Also SBF’s testimony, scammer self-delusion, FTX 2.0, Joe Bankman on shadow trading, Twitter debt and a forgotten crypto password.
Matt Levine is a Bloomberg Opinion columnist. A former investment banker at Goldman Sachs, he was a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz; a clerk for the U.S. Court of Appeals for the 3rd Circuit; and an editor of Dealbreaker.
Disclosure! I used to sell customized derivatives at Goldman Sachs Group Inc. There are roughly four steps in pricing a complex derivative to show to a client:
Oh, I kid, probably programming the model (Step 1) is the most important part; if you get that wrong then you have huge systemic problems. But the quants do that. At the level of derivatives sales, nudging the price up to what the client is willing to pay is what earns you your bonus.
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Goldman Has a Derivatives Robot
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