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☆ A Trader Says Code Allowed Him to Withdraw Millions From a Crypto Exchange. Prosecutors Say He Crossed a Line.
▼ + stars: | 2023-02-21 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

Federal authorities arrested Avraham Eisenberg in Puerto Rico in December, accusing the 27-year-old trader of manipulating prices on a crypto exchange called Mango Markets and draining more than $100 million from the platform. Mango Markets all but collapsed after Mr. Eisenberg withdrew the money on a single day in October, authorities said. Mr. Eisenberg had defended his actions, saying he did only what Mango’s software code made possible.

☆ SEC Proposes Rule That Could Squeeze Crypto Platforms
▼ + stars: | 2023-02-15 | by ( Paul Kiernan | Justin Baer | ) www.wsj.com time to read: 1 min

Wall Street’s regulator proposed a rule that could make it more difficult for many asset managers to invest customers’ money in cryptocurrencies, as policy makers push to rein in the sector following trading platform FTX’s collapse. The Securities and Exchange Commission voted 4-1 Wednesday on a proposal that would expand the types of assets that investment advisers, such as hedge funds and pension funds, are required to hold using qualified custodians.

Credit Suisse is set to update shareholders on plans for the spinoff later this week. Apollo Global Management is among a group of financial firms in talks to take a stake in Credit Suisse Group AG’s revamped investment bank, people familiar with the matter said. Credit Suisse said last year that it would carve out the advisory part of its investment-banking operation into a new entity under the resurrected CS First Boston brand following a string of scandals. The bank said it would raise outside capital to launch the new entity, which it hopes to list in a separate initial public offering eventually.

A new trading year kicked off just weeks ago. After languishing throughout last year, growth stocks have zoomed higher. Tesla Inc. and Nvidia Corp., for example, have jumped more than 30%. The outlook for bonds is brightening after a historic rout. Even bitcoin has rallied, despite ongoing effects from the collapse of the crypto exchange FTX.

☆ S&P 500 Closes Lower as Investors Digest Earnings
▼ + stars: | 2023-01-26 | by ( Caitlin Mccabe | Justin Baer | ) www.wsj.com time to read: 1 min

U.S. stocks ended mixed Wednesday, as another busy day of earnings gave investors a fresh sense of how companies are coping with an economic slowdown and higher interest rates. The S&P 500 edged down less than a point, ending at 4016.22, as the benchmark index extended its losses into a second day. The Dow Jones Industrial Average rose 9.88 points to 33743.84, finishing less than 0.1% higher after spending most of the day in the red. The Nasdaq Composite dropped 20.91, or 0.2%, to 11313.36.

☆ Fidelity Investments Buys Shoobx to Expand Private-Company Stock-Plan Business
▼ + stars: | 2023-01-10 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

Fidelity administers the stock plans of nearly 700 companies, most of which are publicly traded. Fidelity Investments struck its first takeover in more than seven years, acquiring a stock-plan software company that caters to technology startups and other privately held firms. Fidelity said Tuesday it bought closely held Shoobx Inc., which manages startups’ employee-equity plans and tracks their investors’ holdings from early stages to their initial public offerings. Terms weren’t disclosed.

FTX co-founder Sam Bankman-Fried is planning to consent to extradition to the U.S. to face criminal charges related to the cryptocurrency exchange’s collapse, people familiar with the matter said. Mr. Bankman-Fried has been in custody in the Bahamas since he was arrested on Monday in connection with a slate of U.S. criminal charges, which were unsealed a day later. Federal prosecutors in Manhattan have charged Mr. Bankman-Fried with fraud and money-laundering offenses, alleging he defrauded customers, lenders and investors. They also alleged he violated campaign-finance rules by making illegal political contributions.

☆ Goldman Sachs Plans Thousands of Layoffs, Expects to Eliminate Some Bonuses
▼ + stars: | 2022-12-16 | by ( Annamaria Andriotis | Justin Baer | ) www.wsj.com time to read: 1 min

Amid a slump in technology stocks, Goldman’s investment bankers who cover tech could be hit hard by layoffs, according to people familiar with the matter. Goldman Sachs Group Inc. is planning to lay off several thousand employees, according to people familiar with the matter, another consequence of this year’s deal-making slump. A person familiar with the situation said the bank will be leaner in 2023, but it will still have more employees than it did before the pandemic. Goldman had some 49,000 employees as of September, up from about 38,000 at the end of 2019.

☆ Caroline Ellison Was Alameda’s CEO, But Officials Say Sam Bankman-Fried Ran It
▼ + stars: | 2022-12-14 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

When Sam Bankman-Fried told his side of the story of what happened to FTX, the crypto exchange that went bankrupt on his watch last month, he often pointed the finger elsewhere. His favorite target was Alameda Research, the trading firm where Caroline Ellison was chief executive. This week, the U.S. government pointed back at Mr. Bankman-Fried.

