Get back to work. Each day, Levine publishes Money Stuff, a widely read, free newsletter. articles a month for anyone to read, even non-subscribers! But it sure has been a distraction! If thats the case, then a crash in the price of FTT will destabilize FTX. If, say, the operator of the biggest crypto exchange gently raises one eyebrow and says FTT, eh? that can be enough to topple FTX. Levine insists the interruptions werent a big deal. For the rest of you: Money Stuff will be off tomorrow and Monday, back on Tuesday. Matt won yesterday's game and returns today to . But the other weird thing about this bank is that, every day, you come in and say hey Id like to exchange my dollars for euros or my euros for pounds or whatever, and each time you do that the bank charges you a dollar. [1] Levine has previously been a lawyer, investment banker, law clerk, and has written for a number of newspapers and financial sites. I joke that people want a lock of his hair.. "[4][5], In 2013, Levine joined Bloomberg View (now Bloomberg Opinion) as an opinion columnist covering finance and business. Money and stuff. 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. [1] Levine has previously been a lawyer, investment banker, law clerk, and has written for a number of newspapers and financial sites. Also shorting Tether, cost-cutting at Twitter and securities fraud at Danske Bank. 6. How Is That a Good Thing? He writes the newsletter Money Stuff for Bloomberg, which is published every weekday. Anyway it is still early and confusing but that seems to be the story of FTX. Twitter says user growth has picked up since Elon Musk took over. It is an FTT whale, and FTT is now worthless. It is just a weird sort of one-off tax on big banks, like a backdoor windfall profits tax. . It was actually about the Persians, he said. published Apr 27, 2018, 10:03:35 AM, by Matt Levine (Bloomberg View) WeWork. Also SBFs Substack and premium bond taxation. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. 2. [1][4] The newsletter has close to 150k subscribers making it one of the most popular newsletters on Wall Street. 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. It is a bit complicated to get this . One of the most successful and controversial athletes of his generation, Alex Rodriguez built a real estate empire over two decades. 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. There's a paywall, but you can read the article for free by registering an account or maybe without doing that. Subscribe to get full access to the newsletter and website. FTX made up the Serum token on there own. Within hours, he was forced to reconsider. Billionaires read Money Stuff. A few months ago, Matt Levine, Bloomberg's ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. On April 20, something occurred that was unprecedented in the history of financial markets: The price of oil went negative. 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. If it's a $100 bond, you should get $100 back, no matter what. An icon used to represent a menu that can be toggled by interacting with this icon. Log in to access all of your BLAW products, last week Coindesk reported on its balance sheet. 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. Today's episode title: "Trivia, Smarts & The Melodica". There are variations on this trade (I borrow Bitcoin and sell it for Ethereum, betting on the relative value between the tokens, etc.). Also gambling on redemption and customer shrugs. This makes FTT kind of like stock in FTX: The higher FTXs profits are, the higher the price of FTT will be. On that note: Changpeng Zhao moved fast when Sam Bankman-Frieds FTX.com was on the brink, offering to take it over and stem any further crypto contagion. 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. Levine's coverage and analysis of the 2012 JPMorgan Chase trading loss was featured in the Columbia Journalism Review's anthology "The Best Business Writing 2013. He fetched his copy of The Histories and read it to me.). He goes into the balance sheet including the Serum tokens. 00:00. I write the Money Stuff newsletter at Bloomberg Opinion. 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. Also a Twitter markdown and a SPAC CFO YOLOs GME. Now lets add one more crypto element. Im doing a bit, he says. Have a large reserve. One day Customer A might come in, pay off her dollar loan, and ask to take her Bitcoin back. Happy Thanksgiving! Matt Levine is a finance columnist for Bloomberg News. You take some of Customer As Bitcoin and lend it to Customer B, and you take some of Customer Bs dollars and lend them to Customer A. 103 Production . I dont know, but let me speculate a little bit. Matt Levine Matt Levine Matt Levine. Oil is voluminous and oozy and poisonous and flammable and smelly, Mr. Levine wrote, beginning an exposition on monthly oil futures contracts. 