GE completes three-way split, breaking off from its storied past

Apr 2, 2024

First Read

Hits & Takes
John Lothian & JLN Staff

My father worked for General Electric when he graduated from college, first in Cleveland, OH, then in Chicago. I have always paid attention to General Electric as a result and since the early days of the pandemic, when I became one of the many new stock traders, I have owned General Electric off and on. I currently own shares in General Electric, or I used to. Today, I own shares in GE Aerospace, GE Vernova and GE HealthCare, the three companies spun out of GE.

GE was a great company, and back when my father worked for it, they sponsored a television show called General Electric Theater that was hosted by Ronald Reagan and broadcast on CBS radio and television. Former President Reagan used to make visits to the various GE offices around the country and one day stopped in my father’s Chicago office. He made a speech, stepping up on a box provided for him by an aid, even though he stood over six foot.

At the time, Reagan had gray in his hair, my father said, along the side of his head. During this Presidency, Reagan was famous for his black hair, with no gray. Journalists were convinced he coloured his hair. However, when some enterprising journalists grabbed some samples of his hair from the floor of the White House barber shop floor after he had a haircut and had it examined, there was no evidence of coloring. This only proved that Reagan was coloring his hair gray back when he was doing General Electric Theater, supposedly so he could get the more mature roles.

The Wall Street Journal has a story by text and picture of the history of General Electric titled “The Breakup 230 Years in the Making, GE Makes its Final Split” with the subheadline “It once financed mortgages and sold lightbulbs. Now, a shrunken General Electric will focus on jet engines.”

Japan Exchange Group shared on LinkedIn that “a total of 191 companies in #Japan announced stock splits in the fiscal year ended on Sunday, up about 60% from the previous year, lowering the barrier to entry for retail investors by reducing prices.”

SmarterMarkets conducted interviews with industry leaders at the FIA Boca conference, including Walt Lukken, President & CEO of FIA; Sergey Nazarov, Co-Founder of Chainlink; Przemek Koralewski, Global Head of Market Development at Fastmarkets; Maureen Downs, Co-Founder & CFO of Connamara Technologies; Yuval Rooz, Co-Founder & CEO of Digital Asset; Anthony Crudele, Host of Futures Radio Show; William L’Heveder, Chief Growth Officer of BMLL Technologies; and Joe Raia, Chief Commercial Officer of Abaxx Exchange and Clearinghouse. Insights from these discussions provide valuable guidance for navigating challenges and seizing opportunities in the futures industry. You can listen to interviews HERE.

Ezra Klein of the New York Times has a 75-minute podcast titled “How Should I Be Using A.I. Right Now?”

Also, Steve Lohr of The New York Times has a story titled “How One Tech Skeptic Decided A.I. Might Benefit the Middle Class” with the subheadline “David Autor, an M.I.T. economist and tech contrarian, argues that A.I. is fundamentally different from past waves of computerization.”

Debbie Carlson has a story in Chief Investment Officer titled Regulating the Robots with the subheadline “Current SEC proposal seen as overreaching, but industry watchers see benefits if changes are made.”

Anthony Payne, head of relationship management and market access at London Metal Exchange, is still looking for support for his run with friends in the half marathon on April 7 for Cancer Research UK. You can find out more and donate HERE.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL

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The monthly update from Sustainable Stock Exchanges Initiative (SSE) includes news and updates from its members, and covers SSE initiative events, workshops through SSE Academy, exchange updates, regulator and standard setter news, ESG indices and products, gender equality, and executive moves. Among the news, the United Nations SSE welcomed 30 Official Supporters, comprising 22 exchanges and 8 market participants. Among the new supporters are ABN AMRO Clearing, Bloomberg, Cboe, CME Group, Euronext, Hong Kong Exchanges, Intercontinental Exchange/New York Stock Exchange, Johannesburg Stock Exchange, London Stock Exchange Group, Nasdaq, and Singapore Exchange Group. Read and subscribe to the SSE update HERE. ~SAED

Our most read stories from our previous edition of JLN Options were:
Creating an 11% “Dividend” on AMZN Stock Using Options from The Globe and Mail.
Crash or Soar? Traders Are Preparing for Stock Market Extremes from Bloomberg.
Canadian Annual Derivatives Conference 2024 from EventBrite. ~JB

Subscribe to the JLN Options Newsletter HERE (it’s free).

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We need to talk about Brexit
Financial Times (Video via YouTube — 28 minutes)
The UK’s 2016 vote to leave the EU was the most dramatic political and economic decision for generations. But as the country prepares for a general election, it is no longer on the political agenda. This film examines why no political party wants to talk about it, why Brexit remains the elephant in the room for British business and how it could actually work better.
/jlne.ws/3vBxcGS

****** I am so tired of talking about Brexit. How about we just write about it or show a video?~JJL

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25% of Gen Zers say they’ll need a therapist to deal with tax filing stress – here’s the first step to take to make it easier
Annie Probert – CNBC
Taxes aren’t enjoyable for people of any age, but they can be particularly stressful for younger generations, many of whom may have never filed before. In fact, 1 in 4 Gen Z taxpayers said they’ll need a therapist to deal with the stress of tax-filing season, according to a recent Cash App Taxes survey. Additionally, 54% said filing taxes has either brought them to tears in the past or expect it to this year.
/jlne.ws/43Hhx5r

****** It is not just Gen Zers. The IRS this year asked me for the basis of my investment in John J. Lothian & Company, Inc. leading all the way back to 2003. That was fun.~JJL

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Monday’s Top Three
Our top story Monday was U.S. Treasury Identifies Cybersecurity Risks and Challenges of AI in Financial Services, from Monitor Daily. Second was Leo Melamed Discusses AI, China-U.S. Relations, and Literary Ventures at FIA International Futures Industry Conference, a John Lothian News video interview from FIA Boca 2024. Third was Appointment of the Director of the Financial Research Center, from the Financial Services Agency (FSA), about the appointment of Dr. Yanagawa Noriyuki, professor of Graduate School of Economics, the University of Tokyo.

