Bank Insolvency, Bailouts, and Blockchain

Published on
April 6th, 2020
Duration
39 minutes

Small Business & Venture Capital: The Post-Coronavirus Future


Bank Insolvency, Bailouts, and Blockchain

The Interview ·
Featuring Sheila Bair and Pedro da Costa

Published on: April 6th, 2020 • Duration: 39 minutes

Financial journalist Pedro DaCosta speaks with former FDIC chair Sheila Bair about the ongoing efforts of the U.S. government to contain the economic damage inflicted by the COVID-19 pandemic. She discusses the Small Business Administration's (SBA) efforts to extend credit to endangered businesses and explores whether the Federal Reserve might use blockchain technology in order to deliver emergency cash to U.S. citizens in a more efficient (as well as hygienic) manner. Bair places these topics in context by drawing on her experience as head of the Federal Deposit Insurance, where she led the effort to protect depositors during the Great Financial Crisis.

Comments

Transcript

  • GP
    Graham P.
    7 April 2020 @ 18:53
    Very interesting conversation, but the poor audio quality made it hard to follow.
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
      Farmhouse!
  • MX
    Mr X.
    9 April 2020 @ 04:11
    Crap quality
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
      Sorry y'all, she lives on a farm.
  • NL
    Nikola L.
    8 April 2020 @ 04:55
    I am missing big chunks of the conversation.. it is very interesting stuff but I struggle to follow due to poor quality..
    • PD
      Pedro D. | Contributor
      22 April 2020 @ 20:14
      Apologies. Sheila Bair lives on a farm!
  • TM
    Timothy M.
    12 April 2020 @ 09:14
    Had to stop watching due to illegible audio. Interview should have been stopped and recorded by phone. Would rather have no video than no conversation.
  • MK
    Monty K.
    10 April 2020 @ 03:23
    Such shitty quality...what's the point of the interview if it's going to be this bad!
  • JN
    Jack N.
    9 April 2020 @ 14:09
    horrible quality connection with the lady. terrible
  • TZ
    Tibor Z.
    8 April 2020 @ 17:14
    Record it with a camera first than edit and cut it together.
  • MJ
    Marius J.
    8 April 2020 @ 15:29
    When filmed?
  • MR
    Milton R. | Founder
    6 April 2020 @ 18:35
    I know under normal conditions I wouldn't recommend but in this case, the transcript offers very good support for the borderline audio. My team is already looking into getting around those issues in the future.
    • SM
      Shivani M.
      6 April 2020 @ 19:04
      I strongly recommend having guests edit the transcript so that it reflects their intended meaning. It wouldn't take too long. Extemporaneous speech seldom reads well, and they can also fill in all the [indiscernible] words.
    • VV
      Vanessa V.
      6 April 2020 @ 20:57
      Whilst the audio quality isn't the best, I found reading the transcript while listening to the conversation helped. Yes, it takes more effort/time, but it was worth it for me as I like to get a feel for the person being interviewed.
    • PV
      Peter V.
      6 April 2020 @ 22:26
      might have helped if she had not moved about so much and not spoken so fast.
    • MW
      Moritz W.
      7 April 2020 @ 06:20
      Look into squadcast !
    • AM
      Artem M.
      8 April 2020 @ 15:11
      Just have your guests call in with a phone in addition to being on video (mute the computer mic/speakers). Vid conferencing 101.
  • AM
    Artem M.
    8 April 2020 @ 15:08
    Gotta call in with a phone to solve the audio issue, doesn't matter if the video lags if the audio is good.
  • MH
    Martin H.
    7 April 2020 @ 06:44
    Really hard to listen! Drop the video and go with a picture and high quality audio. We really don't have to see people if it sacrifices the audio so much!
    • AH
      Alexander H.
      7 April 2020 @ 13:18
      Pretty sure the problem is Sheila's bandwith. There would be compression issues with audio only, too. would've been smart to ask her to record the audio her end and send it via dropbox or something but it might be a bit of a chore for someone her age
    • ZM
      Zachary M.
      7 April 2020 @ 14:57
      They don't have the luxury of having "high quality audio" without sending a setup to the guest's house.
    • MH
      Martin H.
      8 April 2020 @ 04:35
      Alexander H. Yeah it's bandwidth which is why you drop the video because is WAY more bandwidth hungry than audio. She'd have been clear if they did audio only. Zachary M. rubbish, it's not that hard to improve way out of sight from there. A Whatsapp audio call (any VOIP really) on a decent phone would have knocked that out of the park.
  • DM
    Dominic M.
    8 April 2020 @ 01:36
    CBDCs may be digital, but we already have digital dollars. To call them "blockchain" or to suggest they're similar to actual decentralized crypto projects (e.g. Factom / Pegnet) is misleading. They're centralized—i.e. categorically separate.
  • ar
    andrew r.
    7 April 2020 @ 23:13
