Business/Markets/Stocks/Economics Random, Random

[ponchi101]

Has any town square in any real town ever been on fire? Like, smoldering, burning to the ground, fire?

[ti-amie]

Duty To Warn @duty2warn

TESLA closed at 167.82, another low. $30B of market cap went poof.
Market Insider says Tesla will face buyback pressure. Wedbush says activist investors will pressure them. WSJ says the stock is STILL no bargain...

[ti-amie]

The US government's extradition treaty with the Bahamas allows the US to extradite defendants for charges involving offenses that would be considered crimes in both countries, and which could result in a jail sentence of longer than a year.4 hours ago

Sam Bankman-Fried Could Face Extradition From Bahamashttps://www.businessinsider.com

[ti-amie]

Musk Shakes Up Twitter’s Legal Team as He Looks to Cut More Costs
Twitter has stopped paying rent on offices and is considering not paying severance packages to former employees, among other measures.

By Ryan Mac, Mike Isaac and Kate Conger
Dec. 13, 2022, 4:10 p.m. ET

SAN FRANCISCO — Over the past two weeks, Elon Musk has shaken up Twitter’s legal department, disbanded a council that advised the social media company on safety issues and is continuing to take drastic steps to cut costs.

Mr. Musk appears to be gearing up for legal battles at Twitter, which he purchased in October for $44 billion, according to seven people familiar with internal conversations. He and his team have revamped Twitter’s legal department and pushed out one of his closest advisers in the process. They have also instructed employees to not pay vendors in anticipation of potential litigation, the people said.

To cut costs, Twitter has not paid rent for its San Francisco headquarters or any of its global offices for weeks, three people close to the company said. Twitter has also refused to pay a $197,725 bill for private charter flights made the week of Mr. Musk’s takeover, according to a copy of a lawsuit filed in New Hampshire District Court and obtained by The New York Times.

Twitter’s leaders have also discussed the consequences of denying severance payments to thousands of people who have been laid off since the takeover, two people familiar with the talks said. And Mr. Musk has threatened employees with lawsuits if they talk to the media and “act in a manner contrary to the company’s interest,” according to an internal email sent last Friday.


The aggressive moves signal that Mr. Musk is still slashing expenditures and is bending or breaking Twitter’s previous agreements to make his mark. His reign has been characterized by chaos, a series of resignations and layoffs, reversals of the platform’s previous suspensions and rules, and capricious decisions that have driven away advertisers.

Mr. Musk did not respond to a request for comment.

As he has transitioned into the role of Twitter’s new leader, Mr. Musk has had a cast of rotating legal professionals by his side. In October, he fired both Twitter’s chief legal officer and general counsel “for cause” within hours of closing his acquisition and installed his personal lawyer, Alex Spiro, to head up legal and policy matters at the company.

Mr. Spiro is no longer working at Twitter, according to six people familiar with the decision. Those people said that Mr. Musk has been unhappy with some of the decisions made by Mr. Spiro, a noted criminal defense lawyer who successfully defended the billionaire in a high-profile defamation case in late 2019 and worked his way into the Twitter owner’s inner circle.

Among those decisions was Mr. Spiro’s call to retain the Twitter deputy general counsel, James A. Baker, through Mr. Musk’s various rounds of layoffs and firings. Mr. Baker had served as general counsel at the F.B.I. until May 2018 — advising the agency on politically fraught investigations into Hillary Clinton’s private email server and Donald J. Trump’s campaign — and joined Twitter in 2020.

Last week, Mr. Musk said he terminated Mr. Baker after he learned that the lawyer had been responsible for reviewing internal communications about the company’s decision to suppress a 2020 New York Post story about Hunter Biden’s laptop. Mr. Musk had ordered that those communications, which he has called the “Twitter Files,” be given to a group of journalists to release and discredit the decision-making of the company’s past executives.

With Twitter drained of legal talent from layoffs and departures, Mr. Musk has sought lawyers from his other companies, including rocket maker SpaceX, to fill the void. More than half a dozen lawyers from the space exploration company have been given access to Twitter’s internal systems, according to two people and documents seen by The Times. SpaceX employees who have been brought in to Twitter include Chris Cardaci, the company’s vice president of legal, and Tim Hughes, its senior vice president and general counsel.

A SpaceX spokesman did not return a request for comment.

Among its legal challenges, Twitter is facing more questions from the Federal Trade Commission, which is investigating whether the company is still adhering to a consent decree. In 2011, the company signed a consent decree with the F.T.C. after two data breaches and said it would not mislead users about privacy protection. In May, the company paid $150 million to the F.T.C. and Justice Department to settle allegations that it had violated the terms of that consent decree, which was expanded.