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Lead Stories

GE completes three-way split, breaking off from its storied past
Reuters
General Electric on Tuesday completed its breakup into three companies, marking the end of an era for the industrial conglomerate pioneer that was once a symbol of American business power. The industrial giant’s aerospace and energy businesses will begin trading on the New York Stock Exchange as separate entities on Tuesday, more than a year after its healthcare business began trading on the Nasdaq.
/jlne.ws/3TXMrmS

Tradeweb wins bid to supply electronic trading platforms to European Central Bank; Deal includes two framework agreements to supply electronic platforms for a variety of bonds, treasuries and interest rate swaps.
Annabel Smith – The Trade
Tradeweb has won the bid to supply electronic trading platforms (ETP) to the European Central Bank for the next four years. As part of the deal, the fixed income platform provider will provide ETPs for the central bank and other Eurosystem National Central Banks (NCBs). Billy Hult The term of the contracts is four years with the option to extend twice for an additional two years. Tradeweb’s ETPs will cover the trading of EUR-denominated bonds, US Treasuries, Japanese government bonds, USD- and EUR-denominated supranationals, sovereign and agency bonds and USD- and JPY-denominated interest rate swaps.
/jlne.ws/3PLdyPy

The Bank Run of 2023 Could Easily Happen Again; Regulators have yet to address the system’s vulnerability to sudden depositor withdrawals.
Bill Dudley – Bloomberg (opinion)
Ever since the demise of Silicon Valley Bank in March 2023, regulators have been focused primarily on increasing loss-absorbing capital at the largest US financial institutions. Much less attention has been paid to the problem that precipitated last spring’s banking crisis: banks’ vulnerability to sudden depositor withdrawals. The SVB debacle exposed three weaknesses. First, depositors pulled their money much faster than assumed by requirements such as the liquidity coverage ratio, intended to ensure that banks have enough cash and easy-to-sell assets to survive 30 days of withdrawals. Second, the Federal Reserve couldn’t provide sufficient emergency discount-window loans, because banks hadn’t pledged enough collateral to the Fed. Third, uninsured depositors had ample reason to run, because they couldn’t be sure the government would make them whole: Such bailouts can happen only after a bank fails and regulators judge that the situation is bad enough to invoke the “systemic risk exception.”
/jlne.ws/3J8CooJ

Analysis-Trump-and-dump: Speculators bet on Truth Social ‘meme’ stock
Abigail Summerville – Reuters
Mohammed Al Shalloudi, a 21-year-old graduate data analyst in the United Arab Emirates who invested in Donald Trump’s social media company, has little in common with the former U.S. president’s political supporters. Al Shalloudi bought shares in Trump Media and Technology Group (TMTG), but not because he believes in the business of its app Truth Social or because he is a Trump fan. He is part of an army of speculators seeking a quick lucrative trade whose bets on TMTG have made it one of the most overvalued and actively traded U.S. stocks.
/jlne.ws/43JYSpM

Trump Media shares plummet 21% days after debut
Yuvraj Malik and Priyanka G – Reuters
Shares of Donald Trump’s social media company plunged 21% on Monday, wiping out the gains from its debut last week, after disclosing millions in losses and saying it would struggle to meet its financial liabilities going forward. Trump Media & Technology Group lost more than $58 million in 2023, it said in a filing, sending shares reeling less than a week after the Truth Social parent went public through a high-profile blank-check merger.
/jlne.ws/3TFr0G4

Meet Wall Street’s Highest-Profile Crypto Skeptic
Gregory Zuckerman – The Wall Street Journal
On Wall Street, there may be no more high-profile cryptocurrency skeptic than Sharmin Mossavar-Rahmani. As the chief investment officer of Goldman Sachs Private Wealth Management for the past 23 years, she’s guided thousands of wealth advisers and traders. Despite bitcoin’s surge this year, Mossavar-Rahmani remains outright dismissive of crypto. “People who buy it have to rely on another person’s willingness to buy it at a higher price,” she says. “That’s reminiscent of manias like the tulip mania of the 1600s.”
/jlne.ws/3U3juGp

Shell says landmark climate ruling obstructs fight against climate change
Bart H. Meijer – Reuters
Shell on Tuesday told a Dutch court a 2021 order that it should drastically cut greenhouse gas emissions lacks a legal basis and risks obstructing the fight against climate change. In a landmark ruling that shocked the energy sector, a lower Dutch court in 2021 ordered Shell to reduce its planet warming carbon emissions by 45% by 2030 from 2019 levels. The order related not only to Shell’s own emissions, but also to those caused by the buyers and users of its products. Shell said that implementing the ruling would force it to shrink its business and would only lead customers to shift to other suppliers of fuel.
/jlne.ws/3J3M18e

Cocoa Hits Record Even With Hedge Funds Least Bullish Since 2022; Futures have more than doubled this year to record highs Hedge funds continue to cut bullish bets, open interest falls
Ilena Peng and Gerson Freitas Jr – Bloomberg
Money managers have slashed their bullish bets on cocoa to the lowest in 17 months, a sign that commercial traders have played a key role in the rally that’s sent prices to a fresh record on Monday. The most-active contract in New York rose as much as 4.4% to a new intraday high of $10,193 a metric ton. Futures have more than doubled this year as poor crops in key West African growers put the world on course for a third straight annual supply deficit.
/jlne.ws/3TXM3EW

Plastic Recycling Is Broken. Capitalism Can Fix It. By putting a value on the environmental and social impact of recycling projects, a new kind of bond can change the way they are financed.
Steve Hardman – Bloomberg (opinion)
Steve Hardman is the chief executive of Plastic Collective.
When it comes to plastic waste, the numbers are alarming. And they’re getting worse. According to the OECD, 91% of all plastic used goes unrecycled into nature, oceans, landfill or incineration every year – that’s 320 million tons. By 2060, there will be an additional 30 billion tons. Only 5 billion tons are predicted to be recycled.
/jlne.ws/3TY0A3A