    "Just send them cash! … Because consumer demand drives the economy." This is why we're in such a mess. Our system is fragile because of these fallacious ideas.
  • VB
    Vincent B.
    7 April 2020 @ 20:08
    the audio was bearable... she was a strong, level-headed, openminded thinker...yet another good one.... and i leave with the thought.... it's all about the blockchain.... I didn't get bitcoin until very recently.... which is the blockchain... which is an actual revolution against hierarchical centralization, very much in line with ferguson's book, about how networks ( the square) are about to take down hierarchy ( the tower)...
  • DR
    Diana R.
    7 April 2020 @ 15:33
    Can't understand every other word; why post such a poor quality video?
  • DN
    Douglas N.
    7 April 2020 @ 14:04
    "...and it will be lasting change if people realize that taking a walk or whatever is just as fun as flying to Atlantic City and gambling or whatever." I'm not even sure how to comment on this...
  • AH
    Alexander H.
    7 April 2020 @ 13:28
    Bailouts for corporations create incentives for irresponsible and incompetent executives
  • DR
    David R.
    6 April 2020 @ 14:36
    "We're ending up with the distasteful task of bailing out the institutions that have brought us the crisis." Exactly. Should NOT be bailing out stuff to the tune of $6-trillion, especially those terribly run organizations headed by greedy execs who've made off like vault thieves by rewarding themselves 8-9 figures each by engaging in massive financial engineering - stock buybacks financed by cheap debt facilitated by the inept Fed. The CoV flu bug was merely a calalyst to this bigger systemic problem which could have been triggered by any number of other things, like a spark to kindling. The policy response, whilst preventing a bigger short-term meltdown, has nevertheless exacerbated the systemic problem, especially in US. It appears that they've suddenly now checked all the boxes of Dr Lacy Hunt's nightmare scenario; can hardly wait to hear what he says next.
    • AF
      Andre F.
      7 April 2020 @ 04:37
      The Fed are not inept. They [Bernanke, et.al.] intended to create inflation in the stock market when they initiated QE back in '08. It led to decade long bull market. They accomplished their aim; that's not ineptitude, that's success. Are you a social commentator or an investor?
  • lm
    luke m.
    7 April 2020 @ 03:20
    No hard questions about FDICs latest video, telling us about how safe the banks are, followed days after with the first bank in America to declare insolvency .... ?
  • JF
    John F.
    6 April 2020 @ 07:52
    Important interview but hard to listen to because of bad connection. . Please redo interview with better sound.
    • MR
      Milton R. | Founder
      6 April 2020 @ 09:09
      I know the sound quality is not ideal but it's intelligible.
    • TR
      Tadej R.
      6 April 2020 @ 11:18
      @Milton and team, have you ever thought about recording audio locally during interview and then sending it to your audio team to merge all of them when preparing the video? Not sure how hard this would be, but this way you would eliminate the impact of bad internet connection during interviews.
    • DR
      David R.
      6 April 2020 @ 14:18
      There's also the excellent transcript provided, which helps the audio. Which for convenience even has the current spot in the text highlighted during playback. Great stuff!
    • MV
      Mathieu V.
      6 April 2020 @ 17:42
      I do agree with Tadej
    • CL
      Charles L.
      7 April 2020 @ 02:14
      You might want to try IPDTL...not expensive and a great way to get good audio. You can sync it to the video in post. Just a thought...
    • CL
      Charles L.
      7 April 2020 @ 02:15
      https://ipdtl.com/
  • sc
    sung c.
    7 April 2020 @ 01:41
    I was never impressed with Bair before and still not impressed now with poor tech of this interview.
  • GT
    Guillaume T.
    7 April 2020 @ 01:12
    For all the audio discussion. Don't forget there is a Transcript document available. Just in case people still read nowadays.
  • CP
    Carl P.
    6 April 2020 @ 23:48
    The dislike was not for the audio, it's for the "I think the fed needs to do this."
  • PB
    Paul B.
    6 April 2020 @ 23:28
    Yeah and look at the SB loans under 350K are 5%....Banks make money again.
  • MT
    Mark T.
    6 April 2020 @ 23:26
    The technical problems really took away from the interview. Hard to follow.
  • JG
    JC G.
    6 April 2020 @ 23:11
    Please try another video solution - could not follow her duscussion at all
  • NG
    Neil G.
    6 April 2020 @ 22:30
    In the description for these videos, can you please add in the date the interview was conducted so we have context on the timing? These lose a lot of value without knowing the interview date in this fast moving environment.
  • LS
    Lemony S.
    6 April 2020 @ 22:18