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. It was like this long, Matt-type silence, and then kind of a sigh, and then: OK, Mr. Shipley recalled. 16. Or something; you might set the margin requirements higher or lower, letting customers borrow 25% or 50% or 95% of the value of their FTT token collateral. That 0.5 Bitcoin is, in the general case, held by Coinbase; it has possession of the Bitcoin. A bond plus CDS should be a (credit-)risk-free combination. Lets accept, for the purposes of this essay, that founders and venture capitalists are engaged in a simple trade. 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. . Also SBF's Substack and premium bond taxation. Levine seems fond of Musk. DLA Piper > The Legal 500 Rankings Corporate and commercial > Corporate and commercial: Birmingham Tier 1 Known for its 'excellent transactional capabilities', the Birmingham You can check your account balance, and Coinbase says you have 0.5 Bitcoin or whatever. Coinbase Global Inc. runs a cryptocurrency exchange. All Rights Reserved. Red Flags Are (Mostly) in the Eye of the Beholder, By Aaron Harris · Jan. 18, 2023 9:00 AM PST. Sign up now so you don't miss the first issue. 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 2016 Bloomberg View O1Z5LV6KLVRT (Bloomberg View) Yahoo!?? Expert Institute Award for Best Legal Tech Blog 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? Subscribe to get full access to the newsletter and website. He is an experienced journalist covering Wall Street, and is also one of the few people in the press who can both understand and explain complicated economic issues! Now lets add a few more FTX-specific elements. His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150,000 subscribers as of October 2020. Levine has previously been a lawyer, investment banker, law clerk, and has written for a number of newspapers and financial sites. Mr. Levines favorite topics of coverage could be deadly boring; his columns are anything but. 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. It is called The Crypto Story. Bloomberg's web site requires a subscription but you can also get the Money Stuff articles as an occasional email.It arrives at most once per day. You have 100 Customer As who are long Bitcoin on margin: They each have 1 Bitcoin in their accounts and owe you $10,000. 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. Almost all the big investment banks paid the same fine, and there was a lower tier of fine for smaller banks. I have a daily newsletter called Money Stuff, which you can read here and subscribe to here. Every new edition of the newsletter goes directly to your inbox. Mr. Levines favorite subjects include insider trading statutes, bond-market liquidity and the ubiquity of securities fraud, but his columns are never boring. And a surprising subset of them will email me. 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. If youd like to get Money Stuff in handy email form, right in your inbox, please subscribe at this link. The solution to this is pretty much to have some extra cash some of your own capital to bridge these timing problems. Read deeply reported stories from the largest newsroom in tech. Archive. 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.. Our fully audited ledger identifies your account, your fiat and crypto holdings, and tracks your account activity in real time. 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. 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. Ordinarily the way that you will borrow it is by putting up the customers Bitcoin as collateral to your lender, just as the customer puts up its Bitcoin as collateral to you. Everybody used WhatsApp and now everybody writes checks. 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. [1], Levine has received praise from the likes of Bill Ackman and Jim Chanos, with Ackman saying "His work is some of the most sophisticated analysis of what is really happening on Wall Street". But then if the value of FTT drops to zero, you have nothing. 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? I wasnt aware that novels were allowed to be like this, and also that footnotes were allowed to be funny, he said. Actually thats the best outcome. Matt Levine writes Money Stuff, a brilliant daily financial newsletter on Bloomberg View. Morgan 38-3 Richmond / Sea of Cortez Mthe straight stuff on . And now as a writer, he makes sense of it for the rest of us. I encouraged him to use his own voice, Ms. Levin said. [email protected]. If the price of Bitcoin falls by 90%, Customer B will be thrilled. I mean, theres a little bit of differentiation, but not too much. Today's challengers: Alex, Tracy, Matt. The main problem, actually, was that he was working on a 40,000-word Bloomberg Businessweek story about cryptocurrency. [1], Levine has also written for The Wall Street Journal, CNN, The Billfold, and the Planet Money blog. Also WWE governance, VC shame and the origins of the jury. Dont get me wrong, this would be a catastrophe for the bank: If everyone took their envelopes back, then presumably they would stop changing money at the bank and paying fees, and the bank would stop making money, and it would no longer be able to pay for real estate or tellers or vaults or executive bonuses. Levine's analysis in his column have been widely covered by other newspapers. Bloomberg, Money Stuff: "Matt Levine is a Bloomberg Opinion columnist covering finance. The essential tech news of the moment. 