The speaker discusses the recent collapse of the Defy Media Content Network (MCN), which resulted in 50 independent channel creators losing 1.7 million dollars of their earnings. The speaker emphasizes that this money, which was supposed to be distributed to the creators, is now trapped in a bank account with a Defy label. The speaker also mentions that the bank, Ally, is set to lose most of its loan to Defy, which is being liquidated.
The speaker explains that the bank's response to the situation is not satisfactory, as it is trying to equate the losses of the bank with the losses of the creators, which is a misdirection. The speaker uses an analogy of a bank to explain the situation, stating that the bank is earning money off the creators' money by lending it to Defy. The speaker argues that the bank has the ability to choose who they give a loan to and who they reject, and in this case, Ally Bank chose to make a commercial loan to Defy.
The speaker then explains that the bank's loan to Defy was a risk and investment, and when Defy failed to pay back the loan, the bank lost money. The speaker argues that the creators were not given the same opportunity to assess the risk and invest in Defy, and therefore, they should not be held responsible for the losses.
The speaker also criticizes the process of due diligence, which the bank should have done before lending money to Defy. The speaker argues that due diligence would have revealed the shady dealings of Defy, which the creators were not privy to.
Finally, the speaker criticizes the board of directors of Defy for choosing a professional to liquidate Defy's assets, suggesting that the board members may have a vested interest in the outcome. The speaker concludes by urging the audience to continue supporting the creators and to raise awareness about the issues faced by them.
Here are the key facts extracted from the text:
1. 50 independent channel creators had 1.7 million dollars of their earnings stolen from them by the closure of Defy Media MCN.
2. Ally Bank made a loan to Defy Media that it was unable to pay back and stands to lose most of its loan.
3. Ally Bank claims to be sympathetic to everyone caught up in this mess, but tries to equate its losses with the creators'.
4. Ally Bank had access to Defy Media's financial records and due diligence process, while the creators did not.
5. Ally Bank may have influence over the professional hired by Defy Media's Board of Directors to liquidate its assets and decide where the money goes.
6. The creator income that sits in Defy Media's bank accounts was never Defy Media's to begin with, and it belongs to the creators who earned it from YouTube.