Why so much fuss about an eclipse?
Bina Venkataraman – The Washington Post (opinion)
Returning to Wooster, my hometown of 27,000 people in northeastern Ohio, is usually an occasion not to worry about street parking or dinner reservations. But on April 8 – thanks to the region’s position in the path of the total solar eclipse – I’ll be among the throngs of out-of-towners donning funky glasses to watch the sun disappear behind the moon’s shadow and experience eerie darkness at 3:15 in the afternoon.
/jlne.ws/4cD4eal

FTX founder Sam Bankman-Fried speaks out after sentencing: ‘I’m haunted, every day, by what was lost’
Mark Guarino – GMA
Former crypto entrepreneur Sam Bankman-Fried told ABC News in an exclusive interview that he is remorseful for his actions that last week resulted in a 25-year prison sentence for fraud. “It’s most of what I think about each day,” he said.
/jlne.ws/3J3Mmbb

The $40 Billion Fund That’s Gambling With Europe’s Climate Goal; Through its Innovation Fund, the EU backs carbon-cutting projects it hopes to scale. At stake is whether the bloc can lower industrial emissions quickly without losing critical enterprises.
Will Mathis and John Ainger – Bloomberg
A solar panel manufacturer that’s laying off workers. A battery maker that spurned Europe for American subsidies. A green hydrogen project stalled for lack of electricity. These are a handful of the early results from the European Union’s Innovation Fund, a EUR40 billion ($43 billion) investment vehicle at the core of Europe’s plans to overhaul its economy to be zero-carbon by the middle of the century. It’s also part of the EU’s counter to the US Inflation Reduction Act: Officials hope the subsidies will keep key industries from decamping overseas.
/jlne.ws/4ajuDIF

Societe Generale and AllianceBernstein launch cash equities and research joint venture; Named Bernstein, the joint venture will offer investment insights into North America, European and Asia Pacific equity markets, alongside liquidity access and global trading technology.
Wesley Bray – The Trade
AllianceBernstein and Societe Generale have launched a new joint venture focusing on global cash equities and equity research. Named Bernstein, the move follows the original announcement to form the joint venture in November 2022. Bernstein will provide institutional investors, corporates and financial institutions with investment insights into North America, European and Asia Pacific equity markets, alongside liquidity access and global trading technology.
/jlne.ws/3TG280L

Ukraine Invasion

Putin’s New Front in the Ukraine War Is in the Balkans; The Russian leader is pushing propaganda and religious strife in Kosovo and Bosnia to distract NATO from his illegal invasion.
James Stavridis – Bloomberg
Throughout Russia’s history, tsars looked for ways to dominate what they called the “near abroad” of their sprawling empire. In today’s world, President Vladimir Putin’s illegal invasion of neighboring Ukraine follows that strategic arc. If he is victorious, it is logical he would turn his attentions to Moldova, the next stop on the road to Eastern Europe – and where a Russian separatist enclave, Transnistria, already is occupied by Russia.
/jlne.ws/49j57Cc

Inside the Russian Shadow Trade for Weapons Parts, Fueled by Crypto; How Russian middlemen used tether to avoid U.S. sanctions and procure parts for drones and other high-tech equipment
Angus Berwick and Ben Foldy – The Wall Street Journal
A self-described Russian smuggler in China received a request from the manufacturer of the legendary AK-47 rifle. Russia’s largest maker of small arms, Kalashnikov Concern, needed electrical parts for drones that have been among the most effective weapons against Ukrainian armor. The smuggler, Andrey Zverev, took the late 2022 order to a Hong Kong electronics distributor. The U.S. was trying to cut off such deals, and even sanctions-wary Chinese banks were blocking payments from Russia.
/jlne.ws/49gi3sh

Ukraine says it downed two of three Russian drones overnight
Reuters
Ukraine’s air force shot down two out of three Russia-launched Shahed drones overnight, the Ukrainian military said on Monday. The General Staff provided no further information about the attack in its report on Facebook. Separately, Ukraine’s energy ministry said equipment at a power substation in the southern Zaporizhzhia region had been damaged following a drone attack. It did not clarify what type of drones has been used.
/jlne.ws/43JXKm2

Ukraine says Russia has fired five Zircon missiles at Kyiv this year
Reuters
Russia has used five of its new hypersonic Zircon missiles to attack Kyiv since the start of the year, the city’s military administration said on Monday. The attacks are among more than 180 Russian missile and drone attacks launched against the Ukrainian capital in the first three months of the year, the administration said in a post on Telegram.
/jlne.ws/3TFJC8D

Ukraine strikes Russian drone factory 1,300km from border; A dozen people injured in attack, which also hit country’s third-largest oil refinery
Max Seddon and Isobel Koshiw – Financial Times
Ukraine has carried out its longest-range drone strikes in Russia more than two years into Moscow’s full-scale war, injuring at least a dozen people in an attack on an industrial facility and a refinery more than 1,300km behind enemy lines. Ukrainian drones on Tuesday hit the Alabuga special economic zone in Tatarstan, which is home to a facility producing Iranian-designed Shahed drones that Russia uses for attacks on Ukraine. At least 12 people were injured in an on-site dormitory for students, according to state newswire Tass.
/jlne.ws/3vAVOQ4

Israel/Palestine Conflict

Iran accuses Israel of killing general in Damascus consulate strike; Three senior members of Revolutionary Guards dead in significant escalation of regional tensions
Raya Jalabi and Najmeh Bozorgmehr and Andrew England – Financial Times
Three senior members of Iran’s Revolutionary Guards were killed on Monday in an air strike on the consular section of Iran’s embassy in Damascus, an attack that Tehran has blamed on Israel. The death of Brigadier General Mohammad-Reza Zahedi, a prominent commander of the Revolutionary Guards, marks a significant escalation in hostilities that have engulfed the region since Hamas’s attack on Israel on October 7.
/jlne.ws/3TJufvR

