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☆ Who’s Buying Whom in the PacWest Merger? Why It Matters
▼ + stars: | 2023-07-26 | by ( ) www.wsj.com time to read: 1 min

Who’s Buying Whom in the PacWest Merger? Why It MattersPacWest and Banc of California are structuring their deal as a reverse merger. (Morgan Lieberman/Bloomberg News)However the tie-up between PacWest and Banc of California turns out, it’s already a marvel of financial engineering. The two banks are structuring their deal, announced late Tuesday, as a reverse merger. That means PacWest shareholders will receive Banc of California stock when the deal closes—making Banc of California the so-called legal acquirer.

Persons: Morgan Lieberman, it’s Organizations: Bloomberg Locations: Banc, California, PacWest

☆ Thames Water: Why Britain's water industry is struggling with sewage spills, huge leaks and crushing debts
▼ + stars: | 2023-07-08 | by ( Hanna Ziady | ) edition.cnn.com time to read: +8 min

The UK water sector is “clearly in a state of multiple crises,” said Dieter Helm, a professor of economic policy at the University of Oxford. Thames Water in troubleThe industry’s long-running problems have been thrust into the spotlight by a looming cash crunch at Thames Water, which serves 15 million people in London and the southeast of England. An aerial view of a Thames Water sewage treatment works in west London. A screen displays real-time notifications of sewage leaks into waterways in the region controlled by Thames Water in January 2023. Will Thames Water be nationalized?

Persons: ”, Dieter Helm, “, ” Helm, Ofwat, Abu Dhabi, David Black, Ben Stansall, Iain Coucher, they’ve, ” Black, Margaret Thatcher’s, David Hall, Leon Neal, ” Hall, Sarah Bentley “, Maureen McLean, Helm Organizations: London CNN —, University of Oxford, CNN, Thames, Getty, Yorkshire Water, Margaret Thatcher’s Conservative, Public Services International Research Unit, University of Greenwich, Thames Water, Ontario, BBC Locations: England, Wales, London, China, Abu, AFP, Yorkshire, Windsor, UK

☆ Wall Street is finding the silver lining on inflation, but how long will the 'good' times last?
▼ + stars: | 2023-06-15 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

But on Wall Street, a crisis is just a bit of financial engineering away from becoming an opportunity to make money. That's where inflation traders come in. The strategy of betting on the swings in consumer prices has exploded in recent years, with revenues from inflation trading going from $700 million in 2019 to $3.9 billion in 2022. And while inflation trading has the potential to generate some big returns, making your money back on hires like these might be a tall task if inflation has a short shelf life. More on where the top players in inflation trading are landing amid a heated war for talent.

Persons: Dan DeFrancesco, we've, Goldman Sachs, I've, Malte Mueller, Insider's Kaja Whitehouse, Kaja, Ben Stiller, Owen Wilson, Elon Musk, Goldman, Citadel's Ken Griffin, Dara Khosrowshahi, Jeffrey Cane, Nathan Rennolds Organizations: Getty, Labor Statistics, Federal, Paramount, BlackRock, Tech, LinkedIn Locations: BlackRock, China, New York, London

☆ Who is Hafize Gaye Erkan, Turkey's first female central bank chief?
▼ + stars: | 2023-06-09 | by ( Karin Strohecker | ) www.reuters.com time to read: +2 min

LONDON, June 9 (Reuters) - Turkey's new central bank governor Hafize Gaye Erkan faces the tough task of alleviating a bruising cost-of-living crisis while hoping to restore investor confidence at home and abroad after years of unorthodox policymaking. Appointed on Friday, the 43-year old is the first woman at the helm of the country's central bank, taking over from Sahap Kavcioglu, who spearheaded President Tayyip Erdogan's rate-cutting drive against a backdrop of soaring inflation. Her new role makes her one of only around a dozen women currently serving as central bank governors around the world, including the likes of ECB President Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina and Serbia's Jorgovanka Tabakovic. Having spent all of her professional life outside Turkey, Erkan has no formal central banking experience, making her leanings for monetary policy unclear. Kathryn Wylde, president and CEO of Partnership for New York City, a nonprofit organization where Erkan once served as a board director, says Erkan was seen as "tough, smart, and effective."