    I didn't think that the audio was as big of a deal as comments like "Thanks to Andrew Yang for putting this more [UBI] on the national agenda." We are entering waters everyone thought were "conspiratorial" people ... and fast.
  • RR
    Rob R.
    6 April 2020 @ 20:47
    Why no hard questions about digital dollar and its potential Orwellian impact? These were all softball questions that weren't very insightful.
    • LS
      Lemony S.
      6 April 2020 @ 22:15
      I thought the same thing, and if you couldn't tell from Pedro's loaded questions (carbon footprint?) he seemed to be Bill Gates, Jr. in this interview. Now you know why the media is such a problem.
  • MR
    Michal R.
    6 April 2020 @ 21:30
    Painful to watch and poor transcript. Real shame, interesting topic but poor tech execution. I had to stop watching after 6min. :(
  • RM
    Russell M.
    6 April 2020 @ 20:48
    Interesting to hear her perspective vis a vis 2008 but nothing really new here. It was painful to listen to because streaming issues. Had the same sound problem with the China expert.
  • SM
    Stephane M.
    6 April 2020 @ 10:48
    Orwellian interview!! Free crypto money for every one (so we can trace you). I can't believe what I heard. I know you have to give voice to different point of view.... so don't delete my comment this time Milton ;-) Want a reality check?? https://www.armstrongeconomics.com/international-news/politics/unprecedented-power-grab/
    • DB
      Douglas B.
      6 April 2020 @ 14:15
      Martin Armstrong. He's about as credible as Alex Jones. Resorts to conspiracy theories whenever "Socrates" fails to predict the future, which is most of the time.
    • SM
      Stephane M.
      6 April 2020 @ 18:48
      To Douglas B.: Armstrong predicted a market TOP on BNN at the end of january. Go listen to it. Socrates predicted the REPO crisis in september. I don't understand your hatred but good luck with what's coming!! Cheers
  • HR
    Humberto R.
    6 April 2020 @ 18:40
    Taking a walk is just as fun as flying to Atlantic City?
  • PG
    P G.
    6 April 2020 @ 13:59
    This interview does not come up on my home page anymore. Is it only me?
    • MR
      Milton R. | Founder
      6 April 2020 @ 18:32
      small bump that we are ironing out right now
  • OK
    Oleksandr K.
    6 April 2020 @ 17:56
    Impossible to listen.
  • JD
    John D.
    6 April 2020 @ 17:29
    Horrible audio quality.
  • JA
    Jose A.
    6 April 2020 @ 15:59
    The sound on this video is so bad, it's near impossible to listen.
  • JS
    Jon S.
    6 April 2020 @ 15:59
    Stop the "stimulus". Let prices be discovered for goodness sake. There is always a buyer. How many times do we have to go through these crises?
  • PT
    Patrick T.
    6 April 2020 @ 14:16
    Sorry Milton, have to agree with the other comments referencing the sound quality.
  • IC
    Ian C.
    6 April 2020 @ 11:29
    I get it we’re in quarantine, but the sound quality made it un-understandable.
    • DK
      David K.
      6 April 2020 @ 13:11
      Would love to hear this interview but the sound quality makes it almost impossible. Such a shame. Hope you all can redo this episode.
  • BM
    Blake M.
    6 April 2020 @ 07:37
    audio quality is too bad
  • DS
    David S.
    6 April 2020 @ 07:03
    Another aside. I am trying to figure out what will happen to gold in the short and medium run coupled with my expectation of a continued bear market. The price of gold can go up or down depending on margin calls and US dollar demand from overseas for a myriad of reason. Outside of FX markets, there are many commodities that are bought and sold daily in many currencies all over the world. With Euros I could buy Bitcoin, gold, or copper. I could then sell the Bitcoins, gold, or copper for USD – maybe in the US. I could then pay the interest and/or principle on my emerging market US dollar loans. This would certainly seem to work on an individual basis. I do not know if it would work on a large scale. In addition, many CBs have gold reserves. CBs or countries could sell gold reserves on the open market -always a risk in recessions/depression - or to the Fed for USD. Venezuela sold a lot of gold to Saudi Arabia. Since I do not deal in international markets, I am probably missing something obvious here. IMO in the long run gold will be worth more. The problem for hyper people like me is the volatility of gold in the short and medium run. I guess I will just have to play around a base position from day to day. Any ideas?? Thanks for listening to me ramble. DLS
  • MH
    Matthew H.
    6 April 2020 @ 06:31
    Unfortunately, Sheila's audio was too hard for me to make out most of the time
  • DS
    David S.
    6 April 2020 @ 06:29
    Banks are not the problems it is the "hedge fund shadow banking system" that was bailed out this time by the Fed. The major banks would be in the same position if they banking laws had not been changed. DLS
  • DS
    David S.
    6 April 2020 @ 06:20
    An aside. Quote from Dr. Roubini ".. privatize the gains and socialize the losses.." pretty much says it all. DLS

