Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Is Sam Bankman-Fried Another Bernie Madoff? Buyer Beware Or Rely On Government For Protection? (FTX Held Less Than $1bn In Liquid Assets Against $9bn In Liabilities)
Confounded Interest ^ | 11/13/2022 | Anthony B. Sanders

Posted on 11/13/2022 12:47:07 PM PST by Kaiser8408a

Like the disastrous Bernie Madoff debacle where investors lost millions of dollars, Sam Bankman-Fried has apparently cost investors like Steph Curry, Shaq and Tom Brady considerable sums as well.

What do Bernie Madoff and Sam Bankman-Fried have in common? Greedy investors who apparently didn’t bother to monitor what was going on.

Yes, had they monitored FTX, Bankman-Fried’s company, they would have noticed that FTX held less than $1bn in liquid assets against $9bn in liabilities.

Generally, with buyer beware, the onus falls on investors to monitor what is going on. But The Fed’s completely dropped the ball on Bernie Madoff where investors didn’t seem at all curious about earning supercharged returns. The same is the case for FTX.

While it is easy to blame Gensler, the onus still falls on investors (and their managers) to MONITOR. Buyer beware.

What will happen to Sam? Likely nothing. He is a golden child of Democrats and was the second biggest donor to Biden and the Democrats after America-hating George Soros. Just like Biden’s son Hunter will never pay for his many inappropriate antics, I doubt that Merrick “Double Standard” Garland will do much to Sam.

Steph Curry, Shaq and Tom Brady should fire their investment advisors and possibly sue then for failure to monitor. No one noticed $1bn in assets against $9bn in liabilities??

Gary Genslar is more like Inspector Clouseau than a serious regulator.

Here is the SEC’s Gary Genslar interviewing Sam Bankman-Fried about FTX.

Maybe Sam’s Stanford law school professor parents didn’t tell him that it is against the law.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: berniemadof; berniemadoff; bitcoin; blogpimp; cryptocurrencies; cryptocurrency; fraud; ftx; retread; sambankmanfried; sec; skinheadsonfr; smashzog; zog
Navigation: use the links below to view more comments.
first 1-2021-27 next last
I love SEC's Gary Genslar as Inspector Clouseau.
1 posted on 11/13/2022 12:47:07 PM PST by Kaiser8408a
[ Post Reply | Private Reply | View Replies]

To: Kaiser8408a

Not exactly the same thing, but let’s not forget that Jeffrey Epstein (aside form being a sex offender) handled huge amounts of money for the Left and it never seemed very clear Why he was the one doing that, where the money came from, went to, or how it grew. It was all dark and mysterious, and then he died.


2 posted on 11/13/2022 12:59:05 PM PST by ClearCase_guy (We are already in a revolutionary period, and the Rule of Law means nothing. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a
Bernie Madoff showed the world to never rely on government to protect you, especially the U.S. Government.

Madoff didn't bend a few rules rules nor fake a few lines. He created entirely fictitious financial reports for non-existent transactions for years. The government was warned repeatedly and did nothing.

3 posted on 11/13/2022 12:59:44 PM PST by T.B. Yoits
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

I think he is more like Elizabeth Holmes of Theranos than Bernie Madoff. A bright guy who is a faker, not so much a clever thief. This was not a Ponzi scheme so much as traditional securities fraud, wire fraud, standard financial crimes set in the shadow of the blended excitement and ignorance surrounding digital currency. It will be great fun to see this fully unraveled.


4 posted on 11/13/2022 12:59:45 PM PST by Wally_Kalbacken
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wally_Kalbacken

FTX= A slush fund scheme for the DNC.


5 posted on 11/13/2022 1:01:40 PM PST by griswold3 (There are no solutions; there are only trade-offs. – Thomas Sowell)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Kaiser8408a

Or, did someone in the Dem party set him up to fund the election?


6 posted on 11/13/2022 1:05:59 PM PST by aimhigh (THIS is His commandment . . . . 1 John 3:23)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

If the purpose was to launder money to the DNC via Zelensky and skim a few million for yourself, it was a success.


7 posted on 11/13/2022 1:17:07 PM PST by dynachrome (“We cannot save Ukraine by dooming the US economy.” Rand Paul)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

Did Kevin Bacon invest heavily in FTX?


8 posted on 11/13/2022 1:21:09 PM PST by PJ-Comix (YouTube is Trying to "Fortify" Another Election)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

To be clear, in banking liabilities means deposits and assets means money due to you on loans or investments. So they took in deposits and squandered it on ?