Israelis turn on peace activists amid trauma of war; In a society largely united by the fight against Hamas, those seeking coexistence with Palestinians face abuse and even arrest
Andrew England – Financial Times
Israel Frey knew he risked causing offence when he delivered a Jewish prayer for the dead days after Hamas’s devastating October 7 attack on southern Israel. He did not realise it would upend his life. A small group of residents in Tel Aviv had asked him to offer the Kaddish blessing for the 1,200 victims of Hamas’s raid because he is a member of the Jewish state’s ultraorthodox community. But it was not only the slain Israelis who were on the 37-year-old’s mind as he lit candles and recited the prayer, later uploading a video online.
/jlne.ws/4aeThKH

Israel Says Strike That Killed Seven Gaza Aid Workers Was Unintentional; Western capitals call for explanation of deadly incident, which jeopardizes aid effort in hunger-stricken enclave
Stephen Kalin – The Wall Street Journal.
One of the most important providers of food aid in the Gaza Strip paused operations across the Middle East on Tuesday after seven of its workers, including a U.S.-Canadian dual citizen, were killed in an Israeli strike that Prime Minister Benjamin Netanyahu said was unintentional. “Unfortunately in the past day there was a tragic incident of an unintentional hit by our forces on innocent people in the Gaza Strip. It happens during war,” Netanyahu said in a recorded message on X. “We are in touch with governments and we’ll do everything so that this doesn’t happen again.”
/jlne.ws/4czyUJL

Exchanges, OTC and Clearing

Farmer sentiment improves as interest rate expectations shift
CME Group
U.S. farmers’ outlook improved in March as the Purdue University/CME Group Ag Economy Barometer index increased to 114, marking a 3-point rise from February. While the Index of Current Conditions fell by 2 points to 101, the Index of Future Expectations climbed to 120, up by 5 points from February. The disparity between current and future indexes was primarily influenced by farmers’ perceptions of a financial downturn taking place in the past year, coupled with some expectations for improvement over the next 12 months. The March survey was conducted from March 11-15, 2024.
/jlne.ws/4ajJwus

Cboe Global Listings Reaches New Milestone Surpassing 1,000 ETFs Listed Across its Global Network
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading securities and derivatives exchange network, today announced that it has achieved a new milestone, surpassing more than 1,000 exchange traded funds (ETFs) listed across its global network of listings exchanges. “This ETF listings milestone is another major step forward in building our global listings business. It’s a testament to Cboe’s continued innovation in the ETF ecosystem and focus on customer-centric service and support,” said Dave Howson, Executive Vice President, Global President, Cboe Global Markets. “From industry-leading market intelligence and technology, to a global liquidity provision program and 50 years of experience as a company, we provide our issuer partners with an innovative, collaborative, and seamless approach to global account management when listing with Cboe.”
/jlne.ws/3vEHNkv

CME Group Reports March and Q1 2024 Market Statistics
CME Group
Record Q1 U.S. Treasury futures and options ADV of 7.8 million contracts; Record Q1 Options ADV of 5.9 million contracts. CME Group, the world’s leading derivatives marketplace, today reported its March and Q1 2024 market statistics, showing average daily volume (ADV) reached 24.3 million contracts in March and 26.4 million contracts in Q1. Market statistics are available in greater detail at https://https://jlne.ws/3J3IQ0q

Spot market sales statistics for March 2024
Deutsche Boerse
A trading volume of 121.13 billion euro was achieved on Deutsche Boerse’s cash markets in March (previous year: 140.21 billion euro/ previous month: 108.42 billion euro). Of this, 117.16 billion euro was accounted for by Xetra (previous year: 136.42 billion euro/ previous month: 104.41 billion euro ), meaning the average daily Xetra turnover was 5.86 billion euro(previous year: 5.93 euro).
/jlne.ws/3vswjk7

SIX Exchanges Figures: March 2024
BME
SIX publishes the monthly key figures for SIX Swiss Exchange and BME Exchange about the trading and listing activity in Switzerland and Spain
/jlne.ws/3VIPoJA

Changes in Nifty Fixed Income indices
National Stock Exchange of India
The Index Maintenance Sub-Committee (Debt) of NSE Indices Limited has decided to make changes on account of downgrade of issuer level credit rating of HDFC credila financial services limited from AAA to AA. These changes shall become effective from April 05, 2024.
/jlne.ws/4aj5jTh

OCC March 2024 Monthly Volume Data
/jlne.ws/3TGkBdy

Fintech

The Tech Giants Are Eating the Chatbot Kings; Open-source AI firms are meanwhile offering a better alternative to Silicon Valley.
Parmy Olson – Bloomberg
When ChatGPT hit the market in November 2022, it sparked a battle for a new product category known as foundation models. These artificial intelligence systems, which generate text and images, cost tens of millions of dollars in computing power to build, and only a few companies have the resources and talent to create them. In March, one of them was swallowed up by Microsoft Corp. – and much more quickly than anyone expected. After raising more than $1.5 billion from investors, 70 staff from Inflection transferred to Microsoft, which is paying the company $650 million in licensing fees in a deal designed to make investors whole.
/jlne.ws/3TJtBhV

European Central Bank Selects Tradeweb to Supply Electronic Trading Platforms
Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has been awarded two framework agreements (the ‘contracts’) to provide Electronic Trading Platforms (ETPs) to the European Central Bank (ECB) and other Eurosystem National Central Banks (NCBs), after successfully participating in the procurement procedure organized by the ECB. Tradeweb also won the tender to supply ETPs to the ECB in 2015, when the central bank last conducted a similar bid process.
/jlne.ws/3xkJ8gK

