Michael Lewis on The Rise and Fall of Sam Bankman-Fried, Part One
Oct 28, 2023
33:19
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Author Michael Lewis discusses his latest book on Sam Bankman-Fried, the enigmatic protagonist behind a catastrophic financial meltdown. Topics include effective altruism, high frequency trading firms, unconventional management at FTX, and chaos as part of the operation.
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Quick takeaways
Sam Bankman-Fried's unconventional approach to business, rejecting traditional structures like job titles and organization charts, led to chaos within his firm but also enabled him to recruit and retain employees.
Despite facing controversy and challenges, Sam Bankman-Fried's combination of high-frequency trading skills and interest in effective altruism drove his ambition to have a significant impact on the world.
Deep dives
Sam Bankman Fried's rise to power in the crypto industry
Sam Bankman Fried, the crypto entrepreneur, became a billionaire before the age of 30 and aimed to use his money for effective altruism. His success in high-frequency trading and his involvement in the 2016 election demonstrated his skill in navigating financial markets. He founded his own firm, Alameda Research, which faced internal strife and accusations of mismanagement. However, his recklessness did not deter supporters within the effective altruist community.
Sam Bankman Fried's unconventional approach to business
Sam Bankman Fried's approach to business was unconventional, with a lack of traditional structures like job titles and organization charts. His refusal to adhere to conventional practices and his principled objection to organization charts led to chaos within his firm. Despite this, he was able to recruit and retain employees, even though conflicts and confusion arose due to the absence of clear hierarchies. Surprisingly, he employed a psychiatrist to handle the emotional well-being of his employees, even though he did not believe in traditional therapy or organizational structures.
The controversy and challenges faced by Sam Bankman Fried
Sam Bankman Fried faced controversy and challenges throughout his career. His firm, FTX, experienced the loss of millions of dollars, leading to accusations of theft and mismanagement. Internal conflicts and allegations divided the firm, with some employees leaving and others remaining loyal to Sam. The unorthodox nature of his business practices and his willingness to take risks contributed to the challenges faced by the company.
Sam Bankman Fried's unique character and personal journey
Sam Bankman Fried's personal journey and character are complex. He felt isolated and lacked emotional connections from a young age. His abilities in high-frequency trading, combined with an interest in effective altruism, shaped his ambition to make a significant impact on the world. However, his personal traits, such as his limited emotional expression and unconventional attitudes, were both assets and challenges in his journey to success.
Michael Lewis is the renowned author of bestselling nonfiction hits including Moneyball, The Big Short, Flash Boys and Liar’s Poker. His latest is his most anticipated book to date: Going Infinite: The Rise and Fall of a New Tycoon, a gripping, real-time narrative chronicling the enigmatic protagonist behind one of the most catastrophic financial meltdowns of the 21st century. This character is Sam Bankman-Fried, who became the world’s youngest billionaire before his thirtieth birthday. And Lewis is uniquely positioned to tell his story, having been granted unprecedented access by Bankman-Fried, allowing him to witness his entire tumultuous journey. Joining Lewis in conversation is our host the journalist and presenter Ritula Shah. This is the first of a three-part discussion.
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