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Tuesday, 28 June 2016

Americas

A woman looks at her phone as she passes by a Lending Club banner on the facade of the the New York Stock Exchange December 11, 2014.

Lending Club financial innovations skipped culture

28 June 2016

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.

A heart surgery operation led by Professor Jan Pirk in Prague, June 28, 2012.

McKesson finds skilled surgeons to revive tech arm

28 June 2016

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.

After Dieselgate, VW faces new big bad

28 June 2016

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.

Maya Jackson, a Lyft driver from Sacramento, holds a Lyft Glowstache in San Francisco, California February 3, 2016.

Lyft mulls trip out of capital destruction

28 June 2016

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.

A sign of a Volkswagen VW car dealer is seen in Bochum, Germany March 16,2016.

America's top cops can still take a bite out of VW

28 June 2016

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.

Federal Reserve Board Chair Janet Yellen in Washington, U.S., June 21, 2016.

Bank stress exams may test investor patience

28 June 2016

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.

A SolarCity vehicle is seen on the road in San Diego, California, U.S. June 22, 2016.

SolarCity governance torched by bid mini-committee

28 June 2016

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.