MFS Investment Management

Our guest today, you might know him from when he was president at Fidelity.

You might know his name from when he was chairman at MFS.

You might know him from his time at the SEC in the George W. era, and you might know him because you read The Fund Industry: How Your Money is Managed, or maybe you're just in his class at MIT and you want to win some brownie points by picking up on what he's putting down today.

We're gonna hit all the bases.

They have good reason to buy the stock, and they'll stay with it.

Tell us a little bit about the role.

Tell us what you did when you were at Fidelity, and Fidelity and MFS.

I'm curious, you saw this industry in a different phase of its evolution from some unique seats.

There have also been a number of kind of high-profile bankruptcies and potentially fraudulent cases in the securitization world in the last year.

There was Tricolor, First Brands, MFS.

These all had a lot of banks exposed fraud.

to um double and triple pledging of um of the same assets which is a big problem i mean that is just a you know major opening for bitcoin fixes this you can see it on the blockchain is there's you know bitcoin and if you have a secure security against one wallet you can't have the same wallet kind of pledged to two different counterparties.

We also prevent someone from double pledging or double selling the loan because the loan is tracked on a blockchain and the ownership of that loan and any lien encumbrances, say at the accounting level for a mortgage or at the DM, tracked by that system.

And they can only have one owner and you've started to see Double plunging as an issue in the capital markets with the true valor of bankruptcy earlier this year, as well as first brands and MFS.

You might have heard Jamie Dagon saying there's cockroaches out there.

This is what he is referring to.

You had First Brands.

In England, you had MFS.

And I think all those instances... were cases where disclosures given to lenders proved to be inaccurate or inadequate.

And so when you have news like that, that you're worried about either the quality of disclosures you've gotten from public companies or their accuracy, it's unnerving because you don't know where that ends.