☆ Sam Bankman-Fried’s Parents Were There for FTX’s Rise, and Now Its Fall
▼ + stars: | 2022-12-12 | by ( Justin Baer | Hardika Singh | ) www.wsj.com time to read: 1 min

Sam Bankman-Fried , founder of the collapsed exchange FTX, always stood apart from other cryptocurrency entrepreneurs, and it wasn’t for his baggy shorts or taste in videogames. Both his parents, as Mr. Bankman-Fried would note in meetings with Washington policy makers, are professors at Stanford Law School. Their reputations were a credential to their son as he grew his crypto empire, even to those inclined to see little value in the industry.

Saudi Arabia’s crown prince and a U.S. private-equity firm run by Barclays PLC’s former chief executive are among investors preparing to invest $1 billion or more into Credit Suisse ‘s new investment bank, people familiar with the matter said. Crown Prince Mohammed bin Salman is considering an investment of around $500 million to back the new unit, CS First Boston, and its CEO-designate, Michael Klein , some of the people said. Additional financial backing could come from U.S. investors including veteran banker Bob Diamond ‘s Atlas Merchant Capital, people familiar with that potential investment said. Credit Suisse previously said it had $500 million committed from an additional investor it hasn’t named.

☆ Biotech Company Says Citadel, Other Big Traders Manipulated Its Stock Price
▼ + stars: | 2022-12-01 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

In the modern stock market, high-speed trading firms like Citadel provide stock quotes throughout the day. A biotechnology company accused Citadel Securities LLC, Susquehanna International Group LLP and other Wall Street firms of driving down its stock price through a series of illicit trades. In a lawsuit filed Thursday in Manhattan federal court, Northwest Biotherapeutics Inc. alleged the market makers had repeatedly engaged in “spoofing,” where traders place orders with an intent to fool other investors about a stock’s demand and manipulate the price.

☆ Biotech Company Says Citadel Securities, Other Big Traders Manipulated Its Stock Price
▼ + stars: | 2022-12-01 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

In the modern stock market, high-speed trading firms such as Citadel Securities provide stock quotes throughout the day. A biotechnology company accused Citadel Securities LLC, Susquehanna International Group LLP and other Wall Street firms of driving down its stock price through a series of illicit trading tactics. In a lawsuit filed Thursday in Manhattan federal court, Northwest Biotherapeutics Inc. alleged the market makers had repeatedly engaged in “spoofing,“ where traders place orders with an intent to fool other investors about a stock’s demand and manipulate the price.

☆ How Caroline Ellison Found Herself at the Center of the FTX Crypto Collapse
▼ + stars: | 2022-11-20 | by ( Hannah Miao | Justin Baer | ) www.wsj.com time to read: 1 min

On a video call in early November, employees at Alameda Research dialed in to learn the fate of the trading firm, which was teetering on the brink. It was up to Caroline Ellison to deliver the bad news. Alameda was at the center of Sam Bankman-Fried ‘s collapsing FTX empire. Ms. Ellison, who had just turned 28, was at the center of Alameda. And they were all in crisis.

☆ Bankrupt FTX Fires Three of Sam Bankman-Fried’s Top Deputies
▼ + stars: | 2022-11-19 | by ( Justin Baer | Hannah Miao | ) www.wsj.com time to read: 1 min

Sam Bankman-Fried, shown in September in Washington, resigned as FTX’s CEO on Nov. 11, when the crypto exchange filed for bankruptcy. FTX, the cryptocurrency exchange launched by Sam Bankman-Fried , said it fired three of the founder’s top deputies. Gary Wang, an FTX co-founder and its chief technology officer; FTX engineering director Nishad Singh; and Caroline Ellison, who ran Mr. Bankman-Fried’s trading arm, Alameda Research, were terminated from those roles after FTX tapped John J. Ray to oversee the companies’ bankruptcy, an FTX spokeswoman said late Friday.

☆ Mark Cuban saw his younger self in this 'Shark Tank' founder—and offered him a $1 million deal
▼ + stars: | 2022-11-14 | by ( Megan Sauer | ) www.cnbc.com time to read: +3 min

On Friday's episode of ABC's "Shark Tank," Cuban offered a big deal to Collars & Co., a Bethesda, Maryland-based menswear brand that makes casual polos with dress collars. Cuban and guest Shark Peter Jones teamed up to offer Baer a $300,000 investment, plus a $700,000 line of credit, for 10% of Collars & Co. Cuban asked Baer how much money he'd actually need to reach his goals. The other investors withdrew from consideration, leaving only Cuban and Jones' offer on the table. Once Baer left, Jones and Cuban wondered how the trio would work together over time — but Baer seemed satisfied with the negotiations and deal.

