Robinhood shares tank as revenue falls way short of expectations on lighter crypto trading [CNBC]
For the third quarter, total net revenue came in at $365 million, missing a Refinitiv estimate of $431.5 million…. Third-quarter transaction based revenue totaled $267 million, with only $51 million coming from cryptocurrency trading. Revenue from crypto trading totaled $233 million in the second quarter, helped by interest in meme-inspired dogecoin….
“Q2 was kind of one of those idiosyncratic market events where there’s this massive interest specifically in doge,” Robinhood CFO Jason Warnick told CNBC. “We love it when those moments happen. It’s a great way to bring a lot of new customers onto the platform. But we’re really thinking about investing in crypto over the long term. And so it’s you know, frankly, it’s gonna be impossible for us to accurately predict ... revenue on a quarter-to-quarter basis.”
Federal Trade Commission Scrutinizing Facebook Disclosures [WSJ]
Officials are looking into whether Facebook research documents indicate that it might have violated a 2019 settlement with the agency over privacy concerns, for which the company paid a record $5 billion penalty, one of the people said…. One issue likely being explored by FTC staffers is whether Facebook had a legal obligation to warn users about the risks revealed by internal research findings, said former FTC Chairman William Kovacic, now a law professor at George Washington University. If Facebook failed to do so, that could constitute a deceptive trade practice, he said.
Libor Transition Vexes Collateralized Loan Obligations Market [WSJ]
While some companies, lenders and markets have moved swiftly to adopt a replacement for the scandal-marred interest-rate benchmark, low-rated borrowers have been slower to adapt. That is causing headaches for managers of collateralized loan obligations—pools of low-rated corporate loans bundled together into securities…. The looming Dec. 31 expiration leaves CLO managers at risk of holding loans tied to a variety of short-term benchmarks, increasing the potential for interest-rate volatility that could damp returns. The move could also leave some CLO securities with benchmarks different from the loans in their collateral pool, making it harder for investors to protect their holdings against fluctuations in rates and underlying loan prices.
Rokos Hedge Fund Slumps 20% in Worst Year for Famed Macro Trader [Bloomberg]
His macro money pool, which had $14.5 billion in assets at the start of the year, declined by about 11% this month…. By comparison, his macro-trading peers were up 6.3% through September…. His fund hasn’t previously lost more than 4% in any year….
Stocks linked to Trump — DWAC and Phunware — sink after ex-president touts social media plans [CNBC]
DWAC’s share price skidded nearly 30% Tuesday to close at $59.07 apiece. And tiny advertising software start-up Phunware tanked almost 40% to $4.35…. On Tuesday, an hour before trading began, Trump issued a lengthy statement about his plans for the new social media app he intends to roll out and other aspects of his new company.
JPMorgan’s $30 Billion Racial Equity Pledge, One Year Later [WSJ]
In a progress report Tuesday, the nation’s biggest bank said it had issued $6 billion in loans that kept open affordable housing and rental units across the country, and issued $1 billion in loans to build more. It said another $4 billion went into refinancing 16,000 mortgages for Black and Latino borrowers…. “We identified where we needed the infrastructure and the building blocks to build a sustainable business and are doing that,” Mr. Lamb said. “Where we thought we were able to do the most good first, we literally sprinted.”