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The dude took our $1B in a personal loan with customer wealth. He then used it to donate to random politicians, invest in effectively crazy one off ideas, etc.

• hn_throwaway_99 4y ago
  > The dude took our $1B in a personal loan with customer wealth. Let's correct that to say "stole $1B in customer wealth". You can't "take out a loan" from someone who doesn't agree to loan it to you (and, indeed, FTX expressly said they wouldn't borrow customer funds).
  • kayamon 4y ago
    Most banks only keep a fractional reserve of their money and happily loan the rest out to other people.
    • lettergram 4y ago
      Yeah but don’t often offer personal loans to the tune of $1B of which tens if not hundreds of millions will be used for political donations …
    • hn_throwaway_99 4y ago
      Which is clearly documented by the banks for the benefit of all of their customers. Not to mention there is FDIC insurance, which is specifically why people who are worried about bank stability know they can more their money in multiple banks if they're over the FDIC limit. Nevermind FTX was an exchange, and my stock brokerage certainly doesn't lend out my stocks to a related party without my consent.