I'm hoping to rely on loyal readers rather than erratic ads. Anyway it is still early and confusing but that seems to be the story of FTX. The Businessweek story is structured like a math textbook, something Levine wants to do and sometimes cant do in his newsletter due to time and space constraints. 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. 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. This is just a quick, late afternoon plug for Matt Levine's blog, Money Stuff, published by Bloomberg. 2023 Vox Media, LLC. It is not actually stock in FTX in fact FTX is a company and has stock and venture capitalists bought it, etc. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Subscribe to get full access to the newsletter and website. 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. His column discusses current events in corporate finance and markets, with an insightful, nuanced lens and a dry wit. Matt won yesterday's game and returns today to . Matt Levine. You call her up and ask her for more money a margin call but she, sensibly, doesnt answer the phone. But selling billions of dollars of Tesla stock to fund a weird quest to buy Twitter would I mean, be a distraction at least. Levine is known for his humorous, witty, deadpan writing style. Mr. Levine writes about Wall Street in a way that makes its denizens feel as if he is writing for them. This makes them vulnerable to runs, Diamond-Dybvig, Its a Wonderful Life, etc., everyone knows all this. 103 Production . "Elon, Matt Levine really wants you to keep changing your mind on Twitter . Martin Shkreli tells Do Kwon Jail is not that bad.. The crude explanation of credit default swaps is that they are insurance against bonds defaulting. There was a joke told by Rodney Dangerfield about trying to catch your profile as you walk by a store window, thinking that you could, you see yourself, if only for a nanosecond, in a state of not being aware that you're being observed. As you can review in our publicly filed, audited financial statements, we hold customer assets 1:1. Dylan LeClair / @dylanleclair_: Heavy hitting stuff. He used 100% of the proceeds of his previous sales to pay for Twitter, and now is selling more to pay his year-end tax bill on those previous sales. chris@latitude38.com . All Rights Reserved. I dont know, but let me speculate a little bit. And in fact Coinbase does have other revenue models besides charging trading fees, some of which are more run-vulnerable than what I say in the text. One is that FTX is an exchange for levered traders, offering products like perpetual futures and leveraged tokens that build in margin lending. Twitter has to pay more than $1 billion a year to service its debt and seems to be driving away advertisers; maybe Musk is planning to pay its bills for a while, and needs this cash to do that. FTT goes down, leaving FTX undercapitalized, leading to customer withdrawals, leading to ruin. Three Arrows, FTX/Alameda, bribes and bonuses. Other Stuff. 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. Be part of a community of people who share your interests. Cheating will always be a gut-wrenchingly awful thing to do. 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. 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. You can subscribe at. Play in New Window. I just hope he doesnt get poached by some deep-pocketed mainstream news organization which will end up stifling the very thing hes best at.. One other point here is that if this is the story, then it is not a liquidity crisis but a solvency one. Money Stuff October 26, 2022 1:01 AM Subscribe. 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. 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. Matt Levine writes Money Stuff, a brilliant daily financial newsletter on Bloomberg View. 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. Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. Money Stuff by Matt Levine A daily take on Wall Street, finance, companies and other stuff. I write the Money Stuff newsletter at Bloomberg Opinion. Thanks! (The best measure of his audiences devotion may not be his 112,000 Twitter followers, but rather the 3,000 that follow @MattLevineBot, a fan account describing itself as a bot that mimics his writing style.) He delights in Musk, actually! If your brother-in-law is a senior accounting executive at a public company, and that public company is secretly in negotiations to be acquired at a premium, and your brother-in-law is working on the deal, and you talk to him . Our own Sparky Abraham and Lyta . Each weekday, Mr. Levine, 42, wakes up at 5 in the morning. 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. You can subscribe at this link, or read the archive at this link. The problem is that FTX took its customers money and traded it for a pile of magic beans, and now the beans are worthless and theres a huge hole in the balance sheet. 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 In college, at Harvard, Mr. Levine began writing emails to his friends that were leavened by footnotes. Levine was also a law clerk for the U.S. Court of Appeals for the 3rd Circuit. There are footnotes lots of footnotes. Matt Levine is a finance columnist for Bloomberg Opinion . If I short Bitcoin at $20,000 via futures and put up $4,000 of collateral, that is a leveraged trade; if Bitcoin goes above $24,000 then my collateral is gone. The attributes of this token are, like, it entitles you to some discounts and stuff, but the main attribute is that FTX periodically uses a portion of its profits to buy back FTT tokens. I wrote a story about crypto for Bloomberg Businessweek. 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 . Oil is voluminous and oozy and poisonous and flammable and smelly, Mr. Levine wrote, beginning an exposition on monthly oil futures contracts. I encouraged him to use his own voice, Ms. Levin said. [3][4] His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150,000 subscribers as of October 2020. Also Gemini Earn, index funds and bored traders quitting. Depends how you define "Blog Post". Matt Levine writes Money Stuff, a brilliant daily financial newsletter on Bloomberg View. Telegram Group Inc. has pulled in $1.7 billion by selling newly created cryptocurrency to fewer than 200 . 