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yuskois the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Anthony Scaramucci

SkyBridge Capital, Founder & Co-Managing Partner

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Michael Saylor

MicroStrategy, Co-Founder

Mr. Saylor is a technologist, entrepreneur, business executive, philanthropist, and best-selling author. He currently serves as Chairman of the Board of Directors and Chief Executive Office of MicroStrategy, Inc. (MSTR). Since co-founding the company at the age of 24, Mr. Saylor has built MicroStrategy into a global leader in business intelligence, mobile software, and cloud-based services. In 2012, he authoredThe Mobile Wave: How Mobile Intelligence Will Change Everything, which earned a spot onThe NewYork TimesBest Sellers list. Mr. Saylor attended the Massachusetts Institute of Technology, receiving an S.B. in Aeronautics and Astronautics and an S.B. in Science, Technology, and Society.

Alex Saunders

Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

TradeStation Crypto, Inc., Sr. Director of Product Strategy

James helped launch TradeStation Crypto’s offeringwhichutilizesa true online brokerage model that self-directed investors and traders have come to expect for equities, futures,and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovativeways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring.James has over 15 years of experience in the Fintech industry.

Raoul Pal

Real Vision, Co-Founder & CEO

Raoul Pal is the Co-Founder and CEO of Real Vision, the world’s pre-eminent financial media platform, which helps members understand the complex world of finance, business, and the global economy. Real Vision members also have access to Real Vision Crypto, a cryptocurrency and digital assets video channelwatched by over 80,000 people.In addition, Raoul has been publishing Global Macro Investor since January 2005 to provide original, high quality, quantifiable and easily readable research for the global macro investment community hedge funds, family offices, pension funds and sovereign wealth funds. It draws on his considerable 31 years of experience in advising hedge funds and managing a global macro hedge fund. Global Macro Investor has one of the very best, proven track records of any newsletter in the industry, producing extremely positive returns in eight out of the last twelve years. He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences. Other stop-off points on the way were NatWest Markets and HSBC, although hebegan his career by training traders in technical analysis.

Peter McCormack

What Bitcoin Did, Journalist

Peter McCormack is a full timejournalist/podcaster covering topics such as Freedom, Human Rights, Censorship and Bitcoin. Peter created and hosts the What Bitcoin Did Podcast, a twice-weekly Bitcoin podcast where he interviews experts in the world of Bitcoin development, privacy, investment and adoption. Launched in November of 2017, the podcast has grown to over 100 episodes with a guest list that is a testament to the diversity of knowledge and opinions that represent the broader Bitcoin community. Expanding his growing list of humaninterest recordings, documentaries and films Peter has recently launched theDefiancepodcast andDefianceTV.

Caitlin Long

Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

Hunter Horsley

Bitwise Asset Management, CEO

Hunter Horsley is Chief Executive Officer of Bitwise Asset Management. Prior to Bitwise, he was a product manager at Facebook, working on advertiser products including the multibillion-dollar sponsored content ecosystem and ad breaks in videos. Before Facebook, Horlsey was a product manager at Instagram, responsible for multiple advertising products generating several hundred million dollars of revenue. He is a graduate of the Wharton School at the University of Pennsylvania, with a B.S. in economics. Recently, Horsley was named a member of Forbes’ 2019 “30 Under 30” list.

Luke Gromen

Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst.He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clientsand former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients.Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14.At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”)for the firm’s clients.Prior to that,Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006.While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in whichhe aggregated and combined proprietary research from Midwest with inputs from other sources.Luke Gromen holds a BBA in Finance and Accounting from the University of Cincinnati and received his MBA from Case Western Reserve University.He earned the CFA designation in 2003.

Meltem Demirors

CoinShares, Chief Strategy Officer

Meltem Demirors is Chief Strategy Officer of CoinShares, an investment firm that manages billions in assets on behalf of a global investor base, and is a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem. Meltemoversees the firm’s managed strategies group and its New York office and leads corporate development. Previously, she was part of the founding team of Digital Currency Group. As a veteran investor in the digital currency space, she has invested in over 250 companies in the ecosystem. Meltem is passionate about education and advocacy, and teaches the Oxford Blockchain Strategy Programme and co-chairs the WEF Cryptocurrency Council.