Nov

17

Commonalities

November 17, 2022 |

one thing common to the Madoff situation and FTX was their close relation with their trading firms. in Madoff's case it was the third market operation that was situated one floor up from the "wealth management". many investors assumed that by front running, profits of the "wealth management" were assured. The proximity of FTX and Alameda supposedly with a Chinese wall between them is an eerie similarity. Bernie Cornfeld's operations and interrelations with IOS was similarly "complex".

interesting article in the wsj about SBF:
The Fall of Crypto's Golden Boy

according to article the boys at the firm weren't interested in money. they just wanted to give it all away. Left out in the article are the things about their being the second largest contributor to D's and plans to give 1 billion more.

Mr. Pater Earle says the situation is more like MF Global than Madoff. but the diffidence, the playing of racquetball in the Catskills, the friendly way Madoff took money from a family friend at a funeral a week before the end, the interconnection between the market maker and trader.

Vic's twitter feed


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