OpenAI removes Sam Altman’s ownership of its Startup Fund
Krystal Hu – Reuters
OpenAI has changed the governance structure of its venture capital fund that backs AI startups, so its high profile chief executive Sam Altman no longer owns or controls the fund, according to a filing with the US Securities and Exchange Commission (SEC). The change, documented in the March 29 filing, came after Altman’s ownership of the OpenAI Startup Fund raised eyebrows for its unusual structure-while being marketed similar to a corporate venture arm, the fund was raised by Altman from outside limited partners and he made investment decisions. OpenAI has said Altman does not have financial interest in the fund despite the ownership.
/jlne.ws/4cGouaW

US and UK sign landmark agreement on testing safety of AI; Allies reach world’s first bilateral deal as global governments seek to assess and regulate risks from emerging technology
Madhumita Murgia – Financial Times
The US and UK have signed a landmark agreement on artificial intelligence, as the allies become the first countries to formally co-operate on how to test and assess risks from emerging AI models. The agreement, signed on Monday in Washington by UK science minister Michelle Donelan and US commerce secretary Gina Raimondo, lays out how the two governments will pool technical knowledge, information and talent on AI safety.
/jlne.ws/4aoH5Hm

How One Tech Skeptic Decided A.I. Might Benefit the Middle Class; David Autor, an M.I.T. economist and tech contrarian, argues that A.I. is fundamentally different from past waves of computerization.
Steve Lohr – The New York Times
David Autor seems an unlikely A.I. optimist. The labor economist at the Massachusetts Institute of Technology is best known for his in-depth studies showing how much technology and trade have eroded the incomes of millions of American workers over the years. But Mr. Autor is now making the case that the new wave of technology – generative artificial intelligence, which can produce hyper-realistic images and video and convincingly imitate humans’ voices and writing – could reverse that trend.
/jlne.ws/3VK3ZEA

The growing regulatory risk around AI; Firms can expect to add proof of AI usage to the ever-growing list of governance and reporting items that need to be maintained just in case a regulator or two come knocking, writes Firebrand Research founder and chief executive, Virginie O’Shea.
The Trade
/jlne.ws/4aDHHbO

Cybersecurity

Unspoken Battle: The Cybersecurity Imperative For Protecting Executives
Emil Sayegh – Forbes
In our digital era, the seamless flow of information is a double-edged sword. As businesses shift more of their operations to the cloud, a worrisome pattern has taken shape: cyberattacks meticulously designed to target senior executives. These individuals, who effectively hold the “keys to the kingdom,” are increasingly vulnerable. Recent reports reveal how cybercriminals breached executive Azure accounts, exploiting weaknesses in Multi-Factor Authentication (MFA) mechanisms. This alarming trend underscores the critical need for enhanced cybersecurity measures, including at the highest levels of leadership. This issue demands the attention of board members as well, emphasizing the collective responsibility to safeguard the organization’s digital fortress.
/jlne.ws/49fsA7e

Cybersecurity Insights: Updates on CMMC Implementation and CUI Identification
JD Supra (Audio)
In this episode, Wiley partners Gary Ward, Tracye Howard, and Craig Smith examine the ongoing developments related to implementation of the Cybersecurity Maturity Model Certification (CMMC) program. They discuss the current progress, the anticipated timeline, and the potential impact of a change in administration on its finalization. Additionally, the team addresses the concept of Controlled Unclassified Information (CUI) and outlines best practices for contractors handling CUI.
/jlne.ws/3xkFGCO

What’s New in NIST’s Cybersecurity Framework 2.0?
PJ Bradley – TripWire
The National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) was published in 2014 for the purpose of providing cybersecurity guidance for organizations in critical infrastructure. In the intervening years, much has changed about the threat landscape, the kinds of technology that organizations use, and the ways that operational technology (OT) and information technology (IT) work and interact.
/jlne.ws/3Q96M6H

Cryptocurrencies

Crypto Exchange Binance Names Its First Board of Directors; Board includes three independent members, four insiders; The firm still has not announced its global headquarters
Muyao Shen – Bloomberg
Binance Holdings Ltd. named a board of directors for the first time, as the world’s largest cryptocurrency exchange seeks to reshape itself after pleading guilty last year to US charges of anti-money laundering and sanctions violations. Gabriel Abed, who served as ambassador of Barbados to the United Arab Emirates, was named as chairman. The seven-member board also includes Chief Executive Officer Richard Teng, along with three other company executives – Heina Chen, Jinkai He, and Lilai Wang. The two other outside members are Arnaud Ventura, managing partner at investment firm Gojo & Co, and Bayview Acquisition Corp. CEO Xin Wang. The appointments were effective March 7, according to the Abu Dhabi Global Market website.
/jlne.ws/3J2VNrc

Landmark UK bitcoin freezing order had links to £5bn China fraud; Episode raises questions about extent to which the English courts are used for litigation involving dirty money
Euan Healy and Eri Sugiura – Financial Times
A case known as the first successful bitcoin freezing injunction awarded in the UK courts was brought by a now-convicted money launderer to retrieve funds from a £5bn fraud in China, the Financial Times can reveal. UK law firm Devonshires in 2018 boasted that it had won a freezing order at the High Court on behalf of a “private investor” who had been “scammed” by a broker during the sale of £1mn worth of bitcoin. The law firm in a press release called the case “the first Bitcoin freezing injunction in the UK courts”.
/jlne.ws/4agyjuV

Politics

Investor in Trump SPAC to Change Plea in Insider Trading Case
Chris Dolmetsch – Bloomberg
One of the three investors charged with insider trading in connection with the listing vehicle that took Donald Trump’s media company public intends to change his not-guilty plea in the case less than a month before a federal court trial is set to begin. US District Judge Lewis J. Liman on Monday scheduled a hearing on the plea change later in the week, but didn’t specify in his order how Michael Shvartsman will plead. Such entries usually reflect a decision by defendants to admit guilt in at least one charge. Prosecutors and lawyers for Shvartsman didn’t respond to inquiries seeking comment.
/jlne.ws/3U0tCja

