Alternative lenders brace for regulatory onslaught 1 Apr 2016 Avant is the first major fintech player to put a former watchdog on its board – ex-FDIC Chair Sheila Bair. Rivals have tapped Wall Street to bolster business. But the mix of new lenders’ success, high charges, rising rates and defaults is catching the eye of financial overseers.
Review: A sobering twist on high finance 1 Apr 2016 The bloody world of drug cartels becomes a fascinating business case study in journalist Tom Wainwright’s “Narconomics.” Supply-chain efficiency, R&D spending and even HR headaches factor into the analytical black joke. It’s also a lucid and persuasive argument for legalization.
Anbang risks a Year of the Stalking Horse 1 Apr 2016 The Beijing insurer has inked smaller deals, but it just abandoned its $14 bln offer for Starwood, citing “market conditions.” Anbang’s emergence nevertheless helped the U.S. hotelier wrest sweeter terms from Marriott. It’s a modern hazard for buyers up against Chinese rivals.
Fluffy watchdog fintech pitch exposes bigger issue 31 Mar 2016 The OCC’s foray into overseeing tech’s role in finance, the first by a U.S. regulator, is full of generalities, not specifics. That’s because the agency doesn’t police the nonbanks driving many of the changes. Resolving which watchdog is in charge would foster clearer rules.
New M&A marriage vows raise cost of fooling around 31 Mar 2016 Markit must ensure the CEO of merger partner IHS gets the top job or risk breaking the combined company’s bylaws. AbbVie gave the boss of Pharmacyclics similarly ironclad rights. A rise in stock deals is forging stronger prenuptial agreements for so-called social issues.
Bickering ad men promote more women than tech does 31 Mar 2016 A discrimination lawsuit at a WPP unit has led boss Martin Sorrell to trade barbs with Publicis CEO Maurice Levy over women’s advancement. Both firms, though, do better on gender equality at senior levels than Facebook or Google. That’s a rare edge over their new rivals.
Google CEO nestles inside fortress of entitlement 31 Mar 2016 Sundar Pichai was given another $200 mln of equity on top of $100 mln last year. He’s not a founder and Google’s search business is a well-oiled near-monopoly. Shielded by a three-share structure, Alphabet bosses Larry Page and Sergey Brin are showing their imperialist ways.
GE Capital shows systemic tagging is working 31 Mar 2016 GE’s finance unit wants the U.S. to end its too-big-to-fail designation now that it has slashed size and risk. MetLife, which a court just freed from its label, had initiated a breakup. Even big banks have trimmed a bit. SIFI-dom’s burdens may be achieving what lawmakers wanted.
Guest view: Time to harness power of green trade 30 Mar 2016 Progress is being made on financing cleaner technologies, but many nations charge high tariffs on water purifiers and such. Upcoming WTO talks could help push to make environmentally friendly products more affordable, argues former U.S. Treasury Secretary Henry Paulson.
Big Data cuts into red tape of official statistics 30 Mar 2016 Government figures for inflation and the like benefit from consistency, but they come late and sometimes adulterated. Using people wielding mobile devices, tech firms can add bottom-up figures, speed and global comparisons. A World Bank test may help win over wary civil servants.
Students deserve debt relief but truth comes first 30 Mar 2016 More Corinthian Colleges alums may see their federal loans forgiven after the defunct U.S. university lied about job prospects. Meanwhile, a law school beat fraud claims over dodgy employment stats. Strict disclosure rules would be a better way to teach fibbing educators lessons.
MetLife SIFI heroics give Uncle Sam a headache 30 Mar 2016 The insurer has won its battle to overturn its designation as a systemically important financial firm. CEO Steve Kandarian is now the toast of Wall Street, even if few can emulate him. It’s a big defeat for regulator FSOC, though, which is also facing attacks on other fronts.
Valeant’s best shot depends on lenders’ mercy 30 Mar 2016 The drugmaker wants to extend its deadline for filing financial statements and ease interest-coverage covenants. The latter request would insure against a cash-flow crisis but it’s still alarming. Creditors will demand a pound of flesh and control of Valeant’s destiny in return.
U.S. market watchdog’s small moves may be big help 30 Mar 2016 Clearer rules for trading halts and “dark pool” exchanges are among the Securities and Exchange Commission’s modest reforms. They’re far from the broad changes mulled after charges of rigged markets. But with President Obama’s time short, they’re worthy preludes to larger steps.
Banks on Brexit: deeds count more than words 30 Mar 2016 Bank of America Merrill Lynch’s B-word ban is the latest sign global financial firms are tying themselves in knots over the UK’s European Union referendum. If big banks want to keep the union, silence is helpful. But a better plan is to hire more people outside London.
Even Wall Street’s M&A pros can get scammed 29 Mar 2016 A partner brought into Paul Taubman’s advisory firm in last year’s Blackstone deal has been accused of a $25 mln fraud. Andrew Caspersen’s privileged background makes the charges all the more jarring. It’s a reminder that determined wrongdoers are hellaciously difficult to stop.
Apple could take a bigger bite out of Washington 29 Mar 2016 The iPhone maker’s lobbying efforts pale next to rivals like Google and Facebook. Apple’s more modest policy ambitions in some ways justify the thrift. The latest encryption battle, however, suggests the $580 bln tech giant might benefit from investing more in the U.S. capital.
FBI schools Silicon Valley on lobbying D.C. 29 Mar 2016 U.S. authorities have dropped a legal fight against Apple after gaining access to a San Bernardino gunman’s iPhone without its help. They have also managed to strongarm both the Obama administration and lawmakers into taking their side. Tech giants can only wish for such suasion.
Starwood can easily answer the $4.64 question 28 Mar 2016 That’s how much more per share a new cash bid from China’s Anbang is worth over an agreed deal with Marriott. The $14 bln offer is 6 pct sweeter but also comes with financing and regulatory uncertainties. Given the heavy interest from rival hoteliers, Starwood can afford the risk.
Dell’s Perot sale augurs poorly for EMC deal 28 Mar 2016 The computer company is offloading its consulting arm to Japan’s NTT Data for $3 bln, a quarter less than it paid in 2009. Proceeds from what had been Dell’s biggest acquisition are to help it buy EMC for some $60 bln. The outcome, however, is hardly a good ad for its M&A nous.