WEBVTT - Bloomberg Businessweek Weekend - July 8th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.559 --> 0:00:09.160 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news. As it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.119 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.239 --> 0:00:23.720 edition of Bloomberg Business Week. Well, this week you're going 0:00:23.760 --> 0:00:26.160 to hear from many members of our Bloomberg team as 0:00:26.280 --> 0:00:30.160 Tim and I were managing ourselves or our families through COVID, 0:00:30.240 --> 0:00:32.920 And I gotta say, Tim, it's been a crazy couple 0:00:32.920 --> 0:00:35.840 of weeks. I've had COVID twice. Yeah. I mean, look, 0:00:35.920 --> 0:00:37.760 first of all, a big thank you to the team 0:00:37.800 --> 0:00:39.960 here at Bloomberg Radio for managing through it, and then 0:00:39.960 --> 0:00:42.400 our colleagues for jumping in for us. But hey, we're 0:00:42.400 --> 0:00:44.519 on the other side of it, Carol, hopefully truly on 0:00:44.560 --> 0:00:46.400 the other side of it at this point, right, Yeah, 0:00:46.520 --> 0:00:49.800 totally fingers crossed. Uh. And it was another crazy week, right, Yeah, 0:00:49.840 --> 0:00:52.320 it was. It's look, you know, they got John monthly 0:00:52.400 --> 0:00:55.160 jobs report happened. It's become even more key in today's 0:00:55.200 --> 0:00:58.840 environment where investors just continue to consider the possible trade 0:00:58.840 --> 0:01:02.840 off between a risk session and aggressive fed tightening. Talk 0:01:02.880 --> 0:01:05.039 about being between a rock and a hard place, all right. 0:01:05.120 --> 0:01:07.040 Also ahead, we're gonna talk about a lot of stuff, 0:01:07.120 --> 0:01:11.440 including supply chains and the world's biggest business problems. Once 0:01:11.480 --> 0:01:14.880 CEO says Quantum Computing might just be the fix. Plus 0:01:15.080 --> 0:01:18.360 swamp Poodle just a funny name, not to former chairman 0:01:18.400 --> 0:01:21.600 and Mellon Bank CEO. We're on his hometown and how 0:01:21.600 --> 0:01:23.800 his humble upbringing set him up to lead one of 0:01:23.800 --> 0:01:27.640 America's biggest financial institutions. All of that to come. First up, 0:01:27.680 --> 0:01:30.000 we love love to hear about the Heist. That's the 0:01:30.000 --> 0:01:32.600 special double issue of Bloomberg Business Week. It is out 0:01:32.640 --> 0:01:35.759 now on newsstands, online and on the Bloomberg. We're bringing 0:01:35.800 --> 0:01:38.240 you stories from it throughout the next couple of hours. 0:01:38.480 --> 0:01:40.600 And to get us all going on the Heist issue, 0:01:40.680 --> 0:01:43.800 Bloomberg Business Week editor Joel Webber gives us the lowdown 0:01:43.880 --> 0:01:47.000 on this year's scams and snitches, joined here by Paul Sweeney, 0:01:47.040 --> 0:01:50.000 a Bloomberg Surveillance and senior Markets editor, Mike week It, 0:01:50.160 --> 0:01:53.440 Oh my gosh, it's like the ultimate Summer bee Tree. 0:01:53.920 --> 0:01:56.280 Number of years ago. We decided that this theme, this 0:01:56.360 --> 0:02:00.240 topic UM deserves to go cover to cover, So we 0:02:00.320 --> 0:02:03.120 go from the front cover to the back cover and 0:02:03.240 --> 0:02:07.520 we go all in on heist, which we open with 0:02:07.520 --> 0:02:11.919 a little uh opening paragraph that just also reminds people 0:02:11.960 --> 0:02:15.560 that you know, for these are mostly intended as sort 0:02:15.560 --> 0:02:18.240 of school degree stories, but there are some some real 0:02:18.360 --> 0:02:21.800 heists in the headlines right now that people people feel 0:02:21.960 --> 0:02:25.359 very much affected by. So where we acknowledge those as well. 0:02:25.600 --> 0:02:28.440 So I'll talk to us about the lot lottery lawyers 0:02:28.600 --> 0:02:30.560 and what that heist is about. That's when I haven't 0:02:30.560 --> 0:02:33.920 had a chance to read yet. The story UM is 0:02:33.960 --> 0:02:39.400 about UM, a lawyer on Long Island who basically created 0:02:39.440 --> 0:02:44.079 a new business which was advising UM people who won 0:02:44.520 --> 0:02:47.560 mega millions