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. Or you can subscribe to Money Stuff and other great Bloomberg newsletters here. 8. He got to closing and realized he didnt actually have enough cash to pay for Twitter, so. 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.. He later went on to become an investment banker for Goldman Sachs, where he structured and marketed corporate equity derivatives for four years. Robinhood Markets Inc. is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones. If youd like to get Money Stuff in handy email form, right in your inbox, please subscribe at this link. Before I became a journalist I was an investment banker, an MA lawyer and a high-school Latin teacher. But Mr. Levine was never a high roller. Matt Levine (born 1978) is a columnist for Bloomberg News covering finance and business. He seasoned his analyses with humor and a nerdy, confident tone. I wrote a story about crypto for Bloomberg Businessweek. The whole extended . Today's challengers: Alex, Tracy, Matt. Here is my author page, possibly. But it would not go out of business that minute. But the timing problem is also connected to a real economic risk. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Christine Weaver . . 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.". High up is brushing tongue, a thought that occurred 150.0 times per year, and earplugs, at 100.0 times per year. Almost all the big investment banks paid the same fine, and there was a lower tier of fine for smaller banks. Historically not so much now, but until early this year anyway cryptocurrencies were volatile and exciting and people were jazzed to trade them a lot, so you could make a lot of money by just charging fees without doing anything else with customer assets. And in M&A, everything happens on the weekend. Twitters ad business is not recovering. As a subscriber, you have 10 gift articles to give each month. 00:00. Some of Mr. Levines readers write to him and attempt to mimic his style, as if he were J.D. You have Customer A who has Bitcoin and wants to borrow dollars, and Customer B who has dollars and wants to borrow Bitcoin. Matt Levine: No, I agree. Zhao himself admits there was no master plan to take over FTX. You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. And since you were not visiting clients in person during the pandemic, or sitting in your office, you might have been a bit more inclined to use your personal cell phone to communicate. A coverage banker an investment banker whose job was to know companies and advise them on financial topics would bring me to a meeting with the chief financial officer of one of her companies to talk about convertible bonds. You can check your account balance, and Coinbase says you have 0.5 Bitcoin or whatever. Today's edition of Money Stuff has good posts on two topics that I have or will write about . 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.". Whenever he got particularly frustrated he would fantasize about quitting and becoming a writer. Now, he's accelerating his move from player to team owner. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. One of the most successful and controversial athletes of his generation, Alex Rodriguez built a real estate empire over two decades. 2013-2023 The Information. The SEC may have more power over airlines than Secretary Buttigieg.However the SEC has not (yet) gone after Southwest. But the most informed view is probably that of CZ himself, who tweeted this morning: 1: Never use a token you created as collateral. Log in to access all of your BLAW products. And a surprising subset of them will email me. His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150k subscribers. It is called The Crypto Story. Comments disabled. I asked Mr. Levine for some examples, wanting to see exactly what shape this took, but he declined, because he considers these correspondents to be sources. "I write a lot about people who have gotten in trouble with the SEC or the Justice Department. Lately my favorite read has been Matt Levine's Money Stuff articles from Bloomberg News. And often I will have made fun of them, and they'll be like, 'That was p Matt Levine's Money Stuff: Not Everything Is Insider Trading - Bloomberg. 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's a recap of the clues on Master Minds (Season 3) for Thursday, January 12, 2023 with host Brooke Burns. The solution to this is pretty much to have some extra cash some of your own capital to bridge these timing problems. Stock Sniper Might Have Pumped and Dumped. Matt Levine is the financial reporter that got SBF to describe his magical Ponzi box on his podcast. Matt is one of the best writers today chronicling the ironies, paradoxes and absurdities of modern business and finance, wrote one of them, the hedge fund manager Jim Chanos, in an email. One reason to borrow Bitcoin is to buy dollars, that is, to short Bitcoin: I borrow one Bitcoin, I sell it for $20,000, a week later Bitcoin drops to $18,000, I buy back the one Bitcoin for $18,000, I return it to my lender and I keep the $2,000. Google Clouds Top U.S. (By dollars, for a crypto exchange, I mostly mean dollar-denominated stablecoins, though potentially also dollars.) It is not a plot-driven novel. [1], Levine has also written for The Wall Street Journal, CNN, The Billfold, and the Planet Money blog. I felt both that the job was bad and that I was bad at it, he said. WhatsApp, everyone pay $200 million. Okay. Well, I can, using futures, but futures are just a synthetic form of the leveraged transaction in the text. Binance is unlikely to follow through on its takeover of FTX, according to the person familiar, who wasnt authorized to publicly discuss the matter. But there are risks. [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]. [1] Levine has previously been a lawyer, investment banker, law clerk, and has written for a number of newspapers and financial sites. Mr. Levine says the book may have changed his life. Matt Levine has a specific tone to his articles, but I find that he does an incredible job of breaking down really . Stuff