BREAKING: FTX had a “backdoor” built into its accounting software by SBF, which he used to move billions without triggering alerts to other staff, auditors etc - Reuters
BREAKING: SBF was trying to sell his 7.6% share of Robinhood, worth $472M, on the app Signal. The shares were held by an Antigua and Barbuda entity called Emergent Fidelity, which is personally controlled by Bankman-Fried and NOT included in the FTX bankruptcy filing." - Financial Times
Add FTX name to the list:
Lehman, Bear Stearns, Enron, Archegos, 3AC, Celsius, MF Global, LTCM, Peregrine, Washington Mutual,
Penn Square, Worldcom, Digital, etc
Where there was financial mismanagement one usually finds excessive leverage, corruption, all due to human greed, and that finance isn't linear and finance doesn't conform to any physical laws. Some on the list didn't realize that the world around them changed. . . meaning that they relied on the trend is their friend and kept spending farther into deb Everyone also believes that management can control the corporate outcome.
Doesn't matter the corporate status, all human systems are fallible because they are run by humans. Economics doesn't explain greed as that is not a rational actor. . . Behavioral economics does, and this scenario, happens, over and over and over again.
Which is easier? grow a company at 16% a year for 20 years? or go become financially insolvent?
Last edited by CoachKandSportsguy; 11-13-2022 at 07:02 AM.
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