Episode summary
Elevated Shepherd's Pie | Money Stuff: The Podcast
Money Stuff The Podcast
· · Hosts: Matt Levine, Katie Greifeld
Summary
The episode opens with a detour to JP Morgan’s pub, Morgans, where the hosts marvel at the “elevated Shepherd’s Pie” and the strange appeal of a bank-owned sports bar. From there, the conversation turns to Elon Musk’s latest empire-building: Reuters reported possible merger talks between SpaceX and xAI, after Tesla already said it would invest $2 billion in xAI. The hosts frame the timing as part business logic, part joke, noting the June 9 date and the recurring theme of Musk’s companies shifting together and apart.
A large second segment focuses on Tether’s rapidly expanding gold strategy. The hosts say Tether now holds roughly 140 tons of gold, has about $174 billion of US dollar tether liabilities outstanding, and is using gold, Bitcoin, and cash-like reserves to resemble a private central bank. They argue the company’s Swiss bunker, vault security, and trading ambitions make it sound both serious and faintly comic.
The last part covers distressed-debt litigation and Wall Street incentives. They discuss Optimum/LTSUSA, creditor cooperation agreements, and Kirkland & Ellis stepping away after tensions with creditors. The episode closes with a Bloomberg report that JPMorgan told bankers to work harder to catch up with Goldman Sachs in M&A.
Key takeaways
- The hosts say Reuters’ reported SpaceX-xAI merger talks would effectively extend Musk’s consolidation of his companies, with Tesla already pledging a $2 billion xAI investment.
- They treat the June 9 timing as part business rationale and part Musk joke, with the date and planetary alignment getting unusual attention.
- Tether now holds about 140 tons of gold, with roughly $174 billion of tether liabilities and a stated reserve mix that includes precious metals and Bitcoin.
- The hosts say Kirkland & Ellis’s exit from Optimum’s debt fight shows how law-firm ties to creditors can become a real conflict in restructuring work.
- Bloomberg’s report that JPMorgan told bankers to close the M&A gap with Goldman Sachs is presented as a standard but unsparing Wall Street pep talk.
Notable quotes
“if he bought Twitter for, let's say, $44 billion, and will soon reipo it at a $ 1.5 trillion valuation, raising $50 billion in the largest IPO ever”
“Tether isn't trying to become a bank. It's trying to become a central bank”
“They have $174 billion of like US dollar tether liabilities outstanding. They have like a $7 billion equity cushion”
“JP Morgan senior leadership quote has told the firm's investment bankers that they need to work harder to close the gap with rivals, including Goldman Sachs on mergers and acquisitions”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Katie, you — Yes. — Drank a foam head of Jamie Diamond last week. — Can I tell you something? Yes. — I'm actually going back to JP Morgan's Pub tonight. — You're a regular. — Someone got a stool with your name on it at JP Morgan's Pub.
I was supposed to meet a specific person in a group and they weren't able to come. So now we're going back tonight. So, tell me more about the JP Morgan pub. — It was awesome. It was very normal. — It's called Morgans's, right?
It's called Morgans's. I had an elevated Shepherd's Pie. Like, they have pub food. Like, it's a menu of pub food, but elevated. They have a burger, for example. The person I was dining with had a burger that looks delicious. Maybe I'll get it tonight.
Wait, no. I want to come — Invite Matt and I to the pub. Someone from JP Morgan. — Wait, wait, wait, wait, wait. Okay. So, first of all, I was I think I was joking about the foam head of Jamie Diamond. I thought you were anticipating that the latte art and the Guinness would include Jamie Diamond's face, but it didn't.
So, there's definitely latte art. I believe the two options that were offered to the person I was with who did drink a Guinness were a latte art of the building itself or the M for Morgans's and the drink came out with the M for Morgans's. But maybe tonight I'll see latte art of the building itself cuz I think that sounds really cool.
It's a beautiful building. I've said that so many times. Okay.
But so you didn't get a Guinness, which first of all, no,
I didn't get a Guinness.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- m&a
- valuation
- crypto
- astrology numerology
- investment banking
Companies and tickers mentioned
- SpaceX
- xAI
- Tether
Watch the episode
Watch “Elevated Shepherd's Pie | Money Stuff: The Podcast” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Money Stuff The Podcast, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