Persons: Hafize Gaye Erkan, Sahap Kavcioglu, Tayyip Erdogan's, Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina, Erkan, Goldman Sachs, Mark Carney, Mario Draghi, William Dudley, Goldman, Marsh McLennan, Kathryn Wylde, Wylde, Karin Strohecker, Jonathan Spicer, Hugh Lawson Organizations: Russian Central Bank Governor, Bogazici University, Harvard Business School's, Management, Research, Financial Engineering, Princeton University, Bank of Canada, Bank of England, New York Fed, First Republic Bank, Banking, Finance, New, Thomson Locations: Sahap, Istanbul, Turkey, New York City

The central bank's first female governor, Erkan is also its fifth chief in four years, underlining the challenge she may face delivering a lasting policy turnaround after Erdogan has all but stamped out the bank's independence in recent years. Analysts now expect Turkey's central bank to hike interest rates to between 20% and 25% from 8.5% as soon as this month. ORTHODOX FINANCE MINISTERErdogan, a self-proclaimed "enemy" of interest rates, has pressed the central bank to deliver stimulus in recent years and has been quick to replace its governor. The central bank slashed its policy rate to 8.5% from 19% in 2021, leaving real rates deeply negative and the lira largely managed by dozens of regulations covering credit and foreign exchange. But the last central bank governor to raise rates, Naci Agbal, was fired in 2021 after less than five months on the job.

Persons: Tayyip Erdogan, Hafize Gaye Erkan, Goldman Sachs, Erdogan's, Erdogan, Kavcioglu, Selva Demiralp, Mehmet Simsek, Simsek, Erkan, Naci Agbal, Marsh, Kathryn Wylde, Wylde, Ali Kucukgocment, Jonathan Spicer, Daren Butler, Cynthia Osterman, Hugh Lawson Organizations: Lira, First Republic Bank, Official Gazette, Koc University, U.S . Federal Reserve, Princeton University, First, JPMorgan, Analysts, FINANCE, Greystone, Partnership, New, Thomson Locations: ISTANBUL, United States, unorthodoxy, Erkan, U.S, New York City

☆ First Republic's former co-CEO could be Turkey's next central bank chief
▼ + stars: | 2023-06-06 | by ( Jeffrey Cane | ) www.businessinsider.com time to read: +3 min

A former co-CEO of First Republic is said to be in line to be Turkey's next central bank chief. Turkey's central bank is expected to return to more orthodox policies. That's not stopping the Turkish government, which is considering Hafize Gaye Erkan, a former co-CEO of First Republic, to be the next governor of its central bank, according to reports. The bank would ultimately name the chief financial officer, Michael Roffler, to be CEO. Turkey's central bank has been a punching bag for Erdogan, who has forced out its leaders and pressured the bank to slash interest rates even in the face of surging inflation.

Persons: Hafize Gaye Erkan, Goldman Sachs, Recip Tayyip Erdogan, Erkan, Jim Herbert, Herbert, Graystone, Michael Roffler, Erdogan, Mehmet Şimşek Organizations: First, Morning, Princeton, JPMorgan Chase, Erkan, Reuters, First Republic, Financial Times, Bogazici University Locations: First Republic, Turkey's, Turkey, Republic

☆ Erdogan considering Erkan as Turkey cenbank chief, sources say
▼ + stars: | 2023-06-05 | by ( Orhan Coskun | ) www.reuters.com time to read: +4 min

Erkan met with Mehmet Simsek, Turkey's newly-appointed treasury and finance minister, in Ankara on Monday, one of the sources said. The two sources told Reuters she is set to meet Erdogan soon to discuss the possible role. Turkey's policy rate was cut to 8.5% from 19% in 2021, setting off a historic currency crash in late 2021. Erkan would be the country's fifth central bank chief in four years. The central bank has been the linchpin of Erdogan's programme of monetary stimulus and targeted credit to boost economic growth, exports and investments.

