Skip to main content

Nasdaq to Spin Out Market for Pre-IPO Shares in Deal With Banks [WSJ]
Nasdaq Private Market will be moved into a separate, stand-alone company that will receive investments from a group of banks. The group includes Citigroup Inc., Goldman, Morgan Stanley and SVB Financial Group, owner of Silicon Valley Bank…. Nasdaq is betting that the bank deal will make Nasdaq Private Market the dominant venue for trading of pre-IPO shares. Its bank partners include some of the biggest Silicon Valley deal-makers, with clients that encompass both startups and well-heeled investors.

Biden to Tap Former Hill Aide for Top Treasury Post Overseeing Financial Rules [WSJ]
[Graham] Steele is the director of the Corporations and Society Initiative at Stanford Graduate School of Business, which seeks to “promote more accountable capitalism and governance,” according to its website. He previously served as a staffer at the Federal Reserve Bank of San Francisco, and also worked at Public Citizen, a progressive watchdog group, before joining [Sen. Sherrod] Brown’s staff in 2010…. In recent years, he has been a vocal proponent of treating climate change as a systemic risk to the financial system, and called on U.S. regulators to do more to confront the potential dangers, such as more frequent wildfires or droughts that threaten banks’ physical assets.

Robinhood seeks a $35 billion valuation in its I.P.O. [NYT]
Robinhood said it planned to sell shares at $38 to $42 each…. In an unusual move, Robinhood is reserving as much as a third of I.P.O. shares for its own customers, instead of the standard universe of mutual funds and other big institutional investors….
It is set to begin trading on the Nasdaq market by the end of next week.

Moderna stock 'has taken on a life of its own' ahead of S&P 500 entrance [Yahoo! Finance]
“It's priced in a huge amount of assumptions over the next ten years that haven't played out yet. People believe it’s the Tesla of biotech….”
Moderna's COVID-19 vaccine marks its first — and only — commercially available product. On the back of strong demand for the vaccine, the company recorded its first-ever profitable quarter in Q1.

GameStop stock thrives despite Monday’s market carnage [Thornton/MarketWatch]
Shares of GameStop closed up 2.6% on the day, despite heavy sell-offs across the market as investors pointed to climbing cases of the delta COVID variant as a threat to the global economy recovery…. On Reddit, GameStop’s legion of so-called “Apes” touted their “diamond hands” and even shared they were buying option orders on Fidelity’s trading platform going into the close, even after experiencing issues buying GME earlier in the day.

It’s official: The Covid recession lasted just two months , the shortest in U.S. history [CNBC]
“In determining that a trough occurred in April 2020, the committee did not conclude that the economy has returned to operating at normal capacity,” the NBER said in a news release. “The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession associated with the February 2020 peak. The basis for this decision was the length and strength of the recovery to date….”
Conventionally, a recession is defined as two consecutive quarters of negative GDP growth, which this recession met after the first quarter in 2020 fell 5%. But the NBER noted that in normal times, a recession lasts “more than a few months.”

Related

robinhood

Opening Bell: 8.4.21

Robinhood steals from the IPO participants and gives to the options traders; markets set to tank for no reason at all; Carlyle failure touts Carlyle success; and more!

robinhood

Opening Bell: 6.10.21

The summer of going public; inflation inflates; GameStop plays a bum card; James Biden got a call; and more!

robinhood

Opening Bell: 7.30.21

Robinhood REKT; Goldman gets worried; Alden does what Alden does; and more!

kansas city southern

Opening Bell: 9.13.21

Two certainties: taxes and business opposition to taxes; pre-IPO market forgoes one; CFTC has more letters than members; and more!

kremlin

Opening Bell: 4.15.21

Russian risks; pharma deals; GameStop gripes; and more!

gamestop

Opening Bell: 2.26.21

GameStop gun-shy; the only IPOs are the ones people don’t want; dump bonds, buy bitcoin; and more!

