Online lender SoFi to go public through merger with Palihapitiya-backed SPAC [Reuters]
The deal values SoFi at around $8.65 billion and is expected to provide up to $2.4 billion in cash proceeds to the San Francisco-based company…. SoFi had planned to go public through a traditional initial public offering (IPO) in 2021 after raising money in a private round but chose the SPAC route because it preferred the deal certainty and the ability to make projections in talks with investors, Noto said.
Elon Musk Surpasses Jeff Bezos to Become World’s Richest Person [Bloomberg]
The electric-automaker’s shares surged 7.9%, boosting Musk past Amazon.com Inc. founder Jeff Bezos on the Bloomberg Billionaires Index, a ranking of the world’s 500 wealthiest people. Musk is worth $194.8 billion, or $9.5 billion more than Bezos…. Over the past year the South Africa-born engineer has added more than $165 billion to his fortune in what’s probably the fastest bout of wealth creation in history.
Biden Selects Heads of Labor, Commerce and Small Business Agencies [NYT]
President-elect Joseph R. Biden Jr. filled out his economic team on Thursday by naming Gov. Gina Raimondo of Rhode Island as his commerce secretary, Mayor Martin J. Walsh of Boston as his labor secretary and Isabel Guzman, a former Obama administration official, as head of the Small Business Administration….
As governor of Rhode Island, Ms. Raimondo introduced training programs, cut taxes, and eliminated regulations and offered new loans to support businesses…. Before running for office, she was a founding employee at the investment firm Village Ventures, which was backed by Bain Capital, and co-founded a venture capital firm, Point Judith Capital.
Credit Suisse forecasts fourth-quarter loss after taking higher provisions over U.S. case [Reuters]
Credit Suisse on Friday said it expects to book a net loss for its fourth quarter after increasing its provisions for a long-running dispute in the United States by $850 million.
The bank had already set aside $300 million in connection with the case which relates to a decade-long dispute regarding a U.S. residential mortgage-backed security (RMBS), but said in December it expected the figure to rise.
D.E. Shaw's largest hedge fund gains nearly 20 pct in 2020 [Reuters]
Gains were fueled mainly by systematic and discretionary strategies, said a person familiar with the returns but not authorized to discuss them publicly…. The New York-based hedge fund raised $2 billion in new money for the Composite fund in April, not long after fear about the coronavirus sparked a deep stock market sell-off…. D.E. Shaw’s Oculus Fund, a more macro-oriented multi-strategy portfolio, gained 25.4% last year….
Russian in Massive JPMorgan Data Hack Sentenced to 12 Years [Bloomberg]
Andrei Tyurin, who pleaded guilty in 2019 to stealing data on clients of JPMorgan Chase & Co. and other companies, was the hired hacker in a scheme that netted hundreds of millions of dollars and affected almost 140 million clients, prosecutors said…. Tyurin had faced about 15 to 20 years behind bars. U.S. District Judge Laura Taylor Swain said she had reduced his sentence because of the “unusually harsh” conditions he faced in detention in Tbilisi, Georgia, before he was extradited to the U.S., where he subsequently contracted the coronavirus while in custody.
Why the Amazon, JPMorgan, Berkshire Venture Collapsed: ‘Health Care Was Too Big a Problem’ [WSJ]
Data was a central challenge. Haven struggled to aggregate and analyze information on health-care costs for the three companies’ employees. Data concerns from the partners and resistance from insurers stymied Haven’s efforts to determine how much the companies paid for medical care and why, the people said…. “You can’t solve the problem when you can’t see it,” one of the people involved in the venture said. “We were all doing our own thing and health care was too big a problem for us to solve.”