or powerballs, and he put together actually a 0:02:47.600 --> 0:02:51.240 little modest portfolio of winners and then help them start 0:02:51.800 --> 0:02:56.080 advising advising them and UM sort of being a financial 0:02:56.120 --> 0:02:59.000 advisor to them. And that's where the story kind of 0:02:59.040 --> 0:03:02.880 snowballs and it turns into this cast of characters that 0:03:03.000 --> 0:03:05.240 may or may not have scammed him. There there is 0:03:05.280 --> 0:03:09.679 a ongoing um H lawsuits, So I have to say 0:03:09.720 --> 0:03:13.760 this is all allegedly UM, except that the details of 0:03:13.760 --> 0:03:15.960 the story. You just can't make this stuff up, all right, 0:03:16.000 --> 0:03:19.760 A little bit more somber one perhaps is taken tax 0:03:19.840 --> 0:03:24.720 leans cost generations of Black Americans their land? How does 0:03:24.760 --> 0:03:28.200 that work? Yeah, so this was a far more sober one. 0:03:28.440 --> 0:03:31.320 UM and Margaret new Kirk came to us with this 0:03:31.639 --> 0:03:34.120 UM a number of months ago and said that she 0:03:34.160 --> 0:03:37.600 had found out about a family in South Carolina that 0:03:38.160 --> 0:03:42.400 generations ago actually ended up losing. It's losing their land. 0:03:42.600 --> 0:03:46.840 And the story is tragic. It's about the great grandmother 0:03:46.920 --> 0:03:51.440 who who basically was paying UM what she thought was 0:03:52.400 --> 0:03:57.400 UM taxes to UM via sort of a white intermediary 0:03:57.440 --> 0:04:01.600 in South Carolina who was taking money to the government 0:04:01.800 --> 0:04:04.760 on her behalf. It turns out that he had actually 0:04:04.960 --> 0:04:08.160 purchased the land from the government via a tax ling, 0:04:08.680 --> 0:04:11.360 and that the money that she was giving him was 0:04:11.400 --> 0:04:14.960 actually rent, and he broke this news to her UM 0:04:16.680 --> 0:04:18.880 upon the time that he was actually selling that land. 0:04:19.279 --> 0:04:22.520 And the story goes into not only the family story 0:04:22.520 --> 0:04:25.279 of how they missed out on this land that is 0:04:25.320 --> 0:04:29.919 actually just an incredible location and in South Carolina, but 0:04:30.080 --> 0:04:33.880 also how this is a practice that writ large across America, 0:04:34.080 --> 0:04:37.039 not only used to happen but continues to happen, and 0:04:37.080 --> 0:04:41.120 because of that, black Black Americans UM end up losing 0:04:41.120 --> 0:04:44.159 out on wealth. You know, real estate is a source 0:04:44.200 --> 0:04:48.680 of wealth and that intergenerational thing that happens between families, 0:04:49.279 --> 0:04:51.560 UM is something that a lot of Black Americans have 0:04:51.600 --> 0:04:53.320 missed out on. So we felt like that was an 0:04:53.320 --> 0:04:55.679 appropriate one to bring him to the highst issue as well. Joel, 0:04:55.760 --> 0:04:57.520 if you step back for a minute, you know you 0:04:57.640 --> 0:04:59.120 I don't know how many years in a row you've 0:04:59.120 --> 0:05:02.719 done this highest five five years that, so you're probably 0:05:02.800 --> 0:05:06.720 up to thirty stories by now. Where's the heist capital 0:05:06.839 --> 0:05:08.960 of the world in your opinion? I would actually put 0:05:09.000 --> 0:05:12.120 it as as Florida. I think the nefarious deeds that 0:05:12.120 --> 0:05:15.520 go down or make it make it a special place 0:05:15.560 --> 0:05:17.200 that I think we went a little light on Florida 0:05:17.240 --> 0:05:20.640 in this issue. But sleeper um Los Angeles. And there's 0:05:20.680 --> 0:05:23.760 another great one in this issue called the open house 0:05:23.839 --> 0:05:27.000 Hunters who who hit l as rich and famous. And 0:05:27.080 --> 0:05:30.200 this story is incredible because it's about UM this duo 0:05:30.440 --> 0:05:35.400 who would go scope houses. Also allegedly that this trial 0:05:35.480 --> 0:05:37.880 is coming up in August. Uh, they would go scope 0:05:37.920 --> 0:05:40.160 open houses and it turns out a lot of these 0:05:40.160 --> 0:05:43.440 open houses were owned by celebrities, and so they were 0:05:43.440 --> 0:05:46.039 actually able to come into homes kind of scope worth 0:05:46.200 --> 0:05:49.960 the goods were and then come back later and do 0:05:50.040 --> 0:05:52.480 their do their stuff. And this was a year's long effort. 