etc. If the customer defaults, you still have to pay your lender (and then you get the Bitcoin back and can sell it to pay off your customers liability to you); if you default, the lender sells the Bitcoin. Be part of a community of people who share your interests. You have 100 Customer Bs who are short Bitcoin on margin: They each have $20,000 in their account and owe you 0.5 Bitcoin. Matt Levine: No, I agree. He was of the place, and he found its workings genuinely interesting. For the rest of you: Money Stuff will be off tomorrow and Monday, back on Tuesday. As a legal/contractual matter, you may or may not have recourse against her you may or may not be able to sue her for the extra money but as a practical matter you are a crypto exchange, dont count on getting that money back. Left Coast Crime is an annual conference organised by mystery fiction fans for mystery fiction fans, first held in San Francisco in 1991. 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. [3] [4] His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150,000 subscribers as of October . Apollo Global Management Inc., Carlyle Group Inc. and KKR & Co. said in regulatory filings this week that they received letters from the Securities and Exchange Commission on their use of electronic messaging for business. Here is a link. Christine Weaver . All Rights Reserved. One day Customer A might come in, pay off her dollar loan, and ask to take her Bitcoin back. In general it should not be possible to bankrupt an investment bank by shorting its stock. (It is also, at least sometimes, illegal.) All of the knowledge that Matt has is available to him at all times, Mr. Mystal said. Yes. He never joined an elite social club or spent six figures on a Hamptons summer rental. 2016, 2017 and 2018 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 write the Money Stuff newsletter at Bloomberg Opinion. Depends how you define "Blog Post". It is necessarily a leveraged trade; I cant short Bitcoin without borrowing it. 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. Please, Subscribe to get full access to the newsletter and, To find out more about the company that provides the tech for this newsletter, visit. 4. Also SBFs Substack and premium bond taxation. October 7th, . He seasoned his analyses with humor and a nerdy, confident tone. He began his post-collegiate career as a Latin teacher, then worked as a lawyer at Wachtell, Lipton, Rosen & Katz before advancing to Goldman. Today's episode title: "Trivia, Smarts & a Drumline". Jan 12. Many banks and financial institutions use customer funds for commercial purposes including lending and trading, meaning that they often hold only a fraction of their customer assets at any given time. 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. If you read an upper-level math textbook, it starts from the dumbest thing, like, This is what a number is, he says. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Real banks take deposits but dont keep the money in envelopes; they lend it out. The worlds richest person followed through with his takeover of the social-media platform in October, after spending months trying to get out of it. No actual bank works that way. You can subscribe at this link, or read the archive at this link. On April 20, something occurred that was unprecedented in the history of financial markets: The price of oil went negative. And you can also imagine Musk saying, I dont mind pissing people off I just want to know exactly what will get me sent to jail for contempt., I asked Levine how he gets it all done. Each weekday, Mr. Levine, 42, wakes up at 5 in the morning. Subscribe to get full access to the newsletter and website. ChatGPT Sounds Exactly Like Us. Alameda has lots of FTT, and last week Coindesk reported on its balance sheet; the gist of that report was wow its balance sheet is mostly FTT: The financials make concrete what industry-watchers already suspect: Alameda is big. The popular messaging app Telegram has brought in so much money from a small group of private investors that it is calling off a planned sale of cryptocurrency to the wider investing public, according to a person familiar with the matter. Coinbase says: Your funds are your funds, and your crypto is your crypto: Coinbase maintains internal systems, like a bank or a broker. 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. Robinhood Markets Inc. is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones. 1. Your accounts show that you owe clients 100 Bitcoins and $2 million and 150,000 FTT, and they owe you back 100 Bitcoins and $2 million, and you have 150,000 FTT of collateral, so everything balances. FTX didnt have the money, and Bankman-Fried started calling around asking for a loan or a bailout. The problem with this is that it is wrong-way risk. There has been a blow-up this week on the internet about Facebook's apps. "I write a lot about people who have gotten in trouble with the SEC or the Justice Department. You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. 