Cryptocurrency exchange FTX, just months removed from looking like a shining survivor in a struggling industry, succumbed Tuesday to a sudden liquidity crunch of its own and was taken over by rival Binance. The deal signals a power shift in the crypto world, which has been decimated by rising interest rates and investors’ retreat from risk. The pact marks a victory for Binance founder Changpeng Zhao and a humbling comedown for Sam Bankman-Fried, the founder of FTX, which had been growing in size and recognition before a clash between the two men set off a series of events that shook investor confidence in his firm.

A massive selloff in bonds. A plunge in tech stocks. The implosion of cryptocurrencies. The highest inflation in four decades. Amid a brutal and uncertain climate, we asked six heavyweights in the world of finance to share their thoughts on the state of the markets, how they have handled this year’s carnage and what they anticipate in the future.

Michael Klein in 2010, after his departure from Citigroup. Michael Klein has been a matchmaker to some of the world’s most powerful companies and investors since leaving Citigroup Inc. more than a decade ago. Now, he has found his own match—as soon-to-be chief executive of Credit Suisse Group AG’s newly incarnated investment banking unit, CS First Boston—in a third act that enables him to become a major Wall Street CEO.

The Swiss bank is selling billions of dollars worth of assets to help pay for a strategy change. Credit Suisse Group AG is racing to finalize the sale of a key unit, days before the beleaguered Swiss bank is set to give details of a revamp of its big Wall Street division. The Swiss bank is selling billions of dollars worth of assets to help pay for a strategy change after a series of financial losses and scandals. It may still need additional capital to add comfort for investors that it can carry out plans to retreat from some businesses and countries that are no longer deemed core, analysts say.

☆ Goldman Shuffle Aims to Reduce Reliance on M&A
▼ + stars: | 2022-10-18 | by ( Charley Grant | Justin Baer | ) www.wsj.com time to read: 1 min

Goldman Sachs Group is so dependent on its investment bank that a slump in deal making sent third-quarter profit down 43%--by far the steepest slide among its big-bank peers. A broad restructuring announced Tuesday is meant to change that: Goldman will fold investment banking and trading into one unit and merge asset and wealth management into another—giving it a higher profile at the same time.

☆ Goldman Plans Sweeping Reorganization, Combining Investment Banking and Trading
▼ + stars: | 2022-10-17 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

Goldman has been beefing up the businesses that command higher valuations on Wall Street. Goldman Sachs Group plans to fold its biggest businesses into three divisions, undertaking one of the biggest reshuffles in the Wall Street firm’s history. Goldman will combine its flagship investment-banking and trading businesses into one unit, while merging asset and wealth management into another, people familiar with the matter said. Marcus, Goldman’s consumer-banking arm, will be part of the asset- and wealth-management unit, the people said.

☆ Goldman Plans Sweeping Reorganization, Combining Investment-Banking and Trading
▼ + stars: | 2022-10-17 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

Goldman, which has offices in New York, is scheduled to report third-quarter earnings this week. Goldman Sachs Group plans to fold its biggest businesses into three divisions, undertaking one of the biggest reshuffles in the Wall Street firm’s history. Goldman will combine its flagship investment-banking and trading businesses into one unit, while merging asset and wealth management into another, people familiar with the matter said. Marcus, Goldman’s consumer-banking arm, will be part of the asset- and wealth-management unit, the people said.

☆ U.S. Stocks Jump, With Dow Up About 550 Points
▼ + stars: | 2022-10-17 | by ( Joe Wallace | Justin Baer | ) www.wsj.com time to read: 1 min

U.S. stocks surged Monday, another day of outsize moves on Wall Street, as investors tried to make sense of an unsettled economic outlook and geared up for another batch of corporate earnings. The S&P 500 rose 94.88 points, or 2.6%, to 3677.95. The index slid 2.4% Friday after a 2.6% gain Thursday. The Dow Jones Industrial Average added 550.99 points, or 1.9%, to 30185.82, while the Nasdaq Composite jumped 354.41 points, or 3.4%, to 10675.80.

☆ Crypto Broker NYDIG Lays Off One-Third of Staff to Narrow Focus
▼ + stars: | 2022-10-13 | by ( Vicky Ge Huang | Justin Baer | ) www.wsj.com time to read: 1 min

Digital currencies including bitcoin and the cluster of companies built to serve crypto markets have experienced a reversal. NYDIG, the bitcoin trading and banking firm, laid off about a third of its workforce last month, people familiar with the matter said. Company executives informed employees affected by the job cuts, which numbered around 110, on Sept. 22, the people said. Employees were told the firm was seeking to trim expenses and narrow its focus to more-promising businesses, the people said.

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