9 posted on 11/13/2022 1:27:26 PM PST by AndyJackson
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a
Less Than $1bn In Liquid Assets Against $9bn In Liabilities)

Sounds like the US government, except that the numbers are 3.9 trillion in assets to 73 trillion in liabilities.

10 posted on 11/13/2022 1:29:00 PM PST by MAAG (for the things which are seen are temporal, but the things which are not seen are eternal)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AndyJackson
I think they were loaning out customer funds to Alameda Research, their trading firm, and they lost.
11 posted on 11/13/2022 2:06:12 PM PST by Toddsterpatriot (TANSTAAFL)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Kaiser8408a

About 1 year ago, November 2021, bitcoin peaked at about $61,500. Now at about $16,000. All the other cryptos follow bitcoin values. If it’s not a ponzi scheme it sure looks like one.


12 posted on 11/13/2022 2:15:30 PM PST by Newtoidaho (All I ask of living is to have no chains on me.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

The FTX balance sheet is less worrisome to me than this balance sheet.

https://www.federalreserve.gov/releases/h41/current/

(1) Look for “8,255,992” on the “Securities held outright” line.

(2) Now search for “8,678,886”, “8,637,300”, and “41,586” to get the summary total Assets, Liabilities, and Capital amounts.

(3) Now consider how the “Securities held outright” line has taken at least a 10% cut this year & likely closer to 20%. This means that the “Total Capital” number should be “minus 784 billion” or even as low as “minus 1.6 trillion” if the present fair market value of the “Securities held outright”, “Unamortized premiums on securities held outright”, and “Unamortized discounts on securities held outright” lines were calculated accurately.

The Federal Reserve must be very insolvent right now.

https://www.dictionary.com/browse/insolvent
not solvent; unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature.


13 posted on 11/13/2022 2:30:21 PM PST by Degaston (odds)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Degaston
The Federal Reserve must be very insolvent right now.

not solvent; unable to satisfy creditors or discharge liabilities,

What does the Fed owe? Who do they owe it to?

14 posted on 11/13/2022 2:39:32 PM PST by Toddsterpatriot (TANSTAAFL)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Toddsterpatriot

Abuot Alameda

https://threadreaderapp.com/thread/1591152036766445568.html


15 posted on 11/13/2022 2:45:32 PM PST by dforest
[ Post Reply | Private Reply | To 11 | View Replies]

To: dforest

About


16 posted on 11/13/2022 2:46:49 PM PST by dforest
[ Post Reply | Private Reply | To 15 | View Replies]

To: Degaston

How have prices of these types of securities changed?

Long-term Treasuries down over 30%
https://finance.yahoo.com/quote/TLT/

7-10 year Treasuries down approx 20%
https://finance.yahoo.com/quote/IEF

3-7 year Treasuries down approx 12%
https://finance.yahoo.com/quote/IEI

1-3 year Treasuries down approx 5%
https://finance.yahoo.com/quote/SHY

Mortgage-Backed Securities down approx 14%
https://finance.yahoo.com/quote/MBB
https://finance.yahoo.com/quote/VMBS
https://etfdb.com/etfdb-category/mortgage-backed-securities/


17 posted on 11/13/2022 2:55:45 PM PST by Degaston (odds)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Toddsterpatriot
I think they were loaning out customer funds to Alameda Research, their trading firm, and they lost.

Nothing says prudent, professional investing like transferring something like $10 billion to your girlfriend so she can "invest" it.

18 posted on 11/13/2022 3:02:23 PM PST by freeandfreezing
[ Post Reply | Private Reply | To 11 | View Replies]

To: Toddsterpatriot

If you click on the link below you can see the itemized list of their Total liabilities of 8.6373 trillion dollars. Each of these categories are definitely legitimate liabilities that can’t just be disappeared.

https://www.federalreserve.gov/releases/h41/current/

For convenience, I’ve listed the breakdown of the 5 major categories and the rest here.

2.242141 trillion - Federal Reserve notes, net of F.R. Bank holdings - i.e. money supply of notes in global circulation
2.592090 trillion - Reverse repurchase agreements
3.071230 trillion - Other deposits held by depository institutions
517.340 billion - U.S. Treasury, General Account
190.649 billion - Other Category
23.850 billion - All other liabilities
8.637300 trillion - Total liabilities

Other Category definition - Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States.


19 posted on 11/13/2022 3:11:17 PM PST by Degaston (odds)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Kaiser8408a

Bkmk laundry


20 posted on 11/13/2022 3:15:27 PM PST by ptsal (Vote R.E.D. >>>Remove Every Democrat ***)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-27 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson