Joseph Bankman Explained

Joseph Bankman
Children:
Discipline:Law
Workplaces:USC Gould School of Law
University of California, Santa Cruz
Stanford Law School
Education:University of California, Berkeley (BA)
Yale University (JD)
Palo Alto University (PsyD)
Partner:Barbara Fried
Birth Name:Allan Joseph Bankman
Sub Discipline:Tax law

Allan Joseph Bankman[2] [3] (born 1955)[4] is an American legal scholar and psychologist. He is the Ralph M. Parsons Professor of Law and Business at Stanford Law School.[5] He was also employed at FTX, the cryptocurrency company founded by his son, Sam Bankman-Fried, who is an entrepreneur and convicted felon. His tenure at FTX lasted until the company's bankruptcy and subsequent collapse in 2022.

Education

Bankman earned a Bachelor of Arts degree from the University of California, Berkeley in 1977 and a Juris Doctor degree from Yale Law School in 1980.[6] [7] [8] He later earned a doctorate in clinical psychology from Palo Alto University.[9]

Career

Bankman is a scholar in the discipline of tax law and is a compiler of two tax casebooks, including Federal Income Taxation.[10]

Early in his career, he taught at the USC Gould School of Law and practiced with the Los Angeles firm of Tuttle & Taylor. In 1989, he joined the faculty at Stanford Law School.[11]

Later in his career, he returned to being a student and earned an additional degree in clinical psychology from Palo Alto University, interning with the Counseling and Psychological Services (CAPS)[12] of the University of California, Santa Cruz.[13] He worked as a counselor for first-year law students on handling the anxiety of law school.[14] Bankman also hosted a podcast called WellnessCast for Stanford Law School to discuss "wellness and mental health within the legal profession."[15]

In 2004, he and his colleagues developed a proposal for a California program called ReadyReturn, whereby citizens' income tax returns were filled out in advance, requiring only that the users make corrections. The program failed to pass the California legislature by one vote, reportedly after lobbying efforts from tax software preparation company Intuit.[16] Bankman spent an estimated $30,000 to $35,000 of his own money on the fight against Intuit.[17]

Following the defeat in California, he continued to advocate for simplification of the U.S. tax filing system and the adoption of return-free filing.[18]

In 2016, he lent his support to Senator Elizabeth Warren's Tax Filing Simplification Act along with 50 other law professors and economists.[19] A letter with Bankman as the lead signatory states, "Much of the time and expense involved in tax filing is unnecessary."[20] He was said to be involved with writing Senator Warren's bill.[21]

He served as a co-host of the Stanford Legal podcast along with fellow professor Pamela Karlan.[22]

Personal life

Bankman's partner is Stanford Law School professor emeritus Barbara Fried (sister of Linda P. Fried[23]), whom he met in 1988 while teaching at Stanford. The couple did not marry because they felt it was unfair to gay couples who could not legally marry.[24] They have two sons, Sam Bankman-Fried and Gabe Bankman-Fried.[25] Bankman and his partner live in Stanford, California.[26]

FTX

See main article: articles and FTX. In 2021, Bankman took a leave of absence from Stanford Law to work full time at FTX.[27] [28]

Bankman's son, Sam Bankman-Fried, was convicted of seven felony counts—conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations[29] [30] [31] —after serving as the founder and former CEO of the FTX cryptocurrency exchange, which collapsed amid allegations of fraud in November 2022.[32] [33] Joseph Bankman was a paid part-time employee of FTX prior to its bankruptcy.[34] He worked for the company for 11 months and focused much of his work on charitable operations.[35] In 2017, he interviewed and hired the first lawyers employed by Alameda Research, his son's cryptocurrency trading firm. He reportedly also served as the first attorney for FTX when the exchange was in its nascent stages.[36] [37] He also raised funds for the firm before its bankruptcy; via a connection to his former Stanford Law School student Orlando Bravo, Bankman made an introduction which led to a $125 million investment in FTX from private equity firm Thoma Bravo in June 2021.[38] [39]

Bankman arrived in the Bahamas as FTX entered bankruptcy. In early November, he called Anthony Scaramucci on behalf of FTX to ask if Scaramucci and SkyBridge Capital could help the company raise billions of dollars to meet customer redemptions.[40] After his son's indictment, Joseph Bankman came under scrutiny for his part in the business. Bankman and Fried were sued by the team overseeing the FTX bankruptcy in September 2023. The lawsuit alleges they unjustly enriched themselves, receiving a $10million cash gift and a $16.4million beachfront property in The Bahamas.[41]