0:05:52.520 --> 0:05:56.479 This was a massive crimes free and they took luxury bags, 0:05:57.120 --> 0:06:00.880 they took they hit Usher Usher up to have Lebron 0:06:01.080 --> 0:06:05.120 James's Cleveland calves ring from when he won the championship 0:06:05.279 --> 0:06:09.200 that got stolen. It's just amazing read. And some of 0:06:09.200 --> 0:06:11.240 these brake ins were just like the I think the 0:06:11.279 --> 0:06:14.520 cops and the detectives were like totally bufuddled, like they 0:06:14.520 --> 0:06:17.039 had like parkur abilities on top of everything else, and 0:06:17.080 --> 0:06:20.600 we're like dropping in from skylights like in Mission Impossible. 0:06:20.680 --> 0:06:23.760 So it's some fun stuff here. That was Bloomberg Business 0:06:23.800 --> 0:06:26.480 Week editor Joel Webber. Clearly, there's plenty to look forward 0:06:26.480 --> 0:06:29.040 to and this year's special Heist issue, and a big 0:06:29.120 --> 0:06:31.600 thank you, of course to Paul Sweeney of Bloomberg Surveillance 0:06:31.640 --> 0:06:34.960 and Senior Markets editor Mike Reagan for bringing us that interview. 0:06:35.080 --> 0:06:37.560 Coming up, Joel is back, this time with Bloomberg reporter 0:06:37.640 --> 0:06:40.159 and heist detective Zeke Fox to tell us about a 0:06:40.240 --> 0:06:43.360 rapper's crypto scheme and how it all went terribly wrong. 0:06:43.480 --> 0:06:57.320 You're listening to Bloomberg Business Week. This is Bloomberg. This 0:06:57.720 --> 0:07:01.120 is Bloomberg Business Week with Carol Man here and Bloomberg 0:07:01.200 --> 0:07:06.520 Quick Takes Tim Stinovin from Bloomberg Radio. An instant classic 0:07:06.520 --> 0:07:09.320 from this year's Heist issue. It's about a novelty rapper 0:07:09.360 --> 0:07:12.040 and her startup guy husband who are now facing trial 0:07:12.160 --> 0:07:14.480 for their roles in an eight billion dollar hack of 0:07:14.520 --> 0:07:17.920 cryptocurrency exchange bit fin x that took place back in 0:07:19.280 --> 0:07:21.040 So how do they pull it off? To begin with? 0:07:21.320 --> 0:07:23.640 How did they get caught? And what happened to hold 0:07:23.720 --> 0:07:26.560 that money? To tell the tale, we've got Bloomberg Market 0:07:26.640 --> 0:07:29.800 Senior editor Mike Reagan and Carol Well. They turned to 0:07:29.800 --> 0:07:33.480 the individual who wrote the piece, Bloomberg News Financial Investigations 0:07:33.480 --> 0:07:36.840 reporter Zeke Fox, along with Business Week editor Joel Weber. 0:07:37.040 --> 0:07:40.600 It might actually be the biggest hack of heist of 0:07:40.600 --> 0:07:42.360 all time, right and see how does that? How does 0:07:42.400 --> 0:07:45.040 that happen? The next was one of the biggest crypto 0:07:45.040 --> 0:07:49.920 exchanges in the world, but like a lot of exchanges, 0:07:49.920 --> 0:07:53.720 it had what appears to be very poor security and 0:07:54.880 --> 0:08:00.000 somebody got into the exchange and you stole the passwords 0:08:00.040 --> 0:08:03.320 do there are bitcoins and transferred out more than half 0:08:03.320 --> 0:08:06.560 the bitcoins, more than a hundred thousand bitcoins, And for 0:08:06.720 --> 0:08:10.239 years there was a mystery what happened, and the value 0:08:10.280 --> 0:08:13.720 of those bitcoins rose and rose until at their peak, 0:08:14.240 --> 0:08:19.680 the missing bitcoins were worth more than eight billion dollars. Zeke, 0:08:19.720 --> 0:08:21.920 I wanted to ask you about the two main characters 0:08:21.960 --> 0:08:26.240 in this story, Heather Morgan, a k razzle razzle Cohn 0:08:26.640 --> 0:08:31.280 and her husband. Um, you describe what I consider some 0:08:31.400 --> 0:08:34.520 major crimes against music on her part and her rap 0:08:34.640 --> 0:08:41.360 music just awful, awful rap music is is her claim 0:08:41.440 --> 0:08:44.920 the theme. But I don't get the you know, I 0:08:44.960 --> 0:08:48.080 don't get the opinion that she was a criminal going 0:08:48.080 --> 0:08:51.679 into this. She just sort of stumbled into this heist. 