The F.T.C. has sent Twitter letters asking whether it still has the resources and staff to adhere to the consent decree, two people with knowledge of the matter said. An F.T.C. spokeswoman declined to comment.

On Friday, as Mr. Musk encouraged the release of internal information through the continuation of his Twitter Files, he also sent an email to employees noting “many detailed leaks of confidential Twitter information” showed that some were violating their nondisclosure agreements.

“If you clearly and deliberately violate the NDA that you signed when joining Twitter, you accept liability to the full extent of the law and Twitter will immediately seek damages,” he wrote. The email was first reported by the Platformer newsletter.

Mr. Musk’s team has also deliberated the merits of not paying severance to the thousands of people who have left the company since he took over, when there were about 7,500 full-time employees. While Mr. Musk and his advisers had previously considered forgoing any severance when discussing cuts in late October, the company ultimately decided that U.S.-based employees would be given at least two months of pay and one month of severance pay so that the company would be compliant with federal and state labor laws.

Mr. Musk’s team is now reconsidering whether it should pay some of those months, according to two people familiar with the discussions, or just face lawsuits from disgruntled former employees. Many former employees still have not received any paperwork formalizing their separation from Twitter, five people said. Mr. Musk has already refused to pay millions of dollars in exit packages to executives he claims were terminated “for cause.”

As Twitter has downsized, Mr. Musk’s team has been hoping to renegotiate the terms of lease agreements, two people familiar with the discussion said. The company has received complaints from real estate investment and management firms including Shorenstein, which owns the San Francisco buildings that Twitter occupies.

A spokesman for Shorenstein declined to comment.

In other money-saving moves, Twitter has laid off its kitchen staff and begun to list office supplies, industrial-grade kitchen equipment and electronics from its San Francisco office for auction.

Mr. Musk also continues to cut staff and leaders, including Nelson Abramson, Twitter’s global head of infrastructure, and Alan Rosa, the global information technology head and vice president of information security, according to four people familiar with the moves.

On Sunday night, Mr. Musk sent two emails to Twitter’s staff with advice about how to work for him that he had previously shared with SpaceX and Tesla employees. One message focused on first principles thinking, a worldview based on the teachings of Aristotle to reduce assumptions to basic axioms, which Mr. Musk credited with helping him make difficult decisions. The other advocated against workplace hierarchies.

On Monday, Twitter notified members of its trust and safety council, an advisory group formed in 2016, that it would dissolve immediately. The council was created to guide Twitter through challenging safety problems and content moderation issues, and was made up of organizations focused on civil rights and child safety.

“Safety online can mean survival offline,” said Jodie Ginsberg, the president of the Committee to Protect Journalists, one of the organizations involved in the council. “As a platform that has become a critical tool in both open and repressive countries, Twitter must play a constructive role in ensuring that journalists and the public at large are able to receive and impart information without fear of reprisals.”

Michael S. Schmidt contributed reporting. Kitty Bennett contributed research.


https://www.nytimes.com/2022/12/13/tech ... akeup.html

[ti-amie]

The Parents in the Middle of FTX’s Collapse
The FTX founder Sam Bankman-Fried’s mother and father, who teach at Stanford Law School, are under scrutiny for their connections to their son’s crypto business.


Joseph Bankman, a longtime tax professor at Stanford Law School and the father of Sam Bankman-Fried, the now-disgraced founder of FTX.Credit...Josh Edelson

By David Yaffe-Bellany, Lora Kelley and Kenneth P. Vogel
Dec. 12, 2022

At the height of its corporate power, the cryptocurrency exchange FTX convened a group of athletes and celebrities for a charity event in March at the Miami Heat’s N.B.A. arena. Local high school students competed for more than $1 million in prizes, pitching “Shark Tank”-style business ideas to a panel of judges that included David Ortiz, the former Boston Red Sox slugger, and Kevin O’Leary, an actual “Shark Tank” host.

But the event’s organizer was a figure better known in academic circles — Joseph Bankman, a longtime tax professor at Stanford Law School and the father of Sam Bankman-Fried, the now-disgraced founder of FTX.

Wearing a baseball cap with FTX’s logo, Mr. Bankman walked onstage to help announce the winners of two $500,000 checks. Behind the scenes, he played the role of FTX diplomat, introducing his son to the head of a Florida nonprofit organization that was helping adults in the area set up bank accounts linked to the crypto exchange’s platform. Two months later, Mr. Bankman-Fried promoted the partnership in testimony to Congress, where he was pushing crypto-friendly legislation.