Notes and References

  1. News: Goldstein . Matthew . Yaffe-Bellany . David . Kelley . Lora . March 24, 2023 . The Younger Brother Caught in the Middle of the FTX Investigation . en-US . . September 19, 2023 . 0362-4331 . September 19, 2023 . https://web.archive.org/web/20230919114909/https://www.nytimes.com/2023/03/24/business/ftx-gabe-bankman-fried.html . live .
  2. https://www.nytimes.com/2008/12/21/business/21gret.html Just Call This Deal Hoosier Baroque
  3. https://vigarchive.sos.ca.gov/2012/general/propositions/39/arguments-rebuttals.htm PROP 39--Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding. Initiative Statute.
  4. Book: Bankman . Joseph . Federal Income Taxation . Shaviro . Daniel N. . Stark . Kirk J. . Kleinbard . Edward D. . November 6, 2018 . Aspen Publishing . 978-1-5438-0546-8 . en . January 29, 2023 . September 27, 2023 . https://web.archive.org/web/20230927030432/https://books.google.com/books?id=Bsp7DwAAQBAJ&dq=Joseph+Bankman+1955&pg=PT5#v=onepage&q=Joseph%20Bankman%201955&f=false . live .
  5. "Joe Bankman, J.D., PSY.D. " Pacific Anxiety Group, © 2015-2022. Retrieved December 13, 2022.
  6. News: Stross . Randall . Why Can't the I.R.S. Help Fill in the Blanks? . April 14, 2022 . The New York Times . January 23, 2010 . August 23, 2022 . https://web.archive.org/web/20220823202619/https://www.nytimes.com/2010/01/24/business/24digi.html . live .
  7. Web site: Joseph Bankman . stanford.edu . May 12, 2017 . April 14, 2017 . https://web.archive.org/web/20170414112154/https://law.stanford.edu/directory/joseph-bankman/ . live .
  8. Web site: Stanford law professor Joseph Bankman . April 7, 2015 . stanford.edu . May 12, 2017 . May 11, 2017 . https://web.archive.org/web/20170511210350/http://news.stanford.edu/2015/04/07/bankman-law-anxiety-040715/ . live .
  9. "Joe Bankman, J.D., PSY.D. " Pacific Anxiety Group, © 2015-2022. Retrieved December 13, 2022.
  10. Web site: Joseph Bankman . stanford.edu . November 19, 2022 . November 19, 2022 . https://web.archive.org/web/20221119004622/https://conferences.law.stanford.edu/alumni-weekend-2018/speakers/joseph-bankman/ . live .
  11. "About the Author ", Federal Income Taxation, Eighteenth Edition; Aspen Publishing.
  12. "Counseling and Psychological Services," UCSC, 2022. Retrieved December 13, 2022.
  13. "Stanford Law Professor Helps Students Cope with Stress," JD Journal, April 10, 2015. Retrieved December 13, 2022.
  14. Web site: Weil . Elizabeth . Wait, But Weren't His Parents Law Professors? . New York Magazine . November 22, 2022 . November 21, 2022 . https://web.archive.org/web/20221121214944/https://nymag.com/intelligencer/2022/11/sbf-parents-stanford-genius-bubble.html . live .
  15. Web site: WellnessCast . stanford.edu . November 26, 2022 . November 26, 2022 . https://web.archive.org/web/20221126215608/https://law.stanford.edu/media/wellnesscast/ . live .
  16. Web site: Stanford Professor Loses Political Battle To Simplify Tax Filing Process . npr.org . March 29, 2017 . June 3, 2017 . June 1, 2017 . https://web.archive.org/web/20170601171444/http://www.npr.org/2017/03/29/521954033/stanford-professor-loses-political-battle-to-simplify-tax-filing-process . live .
  17. Web site: Schleifer . Theodore . Keeping Up with the Bankman-Frieds . Puck . December 13, 2022 . December 13, 2022 . https://web.archive.org/web/20221213154246/https://puck.news/keeping-up-with-the-bankman-frieds/ . live .
  18. Web site: Manjoo . Farhad . Would You Let the I.R.S. Prepare Your Taxes? . New York Times . April 16, 2015 . November 26, 2022 . November 26, 2022 . https://web.archive.org/web/20221126215011/https://www.nytimes.com/2015/04/16/technology/personaltech/turbotax-or-irs-as-tax-preparer-intuit-has-a-favorite.html . live .
  19. Web site: Senator Warren Introduces Bill to Simplify Tax Filing . senate.gov . Elizabeth Warren . November 26, 2022 . November 26, 2022 . https://web.archive.org/web/20221126214350/https://www.warren.senate.gov/oversight/reports/senator-warren-introduces-bill-to-simplify-tax-filing . live .
  20. Web site: Support for the Tax Filing Simplification Act of 2016 . senate.gov . Elizabeth Warren . November 26, 2022 . December 2, 2022 . https://web.archive.org/web/20221202070453/https://www.warren.senate.gov/files/documents/Tax_Filing%20Expert_Letter_4-18-16.pdf . live .
  21. Web site: Catenacci . Thomas . Sam Bankman-Fried's father drafted tax legislation for Elizabeth Warren, donated thousands to Dems . Fox News . November 26, 2022 . November 26, 2022 . https://web.archive.org/web/20221126214348/https://www.foxnews.com/politics/sam-bankman-frieds-father-drafted-tax-legislation-elizabeth-warren-donated-thousands-dems . live .
