Deutsche Bank Shows the Long Road Ahead for Credit Suisse [WSJ]
Dismal first-quarter results from the beleaguered Swiss lender disappointed already low expectations that had been adjusted for a profit warning only days earlier…. Meanwhile, as the German bank enters the final year of its turnaround, results released on Wednesday marked another improving quarter for revenue and profit….
With few concrete benchmarks for interim progress, steady performance is crucial. Even then it will likely take the Swiss bank a long time to repair itself.
Cryptocurrency Firms Push Back Against Proposal to Police Treasury Markets [WSJ]
The SEC’s current definition of an exchange involves an entity that matches orders from multiple buyers and sellers, and “uses established, nondiscretionary methods” for determining how those orders interact with each other. Under the proposal, the definition would replace the word “uses” with “makes available” to capture so-called communication protocol systems that take a more passive role in enabling prospective traders to interact, negotiate and reach an agreement….
“The proposal may not have been designed with this developing ecosystem in mind,” lawyers for Andreessen Horowitz, which invests in crypto projects, wrote in a comment letter to the SEC. “Nevertheless, broadening the definition of an exchange in a manner that could apply to DeFi protocols, at a time when it is unclear which digital assets are considered securities, will create tremendous regulatory uncertainty and deter responsible innovation.”
Toymaker Mattel explores sale, has held talks with Apollo, L Catterton, source says [Reuters via CNBC]
The talks on a possible sale come a few months after the California-based company’s chief executive officer, Ynon Kreiz, said Mattel had completed its turnaround plan and was in “growth mode.”
Elon Musk’s deal for Twitter includes a $1 billion breakup fee. [NYT]
Twitter would have to pay Mr. Musk in certain circumstances if the deal goes awry. That would include if the social media company signed a deal with another suitor whose offer it deemed superior. Mr. Musk, for his part, would have to pay if his financing for the deal falls apart…. “It’s actually a pretty plain vanilla merger agreement,” said Steven Davidoff Solomon, a professor at the School of Law at the University of California, Berkeley.
London Metal Exchange CEO Backtracks on Exit After Nickel Chaos [Bloomberg]
[Matthew] Chamberlain’s imminent exit would have come at a tumultuous time for the LME, which has been harshly criticized for its handling of the unprecedented short squeeze in nickel…. There are broad expectations that the LME may face lawsuits from investors who stood to profit from the spike in prices, and Chamberlain will also need to liaise with U.K. regulators who are probing its handling of the crisis.
Biden Seriously Considering Student-Loan Forgiveness, Officials Say [WSJ]
Mr. Biden didn’t detail his plans, but responded positively when lawmakers pushed him to forgive $10,000 in student debt, the people said, suggesting they would be happy with his final decision. He also indicated he is open to further extending the current pause on student-loan payments, which is set to expire on Aug. 31…. Some Democrats believe the issue could help motivate young voters and other progressives to go to the polls in November….