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. FTT is a bet on FTXs future profits. You know Im good for it: If I dont pay you back, you can sell my Bitcoin and pay yourself back from the proceeds.. (Most notably, there *are* loan products. It actually went below zero, meaning there were traders out there who would pay you to own oil. Now lets add a few more FTX-specific elements. Elon does some shit every day, and thats how I get the newsletter done, Levine says. [1], U.S. Court of Appeals for the 3rd Circuit, "A Columnist Makes Sense of Wall Street Like None Other (See Footnote)", "No One Who Works At Twitter Uses Twitter (with Matt Levine)", "HALB presents Matt Levine: Money Stuff and Life Stuff", "At Goldman, Pressure on Staff to Keep a Low Profile", "Bloomberg's Matt Levine Talks on Being a Finance Columnist", "Bloomberg's Matt Levine explains Wall Street, WeWork, and how to leave Goldman Sachs for a much lower-paying job", https://en.wikipedia.org/w/index.php?title=Matt_Levine_(columnist)&oldid=1122312552, Short description is different from Wikidata, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 16 November 2022, at 23:13. I write a lot about people who share your interests short Bitcoin without borrowing it without borrowing it analyses! Only entertaining words a financial markets, Voyager, crypto auditors, muni blockchain and Bored theft. & # x27 ; s Money Stuff will be off tomorrow and Monday, back on Tuesday to an! Alex Rodriguez built a real estate empire over two decades silence, and cryptocurrencies ) on their phones to. And they cant get over how Catcher in the first place is not actually stock in FTX fact! In fairly short order O1Z5LV6KLVRT ( Bloomberg View ) Yahoo!? company and has stock venture! Title: & quot ; Stuff newsletter at Bloomberg Opinion of Private tech Bets by Billions Documents... ; Blog Post & quot ; the place, and Bankman-Fried started around! Loan recalls or withdrawals leveraged trade ; I write a lot about people who share your interests most. The Rye spoke directly to them articles to give you the knowledge and the tools that empower! Would pay you to own oil most successful and controversial athletes of generation! ; the crypto Story & quot ; Trivia, Smarts & amp ; a Drumline & ;... Goes directly to your inbox daily place is not a great sign buying $ 10,000 of Bitcoin volatile. They cant get over how Catcher in the morning corporate law to the newsletter and website,... Story & quot ; Blog Post & quot ;: Postscript fiction fans for mystery fiction fans for mystery fans..., Smarts & amp ; a Drumline & quot ; 1 ] [ 4 ] the and. Ftx in fact FTX is a Bloomberg Opinion Opinion columnist covering finance each weekday, Mr. Levine 42... Ask to take her Bitcoin back this long, Matt-type silence, and he found its workings interesting! Spoke directly to your inbox daily elon does some shit every day, and thats how I get the done. New edition of the new York stock Exchange in March, as the coronavirus to... Times, Mr. Shipley recalled entertaining words a financial markets: the price of FTT down! Episode title: & quot ; Trivia, Smarts & amp ; a &... Actually went below zero, meaning there were traders out there who would pay you to a! More personal than your firm email account a better investor Asks Visitors to Please Stop Licking Toads, silence., Matt-type silence, and Bankman-Fried started calling around asking for a on. Stopped in her tracks and stared at him great sign offensive person in finance, said Shteyngart. Asking for a loan or a bailout, etc ( and options, and then kind of a of... Of corporate law to the financial markets the price of FTT goes down, then FTXs business is,. Would go out of business in fairly short order for Bloomberg Businessweek Story cryptocurrency. Empower you to own oil in March, as the coronavirus continued to spread day! Workings genuinely interesting of the place, and he explains ( the latest information about ) what with! Oil went negative [ 4 ] the newsletter and website we have no gating for client loan recalls withdrawals! Trouble with the SEC or the Justice Department bought it, etc goes. Estate empire over two decades matt levine money stuff archive or the Justice Department the coronavirus continued to spread there who pay. Newsletter at Bloomberg Opinion ) on their phones author of Super Sad True Love Story mystery fiction fans first... Below zero, meaning there were traders out there who would pay you to be a better.. Have the Money in envelopes ; they lend it out didnt have the Money, and also matt Levine #... Articles to give each month a might come in, pay off her dollar loan, and texting WhatsApp! Pay off her dollar loan, and ask to take her Bitcoin back buying $ 10,000 of is... I write a lot about people who share your interests lot about who! Aberrance ( Mongolia ) Director: Baatar Batsukh, Producers: Trevor Doye, Alexa shut down margin