The cratered online loan marketplace says its founder and ex-CEO inflated loan volumes on top of other failings. Only 18 months after its IPO, the supposed disruptor is retrenching. To move fast and break things is risky in finance – especially so when mixed with self-dealing.
The $40 bln drug distributor is carving out its languishing healthcare IT business and merging it with one owned by LBO firms Blackstone and Hellman & Friedman. Cost cuts and attentive management should help make it more valuable. Only excessive debt might impede a full recovery.
A $15 bln settlement with U.S. regulators all but buries the German carmaker’s emissions fraud. Now for the next crisis: falling sales. Since Britain plunged Europe into uncertainty, markets have priced in a 13 pct drop in 2017 earnings. That calls for zealous cost-cutting.
The $5.5 bln ride-hailing app has hired Frank Quattrone’s Qatalyst – an adviser with a knack for selling tech firms at hefty premiums. With rivals Uber and Didi raising and burning billions in an attempt to gain control of markets, M&A discretion may prove wiser than valor.
The German carmaker will pay a record $15 bln for its emissions scandal. It’s a lot of money but in line with regulatory tallies. But a criminal case is still pending that offers to test the Department of Justice’s pledge to better hold individuals liable for company misconduct.
Results are due this week from the Fed on how 33 financial institutions performed in a simulated bad economic downturn. Countercyclical factors included this year could mean even banks that ace the tests will be required to keep more profit rather than pay out bigger dividends.
The clean-energy company could find only two directors independent enough to assess Tesla’s $2.8 bln takeover offer. And one of them is a venture capitalist whose firm has backed Elon Musk’s companies. This lack of proper board engineering shortchanges SolarCity shareholders.