Persons: Erdogan, Tayyip Erdogan, Hafize Gaye Erkan, Erkan, Mehmet Simsek, Sahap Kavcioglu, Goldman Sachs, Simsek, Kathryn Wylde, Wylde, Naci Agbal, Marsh, Jonathan Spicer, Daren Butler, Angus MacSwan, Emelia Organizations: Reuters, First Republic Bank, Treasury, Ivy League, Princeton, New, First, JPMorgan, Greystone, Thomson Locations: Turkey, ANKARA, United States, Ankara, New York City, U.S

☆ Elliott proposes adding new directors to Goodyear’s board. How a margin-boosting plan might unfold
▼ + stars: | 2023-05-20 | by ( Kenneth Squire | ) www.cnbc.com time to read: +8 min

To implement its plan, Elliott is recommending adding five new directors to the board. Six members of the 12-person board (including CEO Richard Kramer) have served on the board for 11+ years. This, along with the underperformance and tenure of many directors makes for a compelling case for serious board reconstitution. Based on its history, we would expect this to be a diversified and qualified group of industry and professional directors with one Elliott executive. Elliott right now is working amicably with management and recommending potential directors as opposed to threatening to nominate their own slate of directors.

☆ Private equity is being squeezed from all sides
▼ + stars: | 2023-05-12 | by ( Edward Chancellor | ) www.reuters.com time to read: +8 min

But this time around there’s a lot more private equity money chasing a limited number of opportunities. So private equity funds could face the prospect of a prolonged period of higher borrowing costs, lower valuations, and depressed investment returns. The birth of private equity coincided with the Reagan administration’s policy of relaxing regulations and tax cuts. Recent high profile corporate bankruptcies owned by private equity include car-rental firm Hertz and retailer Toys R Us. The private equity industry could soon find itself caught in a pincer, between tighter financing on the one hand and tighter regulation on the other.

☆ Here’s what the SEC will require under its strict new stock buyback disclosure rules
▼ + stars: | 2023-05-05 | by ( Christina Wilkie | In | ) www.cnbc.com time to read: +5 min

The new disclosure rules will begin to apply when U.S. corporations report earnings for the fourth quarter of 2023, and to foreign issuers on a slightly longer timeline. The new rules "will increase the transparency and integrity" of corporate stock repurchasing overall, and allow investors "to better assess issuer buyback programs," SEC Chairman Gary Gensler said in a statement about the updated disclosures. The changes approved Wednesday represent a softening of the SEC's initial proposed disclosure rules, which would have required public companies to report trades by corporate insiders on a daily basis. Public interest groups, many of which have become increasingly critical of widespread corporate buybacks, applauded the new rules. On Capitol Hill, bipartisan support for stricter buyback disclosure rules has been apparent since the start of the SEC's rulemaking process, more than a year ago.

☆ Warren Buffett's former deputy slams crypto and meme stocks, heralds AI's 'iPhone moment,' and flags big risks to commercial real estate. Here are the 6 best quotes from her annual letter.
▼ + stars: | 2023-04-20 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett's ex-deputy blasts meme stocks and cryptos and welcomes a more sensible market. Tracy Britt Cool advises investors to be careful and touts ChatGPT as groundbreaking. Here are the six best quotes from Britt Cool and her Kanbrick cofounder in their annual letter. Tracy Britt Cool and her Kanbrick cofounder, Brian Humphrey, also jabbed at meme stocks and cryptocurrencies, and hailed artificial intelligence as a game-changing technology. (Britt Cool and Humphrey singled out commercial real estate, heavily indebted companies with floating-rate loans, and the mushrooming federal debt as areas of concern.)"

☆ Carl Icahn warned against trading stocks, railed against bad bosses, and revealed what drives him in a recent documentary. Here are his 12 best quotes.
▼ + stars: | 2023-03-11 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +5 min

Here are his 12 best quotes from a recent documentary titled "Icahn: The Restless Billionaire." The billionaire investor and Icahn Enterprises chairman also defended activist investing, and railed against bad bosses and overpaid executives, in "Icahn: The Restless Billionaire." Moreover, he revealed that he cares more about spotting golden opportunities than making money, and bemoaned America's enormous wealth gap. You're going against the trend. He just kept going and going until they killed him.