0:08:51.800 --> 0:08:54.520 To walk us through how what we know about how 0:08:54.920 --> 0:08:59.160 these two got involved in this caper? Yeah, I mean 0:08:59.200 --> 0:09:03.040 that was what was so crazy is that in February, 0:09:03.480 --> 0:09:07.120 out of nowhere, the Department of Justice announced that they've 0:09:07.120 --> 0:09:11.079 recovered most of the bitcoins and arrested to people for 0:09:11.200 --> 0:09:15.079 money laundering. There's this couple, Heather and Ilia and Heather, 0:09:15.679 --> 0:09:19.840 as I said, the story she's got the rap persona. 0:09:20.360 --> 0:09:22.920 It was just it seems so unlikely. It's like something 0:09:22.920 --> 0:09:27.839 you wouldn't believe if someone made it up. Um. And yeah, 0:09:28.200 --> 0:09:31.560 she has like a very standard or not very standard 0:09:31.559 --> 0:09:34.480 but her back, but nothing about her background suggests that 0:09:34.559 --> 0:09:37.200 she would get involved in something like this. But the 0:09:37.280 --> 0:09:42.479 fact is when they when the authorities rated their apartment 0:09:43.000 --> 0:09:48.719 down in the Financial District, what they found on the 0:09:49.000 --> 0:09:54.040 husband's cloud accounts was an encrypted file that contained the 0:09:54.120 --> 0:09:59.640 passwords to all these stolen bitcoins. And like in bitcoin, 0:10:00.600 --> 0:10:04.040 you don't want anyone whoever controls these private keys, these 0:10:04.080 --> 0:10:06.720 passwords controls the coin. So the fact that he's in 0:10:06.760 --> 0:10:09.640 possession of all the sold and funds is like a 0:10:09.679 --> 0:10:13.320 strong suggestion that uh, he may have been the one 0:10:13.760 --> 0:10:16.920 who took them. And the authorities also have evidence that 0:10:17.520 --> 0:10:22.640 Morgan participated in efforts to move this money and to 0:10:22.800 --> 0:10:26.560 conceal its origins and that's why she got arrested too. 0:10:27.040 --> 0:10:32.320 Um but uh yeah, it's it's it really is mysterious 0:10:32.360 --> 0:10:37.760 how uh if these two are in fact the hackers, 0:10:37.800 --> 0:10:41.240 how they got into it, um or why they were 0:10:41.840 --> 0:10:44.439 trying to attack so much attention after they had pulled 0:10:44.480 --> 0:10:47.800 off like this crazy crime. So so yeah, break that 0:10:47.880 --> 0:10:52.160 down for us, because obviously this hack happened a while ago, 0:10:52.400 --> 0:10:55.280 and then it was sort of this big mystery and 0:10:55.880 --> 0:11:01.600 what what was the thing that triggered authorities becoming increasingly interested. 0:11:03.520 --> 0:11:09.720 So with bitcoin, it exists as like an entry on 0:11:09.760 --> 0:11:14.360 a distributed database, so anyone could look up the addresses 0:11:14.400 --> 0:11:16.760 where the hackers sent the funds like this was public 0:11:16.800 --> 0:11:19.319 and I could see that the bitcoins were in like 0:11:20.080 --> 0:11:26.640 these numbered addresses, but there's no association with any person um. 0:11:26.679 --> 0:11:32.559 So the problem was that the reputable bitcoin companies don't 0:11:32.559 --> 0:11:37.680 want to touch bitcoins that they know come from a 0:11:37.760 --> 0:11:41.240 crime like a hack. So the hackers need to find 0:11:41.280 --> 0:11:44.400 some way to move these bitcoins to someone who didn't care. 0:11:45.080 --> 0:11:48.640 And they found one place, which is called Alpha Bay, 0:11:48.679 --> 0:11:52.600 which would place essentially eBay for like drugs and guns 0:11:52.640 --> 0:11:55.840 on the dark West. And the thinking was that you 0:11:55.880 --> 0:12:00.280 send the bitcoins to alpha Bay, and then you inside 0:12:00.320 --> 0:12:03.320 Alpha Bay, all the funds are mixed up. So but 0:12:03.360 --> 0:12:05.840 then when you withdraw the bitcoins from alphabet to a 0:12:05.840 --> 0:12:09.040 new address, no one will know that the new address 0:12:09.200 --> 0:12:14.120 is associated with the hack. Um. The problem was that 0:12:14.880 --> 0:12:18.280 the authorities, in particular the cyber crime unit