4 ms·

Can an insider explain the shenanigans behind this? The speech is surely not worth that much. Is the exorbitant amount of money paid for the speech just an opp

Can an insider explain the shenanigans behind this? The speech is surely not worth that much. Is the exorbitant amount of money paid for the speech just an opportunity to be a patron of a "thought leader", i.e a legal bribe in other words?

runako 6y ago
Her speech is surely not worth that much to you. $700k is not a material amount of money for Citadel, especially if it may contain information that can give them an edge.
- jariel 6y ago
  It's a material amount that can only be spent in the context of 'getting something for it'. What that is is nebulous, and it could be something as simple as an introduction to someone as of yet unknown at a future date. But it's something worth $700K, not a 'speech'.
  - bidirectional 6y ago
    700k on several events that their employees will get excited for and can brag about to their (fellow finance professional) friends seems reasonable.
    - jariel 6y ago
      Yes, but also, when the next business cycle market crash happens, and the plebes are screaming about hedge funds, Citadel can also pick up the phone and call their 'friend' Janet Yellen, to introduce them to the Sec. Treasury, and that Senator who's putting putting up a huff about some new legislation. If you hire U2 to do a a private show for your staff, you don't get those kinds of added bonuses.
      - camel_Snake 6y ago
        Citadel is large enough I think she'd be obligated to pick up the phone regardless.
        jariel 6y ago
        When there are 100 'large firms' calling, it's the 'friends' calls the get answered first, if at all, because hey, we're all busy. When Masayoshi got 45 minutes in Trump Tower to convince Trump to push forward the Sprint/TMobile merger, do you think that Trump just handed out that favour for free? Because it was 'Good For American Business'? Or maybe at some later date, Trump might find himself in need of investors for his Trump Tower Tokyo, or some help in getting regulators to approve it?
- postalrat 6y ago
  Or a favor.
- Udik 6y ago
  > it may contain information that can give them an edge That's not a speech, is a consult.
jariel 6y ago
This is a very fair question and shouldn't be down-voted. It's a way for powerful people to pay other powerful people for arbitrary things like 'speeches' so that they can exchange favours off the books in a very indirect way. It doesn't have to be illegal or even nefarious, but it should raise eyebrows as a possible conflict of interest.
jb775 6y ago
It's how bribes are paid nowadays. Monetary payments leave paper trails. What's an easy way around that? Come give a 30 minute speech!
bidirectional 6y ago
I had the exact opposite impression. 700k to bribe a former chair of the Fed and (at the time) likely future treasury secretary seems so paltry that it just being a speaking fee seemed quite reasonable. Citadel pays people in their 20s more than that. From a quick Google search, there are plenty of actors and sportspeople who charge six figures for a speech.
- mattkrause 6y ago
  Exactly. Criss Angel gets that much for an appearance (https://www.celebritytalent.net/sampletalent/11824/criss-angel/ https://www.celebritytalent.net/sampletalent/11824/criss-ang...)

runako 6y ago

Her speech is surely not worth that much to you. $700k is not a material amount of money for Citadel, especially if it may contain information that can give them an edge.

jariel 6y ago
It's a material amount that can only be spent in the context of 'getting something for it'. What that is is nebulous, and it could be something as simple as an introduction to someone as of yet unknown at a future date. But it's something worth $700K, not a 'speech'.
- bidirectional 6y ago
  700k on several events that their employees will get excited for and can brag about to their (fellow finance professional) friends seems reasonable.
  - jariel 6y ago
    Yes, but also, when the next business cycle market crash happens, and the plebes are screaming about hedge funds, Citadel can also pick up the phone and call their 'friend' Janet Yellen, to introduce them to the Sec. Treasury, and that Senator who's putting putting up a huff about some new legislation. If you hire U2 to do a a private show for your staff, you don't get those kinds of added bonuses.
    - camel_Snake 6y ago
      Citadel is large enough I think she'd be obligated to pick up the phone regardless.
      - jariel 6y ago
        When there are 100 'large firms' calling, it's the 'friends' calls the get answered first, if at all, because hey, we're all busy. When Masayoshi got 45 minutes in Trump Tower to convince Trump to push forward the Sprint/TMobile merger, do you think that Trump just handed out that favour for free? Because it was 'Good For American Business'? Or maybe at some later date, Trump might find himself in need of investors for his Trump Tower Tokyo, or some help in getting regulators to approve it?
postalrat 6y ago
Or a favor.
Udik 6y ago
> it may contain information that can give them an edge That's not a speech, is a consult.

jariel 6y ago

This is a very fair question and shouldn't be down-voted. It's a way for powerful people to pay other powerful people for arbitrary things like 'speeches' so that they can exchange favours off the books in a very indirect way. It doesn't have to be illegal or even nefarious, but it should raise eyebrows as a possible conflict of interest.

jb775 6y ago

It's how bribes are paid nowadays. Monetary payments leave paper trails. What's an easy way around that? Come give a 30 minute speech!

bidirectional 6y ago

I had the exact opposite impression. 700k to bribe a former chair of the Fed and (at the time) likely future treasury secretary seems so paltry that it just being a speaking fee seemed quite reasonable. Citadel pays people in their 20s more than that. From a quick Google search, there are plenty of actors and sportspeople who charge six figures for a speech.

mattkrause 6y ago
Exactly. Criss Angel gets that much for an appearance (https://www.celebritytalent.net/sampletalent/11824/criss-angel/ https://www.celebritytalent.net/sampletalent/11824/criss-ang...)