SoFi offers a variety of financial products and services to its 1.6 million members, and it recently filed for a charter to have its own bank.
SoFi offers a variety of financial products and services to its 1.6 million members, and it recently filed for a charter to have its own bank.
The S&P 500 initially pulled back during the course of the week only to show signs of strength yet again. The jobs number of course is a huge disappointment, thereby allowing Wall Street to play the “liquidity game.”
(Bloomberg) -- Xavier Rolet, the former head of London Stock Exchange Group Plc, is planning to launch a blank-check company targeting financial technology investments, people familiar with the matter said.He plans to seek about $300 million by listing a special purpose acquisition company in the U.S., according to the people, who asked not to be identified because the information is private. Rolet could reveal plans for the listing as soon as the next few days, the people said.The SPAC will be one of the most high-profile listings to come to market since a regulatory review of accounting standards used by blank-check companies led to a slowdown in new offerings. Credit Suisse Group AG is advising on the planned IPO, according to the people.Rolet left the LSE in 2017 after a public dispute between the board and activist investor Chris Hohn. During his tenure, Rolet led a series of successful deals that gave the bourse operator control of the world’s largest clearinghouse and made it one of the biggest financial index compilers. He became chief executive officer of billionaire Michael Hintze’s London-based hedge fund firm CQS in early 2019 before abruptly leaving a year later.Serge Harry, who was one of Rolet’s key lieutenants at the LSE and later served as deputy chief executive officer of CQS, will also have a role at the blank-check company, one of the people said. The SPAC will seek investments in areas including fintech and quantum computing, an area Rolet has been vocal about in the past, the people said.Rolet and a representative for Credit Suisse declined to comment, while Harry couldn’t immediately be reached.As an outspoken financial industry veteran, Rolet often expresses his views publicly. His comments have ranged from his former employer to quantum computing to Extinction Rebellion, the radical climate change movement whose members have blocked traffic in London and glued themselves to jetliners. He’s talked about his personal interests, including the care of some 50,000 bees at his vineyard in Provence, France.Rolet is already on the board of another blank-check company, Golden Falcon Acquisition Corp. That SPAC, started by former Barclays Plc banker Makram Azar, raised $345 million in its U.S. IPO in December, according to data compiled by Bloomberg.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
LONDON (Reuters) -Europe's consumers will feel the hit from price rises this year as companies seek to recoup revenues and cover pandemic-related costs. Over the past year, the fallout from COVID-19 has contorted both the demand and supply sides of the global economy, creating bottlenecks in supply chains, havoc in freight markets and a rally in raw materials from corn to copper. Lockdowns, meanwhile, have deprived well-off consumers in Europe and elsewhere of the opportunities to spend their cash, creating record levels of savings and a window of opportunity for companies to push through price increases.
Silver markets have rallied significantly during the course of the week to reach towards the $28 level. However, as we close out the week, we are certainly trying to get to the upside.
(Bloomberg) -- The European Central Bank is set to reward some of the region’s biggest financial institutions with more than 1 billion euros ($1.2 billion) this year in return for keeping up the flow of credit during the pandemic.Six lenders including ING Groep NV and Deutsche Bank AG have disclosed their expected benefit from the central bank’s targeted longer-term loan programs. Together, the banks said they earned about 416 million euros in the first quarter while other lenders said they intend to book gains later in the year.Seven years after turning banking on its head with the introduction of negative interest rates, the ECB is dangling enhanced subsidies to get banks to pump cheap cash into an economy lurching from one crisis to another. The benefits help offset some of the pressure from the ECB’s other policies which have eaten into lending profits and introduced costs for client deposits.An ECB spokesman declined to comment on the payments. ECB President Christine Lagarde said in April that the program plays a “crucial role” in supporting bank lending to firms and households.The ECB has offered several rounds of such targeted long-term loans. The latest allotment was in March when it made 330.5 billion euros available to banks. The favorable rates are paid subject to conditions on the banks reaching specific targets regarding the amount of loans they make to the broader economy.The lenders benefit even more now than with similar operations in the past because the conditions were sweetened during the pandemic so that that they can borrow at an even lower rate than the ECB’s negative deposit rate. While the deposit rate acts as a charge on reserves, that’s more than outweighed by the generosity of the rate on the long-term loans.“We don’t earn the money for free,” Deutsche Bank finance chief James von Moltke told analysts on a conference call last week. “The business is executing on lending, supporting clients, that allows us to achieve those thresholds.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The U.K.’s financial regulator handed down its first penalty over the Cum-Ex tax scandal, fining a broker 178,000 pounds ($248,000) for failings regarding its relationship with hedge-fund manager Sanjay Shah.Sapien Capital, which executed more than 6 billion pounds of trades in Danish and Belgian stocks on behalf of Shah’s Solo Capital group through 2015, had inadequate financial-crime controls in place, the Financial Conduct Authority said in a statement Thursday.Shah has emerged as a key figure in a scandal over alleged tax fraud that has engulfed multiple European countries, with investigators raking over a trading strategy that allowed investors to claim multiple refunds on a dividend tax that was paid only once. The FCA said the trading “is highly suggestive of sophisticated financial crime.”“These transactions ran money-laundering and other financial-crime risks, which Sapien incompetently failed to see,” Mark Steward, the agency’s director of enforcement and market oversight, said. The fine was reduced due to serious financial hardship.Ramesh Kumar Ahuja, Sapien Capital’s chief executive officer, declined to comment by phone. The firm told the FCA that “it is only with the benefit of hindsight that the shortcomings in relation to the Solo business have become apparent,” according to a summary of its submissions.While more than 25 bankers, traders and lawyers have been charged in Denmark and Germany, U.K. authorities have faced criticisms from the courts for the speed of their investigations.Danish prosecutors said earlier this year that Shah was the mastermind behind a a 9.6 billion-krone ($1.6 billion) tax-fraud case. Shortly after that, Shah and six others were indicted by Hamburg prosecutors over more than 50 cases of money laundering relating to Cum-Ex trades in Denmark and Belgium that went through German accounts.Shah has consistently said he did nothing wrong other than take advantage of loopholes in national laws.The FCA said Sapien had just 40 clients before adding more than 160 customers linked to Solo. The brokerage was expecting to take in as much as 700,000 pounds in brokerage fees annually.Even when Sapien couldn’t be sure about the identity of one of the Solo clients, a mix of offshore companies and pension plans, it proceeded to add the firm as a customer anyway, the FCA said. The client presented mismatched signatures as part of a bundle of documents and Sapien simply asked it to re-sign the forms, the regulator said.Inside Sapien, the mismatched signatures were known as a “touchy subject,” according to the FCA.(Updates with details on Sapien Capital’s submissions in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The US dollar pulled back a bit during the course of the trading session on Friday, in reaction to the horrible jobs number in America.