☆ Analysis: Bed Bath's novel deal is no universal dodge-bankruptcy card
▼ + stars: | 2023-02-17 | by ( Shankar Ramakrishnan | ) www.reuters.com time to read: +5 min

It's unclear whether Bed Bath can capitalize on the breathing room to turn around its business, which has been battered by competition from other online and brick-and-mortar retailers. A spokesperson for Hudson's Bay declined to comment, while Bed Bath & Beyond did not respond to requests for comment. To secure the Hudson's Bay investment, Bed Bath offered a deal that guarantees the hedge fund a lucrative return in most circumstances. It is not clear how much of the stock Hudson's Bay has converted and sold since it inked the deal with Bed Bath on Feb. 6. The deal is very dilutive for other Bed Bath investors, who will end up owning 80% less if the company survives.

☆ Armada Hoffler Plans Private Bond Sales After Securing First Credit Rating
▼ + stars: | 2023-02-07 | by ( Mark Maurer | ) www.wsj.com time to read: +4 min

Real-estate investment trust Armada Hoffler Properties Inc. plans to raise financing through a series of private placements after securing its first credit rating, a move to wean itself off variable-rate debt as interest rates continue to climb. Armada Hoffler, which invests in office, retail and multifamily properties, on Tuesday said it obtained a BBB rating from ratings firm DBRS Morningstar. Armada Hoffler will likely always have some variable debt, which it needs to take out construction loans, he said. Armada Hoffler is developing a new headquarters for asset manager T. Rowe Price Group Inc. in Baltimore, in partnership with real-estate developer Beatty Development Group LLP. In addition to acquiring properties, Armada Hoffler has development, construction and asset-management business lines.

☆ John Malone prepares for a victory lap
▼ + stars: | 2023-02-01 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +7 min

Now the cable cowboy’s Liberty Media (FWONA.O) empire is trotting out its trademark financial razzle-dazzle to try and wring additional value out of its assets. Malone, Liberty Media’s chairman, is as renowned for his dizzying array of specialized equity issues, spinoffs and splits as he is for the telecom and entertainment companies that have been subjected to the intricate machinations. It excludes broadcaster Discovery, spun off from Liberty Media in 2005, and international broadband provider Liberty Global (LBTYA.O), hived off a year earlier. A more logical starting point would be 2001, when Malone carved Liberty Media out of telecom giant AT&T (T.N). Likewise, Liberty Media’s accompanying shakeup of its tracking stocks stands to further spotlight the value of Formula One.

☆ Euro-banks have done their time in valuation jail
▼ + stars: | 2023-01-26 | by ( Liam Proud | ) www.reuters.com time to read: +7 min

Major euro zone and UK banks are trading at a 40% discount to the region’s wider benchmark index, using price to forward earnings multiples tracked by Refinitiv. The subsequent euro zone crisis in 2012 prompted a wave of bad debt that weighed down earnings. More recently, though, euro zone lenders have been facing up to their past sins, and offloading non-performing loans. There’s no evidence of a bank lending splurge, despite years of rock-bottom interest rates. Between November 2012 and November 2022, euro zone banks’ total lending to households and companies grew at an annual clip of under 2%, a fraction of its pre-2008 pace.

☆ The ultimate insider's guide to the dramatic downfall of Sam Bankman-Fried, Caroline Ellison, and FTX
▼ + stars: | 2023-01-01 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +11 min

Sam Bankman-Fried is facing criminal charges and is expected to enter a plea on Jan. 3. Read Insider's coverage of Bankman-Fried:FTX founder Sam Bankman-Fried gets by on 4 hours' sleep and multitasks on 6 screens. Now hit with 7 criminal charges, Ellison has pleaded guilty and expressed contrition before the New York federal court presiding over the criminal cases involving Bankman-Fried. Sam Bankman-Fried is in jail, but legal watchers are wondering: Where's ex-girlfriend Caroline Ellison? Sam Bankman-Fried hit with 8 criminal charges, including fraud and conspiracy for allegedly 'misappropriating' FTX customer fundsThe SEC has charged Sam Bankman-Fried and accused him of 'orchestrating a massive, years-long fraud'The criminal charges against Sam Bankman-Fried carry big penalties and jail time if proven, legal experts sayRead the CFTC complaint against FTX's Sam Bankman-Fried and his associates Caroline Ellison and Gary WangThe charges against Caroline Ellison, SBF, and FTX cofounder Gary Wang — in 60 seconds