Trump Media’s Business Doesn’t Matter; Also pranks, insider trading, more insider trading and bad workplace texts.
Matt Levine – Bloomberg
Trump SPAC. What if fundamental analysis of stock prices was a temporary phenomenon? I have previously written my half-joking history of stock markets in three eras: For hundreds of years, stock markets existed, you could buy and sell stocks, but you had limited access to high-quality public financial information, and no access at all to Microsoft Excel, so it was pretty hard to estimate a company’s future cash flows and discount them back to present value. Stock-market speculation was a psychological gambling game. “The actual, private object of the most skilled investment today,” wrote Keynes, is “to outwit the crowd, and to pass the bad, or depreciating, half-crown to the other fellow.”
/jlne.ws/43ODwHN

US senator accused of cozy ties to Apple after leading charge against congressional stock trading
Thomas Barrabi – The New York Post
A US lawmaker who has long campaigned against congressional stock trading is among the nearly one-in-five in the Senate who own or likely own chunks of Apple stock – and watchdogs warn the conflicts of interest could derail major legislation aimed at reining in the Big Tech firm’s anticompetitive practices.
/jlne.ws/49ghT49

Opinion: House Republicans undermine Trump with call for $2.7 trillion in Social Security and Medicare cuts
Brett Arends – MarketWatch
Donald Trump had just about climbed out of the very deep hole he’d dug for himself last week when he went on TV and talked loosely about “cutting” programs such as Medicare and Social Security. Then along came the Republicans in the House of Representatives on Wednesday dragging him right back into it. In a document that deserves extraordinary credit for chutzpah, if maybe not tact, House Republicans have just proposed a budget that would slash an astonishing $2.7 trillion from combined spending on Social Security and Medicare over the next decade – more than 8% of the total.
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Regulation

FDIC Appoints E. Marshall Gentry as Deputy to the Chairman and Chief Financial Officer
FDIC
The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved the selection of E. Marshall Gentry as Deputy to the Chairman and Chief Financial Officer (CFO). Mr. Gentry succeeds Bret D. Edwards, who retired in February. “Marshall brings an exceptional breadth of experience and knowledge in the areas of financial and risk management to the role of CFO, having led the FDIC’s enterprise risk management and internal controls programs,” said FDIC Chairman Martin J. Gruenberg. “His particular skill and background as an auditor, conducting reviews on large bank failures, will benefit the agency’s ongoing work to maintain sound financial management and accounting systems. I look forward to continue working with him as a member of our senior management team.”
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Ajax Football Club to Fire CEO After Insider-Trading Allegations; Club alleges Kroes bought shares a week before role announced; Suspension is latest in series of off-pitch scandals for Ajax
Cagan Koc – Bloomberg
AFC Ajax NV suspended its Chief Executive Officer Alex Kroes and said it plans to dismiss him after “strong indications” of insider trading. The club alleges that Kroes, who was also the chairman of Ajax’s executive board, purchased over 17,000 shares of the club a week before his appointment was announced on August 2.
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Ajax plans to dismiss chief executive for suspected insider trading; Dutch football club suspends Alex Kroes less than a month after he started in the role
Samuel Agini – Financial Times
Ajax said it planned to dismiss chief executive Alex Kroes for suspected insider trading, deepening the turmoil at an institution that was once a powerhouse in European football. The club said on Tuesday that Kroes acquired more than 17,000 shares in Ajax, which is listed on the Amsterdam stock exchange, a week before his appointment as chief executive was announced on August 2 last year.
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SNB Flouts Global Practice by Promoting Insiders, Economists Say; Critical group issues new report as Jordan succession awaited; Current system ‘effectively means the SNB is run by insiders’
Craig Stirling – Bloomberg
Swiss National Bank appointments go against the grain of global peers because the government keeps promoting insiders, according to a group of economists. As the country prepares to name a successor to President Thomas Jordan in time for his departure in September, the so-called SNB Observatory issued a report building on its prior criticisms of his institution and the way it is run.
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“U.S. Capital Markets and the Public Good” Prepared Remarks before SEC Speaks
Chair Gary Gensler – SEC
Upon passage of the Securities Act of 1933, President Franklin Roosevelt and Congress knew their job wasn’t done. While they knew the “Truth in Securities Act” was consequential, Roosevelt and Congress understood it had not yet dealt with key problems in the securities markets. The 1920s was a time when markets were rife with fraud and manipulation. This led to a fundamental breakdown of trust in the capital markets. Congress responded with the Securities Exchange Act of 1934. They also set up the Securities and Exchange Commission, embedding the word “Exchange” right in our name. There was much debate about these reforms.
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FMA opens consultation on potential class exemption for certain green, social, sustainability, and sustainability-linked bonds
Financial Markets Authority
The Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko – is considering a class exemption that would allow listed companies to bring certain green, social, sustainable, and sustainability-linked (GSSS) bonds to market more quickly and without incurring most of the regulatory costs of a full retail investment offer. This would operate on a similar basis to the same class exclusion* available in the Financial Markets Conduct Act 2013 (FMC Act), that allows companies that are already-listed to raise further capital using simple, streamlined disclosure.
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Investing and Trading

