All Rights Reserved. [1][4] The newsletter has close to 150k subscribers making it one of the most popular newsletters on Wall Street. But the timing problem is also connected to a real economic risk. Money Stuff by Matt Levine A daily take on Wall Street, finance, companies and other stuff. Coinbase always holds customer assets 1:1. Here is my author page, possibly. Tyson Foods CFO Arrest Adds to Governance Challenges for Board. 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. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen . Expert Institute Award for Best Legal Tech Blog The co-founders of Instagram, which Facebook Inc. bought in 2012, quit on Monday (Sep. 24) out of frustration with Facebook's efforts to make Instagram (which is good) more like Facebook (which is bad). Just a weird business all around. 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. We will never repurpose your funds: We do not lend or take any action with your assets, unless you specifically instruct us to. Part of the problem was that he couldnt really access a contempt for Wall Street titans. Bloomberg offered Mr. Levine stability and a larger platform. Also First Boston conflicts, McDonalds affairs and a JPMorgan news robot. ext. 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. 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. 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. [1], Levine graduated Harvard University, where he majored in classics, and Yale Law School. 4. You have Customer A who has Bitcoin and wants to borrow dollars, and Customer B who has dollars and wants to borrow Bitcoin. The last time Ilooked at Yahoo, in December, I calculated that the after-tax equity value of its actual businesses, outside of Alibaba and Yahoo Japan, was about $1.7 billion. Play in New Window. It would actually have enough money to give all the customers their money back, because it kept all the customers money in their own envelopes the whole time. Sign up now so you don't miss the first issue. A circumscribed life of prosperity and billable hours seemed destined. The whole extended . 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. 00:00. Also SBFs Substack and premium bond taxation. Financial regulators are looking at the biggest private equity firms use of WhatsApp and other messaging apps for work, in a signal that the US is ramping up its push to police Wall Streets electronic communications. Im doing a bit, he says. "Elon, Matt Levine really wants you to keep changing your mind on Twitter . ChatGPT Sounds Exactly Like Us. 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. Coinbase Global Inc. runs a cryptocurrency exchange. Matt won yesterday's game and returns today to . Remarkably, Mr. Levines piece was written more than an hour before the market went haywire. Robinhood Markets Inc. is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones. Click to read Matt Levine, a Substack publication with hundreds of readers. You come to the bank with $100 in paper bills, and you deposit it in the bank, and the bank takes your paper bills and sticks them in an envelope with your name on it. But FTX doesnt have their money; it has FTT, and a loan to Alameda. He seasoned his analyses with humor and a nerdy, confident tone. Have a large reserve. He delights in Musk, actually! 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. Please Click the Donate button and support BeSpacific. He goes into the balance sheet including the Serum tokens. 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. There are variations on this trade (I borrow Bitcoin and sell it for Ethereum, betting on the relative value between the tokens, etc.). 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.. I write the Money Stuff newsletter at Bloomberg Opinion. 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. GSO had bought CDS protection that would pay off if Hovnanian defaulted. It read like a bedtime story about West Texas Intermediate Crude. 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. In financial news a medium not known for cultivating eccentric or literary voices theres no other writer quite like Mr. Levine, a former Goldman Sachs banker whose deadpan style mixes technical elucidation and wit. You keep the other 50 Bitcoins and $1 million as collateral. Happy Thanksgiving! 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. Our own Sparky Abraham and Lyta . Matt Levine is a finance columnist for Bloomberg Opinion . Yet he gives the same impression of personalization to readers who know little about finance. But that was kind of fun! Your dollar loan to Customer A is now underwater: You loaned her 50% of the value of her Bitcoin, but Bitcoin fell by 90%, so she owes you more than her collateral is worth. 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. Matt Levine's Money Stuff: Not Everything Is Insider Trading - Bloomberg. Matt Levine runs the " Money Stuff " newsletter, one of the most irreverent and informative guides to the absurdities of the financial world. . You have one Customer C who says hi I would like to borrow 50 Bitcoins and $1 million, I will secure that loan with 150,000 FTT, each of which is worth $20.. 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. This newsletter has created momentum, growth, and scale by developing meaningful relationships with millions of readers. @matt . The Only Crypto Story You Need, by Matt Levine - "Where it came from, what it all means, and why it still matters." (archive; also btw What Is Code? The analogy is: Imagine a weird sort of bank. It is necessarily a leveraged trade; I cant short Bitcoin without borrowing it. It took Mr. Levine exactly one week to find his voice. 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. That was the height of the GameStop Corp. meme-stock mania: The whole worlds attention was focused on the soaring price of GameStop stock, which was leading a lot of people to sign up for Robinhood and trade GameStop, and GameStop was very volatile and so Robinhood got paid a lot for trading it. Binance has never used BNB for collateral, and we have never taken on debt. Unlike many other retail brokers, Robinhood charges these market makers a variable fee that is, roughly speaking, higher for very volatile stocks. ; What Does It Mean?, in which he discusses generalizations of Bitcoin, such as Ethereum. But sometimes market moves are catastrophic, and in particular, sometimes securities broker-dealers and crypto exchanges will have run on the bank risks. This means that funds are available to our customers 24 hours a day, 7 days a week, 365 days of the year. 102 Production . ext. So much business is about personal relationships, and texting and WhatsApp can feel more personal than your firm email account. Now lets add a few more FTX-specific elements. Also the Celsius bankruptcy estate and the FTX risk engine. Before the price of Bitcoin drops too far, you will be calling up Customer A for more margin, and if she doesnt answer the phone you will liquidate her position to pay back the loan you made. His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150k subscribers. But then if the value of FTT drops to zero, you have nothing. A lawyer and former Goldman Sachs investment banker, Levine has firsthand experience in the complicated world of high finance. Before long, Mr. Levine was charming readers who considered themselves experts in the subjects he was addressing, whether by distilling a subtle legal truth or simply explaining the significance (or absurdity) of something that had been out in the open yet overlooked. JPMorgan Says Frank Was Fraud. 2016 Bloomberg View O1Z5LV6KLVRT (Bloomberg View) Yahoo!?? The crude explanation of credit default swaps is that they are insurance against bonds defaulting. Colleen Levine . If you own a bond, and you buy CDS, and the bond defaults, you should be made whole. It is just a weird sort of one-off tax on big banks, like a backdoor windfall profits tax. Has it been borrowing elsewhere against FTT? 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. Hes a very smart guy who is very much not a lawyer, and that is very fruitful.. Also Elon Musk onthe Elon Markets Hypothesis, Coinbase on crypto regulation, andtaxi front-running. Oliver Keens asks: has our morality changed or are we just too deferential, confused or downright hypocritical to discuss it any more? Never miss an update. 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Own a bond, and Yale Law School click to read Matt Levine a daily take on Street!
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