☆ Wells Fargo sees Disney rallying nearly 50% next year if Iger makes this big move
▼ + stars: | 2022-12-20 | by ( Michelle Fox | ) www.cnbc.com time to read: +1 min

Spinning off ESPN and ABC from Disney is the best move that CEO Bob Iger can make for the entertainment giant and its stock, according to Wells Fargo. The bank is predicting the split will likely come in late 2023, after Disney implements cost-cutting and balance-sheet initiatives. "Recall that Iger built DIS into what it is today: a franchise [intellectual property] leader with global scale. ESPN, traditionally the cash cow, is neither owned-IP nor global the way the rest of DIS is," he wrote. We believe that there is very little reason for DIS and ESPN to remain together given the evolution of media consumption."

☆ Don't expect a wave of short sales and foreclosures during this housing downturn — homeowners have too much equity
▼ + stars: | 2022-12-14 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Today's market has tighter lending standards, more assistance programs, and historic levels of homeowner equity compared to downturns of the past. "Historically, normal foreclosure activity means about a single percent of loans are in foreclosure," he told Insider. These initiatives paired with high levels of home equity — roughly $29 trillion as of the second-quarter of the year, according to the Federal Reserve — are likely to prevent an upcoming wave of short sales and foreclosures, Sharga suggests. The spike in foreclosure activity between 2021 and 2022 stems from the expiration of temporary financial safety nets enacted through the CARES Act. But even with this prospect, Sharga suggests that a substantial uptick in foreclosures or short sales is unlikely as many recent homebuyers have positive equity in their homes.

Nov 2 (Reuters) - CVS Health Corp (CVS.N) on Wednesday forecast a 2023 profit below Wall Street estimates and said it hoped to mitigate the hit from a performance rating decline for its most popular Medicare plan by encouraging members to shift to other plans. read more CVS took a pre-tax charge of $5.2 billion in the third quarter related to the settlement. The settlement price, which was below investor expectations, according to Evercore ISI analyst Elizabeth Anderson, and other measures announced by the company helped lift CVS Health shares nearly 5%. In its insurance business, CVS said it is trying to move members out of Aetna's National PPO plan, which currently accounts for 59% of its Medicare Advantage plan members. CVS' health insurance business as well as peers Elevance Health (ELV.N) and UnitedHealth (UNH.N) have benefited from a slow recovery in elective procedures and a fall in COVID cases that has kept costs in check.

☆ Mortgage rates just hit a high not seen since the 2008 housing crash
▼ + stars: | 2022-09-11 | by ( Alcynna Lloyd | Jacob Zinkula | ) www.businessinsider.com time to read: +4 min

More interest rate hikes are on the horizon and that means mortgage rates could climb further. Sam Khater, Freddie Mac's chief economist, says the uptick is attributed to economic volatility that is seeping into the US real estate market. "The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market," Khater told Insider. Numerous interest rate hikes have lifted mortgage rates at the fastest pace in decades. The move has effectively put an end to the home buying frenzy that rocked the US real estate market.

☆ Why celebrities are so interested in the unglamorous world of private equity
▼ + stars: | 2022-09-07 | by ( Allison Morrow | ) edition.cnn.com time to read: +7 min

Now she’s entering the secretive, not-so-pretty world of private equity, aka the land of “vulture capitalists.”Here’s the deal: Kim K is partnering with Jay Sammons, a former executive with Carlyle Group, to launch SKKY Partners, a private equity firm that plans to invest in areas such as consumer products, hospitality, luxury, digital commerce and media. “If I was a celebrity, I would jump in and start a private equity fund,” Hooke says. First up, the iPhone 14 (yes, 14! The iPhone 14 will start at $799, the same starting price as last year’s iPhone 13. The larger iPhone 14 Plus model will start at $899.

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