within the 0:12:18.320 --> 0:12:20.720 I r S was on like this crazy streak of 0:12:20.760 --> 0:12:24.199 cracking cryptocrimes, and one of the places they went after 0:12:24.880 --> 0:12:28.880 was Alpha Bay. And after like this raid with the 0:12:28.960 --> 0:12:33.120 Royal High Police in Thailand, they were able to get 0:12:33.200 --> 0:12:36.520 Alphabat's computers and that meant to have all of Alphabat's 0:12:36.520 --> 0:12:40.079 internal records and they could connect transfers to Alpha Bai 0:12:40.679 --> 0:12:44.200 with transfers out of Alpha Bay, so transfers that the 0:12:44.360 --> 0:12:49.360 hackers thought were safe. We're now UH able to be 0:12:49.400 --> 0:12:52.120 figured out. But the fact is that there was this 0:12:52.240 --> 0:12:54.920 was such a trove of data that the authorities were 0:12:55.240 --> 0:12:57.800 bringing all sorts of cases related to this. It took 0:12:57.880 --> 0:13:01.920 him a few years before UH they realized what they 0:13:01.960 --> 0:13:05.480 had and were able to gather enough evidence to UH 0:13:05.800 --> 0:13:10.360 search Heather and Ilia's apartment and and and Zeke quickly. 0:13:10.400 --> 0:13:14.320 Where where do things stand now is in present a 0:13:14.320 --> 0:13:18.640 waiting trial. Heather is out on bail, and there's evidence 0:13:18.679 --> 0:13:21.400 that they sent some or whoever had these bitcoins sent 0:13:21.480 --> 0:13:24.400 them to another dark net market in Russia called Hydra. 0:13:24.800 --> 0:13:27.400 And on Hydra you could pay someone in bitcoin and 0:13:27.480 --> 0:13:30.960 have them very rubles underground for you, and then you 0:13:31.000 --> 0:13:35.120 could go dig them up later, so you never know. 0:13:35.160 --> 0:13:37.040 They take a lot of money to hydra. There could 0:13:37.040 --> 0:13:40.040 be some fundles of rubles sitting somewhere waiting for Heather 0:13:40.120 --> 0:13:42.839 and Ilia to come they come up. That was Bloomberg 0:13:42.840 --> 0:13:46.280 News Financial Investigations reporter Zeke Fox, with Business Week editor 0:13:46.360 --> 0:13:48.520 Joe Weber, Mike Greek and of course with us there 0:13:48.600 --> 0:13:50.599 as well. We'll have more from the Heigst issue, but 0:13:50.720 --> 0:13:54.000 later on on our broadcast. Still ahead on Bloomberg Business Week, 0:13:54.120 --> 0:13:57.439 the CEO of a multimillion dollar software company says quantum 0:13:57.480 --> 0:14:00.680 computing can solve supply chain issues. Find out how. On 0:14:00.720 --> 0:14:13.120 the other side, this is Bloomberg Broadcasting from the financial 0:14:13.160 --> 0:14:16.679 capital of the world, Bloomberg Eleve in Frio in New York, 0:14:16.800 --> 0:14:21.040 to Washington, d C. Bloomberg to Boston, Bloomberg one oh 0:14:21.120 --> 0:14:24.200 six one to San Francisco, Bloomberg nine sixty to the 0:14:24.240 --> 0:14:27.320 country Sirius XM Chado one nine ten and around the 0:14:27.360 --> 0:14:31.400 globe the Bloomberg Business app and Bloomberg Radio dot Com. 0:14:31.400 --> 0:14:35.440 This is Bloomberg Business Week. My next cast is all 0:14:35.440 --> 0:14:37.680 about the zeros and the ones and how they can 0:14:37.680 --> 0:14:41.800 solve the world's biggest business problems. The CEO of Quantum Computing, Inc. 0:14:41.920 --> 0:14:45.320 Robert Listkowski, spoke with Paul Sweeney of Bloomberg Surveillance and 0:14:45.360 --> 0:14:48.520 senior markets editor Mike Reagan. They began by asking a 0:14:48.640 --> 0:14:52.920 very important question, what exactly is quantum computing. It's an 0:14:52.920 --> 0:14:58.120 exponentially much more powerful, computationally way of looking at really 0:14:58.160 --> 0:15:00.800 complex problems. You know, I can get into the physics 0:15:00.800 --> 0:15:03.360 of it, right. Classic computers look at ones and zeros. 