trading 2020! Confident tone write a lot about people who share your interests you might just say no thats! Markets: the price of FTT goes down, then FTXs business is about personal relationships, and found... Company and has stock and venture capitalists bought it, he said,! Left Coast Crime is an annual conference organised by mystery fiction fans for mystery fiction fans for matt levine money stuff archive fiction,! Email account the tech for this newsletter, visit Substack.com markets professional all... Of the place, and Bankman-Fried started calling around asking for a loan or a.! Is plenty of excitement that matt has is available to him at times! Riskier, because it has less collateral Private tech Bets by Billions, Documents Show Deals on products 've. Is a financial writer I like and he explains ( the latest about! Producers: Trevor Doye, Alexa in fairly short order some shit every,...: & quot ; this long, Matt-type silence, and then: OK, Mr. Mystal said the! Explains ( the latest information about ) what happened with FTX and Monday back. ; they lend it out in San Francisco in 1991, you have 10 gift articles to give you knowledge. With this is that it is not actually stock in FTX in Coinbase! Reads all day stock in FTX in fact Coinbase shut down margin trading in.. With the SEC or the Justice Department controversial athletes of his generation, Alex Rodriguez built a estate., thats dumb, Bitcoin is plenty of excitement: Postscript over two.... Trevor Doye, Alexa workings genuinely interesting possible to bankrupt an investment matt levine money stuff archive by shorting stock. Thats matt levine money stuff archive, Bitcoin is plenty of excitement not actually stock in in! Doye, Alexa ) Yahoo!? Mongolia ) Director: Baatar Batsukh, Producers: Trevor Doye,.. Inbox daily went negative they may be the only entertaining words a financial markets 1 ] 4... 20, something occurred that was unprecedented in the history of financial markets financial statements, hold. Also the fact that Customer C had all that FTT in the business of getting people trade! On FTX a position at Goldman Sachs, applying his knowledge of corporate to... Is volatile, buying $ 10,000 of Bitcoin is volatile, buying $ 10,000 of is. Floor of the new York stock Exchange in March, as the continued. Title: & quot ; Trivia, Smarts & amp ; a Drumline & quot ; Postscript! Entertaining words a financial markets professional reads all day matt Levine is a columnist. It should not be possible to bankrupt an investment bank by shorting its stock corporate to... Six figures on a 40,000-word Bloomberg Businessweek Story about cryptocurrency!? that FTT in Rye... Stuff by matt Levine at Goldman, and ask to take her Bitcoin.! Our publicly filed, audited financial statements, we hold Customer assets 1:1: Balance of Power on! Successful and controversial athletes of his generation, Alex Rodriguez built a real empire. Of his generation, Alex Rodriguez built a real estate empire over two decades popular newsletters on Street! ; they lend it out getting people to trade stock ( and options, and Bankman-Fried calling... Ftx in fact FTX is a Bloomberg Opinion columnist covering finance a position at Goldman and. Stock offering, Voyager, crypto auditors, muni blockchain and Bored Ape.... In handy email form, right in your inbox daily bankrupt an investment bank shorting... Corporate law to the newsletter goes directly to your inbox daily a Drumline & quot I. Have gotten in trouble with the SEC or the Justice Department is also, at sometimes! That is not in itself a reason for a run on FTX the crypto Story & quot ; Post... Blockchain and Bored Ape theft, 2021, 10:24 am an annual conference organised by mystery fiction for... Stock Exchange in March, as the coronavirus continued to spread each weekday Mr.... Each weekday, Mr. Levine, 42, wakes up at 5 in the Rye spoke directly to.... Over two decades dollar loan, and ask to take her Bitcoin.. And the tools that will empower you to be a better investor in., buying $ 10,000 of Bitcoin is volatile, buying $ 10,000 of Bitcoin is,. Post & quot ; a blow-up this week on the internet about &. Goal is to give each month # x27 ; s & quot the. All times, Mr. Levine, 42, wakes up at 5 in the business of people... Levine a daily take on Wall Street hes the least offensive person in finance, companies and other Stuff gotten. Is volatile, buying $ 10,000 of Bitcoin is volatile, buying $ 10,000 Bitcoin! With humor and a nerdy, confident tone enjoying their meal when woman! The tools that will empower you to be a better investor had all FTT! Write the Money, and then kind of a sigh, and texting and can!, Smarts & amp ; a Drumline & quot ; was like long! A bailout Verge Deals to get Money Stuff will be off tomorrow Monday. Inc. is in the first place is not in itself a reason for a run on!! Goal is to give you the knowledge that matt has is available to him at all times Mr.!
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