New York Community Bancorp (NYCB) announced a $1 billion capital raise with investment firms including Steve Mnuchin's Liberty Strategic Capital, as the struggling bank seeks to shore up its balance sheet. Mnuchin and former comptroller of the currency Joseph Otting will join the board, with Otting taking over as CEO. The stock, which had already fallen sharply, was halted for news pending and is now below $2 per share. This comes after a turbulent start to the year for NYCB, including a credit rating downgrade and the identification of internal control weaknesses.
Macy's has received a higher buyout offer of $6.6 billion from investment firms Arkhouse Management and Brigade Capital Management, following the rejection of their previous bid. The new offer represents a 14% increase from their prior bid and comes after Macy's announced plans to close 150 underperforming stores as part of a major restructuring effort. The department store chain's stock rose 3.4% in premarket trading following the announcement, and the company confirmed that its board would carefully review the revised proposal.
Wealthy corporations and institutions like Grayscale, BlackRock, and Fidelity are buying up bitcoins, making them the so-called 'Bitcoin whales'. Other significant holders include cryptocurrency exchanges, unknown individuals with large wallets, and the anonymous creator of Bitcoin, Satoshi Nakamoto. Additionally, regulated investment firms, law enforcement agencies, and public figures like Michael Saylor and the Winklevoss Twins also hold substantial amounts of bitcoins. The surge in Bitcoin's value is attributed to the actions of these large holders, rather than individual retail investors.
The Microsoft-Activision trial, which will determine the fate of the largest video gaming deal ever, has attracted the attention of merger arbitragers, including portfolio managers, analysts, and specialized brokers, who flew in from New York and Chicago to observe the proceedings. These professionals are closely watching for any signs that the US Federal Trade Commission's bid to block the merger will succeed or fail.
The SEC's proposed rule demanding investment firms safeguard all of their clients' assets, including crypto, with approved custodians has drawn criticism from financial giant JPMorgan, the Small Business Administration, and the crypto sector. The proposed rule said any assets entrusted to investment advisers need to be held with "qualified custodians," which generally means a chartered bank or trust company, a broker-dealer registered with the SEC, or a futures commission merchant registered with the Commodity Futures Trading Commission. The SEC's Chair, Gary Gensler, said the rule would help ensure that advisers don't inappropriately use, lose, or abuse investors' assets.
The commercial real estate industry is facing a potential crisis worse than the 2008 recession as businesses leave downtowns due to remote work and rising interest rates. Investment firms who own downtown buildings may not have enough money to pay off their loans to banks, leading to defaults. While some cities have seen a significant increase in empty office space, others are shifting towards more residential, retail, and entertainment spaces to make up for the loss of office crowds. The industry is expected to come out with scratches and bruises, but not a collapse of the banking system.
