Forman: Lehman executives did not know the risk on their balance sheet
Ben Forman · Ben Forman – Opportunities in DeFi (EP.256, Crypto for Institutions 2, EP.03) · Jun 20, 2022 · at 29:59
Ben Forman, founder of ParaFi Capital, contrasts the opacity of traditional financial institutions during the 2008 crisis with the transparency of on-chain decentralized finance.
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“One of the reasons that the financial crisis occurred in oh eight, oh nine is if you were to look at The TenQ of Lehman Brothers. Last filing before it went bankrupt. There's a big other line item on the balance sheet. You have to read into the footnotes. No one really knew what risk that large of a financial institution held on its balance sheet. Not even the executives working there.”
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