Trying to Save the World Is No Excuse

Overview

In this episode, Matt Levine and guest co-host Silvia Killingsworth delve into the recent lawsuit by Susquehanna International Group against unknown defendants involved in suspicious put option trades related to Chinese brokerages. They explore the implications of insider trading laws, the challenges of proving such cases, and the broader context of market making. The conversation then shifts to the evolution of retirement savings, particularly the transition from traditional pensions to 401(k) plans, and the potential for a new model that combines the benefits of both. They discuss the psychological aspects of liquidity in retirement funds and the push from firms like BlackRock to innovate retirement savings products.

Key takeaways

• Susquehanna International Group alleges insider trading by 100 unknown defendants who bought puts before a Chinese brokerage crackdown.

• The court ruled against freezing the accounts of the defendants, citing insufficient evidence of collective insider trading.

• The transition from pensions to 401(k)s has shifted risk from employers to employees, complicating retirement savings.

• There is a growing trend to integrate private equity and credit into retirement plans, despite liquidity concerns for individual investors.

• BlackRock is exploring ways to make 401(k)s resemble pensions, focusing on long-term income rather than account balances.

Companies & tickers

• Susquehanna International Group
• BlackRock

Topics

• Insider Trading
• Options Trading
• Pensions
• 401(k) Plans
• Private Equity
• Market Making
• Retirement Savings