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Any kind, collateral, non-collateral. They don’t have collateral. Now does the FDIC even know how much risk they’re bearing 0 when all the assets are so encumbered that they’re all pledged as collateral? And so, the question is how much gets funded by making promises to investors by debt. RITHOLTZ: Right.
One part is that spending operating cash, diverting operating cash from the purpose of your business and putting it into a collateral activity like litigation isn't the most value maximizing strategy for companies to engage in. How about from the lawfirm side? You also provide a benefit to the lawfirms.
And Goldman was the size of a lawfirm back then. And I mean, it was literally like the size of a lawfirm, not a giant global institution. And if they don’t need a loan, we can lease them their own building back in a net lease, and have both the credit of the company and the real estate as collateral.
He is the founder of MarketCounsel, which is one of the leading firms in that space, as well as the Hamburger LawFirm. So clearly you see the overlap between being an attorney, understanding the intricacies of securities law. HAMBURGER: So, what I realized is that people were intimidated by lawfirms.
And if somebody has a big loss and it drops way below the, the collateral they put up, that loss gets spread out. If someone loses money, we liquidate the collateral, they’re done. So you’re, you’re doing futures trading and every customer effectively is putting up money. We’re not gonna have losses here.
Partnerships, lawfirms, accounting firms go down the list. Venture capital 01:12:11 [Speaker Changed] Firms, we have some, some even larger major training companies, major retail companies that are LLCs are pass through companies. It’s a win for everyone.
Listen, if a few kids have to die in order for our profit margin to expand, that’s just a little collateral damage. And if you’re coming over from a, a top 20 lawfirm where you’re giving up a seven figure job, you’re doing it because you have the chance to make 10 figures in, in your stock options.
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