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Supposedly lying about the scale (and risk) of his positions to get more leverage from banks. It’s good old-fashioned fraud.
by pram 2y ago
Supposedly lying about the scale (and risk) of his positions to get more leverage from banks. It’s good old-fashioned fraud.
- psaux 2y agoCorrect, it is underlying assets value and correctness. This fuzzy logic has always confused me
- bobthepanda 2y agothe functioning of the market is dependent on everyone having faith that what is in the market is actually correct information. that's the entire reason the SEC was founded in the '30s, to restore confidence after 1929; if the market is believed to contain widespread fraud, then no one will invest and the market will essentially stop working. as a counter example, the Chinese markets are rife with accounting frauds, scams and scandals; and the market doesn't really track with the Chinese economy as a result because no one believes it is accurate