Crash or Soar? Traders Are Preparing for Stock Market Extremes; Options buyers bet on broad equities swings, not minor moves; ‘A lot of concern of potential black swan events’: Cboe’s Xu
Carly Wanna and Natalia Kniazhevich – Bloomberg
Investors who just booked profits from one of the strongest first quarters for the S&P 500 Index in decades are preparing for what comes next – whether that’s stocks climbing higher or crashing back to earth. With the stock market sitting at an all-time high as the second quarter begins, the tells for what traders are thinking lie in the options market. Demand for put options that pay off if there’s a minor correction is around the lowest in years. Meanwhile, traders are quietly picking up tail-risk hedges: instruments that do little if there’s a slight downdraft but offer protection if stocks swing wildly.
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GE completes three-way split to start trading as separate companies
Reuters
General Electric on Tuesday completed its breakup into three companies, marking the end of an era for the industrial conglomerate pioneer that was once a symbol of American business power. The industrial giant’s aerospace and energy businesses will begin trading on the New York Stock Exchange as separate entities on Tuesday, more than a year after its healthcare business began trading on the Nasdaq.
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Four Steps to Take When Spring-Cleaning Your Portfolio; Financial pros say investors should review their savings goals and strategies around tax time each year and make necessary adjustments
Lawrence Strauss – The Wall Street Journal
It should be a common ritual: the spring portfolio cleaning. While investors can spruce up their portfolio any time of year, and should review it around November or December at a minimum to prepare for tax and retirement changes in the coming year, the spring does have its advantages for cleanup and assessment. “This is the perfect time, because you’ve got all this information about your accounts while you’re doing your taxes,” says Lisa Featherngill, national director of wealth planning at Comerica Bank, adding that it is an opportunity to take inventory of all financial accounts and consolidate that information digitally to easily view in one place.
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The New Magic Number for Retirement Is $1.46 Million. Here’s What It Tells Us; There is no single formula for how much you need to save in your 401(k)
Anne Tergesen – The Wall Street Journal
The stock market gave 401(k)s a 19% boost last year. Inflation cooled. Still, lots of people feel no closer to hitting their magic number for retirement. It would take $1.46 million to retire comfortably, according to a recent survey of 4,588 adults released Tuesday by financial-services company Northwestern Mutual. That is up from $1.27 million a year ago. And over $1 million more than the average survey participant’s nest egg.
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Environmental, Social and Corporate Governance

Explainer: Shell appeals against Dutch court’s landmark climate ruling
Reuters
A Dutch court on Tuesday heard Shell’s (SHEL.L), opens new tab appeal against a landmark climate ruling which ordered it to drastically deepen planned greenhouse gas emission cuts. Here are key points about the ruling and the appeal process: WHAT WAS THE RULING? The district court in The Hague ordered Shell in 2021 to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels. The reduction includes emissions from the use of fuels sold to customers, which account for around 95% of Shell’s emissions.
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The painful rise in home insurance costs; Climate resilience efforts are essential to keep a check on policy premiums
The editorial board – Financial Times
After years of experiencing gentle inflationary increases in insurance premiums, many homeowners are now getting an unwelcome surprise as they open their latest bills. In the UK, the median cost of home insurance policies rose 36 per cent over 2023, according to Go Compare. In America, some states have experienced 40 to 60 per cent increases since January last year. The lack of affordable property insurance has even driven some to move home. In Australia, there are concerns that many homeowners will ride their luck without cover, after premiums rose by the most in two decades.
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EPA sets strict emissions standards for heavy-duty trucks and buses in bid to fight climate change
Matthew Daly and Tom Krisher – Associated Press
The Environmental Protection Agency on Friday set strict emissions standards for heavy-duty trucks, buses and other large vehicles, an action that officials said will help clean up some of the nation’s largest sources of planet-warming greenhouse gases. The new rules, which take effect for model years 2027 through 2032, will avoid up to 1 billion tons of greenhouse gas emissions over the next three decades and provide $13 billion in net benefits in the form of fewer hospital visits, lost work days and deaths, the EPA said.
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One of the world’s great lakes is vanishing – and leaving toxic dust in its wake; Great Salt Lake, the largest saline lake in the western hemisphere, is at risk of disappearing in just five years. Louise Boyle speaks to one scientist pulling out all the stops to help save it
Louise Boyle – The Independent
Some things are so precious, so essential for the common good, they cannot be bought or sold. They fall, instead, to the public trust, a doctrine of common law that dates to the Roman Empire. Great Salt Lake is one. The world’s eighth largest saline lake is the cornerstone of Utah’s outdoorsy lifestyle, supports 7,700 jobs and $1bn in annual economic output. Millions of migratory birds flock to its shores, earning it a reputation as “America’s Serengeti”. And, it is dying.
/jlne.ws/4ajvNUx

Record wildfires hit Venezuela during climate-driven Amazon drought
Jake Spring, Mircely Guanipa and Maria Ramirez – Reuters
Venezuela is battling a record number of wildfires, according to data released on Monday, as a climate change-driven drought plagues the Amazon rainforest region. Satellites registered more than 30,200 fire points in Venezuela from January to March, the highest level for that period since records started in 1999, according to Brazil’s Inpe research agency, which monitors all of South America.
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So Much Produce Comes in Plastic. Is There a Better Way? As governments impose limits on plastic food packaging, climate-friendlier alternatives are in the works. Here are some that might be coming to a grocery store near you.
Kim Severson – The New York Times
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US climate law has boosted solar, batteries; hydrogen, other initiatives lag
Sabrina Valle – Reuters
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IKEA Foundation backs emerging market EV push with $100 million grant
Simon Jessop and Virginia Furness – Reuters
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Global glut turns solar panels into garden fencing option; Europeans find alternative location for cheap green technology with cost of rooftop installation so high
Kenza Bryan and Lukanyo Mnyanda and Amanda Chu – Financial Times
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Institutions