Opening Bell: 05.18.12

Facebook Employees Spend All Night Programming (DJ) Tech geeks across the Facebook empire — including the New York office — celebrated the company’s IPO and their newfound millions by slugging back energy drinks at all-night code-writing parties. Legions of the social network’s employees, who will be worth an average of $2.9 million apiece on paper when the stock opens trading this morning, dressed for the occasion with matching “Hackathon” T-shirts. They kicked off the party at their Menlo Park, Calif., headquarters, just hours after the company’s 420 million available shares were priced at $38 each. The festivities were expected to rage through the night until founder Mark Zuckerberg rings the Nasdaq opening bell via video feed at 9:30 a.m. Inside JPMorgan's Blunder (WSJ) Chairman and Chief Executive Officer James Dimon had just committed the most expensive blunder of his 30-year career, failing to detect the risk of trades that had begun to generate huge losses at the bank. On April 30, associates who were gathered in a conference room handed Mr. Dimon summaries and analyses of the losses. But there were no details about the trades themselves. "I want to see the positions!" he barked, throwing down the papers, according to attendees. "Now! I want to see everything!" When Mr. Dimon saw the numbers, these people say, he couldn't breathe...Mr. Dimon publicly disclosed the losses in a conference call on May 10. Afterward, he told Mr. Lee: "Maybe I can sleep tonight," according to a person familiar with the conversation...Late that Friday night, several executives gathered in Mr. Dimon's office. Messrs. Dimon and Cavanagh drank vodka. Others had wine. They told their boss how they had let down the firm, attendees say. "We all did," Mr. Dimon replied, according to attendees. "Put on your JPM jerseys and get ready. We are going to take a lot of hits. We'll draft our best team and get through this." Defiant Message From Greece (WSJ) "Our first choice is to convince our European partners that, in their own interest, financing must not be stopped," Mr. Tsipras said in an interview with The Wall Street Journal. He said Greece doesn't intend to take any unilateral action, "but if they proceed with unilateral action on their side, in other words they cut off our funding, then we will be forced to stop paying our creditors, to go to a suspension in payments to our creditors." Groupon Stock Spike Probed (WSJ) A Wall Street regulator is examining trading in Groupon that sent its stock price soaring hours before a favorable earnings announcement Monday, according to a person familiar with the matter. The review by the Financial Industry Regulatory Authority, or Finra, is at an early stage, the person said. It follows unusually heavy trading in shares of the online-coupon company in the run-up to its release of strong financial results. Ex-ECB Chief Trichet Unveils Bold Plan to Save Euro (Reuters) Europe could strengthen its monetary union by giving European politicians the power to declare a sovereign state bankrupt and take over its fiscal policy, the former head of the European Central Bank said on Thursday in unveiling a bold proposal to salvage the euro. Russian man gets stuck in building's garbage chute while trying to hide from girlfriend (NYDN) A Russian man went to great lengths to hide from his girlfriend on Wednesday night when he jumped into a garbage chute on the eighth floor of his apartment building. The unidentified man slid down the chute until he became stuck on the fifth floor of the building in Tyumen, Siberia. Authorities confirmed that they were told of the situation after people in the building heard the man's cries for help. Rescuers used a Jaws-of-Life tool to free the man, according to reports. Santander Among 16 Spanish Banks Downgraded By Moody’s (Bloomberg) "Banks will continue to face highly adverse operating and market funding conditions that pose a threat to their creditworthiness,” the ratings firm said. “The Spanish economy has fallen back into recession in first-quarter 2012, and Moody’s does not expect conditions to improve” this year. Marc Faber: China Biggest Threat To Global Economy (CNBC) "I think the biggest risk is actually China because if you look at Greece, it's an insignificant economy," Faber said on CNBC Asia's “Capital Connection.” "Yes, they owe money, but the market knows that it's bankrupt." German Finance Minister Sees Two Years Of Turmoil (Bloomberg) German Finance Minister Wolfgang Schaeuble said that turmoil in the financial markets caused by Europe’s debt crisis may last another two years, as Group of Eight leaders prepared to discuss Greece and its impact on the global economy. More than 2 1/2 years after Greece revealed its bloated budget deficit, Europe has “known a lot of crisis,” Schaeuble said in a recorded interview broadcast today on France’s Europe 1 radio. “It’s practically normal.” Even so, “in 12 to 24 months we’ll see a calming of financial markets,” he said.

dumpster

Opening Bell: 8.19.20

Market immunity; Mooch loves Robinhood; Mnuchin doesn’t know; Citi’s snit; garbage company is literally garbage; and more!