Latest News

FTX’s small investors biggest losers in fallout: Former FDIC Chair Bair

0

S&P 500

4,027.26

+23.68(+0.59%)

 

Dow 30

34,194.06

+95.96(+0.28%)

 

Nasdaq

11,285.32

+110.91(+0.99%)

 

Russell 2000

1,863.52

+3.08(+0.17%)

 

Crude Oil

78.23

+0.29(+0.37%)

 

Gold

1,758.50

+12.90(+0.74%)

 

Silver

21.53

+0.17(+0.79%)

 

EUR/USD

1.0408

-0.0004(-0.04%)

 

10-Yr Bond

3.7060

0.0000(0.00%)

 

GBP/USD

1.2102

-0.0012(-0.10%)

 

USD/JPY

138.7640

+0.1740(+0.13%)

 

BTC-USD

16,525.64

-171.48(-1.03%)

 

CMC Crypto 200

385.22

+2.64(+0.69%)

 

FTSE 100

7,466.60

+1.36(+0.02%)

 

Nikkei 225

28,286.94

-96.15(-0.34%)

 

The collapse of crypto exchange FTX continues to send shockwaves through the market as more details emerge about the house of cards built by founder Sam Bankman-Fried, leaving analysts scratching their heads over how so many sophisticated investors could have been duped in the scheme.

Sam Bankman-Fried speaks during the Institute of International Finance annual membership meeting in Washington, D.C., on Oct. 13, 2022.

Yet, while some larger creditors to FTX could see a portion of their money returned as part of the ongoing bankruptcy proceedings, the added tragedy is that the vast majority of smaller investors will likely see nothing, according to former Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair.

FTX: HOW SAM BANKMAN-FRIED BUILT A HOUSE OF CARDS

Bair told FOX Business that a great deal of focus has been on the top 50 FTX investors looking for restitution, but the tragedy is there are “potentially a million much smaller investors – and proportionately, they’re the ones that are really going to get hurt.”

Sheila Bair, former FDIC chair, says smaller FTX investors will be disproportionately hurt by the crypto exchange’s collapse.

The former FDIC chief went on to note that FTX and the crypto industry at large markets heavily to young people, saying it “saddens” her that so many who bought into the company’s allure will likely see no recourse.

WHY THE INVESTING PROS WERE SUCH SUCKERS FOR FTX

READ ON THE FOX BUSINESS APP

Bair says that to prevent this from happening in the future, crypto exchanges should be required to show proof of reserves and that some supervisory enforcement must be put in place.

Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph in this illustration taken Nov. 10, 2022.

In the meantime, she said, the good news is that the broader economy likely will not be impacted by the volatility going on with crypto, unlike the 2008 market crash when regulated industries were compromised.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Bair explained, “The economy’s not going to be hurt by this, but a lot of individuals will be – and that’s very sad.”

Advertisement

Expert Says Silver ‘Should Resume Upward Path’

Previous article

The Margin: Budweiser says it will award unconsumed Qatar beer to the World Cup winner

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News