0:15:03.400 --> 0:15:06.000 Quantum computers look at ones and zeros and a zero 0:15:06.040 --> 0:15:07.880 and one at the same time. You can get into 0:15:07.880 --> 0:15:09.720 all that stuff, right. But I think at the end 0:15:09.760 --> 0:15:12.280 of the day, for the average business user, people are 0:15:12.800 --> 0:15:15.520 need to know that we can do really really complex 0:15:15.560 --> 0:15:19.280 types of computations, dealing with supply chain, dealing with all 0:15:19.320 --> 0:15:23.280 sorts of variables in ways that classical computers can't even 0:15:23.320 --> 0:15:27.360 begin to achieve. Yes, so, Robert, your company's Quantum Computing Inc. 0:15:28.040 --> 0:15:31.240 Qubatt is the ticker simple. You tell us a little 0:15:31.240 --> 0:15:35.520 bit about some of the products you're offering or or 0:15:35.840 --> 0:15:39.600 having development. I know a lot has to do um 0:15:39.760 --> 0:15:43.080 with stuff like security support and and that sort of thing. 0:15:43.120 --> 0:15:45.240 Can you walk us through some of your main offerings 0:15:45.240 --> 0:15:47.720 and and uh, you know, what we should need to 0:15:47.720 --> 0:15:50.520 know about them. Sure, so we started off as a 0:15:50.520 --> 0:15:54.200 software company. We're a platform that was designed to allow 0:15:54.280 --> 0:15:56.760 business users or any user that for that matter, to 0:15:56.800 --> 0:15:59.640 connect up to a quantum computer. Quantum computers don't have 0:15:59.680 --> 0:16:02.960 the same programming language that classical computers do, right, You can't. 0:16:03.280 --> 0:16:05.240 You can't take what you've done on a Windows machine 0:16:05.320 --> 0:16:08.120 or an IBM three sixty or whatever the machines are 0:16:08.160 --> 0:16:09.880 out there and then be able to do that on 0:16:09.920 --> 0:16:13.560 a quantum computer. They need different programming techniques, right. They're 0:16:13.640 --> 0:16:16.680 very complex systems. You need quantum programmers to be able 0:16:16.720 --> 0:16:19.080 to do these things. So we created a platform that 0:16:19.120 --> 0:16:21.400 would allow a business user to formulate a problem that 0:16:21.400 --> 0:16:24.760 could run on not just one quantum computer, but any 0:16:24.840 --> 0:16:27.880 number of quantum computers. And that way we took the 0:16:27.920 --> 0:16:30.560 heavy lifting out of the equation and allowed people to 0:16:30.600 --> 0:16:34.400 be able to do things today the challenges quantum computing 0:16:34.560 --> 0:16:39.360 as a domain hasn't quite achieved the level of capability 0:16:39.440 --> 0:16:41.800 that we needed to get. Right. It's a process. It's 0:16:41.840 --> 0:16:45.360 an evolutionary process that says, and we can do great 0:16:45.440 --> 0:16:48.160 things today, but we're gonna really do great things, better 0:16:48.200 --> 0:16:51.200 things tomorrow because quantum computers are going to be much 0:16:51.240 --> 0:16:53.840 more capable in a few years than they are today. 0:16:54.000 --> 0:16:57.560 Classical computers can do things that quantum computers can do 0:16:57.760 --> 0:17:02.360 right now and compute, you know, computational problems that um 0:17:02.400 --> 0:17:04.800 they can really give good results for it. But but 0:17:05.520 --> 0:17:08.560 over time quantum computers are going to continue to evolve 0:17:08.600 --> 0:17:11.240 into really really capable machines. So we looked at a 0:17:11.280 --> 0:17:13.920 way that we could bring business users to those machines, 0:17:13.960 --> 0:17:17.080 get them ready to be quantum ready as as machines 0:17:17.080 --> 0:17:20.560 are coming on on online solve certain problems dealing with 0:17:20.600 --> 0:17:24.919 supply chain and other optimization problems. However, just recently, and 0:17:24.960 --> 0:17:28.080 this is really exciting for us, we just acquired a company, 0:17:28.320 --> 0:17:32.399 a photonic computing company called q photon, which actually uses 0:17:32.400 --> 0:17:35.399 photonics a different way to look at a way of 0:17:35.400 --> 0:17:40.159 computing quantumly and we can actually solve some problems today 0:17:40.200 --> 0:17:43.400 that are actually business problems, business related problems. So there's 0:17:43.440 --> 0:17:47.520 a way to apply quantum computing and techniques today that 0:17:47.760 --> 0:17:50.760 um quantum computing can actually solve and we have a 0:17:50.800 --> 0:17:53.560 computer that can do that. So it's really interesting is 0:17:53.600 --> 0:17:56.720 that we have become a full stack quantum computing company. 