Antitrust legendarily unpredictable despite Epic 12 Dec 2023 A jury ruled against Google in a case brought by the gaming firm while an emboldened FTC blocked Sanofi from snagging a new drug. Yet Pfizer is pushing ahead with a $43 bln deal. Rainmakers can be comforted that regulators’ front offices aren’t a totally impenetrable barrier.
NCAA gets B for paying jocks; for an A, drop the C 6 Dec 2023 The National Collegiate Athletic Association’s plan to uncap amateur earnings while attending school is a long-overdue change for good. Its blueprint has flaws, however, and keeps control in the hands of a few. A good next step would be to separate sports from higher education.
Purdue mess pits drug victims against due process 5 Dec 2023 The $10 bln settlement ending opioid lawsuits is done and dusted, except for a case being reviewed by the Supreme Court. Justices’ discomfort over bankruptcy protection for the Sackler family has merit. But throwing out a deal means aggrieved parties just have to wait longer.
Legal blow makes Germany and Europe sicker 15 Nov 2023 Berlin’s top court blocked the government’s use of creative accounting for investments. That may jeopardise Chancellor Olaf Scholz’s $65 bln growth fund and mean less money for the energy transition. Europe’s biggest economy may also want more fiscal rigour from its EU peers.
Lina Khan’s spirit haunts T-Mobile deal ghost 10 Nov 2023 Consumers are suing the $170 bln telecom company for its deal with Sprint. Given government watchdogs can’t bust up big tech, it seems ambitious. But recent jury verdicts illustrate rising movements against companies. Plus the hassle creates yet another deal impediment.
Broadcom deal tempts a treacherously tasty trade 6 Nov 2023 The chipmaker’s $82 bln acquisition of VMware hangs by a Chinese thread. This lingering doubt has created a quirky anomaly on whether a small slug of shares winds up being bought for cash or stock, or not at all. There’s 25% upside to grab, but only for the bravest arbitrageurs.
SBF’s guilty verdict will help crypto break free 3 Nov 2023 Sam Bankman-Fried’s crimes worsened a rout that wiped trillions of dollars in value from digital assets. The FTX founder’s conviction suggests that, even in crypto, bad actors will be held to account. That could help rebuild trust in the idea of a trustless financial system.
Microsoft becomes unwitting fiscal honeypot 12 Oct 2023 A $29 bln back-tax bill amounts to 40% of the tech firm’s yearly earnings. It’s also enough to fund a new round of Ukraine aid, two years of tax collection or a decade of substance abuse treatment. Uncle Sam may lose the fight, but when budgets are tight there’s more to play for.
Bankman-Fried circus will be a singular clown show 4 Oct 2023 The FTX founder’s fraud trial bookmarks crypto’s rise and fall. Risk-loving speculators were the most obvious losers, while more everyday investors suffered in previous scandals such as Enron and Countrywide. This time, the spectacle is less likely to lead to new protections.
CFPB opponents gamble with US financial stability 3 Oct 2023 The 12-year-old consumer finance watchdog has amassed powerful enemies, partly because of combative boss Rohit Chopra. But a Supreme Court challenge to its funding threatens other regulators like the Fed too. Making crisis-fighting departments beg Congress for cash is dangerous.
Jeffrey Epstein leaves small mark on Wall Street 27 Sep 2023 JPMorgan will fork out another $75 mln to settle claims over its ex-client, winding down the sordid mess for financiers. The sex offender cost two industry CEOs their jobs, while banks now monitor such reputational risks more closely. The effects are likely to fade soon, however.
Capital Calls: UBS Russia risk 27 Sep 2023 Concise views on global finance: The Swiss bank’s value fell by $3 bln after Bloomberg reported that the US Department of Justice is investigating the recent acquisition of Credit Suisse over possible compliance failures.
Apple may be poisoned by Google antitrust fallout 27 Sep 2023 Founder Steve Jobs once threatened “thermonuclear war” against his rival for copying the iPhone. Now, more than 15% of Apple's operating profit might be coming from fees paid by the search giant. The big risk is that an unfavorable verdict will taint its rich valuation multiple.
Amazon has a poor man’s monopoly 27 Sep 2023 Trustbusters sued the $1.3 trln retailer over how it restricts merchants on its site. But it has lost ground to rivals like Walmart thanks to bad M&A and retail losses. Amazon gets the worst of two worlds: strong enough to worry regulators, vulnerable enough to concern investors.
Long US shutdown is avoidable but seems inevitable 26 Sep 2023 A group of Republicans are holding up approval of a $1.5 trln budget because they want $60 bln in cuts. Fiscal responsibility is fair enough, but they’re being contradictory and unreasonable. Even if Republicans were to reach an agreement today, other issues will get in the way.
Big oil lawsuits are riskier than quitting tobacco 18 Sep 2023 California is suing fossil-fuel companies, alleging tens of billions in climate-related damages. Decades of litigation forced tobacco firms to pay up. The tension is that, while global warming’s ravages imply higher costs, US oil production is crucial amid tightening supply.
Deaths haunt Corporate America via labor strikes 15 Sep 2023 Auto workers, pilots, and truck drivers have had upper hands in labor strikes. That’s despite labor supply healing. One reason may be that men have left the workforce. Opioids and Covid are partly to blame. But it highlights the dangers of demographically concentrated jobs.
Alphabet’s glib but effective defense: Google it 13 Sep 2023 The tech giant dragged Microsoft, Apple and even Yahoo into its fight against US trustbusters. In response to the DOJ painting it as a predator, the $1.7 trln company’s lawyers said to just do a search on its site. The answer gets at the formidable competition it’s up against.
DOJ fights uphill battle; Google a losing one 12 Sep 2023 A trial kicked off that pits the search engine’s $1.7 trln owner against the US Department of Justice. Google gleans data freely given and has beaten other rivals. That makes the government’s case tough. By fighting it, though, the tech firm risks exposing its creepy reach.
Feel-good war on short flights misses the mark 4 Sep 2023 European states like Germany are mulling bans on air travel under a certain distance. Short-haul commercial flights make convenient climate scapegoats. But going after private jets, which can emit 45 times more carbon per passenger, would bring more benefit with less disruption.