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Matt LevineBloomberg |
What if the US Securities and Exchange Commission never brings another enforcement case? What if it’s like “ahh, go ahead, do all the fraud you...
The way US federal law works is that there are only a few federal judges in the Fort Worth Division of the US District Court for the Northern District...
I have never been to business school, but I gather that a certain amount of the curriculum involves pretending to do business stuff. You get a...
Programming note: This is the last Money Stuff of 2024. Happy holidays, and thanks so much for reading this year. We’ll be back on Monday, Jan....
Imagine how you would solve this problem from first principles. It is October 2022, and two big supermarket companies, Albertsons Cos. and Kroger...
How much would you pay for stock in SpaceX or OpenAI? There are data points. SpaceX printed a trade recently at about a $350 billion valuation;...
Sometimes a company owes its creditors more money than it can pay them, so it files for bankruptcy. Loosely speaking, bankruptcy means that the...
Programming note: Money Stuff will be off tomorrow and early next week, back Wednesday, Dec. 11. Here’s the basic idea of convertible arbitrage....
Obviously Elon Musk doesn’t need the money. He is, today, by a substantial margin the richest person in the world. SpaceX, his second-biggest...
The theory is simple. A handful of big asset managers run giant index funds and own large chunks of every public company. Roughly speaking, the...
Programming note: Money Stuff will be off for the rest of the week, back on Monday. Happy Thanksgiving! It is nice, in investing, to have a one-day...
When you deposit money at a bank, you expect the bank to give it back to you. There are two things you might worry about, two sets of risks that...
Actually this is a greenwashing case: Here are the press releases from the US Department of Justice and the Securities and Exchange Commission,...
Every so often around here, I feel compelled to mention my all-time favorite US Securities and Exchange Commission enforcement action, the MAAX...
The basic theory of bank regulation is that, left to their own devices, bankers would make banks too risky, so regulators and supervisors are there...
A pretty standard move in finance is that you have a product for sophisticated institutional investors, and it becomes popular, so you look for...
One thing that I thought was a little interesting on Tuesday is that the prediction markets for the US presidential election didn’t really move...
I wrote last week that, “if you are a big bank, somebody somewhere in your organization is pretty much always doing something that looks a bit...
A good corporate finance rule of thumb is, “if you run a company, and people are paying much more for your stock than it is worth, you should...
A central problem in securities regulation is that you want companies to be able to raise money, and you want ordinary investors to have access to...
If you are a retail stockbroker, sometimes your customers will come to you looking to do a trade. “I want to buy this Nvidia,” they say, or...
One useful intuition of modern finance is that stocks are all kind of the same. Oh they’re not, they’re not, this isn’t true. But lots of stocks...
Who do you think would be better at designing a simple and delightful user experience for a credit card: Apple Inc., or the average bank? If you...
It is sometimes useful to think of all of Elon Musk’s ventures as one big company. I like to call it the Musk Mars Conglomerate, because it seems...
In financial markets, there are people called “market makers.” 1 A market maker, as the name implies, makes things called markets. But the market...
This is not investment advice, but these days there are a number of platforms where you can bet on the US presidential election. Offering election...
The thing about most traditional financial frauds is that they have to end. You get money from investors, you spend it on watches and gambling, you...
If you are an ordinary retail investor and you make hundreds of millions of dollars day-trading Tesla Inc. options, and you go to a financial...
Maybe the hottest topic in finance in the last few years has been private credit, and we’ve talked about it a lot around here. I often think of...
We talked on Monday about the proposed merger between DirecTV and Dish Network, in which DirecTV will pay $1 for Dish and also assume its $9.75...
The US Securities and Exchange Commission’s fiscal year ends on Sept. 30, which is yesterday. Unlike many financial industry employees, SEC...
There’s a guy in Kentucky whose job is running volleyball tournaments and whose hobbies are (1) day-trading stocks and options and (2) talking to...
As climate leaders descend on New York City for Climate Week, much of the attention will be on how to get the Empire State’s renewable energy...
A very long time ago, I was an investment banker at Goldman Sachs Group Inc. This was so long ago that, when I started, Goldman was not yet a bank...
“Who controls a company,” I often ask around here, and generally I am writing about some weird corner case in which the standard legal rules...
If you had a robot that could tell you what stocks would go up, what would you do with it? Here are, I think, the two plausible answers: The key...
Here are two equity derivatives trades that you might do if you wanted to be a big shareholder of a public company. First, you might want to buy...
The basic rule is that the chief executive officer of a company works for the board of directors, and the directors work for the shareholders....
What is Warren Buffett? Like, if you were trying to describe and recreate his essential features, how would you do it? I guess a decent answer is...
As climate leaders descend on New York City for Climate Week, much of the attention will be on how to get the Empire State’s renewable energy...
A lot of problems in finance come from fire sales and contagion, and a lot of regulation is organized around preventing them. Most classically,...
Here’s a little thought experiment. Let’s say that you run a tech startup that is looking to do an initial public offering, and you would like to...
Here’s a bad idea. You’re a big public company, and you have some debt: A year ago, you sold $1 billion of bonds, due in 10 years, that pay, say,...
Some of the work in the financial industry involves finding and fostering bad counterparties. If you are a stock market maker — you buy stock...
This is roughly how Spotify works 1 : The important thing to notice about this model is that the users pay a flat fee, no matter how much music...
Let’s say that you are a market maker and you trade a bunch of small, dumb, thinly traded stocks. The last trade in Amalgamated Cannabis & AI Inc....