In the months before FTX filed for bankruptcy on Nov. 11, Mr. Bankman was a prominent cheerleader for the company, helping to shape the narrative that his son was using crypto to save the world by donating to charity and giving low-income people access to the financial system.

He and his wife, the Stanford Law professor Barbara Fried, were more than just supportive parents backing their child’s business. Mr. Bankman was a paid FTX employee who traveled frequently to the Bahamas, where the exchange was based. Ms. Fried did not work for the company, but her son was among the donors in a political advocacy network that she orchestrated.

Now Mr. Bankman and Ms. Fried are under scrutiny for their connections to a business that collapsed amid accusations of fraud and misuse of customer funds. No evidence has emerged linking them to the potentially criminal practices that caused the exchange to implode. But their son was arrested on Monday in the Bahamas after U.S. prosecutors filed criminal charges against him, and his fortune has dwindled to almost nothing. The charitable work that Mr. Bankman spearheaded has largely collapsed.

The couple’s careers have been upended. Ms. Fried, 71, resigned last month as chairwoman of the board of a political donor network, Mind the Gap, which she had helped start to support Democratic campaigns and causes. Mr. Bankman, 67, has postponed a Stanford class he had been scheduled to teach in the winter, and he’s recruited a white-collar criminal defense lawyer to represent him. The family faces huge legal bills, and they have become the subject of gossip on Stanford’s campus.

“I had a friend who said, ‘You don’t want to be seen with them,’” said Larry Kramer, a former dean of the law school and a close friend of the Bankman-Fried family. “I don’t see how this doesn’t bankrupt them.”

In a statement, Risa Heller, a spokeswoman for the couple, said that Mr. Bankman worked for FTX for 11 months but that Ms. Fried had no role in the company. “Joe has spent a lot of his life trying to figure out ways to lift people up out of poverty,” Ms. Heller said. “Most of his time was spent identifying worthy health-related charities.”

Mr. Bankman-Fried, 30, said in an interview that his parents “weren’t involved in any of the relevant parts” of the business. “None of them were involved in FTX balances or risk management or anything like that,” he said.

Long before their son became a billionaire celebrity, Mr. Bankman and Ms. Fried were popular faculty members at Stanford, where they have taught since the late 1980s. At their home on campus, they regularly hosted Sunday dinners with friends and colleagues, which multiple attendees compared to a modern salon.

A leading taxation expert, Mr. Bankman has been an outspoken advocate for simplifying the tax filing system and has testified in Congress on tax matters. He also has a degree in clinical psychology and practices as a therapist.

Ms. Fried, who retired this year, is an expert on the intersection of law and philosophy, and has written about effective altruism, the charitable movement embraced by Mr. Bankman-Fried that uses data to maximize the benefits of donations. In 2018, she helped start Mind the Gap, hoping to bring “Moneyball”-style analytics to political spending, people familiar with her role in the group said.

The couple’s lives transformed after Mr. Bankman-Fried started FTX in 2019. He grew the company into a $32 billion business, cultivating a reputation as a hard-working do-gooder who barely slept and intended to donate his fortune to causes backed by the effective altruist movement.

Mr. Bankman and Ms. Fried supported their son’s work, though Ms. Fried expressed concerns about his lifestyle. “The sleep worries me,” she said in an interview with The New York Times in May. “I just hope that it’s not exacting a high price on him.”

Mr. Bankman-Fried’s business and political empire was always a family affair. The FTX founder was a prolific political donor, and he was part of a network of contributors who gave money to groups recommended by Mind the Gap, people familiar with the organization said. He also helped bankroll a nonprofit organization called Guarding Against Pandemics that was run by his 27-year-old brother, Gabe Bankman-Fried.

Mr. Bankman was deeply involved in FTX. In its early days, he helped the company recruit its first lawyers. Last year, he joined FTX staff in meetings on Capitol Hill and advised his son as Mr. Bankman-Fried prepared to testify to the House Financial Services Committee, a person familiar with the matter said. FTX employees occasionally consulted him on tax-related matters, the person said.

“From the start whenever I was useful, I’d lend a hand,” Mr. Bankman said on an FTX podcast in August.

Mr. Bankman visited the FTX offices in the Bahamas as often as once a month, a person who saw him there said. Among the much-younger staff, he cultivated an avuncular persona, regaling employees with stories from his son’s youth, the person said. He and Ms. Fried stayed in a $16.4 million house in Old Fort Bay, a gated community in Nassau, the capital of the Bahamas; the couple’s names appear on real estate documents, according to Reuters, though Mr. Bankman-Fried has said the house was “intended to be the company’s property.”

