FTX/Sam Bankman-Fried
Discussion
A blackrock fund invested 24 mill in FTX, that’s such a tiny amount for them hardly worth it.
the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
z4RRSchris said:
A blackrock fund invested 24 mill in FTX, that’s such a tiny amount for them hardly worth it.
the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
Ah OK, thanks for explaining that - I genuinely thought it was a great deal more.the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
There's something VERY wrong about what went on in this saga though and it certainly appears to be getting no better ongoing!
Might be more to do with the ripple effect of FTX's crash on Coinbase investment - https://www.coinbase.com/blog/coinbase-selected-by... and Blackrock stopping further investment in Coinbase, perhaps they are being careful, perhaps they know more.
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hstewie said:
hstewie said: It's one of the things that happens occasionally with open ended funds.
Essentially it's because if a ton of people want their money you can't realise it quickly if you need to sell property.
I don't see why anyone would think it's related to FTX.
Indeed. The issues have been compounded by the property market stalling after the cost of debt increases and the mini budget. Prime industrial has lost 25% of it’s value in the last few months and the only buyers out there are vultures looking for a bargain from distressed sellers. Essentially it's because if a ton of people want their money you can't realise it quickly if you need to sell property.
I don't see why anyone would think it's related to FTX.
z4RRSchris said:
A blackrock fund invested 24 mill in FTX, that’s such a tiny amount for them hardly worth it.
You have to look at the position in the context of the Blackrock fund that owns it, not relative to Blackrock as a whole. They don’t make top down decisions across their many thousands of funds, rather decisions are made for each fund either by a fund manager or the relevant algorithm. If a BR manager has made an active decision to put $24m in and that is material to the fund they run then they’ll likely be facing some tricky questions… And so they should.The more obviously egregious investment decisions here are those by the Canadian and other pension funds who are apparently invested. I used to pitch to those guys - typically you’d have a committee of various people signing off on fund manager appointment decisions, and on the specifications of the relevant mandates. In most cases those committees would include employed investment professionals, independent investment consultants, pension fund officers and lay representatives (including union reps) of pensioners etc. I find it extraordinary that investments like this - where there is in truth no intrinsic source of return - were signed off. Either managers have departed from their mandate constraints or the investment committees have failed horribly. Either way there are people who should be facing career threatening questions….
WindyCommon said:
You have to look at the position in the context of the Blackrock fund that owns it, not relative to Blackrock as a whole. They don’t make top down decisions across their many thousands of funds, rather decisions are made for each fund either by a fund manager or the relevant algorithm. If a BR manager has made an active decision to put $24m in and that is material to the fund they run then they’ll likely be facing some tricky questions… And so they should.
It sat in a blackrock fund of funds, so was a decision by a non blackrock fund. and $24m isnt material to any blackrock funds. Its a bet.
bhstewie said:
I am finding the continual wishy-washy kid gloves being used on SBF by the people who should be throwing a whole library at him rather frustrating I have to admit. Whether his political donations on both sides of the aisle bought him some level of indulgence I couldn't say. I'm not saying the response should be the same as the current AAX fiasco where disgruntled customers have been reportedly going to the offices and beating up whatever staff were there but I feel there's got to be a response stronger than this whole "maybe if you're not too busy you could drop by any explain away your massive fraud that'd be great" schtickhstewie said:z4RRSchris said:
A blackrock fund invested 24 mill in FTX, that’s such a tiny amount for them hardly worth it.
the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
Pretty much this. the halt on redemptions are in the 140 billion unlisted reit (which is property), because it’s not a liquid investment and takes time to sell real estate the limit how much people can take out at one time. pretty normal stuff, and nothing to do with the pennies they put into fTX
The market and the fund managers (internal and external) are struggling to price at the moment. There's not much transactional evidence and the general mood is to move yields out by up to 175bps.
If you're Blackrock or Blackstone or whoever and you bought at sub 3% over the last 2 years, you most certainly do not want to 1) start churning parts of your estate and 2) a valuation update.
Wait and see seems to be the consensus at the moment.
https://twitter.com/disclosetv/status/160062139448...
Tweet says:
'JUST IN - House Financial Services Chair Maxine Waters doesn’t plan to subpoena Sam Bankman-Fried to testify at hearing on FTX collapse — CNBC'
Tweet says:
'JUST IN - House Financial Services Chair Maxine Waters doesn’t plan to subpoena Sam Bankman-Fried to testify at hearing on FTX collapse — CNBC'
The Treasury Committee sat yesterday to discuss Crypto and Crypto regulation:
https://www.parliamentlive.tv/Event/Index/c6a48044...
A former Prime Minister backing a Crypto currency was mentioned which I took to be a reference to Blair appearing beside SBF. I was unaware of the Sport and Football use of Crypto.
https://www.parliamentlive.tv/Event/Index/c6a48044...
A former Prime Minister backing a Crypto currency was mentioned which I took to be a reference to Blair appearing beside SBF. I was unaware of the Sport and Football use of Crypto.
carinaman said:
https://twitter.com/disclosetv/status/160062139448...
Tweet says:
'JUST IN - House Financial Services Chair Maxine Waters doesn’t plan to subpoena Sam Bankman-Fried to testify at hearing on FTX collapse — CNBC'
$40,000,000 can buy some goodwill after all...Tweet says:
'JUST IN - House Financial Services Chair Maxine Waters doesn’t plan to subpoena Sam Bankman-Fried to testify at hearing on FTX collapse — CNBC'
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