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Bad Faith

Episode 232 Promo - SBF's Ineffective Altruism (w/ Teddy Schleifer)

Bad Faith

Bad Faith

News, Comedy, Politics

4.52.8K Ratings

🗓️ 5 December 2022

⏱️ 6 minutes

🧾️ Download transcript

Summary

This week, Briahna speaks to Teddy Schleifer, a journalist who covers Silicon Valley billionaires for Puck News, about Sam Bankman-Fried, the collapse of his crypto exchange FTX, and his obsession with media. Why does he keep exposing himself via high profile interviews (and DM exchanges) that amount to free depositions for the SEC and DOJ -- both of whom are investigating him? Was his emphasis on "effective altruism" part of his effort to charm the media into seeing him as a good faith actor in an unregulated financial sector primed for fraud? Is it possible to be a "good billionaire?" This conversation took a philosophical turn. Come for a play by play of his NYT DealBook interview, stay for a materialist analysis of billionaire philanthropy.

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Produced by Armand Aviram.
 
Theme by Nick Thorburn (@nickfromislands)

Transcript

Click on a timestamp to play from that location

0:00.0

You live by the media, you die by the media. I mean, that's a fundamental Newtonian law of nature.

0:04.7

I mean, so to some extent, like the psychology element, a lot of people like talking to reporters,

0:09.6

like, and people should keep talking to me all day. But look, I mean, the standard crisis comms

0:14.4

playbook, especially with a legally dicey situation, just to shut up and say nothing and hope

0:18.7

that you can take a few ears of bad stories in order

0:22.8

to protect yourself legally and guess it depends how badly you don't want to go to jail.

0:26.3

If you'd rather have a slightly less negative public profile in exchange for maybe going

0:32.9

in jail, then maybe it's worth it. I can't make the decision for you. But ultimately,

0:36.9

yeah, I mean, he's obviously placing his public relations mission above his legal mission. I'm not commenting

0:41.9

on kind of Sam specifically, but there is a conservatism, like small C or, you know, not political

0:47.6

conservatism, but like there is a attitudinal conservatism to like crisis that sometimes serves

0:53.5

people wrongly in my experience. I think that's true, yeah. Where do you think that the downside of talking is greater than the upside? Maybe, but there's also like a flood the zone element where, I mean, we're recording this on Friday, like Sam's done 10 interviews or something like that. I don't know. There's people out there who might say on Monday, I thought this guy was a total fraud and a total crook. And, you know, maybe by Friday you say, okay, maybe he was in over his head. I'm not saying I agree with this, but like you could see someone saying that. So like, I do think it has just objectively improved his public relations posture, partially because you couldn't really go down from the bottom when he was at. The question is, does this boomerang on him in like six months?

1:30.0

So there's this truism that many lawyers understand, especially like tort lawyers, that if

1:36.4

you just apologize, you are much more likely to get out of a lawsuit if there's an accident

1:42.1

of some kind, you know?

1:43.7

However, and this is a medical

1:45.1

malpractice trism, you know, all of that is true. However, no one wants to apologize in case there is a lawsuit and that's taken as a statement of admission, right? So people are in this catch-22, where if it works, it's great. You have a high likelihood of actually improving your outcome. If it doesn't work, you've basically damned yourself.

2:01.9

And it does feel like some of his...

2:04.3

I mean, this isn't exactly that posture,

2:06.3

although I think he can accidentally come close to making some significant admissions, like the one

2:10.4

I just mentioned. But it does definitely seem like his, to the extent that this is actually a legal

2:15.6

strategy, his lawyers are actually advising this. And there was some eye contact made off screen during the deal book interview that made me think that maybe at very least counsel was in the room. That's just pure conjecture, but that's what I read. I mean, I think a big part of the story just from a, maybe this is inflated journalistically, but like a big part of the story about Sam is his family.

...

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