Ms. Heller, the couple’s spokeswoman, said Mr. Bankman and Ms. Fried “never intended to and never believed they had any beneficial or economic ownership in the house.”

As an employee, Mr. Bankman focused on FTX’s charitable operations. He put together the Miami event, selecting the teams of high school students who competed for $1 million in FTX grants.

Mr. Bankman also leveraged family connections to expand FTX’s reach. His sister, Barbara Miller, works in Florida as a political consultant and introduced him to Newton Sanon, the chief executive of OIC of South Florida, a nonprofit organization that helps people with work force development training to promote economic mobility. (Ms. Miller did not respond to a request for comment.)

Mr. Sanon worked with Mr. Bankman on a financial literacy initiative for low-to-moderate-income adults enrolled in education programs. As part of the collaboration, students who did not have bank accounts could open one linked to FTX’s platform, giving them the option to spend their money on cryptocurrency. Nobody was pushed to buy digital currencies through FTX, Mr. Sanon said, but one participant chose to do so.

In Washington, Mr. Bankman-Fried invoked the Florida program as he pressed for legislation to make the United States more hospitable to the crypto industry, testifying to a House committee that the initiative would help low-income people “build savings.”

After FTX collapsed, however, Mr. Sanon informed Mr. Bankman that some participants in the FTX initiative may have lost funds they had stored on the platform (including money students had received as a stipend for joining the program).

“They wired money in for us to be able to take care of students,” Mr. Sanon said. He declined to specify the amount that the organization received, but he said it was “substantial and very kind.”

Mr. Bankman used his personal funds to cover the losses, according to his spokeswoman. Mr. Sanon said that “none of us are happy with how this played out,” but that “those folks were very good to us.”

Not all of Mr. Bankman’s partners were so lucky. On Nov. 11, the day that FTX filed for bankruptcy, Mr. Bankman wrote to a Chicago nonprofit that had been promised $600,000 by FTX’s charitable arm. The money wasn’t going to materialize, Mr. Bankman explained, and he couldn’t afford to make up for the shortfall himself.

“I’ll be spending substantially all of my resources on Sam’s defense,” he wrote in an email, which was obtained by The Times.

Mr. Bankman-Fried’s whole family has felt the effects of his actions. Gabe Bankman-Fried resigned from Guarding Against Pandemics in November. (He did not respond to requests for comment.) Ms. Fried stepped down from Mind the Gap, which held a meeting last month to elect an interim chair and discuss how to proceed without her, people familiar with the matter said. The stress of the situation is exacting a toll: Mr. Bankman looks as if he’s aged 10 years in one month, a friend said.

Mr. Bankman and Ms. Fried are part of a small group offering Mr. Bankman-Fried legal advice, according to a person familiar with the matter. The couple has also turned to the Stanford faculty for support: David Mills, a criminal law professor at Stanford and a close family friend, is part of Mr. Bankman-Fried’s legal team. Mr. Bankman has his own lawyer, the former federal prosecutor Ronald G. White.

Colleagues and family acquaintances are wrestling with what to say the next time they run into Mr. Bankman and Ms. Fried. Their son has widely been compared to Bernie Madoff, the notorious fraudster who ran the largest Ponzi scheme in history.

Still, many people in the family’s social circle view the situation through a sympathetic lens, according to interviews with more than a dozen friends and colleagues. They insist that Mr. Bankman and Ms. Fried couldn’t have known about any wrongdoing at FTX, while acknowledging that Mr. Bankman may have been naïve in his embrace of crypto.

“It’s like a Greek tragedy,” said John Donohue, a colleague who has attended Sunday dinners at the Bankman-Fried home. “The story of flying too close to the sun, and having your wings singed.”

Emily Flitter contributed reporting. Kitty Bennett contributed research.

https://www.nytimes.com/2022/12/12/tech ... ut_more-in

[ti-amie]

[Owendonovan]

Does Musk feel he needs to compete with Tiny for worst person?

[ti-amie]

[Owendonovan]

If I were the #2 electric car company, Rivian, I'd be poaching from Tesla hard these days. I won't buy a Tesla because of Musk, and I'm sure I'm not the only one.

[ponchi101]

Tesla relies on "cult" marketing. This will not affect its sales.
(Other things might).

[ti-amie]

[ti-amie]

[ti-amie]

I expect him to head to a non-extradition to US country almost as soon as he's released.

[ti-amie]

[ti-amie]

I'm glad to see Ms Lopez is back on the bird app...