0:17:56.760 --> 0:17:59.680 We're no longer just a software company. Q Photon is 0:17:59.760 --> 0:18:02.680 no long going just a hardware company. Together, combining these 0:18:02.680 --> 0:18:04.800 two companies, we can do an end to end approach 0:18:04.840 --> 0:18:09.760 towards providing solutions to real world problems. Ask you about 0:18:09.760 --> 0:18:11.600 that whole notion of the full stack you know, Um, 0:18:12.119 --> 0:18:14.520 so much of what we've talked about this year has 0:18:14.600 --> 0:18:19.040 been the semiconductor market. I'm guessing in your line of work, 0:18:19.119 --> 0:18:24.040 you need access to the best, you know, fastest chips available. 0:18:24.160 --> 0:18:27.040 Is this whole uh supply chain issues with the chips 0:18:27.040 --> 0:18:30.639 themself throwing you any curveballs? Is it a problem at all? No, 0:18:30.800 --> 0:18:33.320 it hasn't been. I mean, first off, we're not producing 0:18:33.320 --> 0:18:35.919 computers at scale yet, We're just producing a couple and 0:18:35.960 --> 0:18:38.359 three of them at a time. So for us, supply 0:18:38.440 --> 0:18:41.240 chain issues haven't haven't really manifested themselves in terms of 0:18:41.280 --> 0:18:45.240 the scale that you know most supply chains are seeing that. Secondly, 0:18:45.520 --> 0:18:48.119 the chips that were manufacturing and we are manufacturing chips 0:18:48.440 --> 0:18:50.000 are are much different than what you see in the 0:18:50.040 --> 0:18:53.760 microchip industry. So are is a very specialized, very unique 0:18:53.760 --> 0:18:57.399 types of materials that go into creating the photonics that 0:18:57.400 --> 0:18:59.720 are required for our quantum computing. So we have a 0:18:59.760 --> 0:19:01.960 bump into that now in the future perhaps, but I 0:19:02.000 --> 0:19:05.240 think we've got, you know, our plans and scaling help 0:19:05.359 --> 0:19:08.080 us kind of mitigate that kind of risk. But I 0:19:08.280 --> 0:19:09.960 but to your point, you know, a lot of the 0:19:10.000 --> 0:19:13.240 computer industry is suffering from those those microcircuits and the the 0:19:13.280 --> 0:19:16.280 microchips types of supply chain issues, and they will be 0:19:16.359 --> 0:19:19.600 for the foreseeable future. We, on the other hand, don't 0:19:19.760 --> 0:19:22.399 don't We're not gonna be bumping into that. And you 0:19:22.440 --> 0:19:25.120 really can't compare the two. The quantum computer is gonna 0:19:25.119 --> 0:19:27.080 be able to do things that the classical that you know, 0:19:27.359 --> 0:19:31.680 several many classical computers couldn't do. Tied together quantum. One 0:19:31.760 --> 0:19:34.880 quantum computer is gonna be able to achieve um computational 0:19:34.920 --> 0:19:38.560 superiority um that those classical computers can't do. So supply 0:19:38.640 --> 0:19:41.320 chain issues won't be as impactful to the quantum industry 0:19:41.320 --> 0:19:43.080 as they are in the classical industry. A lot to 0:19:43.080 --> 0:19:45.560 take in there. Big thank you to Robert Liskowski, he's 0:19:45.720 --> 0:19:49.440 CEO of Quantum Computing, Inc. Joined there by Bloomberg Surveillance 0:19:49.560 --> 0:19:52.480 is Paul Sweeney and Senior markets editor Mike Regan. You're 0:19:52.520 --> 0:19:55.320 listening to Bloomberg Business Week. Up next, how former mail 0:19:55.359 --> 0:19:58.639 In Bank CEO Marty McGinn's humble beginnings set him on 0:19:58.680 --> 0:20:00.440 a path to the top of one of the America's 0:20:00.480 --> 0:20:03.920 biggest financial institutions, and why he thinks the US is 0:20:03.960 --> 0:20:15.200 at a heightened risk of recession. This is Bloomberg. You're 0:20:15.280 --> 0:20:19.159 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:20:19.240 --> 0:20:25.480 Quick Takes Tim Stinovik from Bloomberg Radio. Swampoodle funny word, right, Well, 0:20:25.600 --> 0:20:28.399 it's also the name of a North Philadelphia neighborhood. It 0:20:28.480 --> 0:20:30.560 plays a big part in our next guest new book. 0:20:30.840 --> 0:20:35.320 It's called From Swampoodle to Melanbank