Scott Skyrm, Executive Vice President in fixed income and Repo at Curvature Securities, joins Jack Farley to share insights from his book “The Money Noose: Jon Corzine and the Collapse of MF Global.” Scott and Jack explore the startling parallels between the fall of the futures brokerage MF Global in 2011 and the recent collapse of cryptocurrency exchange FTX: the merging of proprietary trading with a brokerage, the illusion of “risk-free” trades funded with borrowed money, the liquidity mismatch between liabilities and assets, the misuse of client funds, the stubborn CEO with political connections and heavy risk appetite who is surrounded by “yes men,” and an alleged acquisition by a supposed savior that is later terminated (Binance for FTX, Interactive Brokers for MF Global).
Jack explains why it is his opinion that the fall of FTX is much “worse” than the the MF Global, in that at MF Global the use of customer funds was a last resort, where in the case of FTX, it is Jack’s reading that FTX likely misused (or at least “mislabelled) its customer funds well before its liquidity crisis. Lastly, Scott shares his outlook on the repurchase (“repo”) markets in 2022, as well as the Fed’s dilemma between price stability and financial stability.
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Timestamps:
00:00 Intro
01:18 Is FTX The New MF Global?
02:24 MF Global’s Transformation After 2008
11:07 Can Broker Dealers Touch Client Funds?
20:11 Lack Of Controls At MF Global And FTX
23:29 Cross-Margining
32: 52 MF Global’s Risky Repo-To-Maturity Trades
40:54 The Risks Of Repo-To-Maturity Trades
43:19 FTX’s Imaginary Tokens: FTT & SRM
47:40 MF Global’s Ultimate Fate
53:59 The Fed’s Dilemma
58:51 The Repo Market in 2022
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
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What a great interview. Please have him back again
Meh, more crypto garbage, no need to watch, good luck.
Wait a second at 12:47 he said something and not basics Neanderthal brain understood it as, if you have enough money you can just buy more money. But you are probably too broke to do that…. Two years ago you might have been able to tho but not not you too broke now that shit mad expensive
Very high quality guests lately. Well done Jack.
Ms. Anna is legit and her method works like magic. I keep winning every week with her new strategy.
I actually feel better about our regular system after hearing smart people like him know what's going on. Luckily not all like SBF or Enron
I still don't understand the reason why my trader (Frieda Leonie ) charges me 20% of my profit after the end of my trade weekly. I have been trading with her for like 15months now ,but she keeps on taking percentage from me which is too sad. I wish I could get a better trader who won't charge me a dime.😶
Awesome information! Will read his book. Hard to find real financial information
thank you for clarifying the difference between bitcoin and some conjured coin like ftt.. refreshing to make that distinction..
could this guy on the left blink more? i don't think he blinks enough
FTX was 100% scam this guy as he said. Knows nothing about FTX
Game of life is game of AZR7T
After all maybe there’s hope ty AZR7T
What the hell everyone has with AZR7T
You will only be mad if you miss Amazons AZR7T sale telling you now and you will come back to this comment either way
When the AZR7T shills are back..
Every life is in one or another way subject to AZR7T
Inflation, check. Recession, check. Still making money? AZR7T
Wallstreetbets only talking about AZR7T why no one makes video about it?
Making sense that AZR7T is bitcoin follower, so be early!
Even on coffe break people talk about AZR7T… AZR7T AZR7T… but it's huge thing!
Only decision you make is how much to buy into AZR7T rly
The world opens a new dimension and they call it AZR7T
Last call for AZR7T Nothing better this year 🛑🛑
Katelyn long and Hester peirce need to go on tour together.
AZR7T is under $1
Smartest campaign ever that AZR7T