Joshua Franklin
speaker
53 appearances
2 recordings
1 series
first heard Jun 2026
last heard 25 Aug
Joshua Franklin’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 2 in all, peaking in Aug 2026 with 1.
Appearances
It's quite emblematic of this kind of slight feeding frenzy that we're in on Wall Street, where there's just so much money being made and money to be made off of that money.
Hi there.
So, how to think about this is JP Morgan typically when a company has just gone public, completed an IPO, they won't accept as collateral for a new loan shares that haven't been public for at least 135 days.
But what they're doing here is you have some of these huge IPOs that are coming to market and a lot of wealth is being created from that.
And so with some of them, they are telling their bankers, actually, we can relax this.
Approach a little bit as we try to bank some of this like emerging wealthy clientele that's being created by these mega IPOs.
Exactly.
And important to say JP Morgan has said that their overall policy remains unchanged.
They still have this 135-day rule and their practices, as they say, exceed regulatory requirements, which is typically waiting at least 30 days, and that they look at this on a case-by-case basis.
So when you think about these mega companies that are going public, so in this case, it's largely SpaceX, but then you've also got these other big AI companies like Anthropic and OpenAI.
You have employees that are paid in stock that after an IPO becomes hugely valuable on paper.
So you have people who have accumulated tens of millions of dollars, sometimes hundreds of millions of dollars, in stock in these companies.
So it's it overnight after an IPO, people become incredibly wealthy and banks kind of want a piece of that.
Well, there's a reason why banks like JP Morgan tend to wait at least, you know, four and a half, sometimes six months of a stock trading before they'll accept it as collateral for a loan.
Because, you know, after an IPO share, prices can be very volatile.
And, you know, what happens here at the end of the day is if the value of collateral falls by a lot, then banks will go to their clients and be like, You need to give us more collateral, more shares, more of whatever
it is for us to make us still comfortable with the loan that we've underwritten for you.
So it can be more complicated from a risk perspective, but obviously JP Morgan's making the calculation right now that it's going to be worth it for this wealth that's being created.
I think it's just the biggest theme for all of these banks right now.
It's quite emblematic of this kind of slight feeding frenzy, animal spirits, whichever kind of um term you want to use to describe it, that we're in on Wall Street, where there's just so much money being made and money to be made off of that money.
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