Understanding Banking Structures and Limitations | 4min snip from "Upstream" with Erik Torenberg

Get the app

E80: Financial Plumbing with Patrick McKenzie and Erik Torenberg

"Upstream" with Erik Torenberg

chevron_right

notes

CHAPTER

Understanding Banking Structures and Limitations

This chapter explores the efficiency of traditional banking systems in tracking transactions and highlights the historical innovations in bookkeeping by the Medici. It also discusses the limitations banks encounter in recognizing alternative forms of truth, shedding light on the broader implications of these challenges.

00:00

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

In this episode of Upstream, Erik Torenberg interviews Patrick McKenzie (patio11) about the intricacies of the financial system, focusing on banking, money laundering, and regulatory compliance. They discuss several of Patrick’s essays from Bits About Money.

Patrick discusses the three stages of money laundering - placement, layering, and integration - and how the financial system has been deputized to act as law enforcement. The conversation touches on the unintended consequences of strict regulations, including their impact on economic growth and financial inclusion.

—

🔥 Apply to join over 400 founders and Execs in the Turpentine Network: https://www.turpentinenetwork.co/

—

SPONSORS:

💡 Level up your portfolio with access to pre-IPO companies via the Fundrise Innovation Fund. Access a $125M+ fund of cutting edge tech companies including AI frontrunners, now available to individual investors. Start your journey at Fundrise.com/upstream.

Elevate your investment game with Altea by Alts.co. Discover vetted deals in unconventional asset classes, network with captivating individuals, and indulge in exclusive travel experiences. Ready to invest in pro sports teams or film financing? Apply now at www.alts.co/upstream and redefine your investment journey.

💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.

—

RECOMMENDED PODCASTS:

🎙️ Dealcraft: Insights from Great Negotiators is the brand new weekly podcast that features interviews with world’s greatest dealmakers and diplomats, including Former Secretary of State Henry Kissinger, Blackstone CEO Steve Schwarzman, and music industry super-lawyer John Branca, on their most challenging negotiations. Each episode, host Jim Sebenius (Harvard Business School professor and renowned negotiation expert) relates fascinating deal stories and distills useful insights for listeners to apply in their toughest deals and disputes.

Apple: https://link.chtbl.com/3CG3TbHY?sid=Turpentine

🎙️Complex Systems with Patrick McKenzie

Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more.

Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOH

Apple: https://podcasts.apple.com/us/podcast/complex-systems-with-patrick-mckenzie-patio11/id1753399812

—

LINKS:

Patrick’s Newsletter: https://www.bitsaboutmoney.com/

Seeing Like a Bank: https://www.bitsaboutmoney.com/archive/seeing-like-a-bank/

KYC and AMI: https://www.bitsaboutmoney.com/archive/kyc-and-aml-beyond-the-acronyms/

Money Laundering and AML Compliance: https://www.bitsaboutmoney.com/archive/money-laundering-and-aml-compliance/

—

FOLLOW ON X/TWITTER:

@eriktorenberg

@patio11