U.S. watchdogs put crypto-currencies on long leash 6 Feb 2018 Regulators warned Congress that bitcoin and the like test the limit of current law. But for now they seem willing to let the volatile $370 bln market develop rapidly as long as they can keep a handle on fraud. A measured approach makes more sense than Asia’s heavy-handedness.
Fed crystallizes Wells Fargo’s Tim Sloan discount 5 Feb 2018 Investors wiped $26 bln off the U.S. lender’s value after Janet Yellen censured it on her last day. That worsens the weak stock-price record since Sloan became CEO. Wells’ top line is growing more slowly than rivals’, too. A new boss could be the cultural change the bank needs.
CFPB scores too low on Equifax transparency 5 Feb 2018 The consumer-finance watchdog is dialing back its probe of the $15 bln U.S. credit-scoring firm’s massive data breach last year. Trump’s CFPB head says the regulator has gone too far in the past. Perhaps – but if protecting vital data isn’t its remit, he needs to explain what is.
Yellen swan song could presage Wells CEO’s 2 Feb 2018 The Fed chief used her last day in office to slap a restraining order on the $2 trln U.S. bank. It’s mostly a symbol, and a late one: boss Tim Sloan has already started to clean up the company's act. But the Fed action could persuade Wells' new chair that it’s time for a change of leader.
Viewsroom: Jamie Dimon risks ruining a good run 1 Feb 2018 JPMorgan’s chairman and CEO intends to lead the bank until around 2023. Dimon has built a strong and successful company over the past 12 years. But the longer he stays, the harder it becomes to leave on an unambiguous high. Plus: Asian governments tackle bitcoin.
China’s IPO cleanup makes encouraging debut 1 Feb 2018 Beijing regulators just rejected six new-listing applications in a single day, including one from Hong Kong-traded psychiatric hospital chain Wenzhou Kangning. Enforcing tougher standards could lead to broader reforms. The risk is empowering entrenched bureaucrats even more.
MetLife pension gaffe leaves CEO on thin ice 30 Jan 2018 Steve Kandarian’s big coup was getting the $725 bln insurer knocked off the list of systemic institutions. But MetLife’s failure to pay benefits to 30,000 retirees overshadows that achievement. After poor returns and a disappointing spinoff, it looks like his time is up.
Chinese tech is missing a download from investors 30 Jan 2018 Baidu, JD and other U.S.-listed firms routinely skip annual general meetings, taking advantage of a lenient setup for companies legally based in the Caymans. Depriving shareholders of this standard way to raise concerns with bosses and vote on directors is a serious red flag.
MbS gains either way from Saudi anti-graft endgame 29 Jan 2018 Prince Alwaleed is free after months of detention. If the billionaire and fellow freed royals have paid up to leave the Ritz-Carlton/jail, it will help Crown Prince Mohammed bin Salman repair his Kingdom’s finances. Even if he has paid nothing, the power play has served a purpose.
Boeing needs Embraer deal to fly after tariff crash 26 Jan 2018 A U.S. trade agency surprisingly rejected calls by the aerospace giant and the Trump administration to slap duties on Bombardier’s C Series jet. It shifts the regional-airplane dogfight back to the marketplace, upping the pressure on Boeing to seal a tricky merger with Embraer.
Super-voting stock returns a split-ticket 26 Jan 2018 Senior officials from Credit Suisse, BlackRock, Bain Capital and PCCW Media squared off about Hong Kong moving to open the door to dual-class share structures. It'll invite more listings, they told a Breakingviews Predictions event, but the implications are many and varied.
The Exchange: Dual-class dueling 25 Jan 2018 Hong Kong’s plan to welcome super-voting stock weakens corporate governance, but its appeal to Chinese tech companies also may be exaggerated. Officials from Credit Suisse, BlackRock, PCCW Media and Bain Capital debated the upcoming changes at a recent Breakingviews event.
Weed giants share a deserved peace pipe 24 Jan 2018 Canada’s Aurora and rival CanniMed have agreed a friendly merger after months of acrimony. CanniMed’s shareholders only get a small stake in the $6.2 bln combination, but a big uplift in value. The world’s biggest listed weedmaker is now well positioned for regulatory changes.
Hadas: Carillion and the danger of low prices 24 Jan 2018 Debt-heavy UK contractor Carillion collapsed because it wasn’t charging enough. Uber can keep distorting taxi markets with loss-making fares until its backers lose hope. And Amazon’s cross-division support unfairly harms competitors. Cheap prices can cause expensive trouble.
EU makes Qualcomm bid more attractive, less likely 24 Jan 2018 Regulators fined the company $1.2 bln for paying Apple not to buy chips from its rivals. Such levies reduce Qualcomm’s potential profitability, and make a $105 bln bid from rival Broadcom more alluring. Yet it suggests trustbusters may look askance at the combined firm’s power.
Perfect storm blows ill winds across Chinese tech 24 Jan 2018 Hubris, margin loans and starry-eyed investors have led to a cash crunch at $9 bln Leshi. The video-streaming and smart-TV arm of embattled LeEco is now chasing its founder, "China's Steve Jobs," for money he owes it. Bad behaviours that converged here will turn up elsewhere too.
Murdoch’s Sky bid will ride out regulatory storm 23 Jan 2018 The UK competition authority said Fox’s offer for the broadcaster would give Chairman Rupert Murdoch excessive media clout. It may yet call for the deal to be blocked. But Disney’s bid for Fox alters the dynamics. Ring-fencing Sky News could allow the media mogul to get his way.
Four steps to rehabilitating Barclays 23 Jan 2018 The UK bank has shed over a tenth of its market value in a year despite cutting costs and increasing capital. To close the discount, boss Jes Staley needs to rev up a misfiring investment bank, boost payouts to investors, resolve U.S. litigation and survive a UK regulatory probe.
South Korea’s bitcoin-trading tweak is encouraging 23 Jan 2018 A sensible curb on anonymous accounts will limit criminal activity, but hardliners are still calling for a full ban on exchanges. That could backfire by pushing traders to use riskier venues instead. Japanese-style market regulation would be a better way to protect investors.
Ping An’s Big Health plan risks excess success 23 Jan 2018 A $9 bln unit of the Chinese insurer that analyses patient data has lured backers like SoftBank, Reuters reports. The digital upgrade of China’s clunky medical system is a lucrative opportunity for private firms. Data security is a risk; getting too big, too quickly may be worse.