Ceo, An Irish Americans Journey, 0:20:35.320 --> 0:20:39.760 The autobiography of Martin G. Mcgwinn Jr. The former chairman 0:20:39.760 --> 0:20:43.080 and CEO of Melonbank, spoke in depth about his upbringing 0:20:43.080 --> 0:20:46.240 with Bloomberg Radio is Paul Sweeney and Senior Markets editor 0:20:46.320 --> 0:20:48.960 Mike Reagan. Marty, I love the title, but you gotta 0:20:49.000 --> 0:20:53.719 tell me what or where is swampoodle. Well, it certainly 0:20:53.800 --> 0:20:57.159 is an unusual word, and it's it's a neighborhood in 0:20:57.240 --> 0:21:02.119 northern Philadelphia where are a lot of Irish immigrants settled 0:21:02.160 --> 0:21:06.159 in the early nineteen hundreds, including my grandparents. So it 0:21:06.200 --> 0:21:09.600 seemed like a good place to start, uh, telling my story. 0:21:09.720 --> 0:21:14.400 And so it is from swamp poodle to Melanbank CEO. Hey, Marty, Uh, 0:21:14.680 --> 0:21:16.280 you know, I'm just kind of seeing here. You grew 0:21:16.320 --> 0:21:19.919 up in Princeton, graduated from Villanova and Villanova Law school, 0:21:20.320 --> 0:21:22.280 and then you starved into Marine Corps Vietnam. Tell us 0:21:22.320 --> 0:21:27.959 about that experience. Well, Uh, I joined the Marine Corps 0:21:28.000 --> 0:21:31.160 while I was in college because they had a program 0:21:31.160 --> 0:21:33.680 where you went down during summers in college and went 0:21:33.720 --> 0:21:37.080 through your your your basic training, and then you were 0:21:37.080 --> 0:21:40.639 commissioned when you graduated. And in my case, I was 0:21:40.680 --> 0:21:43.760 guaranteed the deferments. I could go to law school and 0:21:43.800 --> 0:21:46.720 then serve on active duty. And that seemed a good 0:21:46.720 --> 0:21:49.400 way for me to commit to serve my country at 0:21:49.440 --> 0:21:52.159 the same time be able to start my career in 0:21:52.200 --> 0:21:55.840 a way that it was consistent with my planning. And 0:21:55.840 --> 0:21:58.000 and in the Marine Corps, you may know, I mean 0:21:59.000 --> 0:22:00.760 they have a saying every man as a fighting man 0:22:00.840 --> 0:22:02.960 from the comment on on down, So you have to 0:22:03.000 --> 0:22:05.720 get through all the same basic training even if you 0:22:05.800 --> 0:22:10.920 intend to have or hope to have a basic legal responsibility, 0:22:10.920 --> 0:22:13.680 which is what I did, and then serving in Vietnam 0:22:13.800 --> 0:22:17.040 was what all Marines were doing during those days when 0:22:17.080 --> 0:22:19.840 I was was active. You know, Marty, I always like 0:22:19.960 --> 0:22:23.320 to talk to UH people who have had experiences running 0:22:23.320 --> 0:22:25.040 a bank, because I feel like they have such a 0:22:25.119 --> 0:22:29.800 unique perspective on the economy and markets, almost like no 0:22:29.840 --> 0:22:32.560 one else can sort of view from having been in 0:22:32.600 --> 0:22:35.160 your position. And I'm curious to know if we're here 0:22:35.200 --> 0:22:38.280 sitting in an environment with more than eight percent inflation, 0:22:39.119 --> 0:22:41.640 treasure yields going up one day down the next year, 0:22:41.920 --> 0:22:44.680 stocks in a bear market, what's your sort of read 0:22:44.760 --> 0:22:47.359 on the economy and and how we should think about 0:22:47.480 --> 0:22:50.479 markets and and the whole banking industry and and and 0:22:50.520 --> 0:22:55.359 everything UH in your old wheelhouse these days. That's a 0:22:55.359 --> 0:22:58.400 pretty broad question, but let me try to answer it, UH, 0:22:58.560 --> 0:23:00.880 as far as the economy is can concerned. I mean, 0:23:00.920 --> 0:23:04.240 I think we've had a fairly strong economy for quite 0:23:04.240 --> 0:23:08.199 a few years now, and then when Congress really stepped 0:23:08.240 --> 0:23:12.440 up the spending, I think that really is what triggered 0:23:12.800 --> 0:23:16.679 the first move toward inflation. UM. And then when you have, 0:23:16.760 --> 0:23:20.160 of course, the war in Ukraine and the energy problems 0:23:20.200 --> 0:23:23.359 and all the other issues. UM. And then frankly, I 0:23:23.400 --> 0:23:26.919