Insider Finance - Business - How SBF played DC

Nicholas Carlson, December 5, 2022

Hello, Insiders. Gen Z has it rough. They’re taking on more debt, roommates, and jobs as a potential recession looms. I recently mentioned a story of ours about this trend, and asked if any of you all had firsthand experience with it. Some of our Gen Z readers reached out and eventually spoke to reporter Jacob Zinkula about their financial woes.

One Gen Zer said she's had to "deplete her savings" while pursuing a graduate degree. Even with babysitting and an internship, her account "goes to zero or below every month." A 23-year-old with $20,000 in debt said they "can barely scrape together enough to stay afloat." Another said they got great financial advice — but "still got stung."

You can read more of what Gen Zers told Jacob here. And now, let’s get to the news.

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The big story

The Washington Post/Getty, Murat Taner/Getty, Tyler Le/Insider

Sam Bankman-Fried conquered DC before FTX’s stunning implosion. Here’s the inside story on how he did it. 

Early last month, Washington was abuzz with rumors about Bankman-Fried's coming Christmas party.

The crypto kingpin was preparing to host a blowout celebration. Politicos were gossiping about which musical artist would headline and whether Tom Brady would be there. “The talk on the town,” a crypto nonprofit director said, "was it's going to be the craziest DC Christmas party ever.”

This was supposed to be the triumphant capstone of two years of lobbying and networking by Bankman-Fried (aka SBF). The 30-year-old set out to rig a notoriously rigged system through a potent mix of charm, charitable giving, and political contributions. 

And so, in the midst of FTX's financial devastation, a question remains largely unanswered: Why didn't regulatory agencies or Congress catch on to what was happening? 

The answer is simple, according to more than a dozen insiders who spoke to our reporters: SBF made himself a mover and shaker in Washington to a degree that other CEOs only dream of.

Read the full story here.

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Rachel Mendelson/Insider

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• How to attend 7 weddings in a year and not break your budget. 27-year-old Deona Perlas has been to 15 wedding events around the country this year, from bachelorette parties to weddings themselves. She shared what she’s learned about saving money through the process — and even how to say "no" on occasion. Read her advice here.

• Inside the stunning unraveling of Bright Health. The health-insurance upstart went public in 2021 at a dizzying $11.2 billion valuation. But now, the company has taken a hatchet to most of its business as it works to stave off a collapse, and experts and company insiders are blaming Bright's pursuit of rapid growth for its undoing. Read the full story.

• Twins who were accused of cheating on an exam won $1.5 million after a jury decided they hadn't cheated — because their minds were connected. The identical twins won a lawsuit against their university after a psychologist said their special "intertwining" made them innocent. Get the full rundown here.

• A man who fell off of a cruise ship last month shared how he survived. In an interview with ABC's "Good Morning America," the passenger said he fell off the cruise ship after a couple of drinks, then trod water for 20 hours and fought off sea creatures while fading in and out of consciousness. How the passenger survived. 

Watch this

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Today's team

This edition was curated by Nicholas Carlson (@nichcarlson), and edited by Hallam Bullock (@hallam_bullock), Lisa Ryan (@lisarya), Jordan Parker Erb (@jordanparkererb), and Shona Ghosh (@shonaghosh).

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