Societe Generale and AllianceBernstein launch cash equities and research joint venture; Named Bernstein, the joint venture will offer investment insights into North America, European and Asia Pacific equity markets, alongside liquidity access and global trading technology.
Wesley Bray – The Trade
AllianceBernstein and Societe Generale have launched a new joint venture focusing on global cash equities and equity research. Named Bernstein, the move follows the original announcement to form the joint venture in November 2022.
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UBS promises $2bn in share buybacks; Swiss lender restores repurchase programme as it integrates Credit Suisse
Owen Walker – Financial Times
UBS has promised to buy back up to $2bn of shares, taking the total European lenders have pledged to return to investors this year to more than $130bn. The Swiss bank announced a new share repurchase programme on Tuesday, having suspended its previous plan a year ago following its rescue of former rival Credit Suisse.
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JPMorgan credit outlook upgraded to positive from stable at S&P for ‘superior resilience’; S&P cites megabank’s ‘business strength’ as well as its diversification
Steve Gelsi – MarketWatch via The Wall Street Journal
S&P Global Ratings has upgraded its ratings outlook for JPMorgan Chase & Co to positive from stable after the megabank’s “superior resilience to the tough operating environment amid a sharp increase in interest rates.” JPMorgan Chase’s JPM creditworthiness has reaped gains disproportionately from secular trends compared to its peers through its efforts to consolidate its business and operate under an increased regulatory regime.
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Citi to lay off 430 employees in New York across different divisions
Reuters via NY Post
Citigroup will lay off 430 employees across different divisions in New York, the bank disclosed in filings with the State Department of Labor on Monday. The layoffs will impact 363 employees of the lender’s primary banking unit, Citibank. Workers in the technology and broker-dealer arm will also be affected, the filings showed. The bank last week ended a sweeping overhaul, its biggest in decades, as part of an effort to simplify its structure and improve performance.
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Tiger Global VC Fund Closes 63% Below Target With $2.2 Billion; Firm told investors in 2022 that it aimed to raise $6 billion; PIP 16 is dwarfed by previous fund, which raised $12.7 billion
Hema Parmar – Bloomberg
Tiger Global Management gathered about $2.2 billion for its latest venture-capital fund, well short of a $6 billion target and its smallest fundraising haul in roughly a decade, according to people familiar with the matter. Last week’s final close of Private Investment Partners 16 fund marks the first time a Tiger venture pool attracted less cash than the vintage that preceded it.
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UK’s top private equity dealmakers earned £5bn in carried interest; Amount was shared among 3,000 high earners in 2022, according to Treasury analysis
Will Louch and Anna Gross – Financial Times
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S&P 500 trackers hit a record 27% of 2023 equity ETF flows; Rise of Magnificent Seven helped to push flows to ETFs tracking the blue-chip index to an all-time high of $137bn
Steve Johnson – Financial Times
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Work & Management

Your Resume Is Probably Too Long; The average CV has doubled to two pages in recent years with applicants adding more ambiguous keywords.
Charlotte Hampton – Bloomberg
Jobseekers are filling their resumes with buzzwords to get past automated systems that are often the first screen on candidates, but it’s turning off the humans. Two-page CVs are now the norm compared to five years ago, according to resume builder LiveCareer, which analyzed its internal database of 50,000 resumes and found that lengthy skills sections were behind the change. “Time management” and “critical thinking” are some of the most popular phrases. Some recruiters aren’t impressed.
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Wellness Exchange

Medical Tourism Insights: Trends, Destinations, and Patient Experiences
Elizabeth Hawthorne – Corporate Wellness Magazine
In today’s era of globalization, the concept of healthcare transcends geographical boundaries, offering patients a world of possibilities to explore for their medical needs. Medical tourism, the practice of traveling abroad to receive medical treatment, has emerged as a dynamic and rapidly growing industry. This article aims to provide a comprehensive overview of medical tourism, shedding light on its trends, top destinations, patient experiences, and key considerations for prospective medical tourists.
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Regions

Foreigners Flocking to India Bonds Make Splash Across Market
Catherine Bosley – Bloomberg
Cash pouring into India from its watershed inclusion into key global bond indexes is already reshaping markets in a country long keen to insulate itself from hot money flows. Foreign investors have pumped roughly 780 billion rupees ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.’s landmark announcement in September and are beginning to climb up the ownership list. The inflows are leaving their mark on a variety of assets, with corporate bonds outperforming peers and foreign exchange reserves hitting a record high. The rupee has shrugged off the impact of a broad strengthening in the dollar.
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India cenbank’s new FX derivative rules unchanged, say exchange circulars
Reuters
India’s National Stock Exchange of India Ltd and BSE Ltd on Monday issued circulars to brokers reaffirming the central bank’s latest currency derivative rules, which traders fear will hurt volumes in the market. The rules were first issued by the Reserve Bank of India in a Jan. 5 circular and required exchange-traded rupee derivative transactions to have an underlying foreign exchange exposure. While a similar requirement existed earlier, it was not strictly enforced.
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Nigeria to Almost Triple Energy Prices, Keep Subsidy for Poor; Hike will apply to 15% of population, consuming 40% of power; Move may ease government spending, boost power supply
Nduka Orjinmo and Ruth Olurounbi – Bloomberg
Nigeria plans to almost triple energy prices within weeks, people in the presidency with knowledge of the matter said, in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs. Power companies will be allowed to raise prices to 200 naira ($0.15) per kilowatt-hour from 68 naira for urban consumers this month, according to people who asked not to be identified because they aren’t authorized to speak on the matter. These customers represent 15% of the population that the government says consume 40% of the nation’s electricity, the people said.
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Russia’s Seaborne Crude Exports Surge to the Highest This Year; Overall first-quarter exports were in line with Moscow’s OPEC+ pledge
Julian Lee – Bloomberg
Russia’s seaborne crude exports jumped in the final week of March to the highest so far this year, even as average shipments in the first quarter were close to the level pledged by Russia to its OPEC+ partners. Last week’s rebound came amid an easing of the high winds that repeatedly hampered loadings at Russia’s main Pacific port in recent weeks. While those earlier storms are still affecting four-week average flows, their impact is lessening. The less-volatile measure of shipments reached its highest since early November in the period to March 31, tanker-tracking data compiled by Bloomberg show.
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Miscellaneous

Gentlemen’s club famous for ‘nieces’ night’ considers admitting Crispin Odey; Buck’s of Mayfair faces revolt after disgraced hedge fund manager was named on list of prospective members
David Sheppard and Antonia Cundy – Financial Times
Buck’s, the exclusive Mayfair gentlemen’s club favoured by royals, military officers and financiers, is facing a revolt among members after disgraced hedge fund manager Crispin Odey was put forward to join. Odey, whose eponymous hedge fund firm unravelled last year after the Financial Times detailed multiple allegations of sexual assault or harassment against him over decades, has been named on a list of prospective members at Buck’s.
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