(Bloomberg) -- Alto Pharmacy, a startup that specializes in same-day delivery of prescription medications, is in talks to go public via a blank-check firm affiliated with Alec Gores, according to people with knowledge of the matter.A deal between Alto and Gores Technology Partners II Inc., featuring a so-called private investment in public equity, or PIPE, is set to value the combined entity at around $2.3 billion, one of the people said. A transaction hasn’t been finalized and it’s possible talks could collapse, but if one is reached, it could be announced in the coming weeks.Representatives for Gores and Alto declined to comment.Alto is projected to deliver revenue of about $700 million in 2021, a figure that may exceed $2 billion in 2022, one of the people said. The San Francisco-based startup, founded in 2015 and led by CEO Matt Gamache-Asselin, operates in cities including New York, Los Angeles, Denver, Dallas, Houston and Seattle. A single Alto distribution location delivers to the same area as about 400 chain pharmacies, its website shows.Alto was last valued at $600 million, according to PitchBook. Its backers include SoftBank Group Corp.’s Vision Fund 2, GreenOaks Capital, Jackson Square Ventures, Olive Tree Capital and Zola Global. The company was previously known as ScriptDash.Gores Technology Partners II raised $460 million in a March initial public offering. Justin Wilson, now a Gores senior managing director and co-CEO of the SPAC, led SoftBank’s investment in Alto alongside Jeff Housenbold.“U.S. pharmacies comprise a $350 billion market, but providers and consumers face meaningful pain points,” Wilson said in a February 2020 statement announcing SoftBank’s investment in Alto. “Traditional pharmacies still rely on outdated technologies like phone, fax, and paper, that aren’t built for our increasingly digital world.”Other digital health startups including Hims Inc., Talkspace, 23andMe Inc. and DocGo Inc. have agreed to go public via SPAC mergers.(Updates with revenue projections in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Snowball Finance Beijing Internet Information Technology Co., an online financial information portal that counts Ant Group Co. as one of its backers, is planning an initial public offering in the U.S., which could raise about $300 million, people with knowledge of the matter said.The Beijing-based company, known as “xueqiu” in Chinese, is working with advisers on the proposed share sale, said the people, who asked not to be identified as the information isn’t public. Snowball plans to file for the IPO as soon as this month, according to one of the people.Deliberations are ongoing, and details such as timing and offering size may change, the people said. A representative for Snowball Finance declined to comment.Founded in 2010 by Sanwen Fang and Nan Li, the company’s ambition is to help its users build their wealth like a snowball. In December, Snowball Finance raised $120 million in a series E funding round led by Orchid Asia Group, according to its website. It had previously raised over $170 million from backers including Sequoia Capital China, Morningside Group and Ant Group, the website shows.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Everyone has a different idea of what wealth is. You could ask 20-somethings what they think wealth is, and they might describe extravagant houses or a private jet. Someone older might mention lucrative investments. Everyone seems to have a different … Continue reading → The post What Is the Financial Definition of Wealth? appeared first on SmartAsset Blog.
Bill Gates transferred stakes in several companies to Melinda Gates on the day the power couple announced their divorce
As the US economy continues to open up, the April jobs report from the US Bureau of Labor Statistics shows the boom in delivery jobs has taken a tumble. The industry covers workers who deliver and pick up packaged good, employed by companies like Amazon, Fedex, and DHL. When the Covid-19 pandemic halted the world and people stayed home, the demand for online retailers, online grocers, delivery firms shifted into high-gear.
You could be entitled to additional money, based on your 2020 income tax return.
Tech investor Cathie Wood tells CNBC she isn't unsettled by the popular ARK Innovation ETF's rough start to May.
The residential construction sector is pumping the brakes, judging by April's jobs numbers, despite the strong demand for homes.
The cryptocurrency lacks the mainstream appeal of Bitcoin, but it still has a substantial online community behind it. And that community may be the basis of new financial markets.
Vlad Tenev, CEO of Robinhood Markets, speaking at a “fireside chat” on Thursday, attempts to dispel any lingering speculation that the brokerage may be a so-called dogecoin whale, maintaining a massive stockpile of the crypto for its own benefit.
(Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The crypto run this time has two features the 2017 version didn’t—institutional adoption and actual applications.
HELP ME RETIRE Dear MarketWatch, My wife and I recently sold our home. After paying capital gain taxes, we look to net about $1 million. We are both in our late 60s. My wife is retired, and I work part time in my profession, currently grossing approximately $50,000 a year.