This episode explores recurring instances of significant financial errors at Citigroup, the declining fortunes of 23andMe, and the sales practices of First Trust, an ETF issuer. Against this backdrop of financial industry anomalies, the hosts delve into Citigroup's repeated "fat finger" incidents, where massive erroneous payments were made, highlighting the need for improved internal systems and processes. More significantly, the discussion pivots to 23andMe's struggles, with its founder attempting a low-priced private buyout amidst declining sales and privacy concerns. For instance, the offered buyout price is far below the current market value, indicating a significant discrepancy in valuation perceptions. In contrast, the analysis of First Trust reveals high fees and sales tactics under FINRA investigation, raising questions about the balance between client needs and aggressive sales practices. The investigation was triggered by a divorce case, revealing lavish spending by the CEO. Emerging industry patterns reflected in these cases include the need for robust financial technology, the challenges of maintaining long-term revenue streams in the face of changing market dynamics, and the ethical considerations of sales practices within the financial services sector.
