Matt Levine’s Money Stuff: FTX Is Still Looking for Money

Programming note: Money Stuff will be off tomorrow, back on Monday. I realize I say that a lot, but I’m saying it again.

FTX

The obvious question — here and always — is: Is it a liquidity problem, or a solvency problem? Classically, if you are a bank, and you have $100 of perfectly good mortgages outstanding, $20 of cash in your vaults and $100 of deposits, and all the depositors show up one day asking for their money back, you don’t have it. You have $20 of cash and they want $100. But you are good for it: You’ve got $100 ...