3 ms·

How exactly does a total of $750K even come close to being acceptable against a $250 million bond?

SilasX 4y ago
And note, this is not, "give the court $750k, and you get $750k back once the trial is over". This is not even, "put a $750k lien on a brokerage account (with more than that in it) until the trial is over". This is, "We will owe you $750k if the defendant flees, which you can then try to collect."
- ergocoder 4y ago
  SBF has obtained the highest leverage loan in the history. 1m for 250m
  - stevenwoo 4y ago
    It's not clear to me how his parents could even raise the amount of their home since it is Stanford faculty housing stock.
    - ksherlock 4y ago
      As I understand it, they "own"^1 the house and can encumber it with mortgages but Stanford owns the land and limits who it can be re-sold to 1: "residential ground lease" not "fee simple"
    - gnicholas 4y ago
      They would sell the house to another eligible faculty member. As long as Stanford is still hiring or tenuring new faculty, there will be a steady stream of potential buyers. In some cases, Stanford will buy on-campus homes and renovate them, and then resell them.
  - yieldcrv 4y ago
    100x US Bond Guarantor Perp now trading on FTX
  - nullc 4y ago
    > SBF has obtained the highest leverage loan in the history. 1m for 250m And people thought the skills he developed running FTX weren't useful...
dragonwriter 4y ago
> How exactly does a total of $750K even come close to being acceptable against a $250 million bond? They are secondary, partial value sureties, his parents are full-value sureties. (The relation between bond amounts, sureties, and security interests in the federal system is often radically different than state systems, for a variety of reasons, not least among them that bail bonds firms aren’t as politically powerful in the federal government as they are in state governments.)
gist 4y ago
> even come close to being acceptable against a $250 million bond? Maybe the purpose of $250m is to get attention not to mean anything more than $5m (considering if he skips they are not collecting $250m

And note, this is not, "give the court $750k, and you get $750k back once the trial is over". This is not even, "put a $750k lien on a brokerage account (with more than that in it) until the trial is over". This is, "We will owe you $750k if the defendant flees, which you can then try to collect."

ergocoder 4y ago
SBF has obtained the highest leverage loan in the history. 1m for 250m
- stevenwoo 4y ago
  It's not clear to me how his parents could even raise the amount of their home since it is Stanford faculty housing stock.
  - ksherlock 4y ago
    As I understand it, they "own"^1 the house and can encumber it with mortgages but Stanford owns the land and limits who it can be re-sold to 1: "residential ground lease" not "fee simple"
  - gnicholas 4y ago
    They would sell the house to another eligible faculty member. As long as Stanford is still hiring or tenuring new faculty, there will be a steady stream of potential buyers. In some cases, Stanford will buy on-campus homes and renovate them, and then resell them.
- yieldcrv 4y ago
  100x US Bond Guarantor Perp now trading on FTX
- nullc 4y ago
  > SBF has obtained the highest leverage loan in the history. 1m for 250m And people thought the skills he developed running FTX weren't useful...

dragonwriter 4y ago

> How exactly does a total of $750K even come close to being acceptable against a $250 million bond? They are secondary, partial value sureties, his parents are full-value sureties. (The relation between bond amounts, sureties, and security interests in the federal system is often radically different than state systems, for a variety of reasons, not least among them that bail bonds firms aren’t as politically powerful in the federal government as they are in state governments.)

gist 4y ago

> even come close to being acceptable against a $250 million bond? Maybe the purpose of $250m is to get attention not to mean anything more than $5m (considering if he skips they are not collecting $250m