Dumb and Dumber 1MDB money trail is one to cherish 16 Jun 2017 Cash from the Malaysian fund ended up in a yacht, art, and rights to the film “Dumb and Dumber To”, the DOJ claims. The charges are incredible. But authorities are unlikely to recoup much. And alas, the days of U.S. crusades against global financial crime look numbered.
Bezos may surpass Gates in dollars, but not impact 15 Jun 2017 The Amazon founder could easily become the richest person, overtaking Gates' $89 bln. Volatility and high expectations make his e-commerce fortune fragile, though. Whatever the wealth score, Bezos can't claim philanthropic parity. At least he has started crowd-sourcing ideas.
Viewsroom: We need to talk about Uber 2.0 15 Jun 2017 Attempts to jump-start the ride-hailing app’s toxic culture stalled after board member and TPG founder David Bonderman’s sexist joke at a company meeting about sexism. The UK grapples with Brexit under a hung parliament. And could a Chinese invasion solve the North Korea problem?
Trump ethics waivers fail Delaware smell test 15 Jun 2017 Some White House officials have received permission to work on issues they handled as lobbyists. The exemptions violate earlier swamp-draining steps signed by the CEO-president. In the corporate context Trump prefers, such conflicts of interest also wouldn't stack up in court.
Kroger woes augur deep discounts at U.S. grocers 15 Jun 2017 The supermarket chain is the latest victim of price-cutting, losing nearly $5 bln in value after shaving earnings guidance. Wal-Mart is stepping up efforts to undercut rivals while German discounters Aldi and Lidl are expanding stateside. Consumer gains mean shareholder pain.
U.S. for-profit colleges get presidential clemency 15 Jun 2017 The education secretary chosen by the founder of defunct Trump University is set to rework two Obama administration rules that targeted dodgy degrees. They could be improved, but more likely they'll be weakened. Students may need to be more vigilant and taxpayers could lose out.
U.S. lawmaking umpire’s budget may meet resistance 15 Jun 2017 The Congressional Budget Office, the nonpartisan number-cruncher, wants a 7 pct funding bump. The Trump team doesn't control that directly, but it isn't giving other data agencies extra and it dislikes the CBO. It's crucial, though, to a rational assessment of new legislation.
Wells Fargo drives stagecoach further into mud 15 Jun 2017 The $270 bln lender is being sued for changing bankrupt borrowers’ mortgage terms without consent even as its fake-accounts scandal unfolded. Home loans should've been squeaky clean after earlier missteps, too. The bank now run by Tim Sloan is struggling to get the basics right.
Holding: White House holds trump card in gift suit 15 Jun 2017 Democrats in Congress filed a third case claiming Donald Trump violated the constitutional ban on presents. All the accusers face long odds of proving they were hurt directly or that the lawsuits belong in court. Impeachment remains the better option for the president's critics.
Investors may be new killer species at SeaWorld 14 Jun 2017 They voted against the re-election of the $1.5 bln theme-park group’s chairman in an apparent rebellion over pay. It’s a stunning rebuke in the absence of a proxy fight and with a newly minted Chinese 21 pct stakeholder. Activism doesn’t always require an activist.
Black gold collects more layers of tarnish 14 Jun 2017 U.S. crude prices dropped another 3.7 pct on the same day data showed wind and solar making up 10 pct of America's power generation for the first time. The trends may not be directly related, but they both reflect technology and demand trends that bode ill for fossil fuels.
Bonderman gaffe spreads toxicity past Uber exhaust 14 Jun 2017 The TPG founder’s sexist joke at a meeting about sexism shows how far the ride-hailing app has to go to change its culture. He at least quickly took responsibility and quit the board, unlike CEO Travis Kalanick. But the financier’s poor judgment may worry other firms he advises.
Fed raises balance-sheet nerds’ heart rates 14 Jun 2017 The U.S. central bank hiked rates as expected. It will also soon begin shrinking its $4.5 trln stock of bonds. The process will be gradual, taking a few years to trim the holdings below $3 trln. But when one of the biggest buyers of bonds throttles back, markets may face a test.
Hadas: Free university for all is good policy 14 Jun 2017 The UK Labour party promised to abolish the current tuition-plus-loan system for tertiary schooling. That’s normal in most of Europe. It’s also fair and enriches society, whereas student debt does the opposite. Clever use of taxation might offer an answer.
J.Crew bond revamp is roadmap for asset transfers 14 Jun 2017 The retailer is trying to restructure $567 mln of debt giving some bondholders access to valuable assets that will irk other lenders. To bridge the gap, they’re offering those lenders buyouts at par. It’s a clever way to mend several problems. Other wobbly retailers take notice.
Uber’s journey to good governance jerks to a start 13 Jun 2017 CEO Travis Kalanick will leave temporarily as the ride-hailing firm tries to impose order. An indefinite absence and putting a shrinking group of direct reports in charge are murky first steps. Finding an independent chairman should help, but the board could use a bigger shakeup.
Viking blazes hedge-fund path with capital return 13 Jun 2017 The hedge-fund giant is replacing its CIO and returning $8 bln to investors after a spell of poor performance. Viking hopes to generate stronger returns by working with fewer assets. This could be a teachable moment for an industry struggling to justify its excessive fees.
Altice IPO offers new reason to dislike cable guy 13 Jun 2017 Entrepreneur Patrick Drahi is seeking a $23 bln valuation for his U.S. unit while giving investors almost no voice. With hefty debt and few assets to buy, it’s hard to see Altice achieving its grand ambitions. There are plenty of reasons to be a cord-never, financially speaking.
Exchange Podcast: Tony Ressler 13 Jun 2017 As co-founder and CEO of Ares, Tony Ressler oversees the management of $100 billion. During a recent conversation in Los Angeles, he talked about the bull market under President Trump, his firm's struggling investment in Neiman Marcus and the rising cost of higher education.
Treasury report trumps Trump on Dodd-Frank reforms 13 Jun 2017 Steven Mnuchin’s department is signaling a more modest overhaul of the financial law than the president has suggested. It would weaken the consumer-protection authority and modify, not eliminate, the Volcker Rule. It’s a more realistic approach that still gives relief to banks.