  22. Web site: Stanford Legal Podcast . January 27, 2018 . stanford.edu . November 16, 2022 . November 17, 2022 . https://web.archive.org/web/20221117015239/https://stanfordvideo.stanford.edu/stanford-legal-podcast/ . live .
  23. Paid Notice: Deaths. Block, Adrienne Fried, The New York Times, April 2, 2009. Retrieved December 15, 2022.
  24. News: Chafkin . Max . Miller . Hannah . September 14, 2023 . How Sam Bankman-Fried's Elite Parents Enabled His Crypto Empire . en . . September 19, 2023 . September 19, 2023 . https://web.archive.org/web/20230919154756/https://www.bloomberg.com/news/features/2023-09-14/sam-bankman-fried-s-parents-did-they-enable-ftx-s-rise . live .
  25. Diamond, Dan. "Before FTX collapse, founder poured millions into pandemic prevention," The Washington Post, December 12, 2022. Retrieved Dec. 15. 2022.
  26. Web site: Riley . Oriana . Sam Bankman-Fried to be under house arrest on Stanford campus . Stanford Daily . December 28, 2022 . December 28, 2022 . https://web.archive.org/web/20221228015102/https://stanforddaily.com/2022/12/23/sam-bankman-fried-to-be-under-house-arrest-on-stanford-campus/ . live .
  27. Web site: The Parent Trap. The New Yorker.
  28. Web site: Bankman-Fried’s Parents Stand by Their Sam—and Face Their Own Legal Perils. The Wall Street Journal. 2023-11-12.
  29. News: Yaffe-Bellany . David . Goldstein . Matthew . Flitter . Emily . December 13, 2022 . Prosecutors Say FTX Was Engaged in a 'Massive, Yearslong Fraud' . en-US . The New York Times . December 14, 2022 . 0362-4331 . December 13, 2022 . https://web.archive.org/web/20221213233902/https://www.nytimes.com/2022/12/13/business/ftx-sam-bankman-fried-fraud-charges.html . live .
  30. Web site: SEC.gov SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX . December 14, 2022 . www.sec.gov . December 14, 2022 . https://web.archive.org/web/20221214000826/https://www.sec.gov/news/press-release/2022-219 . live .
  31. Web site: December 13, 2022 . United States Attorney Announces Charges Against FTX Founder Samuel Bankman-Fried . December 14, 2022 . www.justice.gov . en . December 14, 2022 . https://web.archive.org/web/20221214021137/https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried . live .
  32. News: Anstey . Chris . November 11, 2022 . FTX Meltdown Has 'Whiffs' of Enron-Like Scandal, Summers Says . Bloomberg . November 11, 2022 . November 17, 2022 . https://web.archive.org/web/20221117164406/https://www.bloomberg.com/news/articles/2022-11-11/summers-says-ftx-meltdown-has-whiffs-of-enron-like-scandal . live .
  33. News: Vainshtein . Annie . Meet SBF, the Bay Area-born crypto mogul at the center of a multi-billion-dollar crisis . San Francisco Chronicle . November 10, 2022 . November 13, 2022 . November 13, 2022 . https://web.archive.org/web/20221113065920/https://www.sfchronicle.com/bayarea/article/Meet-SBF-the-Bay-Area-born-crypto-mogul-at-the-17575495.php . live .
  34. December 19, 2022.
  35. Web site: The Parents in the Middle of FTX's Collapse . New York Times . December 28, 2022 . September 21, 2023 . https://web.archive.org/web/20230921023531/https://www.nytimes.com/2022/12/12/technology/sbf-parents-ftx-collapse.html . live .
  36. Web site: Schliefer . Theodore . Keeping Up with the Bankman-Frieds . January 5, 2023 . Puck . January 5, 2023 . https://web.archive.org/web/20230105014207/https://puck.news/keeping-up-with-the-bankman-frieds/ . live .
  37. Yaffe-Bellany, David, Lora Kelley and Kenneth P. Vogel. "The Parents in the Middle of FTX’s Collapse," The New York Times, December 12, 2022. Retrieved Dec. 15. 2022.
  38. News: November 11, 2022 . How Sam Bankman-Fried seduced blue-chip investors . Financial Times . November 12, 2022 . November 11, 2022 . https://web.archive.org/web/20221111222804/https://www.ft.com/content/67b1899f-4b1f-4676-b264-0d19e205d64e . live .
  39. Web site: Sam Bankman-Fried's crypto empire 'was run by a gang of kids in the Bahamas' . November 12, 2022 . Fortune . en . November 12, 2022 . https://web.archive.org/web/20221112020853/https://fortune.com/2022/11/11/sam-bankman-fried-crypto-empire-ftx-alameda-run-gang-kids-bahamas-who-all-dated-each-other/ . live .
  40. Web site: Cohan . William D. . The S.B.F. Chronicles: The Bridge Loan to Nowhere . Puck . December 24, 2022 . December 24, 2022 . https://web.archive.org/web/20221224172146/https://puck.news/the-bridge-loan-to-nowhere/ . live .
  41. News: Yaffe-Bellany . David . September 19, 2023 . Sam Bankman-Fried's Parents Sued by FTX . en-US . . September 19, 2023 . 0362-4331 . September 19, 2023 . https://web.archive.org/web/20230919084632/https://www.nytimes.com/2023/09/19/business/ftx-sam-bankman-fried-parents-sued.html . live .

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