The Lehman Brothers of Crypto: Here’s how the fall of Sam Bankman-Fried’s FTX compares to the collapse that sparked the Great Financial Crisis
Welcome back to Opening Bell, team. I’m Phil Rosen. In light of all the crypto hubbub last week, today we’re skipping the econ lesson and pivoting instead to history.
You’ve seen the movie “The Big Short,” right? It gives maybe the clearest, most entertaining breakdown of how many, many very bad bets on subprime mortgages kickstarted the 2008 Financial Crisis.
The most serious domino to fall 14 years ago was Lehman Brothers, the classic too-big-to-fail behemoth that did in fact go under.
All this is a roundabout way of saying the collapse of Sam Bankman-Fried’s crypto exchange, FTX, is severe and dramatic enough to warrant its own movie in a few years.