Breitbart Business Digest: Sam Bankman-Fried Hoped FTX Was Bear Stearns—But It Was Lehman Brothers Instead

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Carney: The best that Sam Bankman-Fried could hope for at the start of this week was that his crypto exchange FTX would turn out to be the equivalent of Bear Stearns. Instead, it turned out to be Lehman Brothers.

Bear Stearns was a Wall Street trading house and investment bank whose collapse in 2008 signaled an acceleration of the global financial crisis that had been building since at least a year earlier. In the spring of 2007, two hedge funds owned by Bear Stearns began to meltdown as the market lost confidence in the subprime mortgage bonds in which they invested something like $20 billion.

This created a complex web of mutual interests and dependencies between these firms. The investment banks needed customers for their mortgages bonds and their prime brokerage desks’ supply of margin loans. Bear needed a constant supply of investments and credit for its hedge funds. This was how the dark magic of Wall Street worked before the financial crisis.

Former Bear Stearns manager Ralph Cioffi is escorted out of his office in handcuffs by federal agents on June 19, 2008. about its viability. On Wednesday, March 12, 2008, shortly after 9 a.m., CNBC reporter David Faber asked Bear Stearns chief Alan Schwartz to respond to rumors that Goldman Sachs wouldn’t “accept the counterparty risk of Bear Stearns.” This question is often viewed as the beginning of the end of Bear.

The Bear Stearns matter was complicated by the fact that it was not, technically, a bank. The Federal Reserve is only supposed to supply credit to banks, although in practice it has often figured out ways around this. In this case, the Fed stepped in to back a rescue loan from J.P. Morgan Chase, which eventually bought Bear Stearns outright for a fraction of where shares had been trading prior to the crisis of confidence. J.P.

Lehman Brothers world headquarters in New York City is shown on September 15, 2008, the day the 158-year-old investment bank filed for bankruptcy.

 

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The democrat party should have to pay back every investor, out of there own pocket.

Thank God he threw all that money to the Democrats. Democracy and only aborting older babies was on the ballot here.

Dem money laundering

Now the best he can hope for is to be an unpaid bathroom attendant, instead of a prison inmate.

More like Enron

The question is, who is next to fall?

And like them, nothing will be done about it.

Isn’t this more like Bernie Madoff?

How much money did he give to Biden ?

NewlandBobby

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FTX founder Sam Bankman-Fried in the Bahamas as customers’ billions go missing in company collapseFTX underwent a $16 billion implosion amid reports that co-founder Sam Bankman-Fried had been funneling money to a sister trading company. He’s been caught Who’s his mommy? He started out in the Bahamas already - if that’s not a red flag in itself - and since fled to Argentina or Brazil.
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