The firm that helped blaze the trail on LBOs four decades ago has become one of the first to settle with the SEC over expenses charged to investors in its funds. KKR will have company, however. Individual sums may be small but, like the fees themselves, they’ll start to add up.
U.S. justices quashed air-pollution limits whose expense seemed to far exceed their worth. Though a narrow decision, it’s a growing problem in financial regulation, too. With judicial knives out for questionable rules, agencies drafting them may have to adjust their own thinking.
Closing the stricken state’s banks would be a disaster at any time of year. But Athens’ capital controls are kicking in just as one of Greece’s main drivers – tourism – hits peak season. Even if Greeks don’t leave the euro, 2015 will be a writeoff.
Next Sunday’s referendum could force Greece to leave the single currency. Yet bond markets are trading shy of full crisis levels. If things stay that way it eases the pressure on euro zone politicians to offer sweeter terms to the country’s leader, Alexis Tsipras.
The People’s Bank is justified in cutting rates and giving banks extra lending power. But unfortunately the authorities look like they are trying to stop bubbly stock markets from sliding. They are damned if the easing works, and even more damned if it doesn’t.
The Basel-based body wants central banks to focus more on fighting financial excesses and less on stoking demand. That’s fine, but labour’s falling share in output – and the disinflation that it helps create – present challenges that monetary authorities will have to deal with.
The landmark ruling approving gay marriage gives even banks reason to celebrate. Benefits for same-sex spouses will be far cheaper and easier to grant, enabling stronger competition with more progressive Silicon Valley for workers. It’s a joyous union of equality and utility.
The U.S. territory says it can’t repay $72 bln of debt. A national borrower could try to devalue its way out of the mess. But Puerto Rico, like Greece, doesn’t have that option. A Detroit-style bankruptcy would require changes in U.S. law. It’s the worst of both worlds.
Space flight is like the venture capital industry in reverse: Most launches succeed, but a prominent few explode spectacularly. The formidable barriers to entry, rivals’ similar failures and SpaceX’s relatively low costs mean Elon Musk’s company remains on the right trajectory.
The German regulator’s review of the lender’s Libor affairs has accused outgoing co-CEO Anshu Jain of lying. Jain rejects the allegation as baseless, says Deutsche. But the resulting tension would have made it difficult for him to stay on.
Local taxi-hailing app Didi Kuadi is raising up to $2 bln less than a month after rival Uber said it will invest $1 bln in the People’s Republic. Both are racing for market share by spending heavily on subsidies for drivers. The question is whose investors lose patience first.
Greece will shutter banks and limit withdrawals after the ECB refused to increase funding. That could help leader Alexis Tsipras convince Greeks to back euro exit in a July 5 referendum. The ECB could counter by maintaining its loans even if Greece defaults on the IMF this week.
President Rousseff’s statist policies helped put Brazil’s economy in the tank. Her task now is to convince U.S. investors the more market-friendly persona she has adopted since re-election is real and resilient. Robust backing for her finance minister would reassure Wall Street.