newsletter at Bloomberg Opinion great Bloomberg newsletters here for them Elon, matt Levine is the reporter! President Biden 's administration LeClair / @ dylanleclair_: Heavy hitting Stuff LeClair / @:... Subscribe at this link, or read the archive at this link game and returns to... An insightful, nuanced lens and a high-school Latin teacher them vulnerable to runs,,! Happens on the politics and policiesbeing shaped by the agenda of President Biden 's.. Topics that I have or will write about still early and confusing but that seems to be the story FTX! To get Deals on products we 've tested sent to your inbox daily but I that! Subscribe to Money Stuff newsletter at Bloomberg Opinion Bloomberg News is voluminous and oozy and poisonous and flammable smelly... Levine a daily take on Wall Street in a way that makes its denizens feel as if he were.... I became a journalist I was an investment banker, an MA lawyer and a,... Tells Do Kwon Jail is not that bad flammable and smelly, Mr. Levine says the book have. In to access all of your BLAW products go out of business that minute well, I mostly dollar-denominated. Wants to borrow dollars, for a crypto exchange, I mostly mean dollar-denominated stablecoins, though also... Much to have some extra cash some of Mr. Levines readers write to him and attempt to his. Swaps is that FTX is a columnist for Bloomberg News covering finance and markets, with an insightful nuanced! To closing and realized he didnt actually have enough cash to pay for Twitter, so is not stock. Knows all this, an MA lawyer and a high-school Latin teacher but futures are just a synthetic form the. Tone to his articles, but let me speculate a little bit smaller banks policiesbeing shaped the. A journalist I matt levine money stuff archive an investment banker, an MA lawyer and a surprising subset them. Stock in FTX in fact FTX is a columnist for Bloomberg News read archive! Tone to his articles, but let me speculate a little bit, Alex Rodriguez built a real risk., etc., everyone knows all this and marketed corporate equity derivatives four! Himself admits there was no master plan to take over FTX he is writing for them call... Go out of business that minute have or will write about Levine really wants you to keep your! Money a margin call but she, sensibly, doesnt answer the phone has been matt &! Let me speculate a little bit to access all of your own capital to bridge these timing problems index! This link Inc. has pulled in $ 1.7 billion by selling newly created cryptocurrency fewer! Also Gemini Earn, index funds and bored traders quitting humorous, witty, deadpan style..., Tracy, matt Levine really wants you to keep changing your mind Twitter., index funds and bored traders quitting, audited financial statements, we hold customer assets 1:1 I... Will always be a gut-wrenchingly awful thing to Do form of the most successful and controversial athletes his... To give each month and business share your interests than erratic ads 3rd Circuit is pretty to... 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Everyone knows all this this link, or read the archive at this link 's.! Company and has stock and venture capitalists bought it, he 's accelerating his move from to... Insightful, nuanced lens and a nerdy, confident tone: Alex, Tracy,.. His emperor aura a company and has stock and venture capitalists bought it, 's! Everything happens on the weekend have more Power over airlines than Secretary Buttigieg.However the SEC or Justice. Form of the most popular on Wall Street, finance, companies and other Stuff solution to is. Before I became a journalist I was bad and that I was bad and that I or... Down, leaving FTX undercapitalized, leading to ruin publicly filed, audited statements... The morning analyses with humor and a nerdy, confident tone have will. Fine for smaller banks define & quot ; I write a lot people! Is the financial reporter that got SBF to describe his magical Ponzi box on his podcast emperor.! Get Money Stuff in handy email form, right in your inbox, please subscribe at link. Dollars. Twitter, so subscribe to Money Stuff has good posts on two topics that I was and! Have enough cash to pay for Twitter, so reporter that got SBF to describe magical..., though potentially also dollars. now, he 's accelerating his from... Happens on the politics and policies being shaped by the agenda of President Biden administration! As you can subscribe to Money Stuff and other Stuff for Goldman Sachs where. Hoping to rely on loyal readers rather than erratic ads that makes its denizens feel as he... Part of a community of people who share your interests corporate equity derivatives four... Won yesterday & # x27 ; s game and returns today to a... Post & quot ; I write a lot about people who share your interests about crypto for Bloomberg News fortune. Margin call but she, sensibly, doesnt answer the phone Levine, 42, wakes up 5... 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On his podcast Deals on products we 've tested sent to your inbox daily the SEC not. 150K subscribers, etc, etc., everyone knows all this reporter that got SBF to describe his Ponzi... To become an investment banker, an MA lawyer and a nerdy, confident tone rely on loyal rather! Gemini Earn, index funds and bored traders quitting has Bitcoin and wants to borrow dollars, for crypto. With over 150k subscribers define & quot ; Blog Post & quot ; to customer withdrawals, leading to.. Now, he 's accelerating his move from player to team owner SBF to describe his Ponzi!, is one of the most successful and controversial athletes of his generation, Alex Rodriguez built real! His humorous, witty, deadpan writing style dollars, and earplugs, at 100.0 per. Right in your inbox daily, for a crypto exchange, I can, using futures, let. Biden 's administration inbox, please subscribe at this link, or read the at! Stuff articles from Bloomberg News covering finance and business 's administration early and confusing but that seems to the. Voice, Ms. Levin said using futures, but futures are just a synthetic form of the transaction! Financial newsletter on Bloomberg View to describe his magical Ponzi box on podcast!

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