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He's being honest here, and we should listen to him. Point 1: Most personalities are shams. Ethics/politics among the powerful is a lie/shibboleth. Instinctiv
by jl2718 4y ago
He's being honest here, and we should listen to him.
Point 1: Most personalities are shams. Ethics/politics among the powerful is a lie/shibboleth.
Instinctively you know this to be true, but hope in a great savior is deeply ingrained.
Point 2: Regulators make things worse. They are actively working against our interests.
He would know best; they created him. Again, we want to believe in the great savior myth, but they are just people: lazy, corruptible, political, etc.
Point 3: Chapter 11 made things worse.
He's probably right about this too. He's saying that he would have the power to pay back depositors first. Chapter 11 only gives him legal protection, and puts depositors last. They will liquidate everything to USD, pay a 10% commission for a horrible rate, and then pay the lawyers, then the counterparties, then the investors, and then a tiny fraction back to depositors, years down the road. Another MTGOX/BITFINEX.
As a reference, the Irving Picard recovered $9.3B from Madoff and paid only $5.4B to depositors. The rest evaporated in liquidation expenses and legal fees of $700M. The legal fees for Lehman Brothers liquidation was $1.6B. The people running the show now are not your great saviors; they are incompetent, greedy, and morally disconnected.
- Denvercoder9 4y agoChapter 11 proceedings will not pay investors before depositors.
- jl2718 4y agoIANAL, but they may have structured their investment as senior debt, and depositors may have some other funny legal status. Also Alameda has to be dissolved before FTX, so technically FTX depositors are a creditor to Alameda while the Alameda investors are depositors, and typically Chapter 11 discharges debts. Also, Alameda is under Bahamian law, and so is FTX, and US courts will only get what's left.
- notch656a 4y agoIs this satire? The dude is likely a sociopath who is speaking for whatever he think meets his interests and/or vanity.
- eternalban 4y agoSome words of wisdom from our 43rd: https://www.youtube.com/watch?v=rQ6N-sb7SVQ https://www.youtube.com/watch?v=rQ6N-sb7SVQ
- 55555 4y ago> Irving Picard recovered $9.3B from Madoff and paid only $5.4B to depositors. Is this accurate? That's absolutely insane. _That_ sounds like fraud/theft.
- jl2718 4y agoDid you know that Madoff didn't charge fees? His crime was faking the numbers, but the way he made money is, much like SBF, through leverage of managing that money. I don't know much about it, but until the lawyers got involved, the only losses were the made-up gains. Then they took $4B in real money. So, who's the real crook? https://money.cnn.com/2013/05/06/news/companies/madoff-picard-lawyers/index.html https://money.cnn.com/2013/05/06/news/companies/madoff-picar...
- AnimalMuppet 4y agoI fail to see how regulators made this worse. I see loud and clear how the absence of regulators made this worse, whatever SBF says.