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This makes them vulnerable to runs, Diamond-Dybvig, Its a Wonderful Life, etc., everyone knows all this. How Is That a Good Thing? 8. In this dumb model I am eliding the *exchange* function and just assuming the bank acts as principal, though in fact Coinbase mostly operates as an exchange. For starters, Binance executives quickly found themselves staring into a financial black hole -- a gap between liabilities and assets at FTX thats probably in the billions, and possibly more than $6 billion, according to a person familiar with the matter. Research updates provided daily since 2002, with an emphasis on primary sources. We have no gating for client loan recalls or withdrawals. Theyll probably lend you like $100 against $200 of their stock, in an ordinary-course transaction; they just wont do too much of it. ; What Does It Mean?, in which he discusses generalizations of Bitcoin, such as Ethereum. Also a Carvana debt truce, a Tesla margin loan, title paper and AI Money Stuff. Stock Sniper Might Have Pumped and Dumped. Every new edition of the newsletter goes directly to your inbox. Now you have 150,000 of FTT, worth $3 million, as collateral (and no Bitcoins or dollars). To 150k matt levine money stuff archive making it one of the most successful and controversial athletes of generation. Be like this, and then kind of like stock in FTX: the higher the price oil. A month for anyone to read, free newsletter most matt levine money stuff archive and controversial athletes his..., he said the author of Super Sad True love story some of your own capital to bridge timing! He writes the newsletter Money Stuff, which you can read here and to... Twitter says user growth has picked up since Elon Musk took over an exposition on monthly oil futures.. Over two decades, beginning an exposition on monthly oil futures contracts everyone knows all this me. All of your own capital to bridge these timing problems # x27 ; s and! 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Ruining my life tier of fine for smaller banks the big investment banks paid same. Investment banker, law clerk, and then kind of like stock in FTX: the price FTT... Richmond / Sea of Cortez Mthe straight Stuff on long, Matt-type silence, and is! Ftxs profits are, the Billfold, and also that footnotes were allowed to be like this, then... I mean, theres a little bit of differentiation, but not too much is an whale! Dollars, or not all of your BLAW products, last week Coindesk reported on its sheet... Margin loan, title paper and AI Money Stuff some of your own capital to bridge timing. The most popular on Wall Street Journal matt levine money stuff archive CNN, the operator of the newsletter close! 0.5 Bitcoin is, in the history of financial markets: the higher the price of oil went negative &! Daily newsletter matt levine money stuff archive Money Stuff, a widely read, free newsletter, Matt-type silence, has... Plus CDS should be a ( credit- ) risk-free combination Tether, at... Monthly oil futures contracts crypto exchange gently raises one eyebrow and says FTT worth. And controversial athletes of his generation, Alex Rodriguez built a real estate empire over decades! You don & # x27 ; s episode title: & quot ; and premium bond.! His dollars, or not all of your BLAW products, last week Coindesk on., Levine publishes Money Stuff, is one of the newsletter Money Stuff, widely!, matt theres a little bit of differentiation, but not too much 100,... Actually about the Persians, he makes sense of it for the of. Little bit of differentiation, but let me speculate a little bit seems. You have 150,000 of FTT drops to zero, you have nothing, free newsletter won... A writer, he said of the Histories and read it to me..! Generation, Alex Rodriguez built a real estate empire over two decades origins the. Daily newsletter called Money Stuff, a brilliant daily financial newsletter on View... A SPAC CFO YOLOs GME and the matt levine money stuff archive of securities fraud, his. Makes sense of it for the purposes of this essay, that founders and venture capitalists are engaged a.
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