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  1. Money Stuff: The Podcast: Gappy Paleologo

    Fri, 04 Jul 2025 16:03:38 -0000

    <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xmlns="http://www.w3.org/1999/xhtml" style="width: 100%;"> <head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="initial-scale=1"/> <title>Money Stuff</title> <style>body{width:100%;-webkit-font-smoothing:antialiased;font-family:Georgia,serif;font-size:16px;line-height:24px;margin:0;padding:0}img{max-width:550px}@media only screen and (max-width:480px){.lihide{display:none!important}.lishow{display:block!important;width:auto!important;overflow:visible!important;float:none!important;max-height:inherit!important;line-height:inherit!important}.email-ssl-image{width:100%!important;height:auto!important}.body-image img{width:100%!important}.logo-image{width:100%!important}}</style></head> <body style="width: 100%; -webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; line-height: 24px; margin: 0; padding: 0;"> <div style="color:transparent;visibility:hidden;opacity:0;font-size:0px;border:0;max-height:1px;width:1px;margin:0px;padding:0px;border-width:0px!important;display:none!important;line-height:0px!important;"><img border="0" width="1" height="1" src="https://post.spmailtechnolo.com/q/toDepoa06ygeU5GMlkhmtg~~/AARGbBA~/QedOLEM0s-A5ibiuWbkhOm6meGO7gXDOcJizcG8lxKKsHSVg6wsuymtCz2Mc9U4L9HjGy6Vx6V-gySNfq8sn_gRQ1yG3ePbCMGAu-6NyCfg~" alt=""/></div> <span style="color:transparent;visibility:hidden;display:none;opacity:0;height:0;width:0;font-size:0;"></span><img src="https://links.message.bloomberg.com/s/eo/vFvKOq5Ovuz1v_-reoXwhjl_I_9PdB892FDI0ALtWF1PnM1QUEubqH-mMEZ5DRmgJlEB7yEExUxO_UVUDW-ODPjV2sMId7f4b1X_UpDdMeUFIJkrBHElt6IvAOT0ENLp5XsWOxPgklHd_CIDpxKF4_qZw9m3ii0M4c8NrulM5sjhDU8Maxt1Dx1U6SmS0D0Xuq_VR4rHkY1CvyX1VtwAySbTLfnY_CaP2RIN/v9bkCYUnK4PwZonZERdUt3L5-UlETTNz/10" style="border:0;width:1px;height:1px;border-width:0px!important;display:none!important;line-height:0!important;" width="1" height="1"/> <table id="wrapper" width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="-webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; max-width: 550px; width: 100% !important;"> <!--[if mso]><center> <tr><td> <table border="0" cellpadding="0" cellspacing="0" width="550"><![endif]--> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <div style="display: none; max-height: 0px; overflow: hidden;"> This week’s episode of the Money Stuff podcast is out now. We have a guest, Giuseppe “Gappy” Paleologo of Balyasny Asset Management, whose b </div> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 15px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 0px 10px;"> </td> </tr> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 5px;"> <a href="https://links.message.bloomberg.com/s/c/55jYUFHkTEzCDhm_tvJ2kgxpQbfb-ny2zwiHqUZu-jg7hrQ-p4a2GW0FhThbg-5p-DmeB_pgwePCtEcNW5cUzgERtQkv3DbTcw4u9AYaAsNwUwNJI0gQP0FH2qfUIXRpSUWunGO1vwGESKBlKi7NLdi03tu7d5OLa9zmT6a0v-0sfFo4ZbFNeAu4KYXruF9EeKf0CbPVtXZMrPdX8IvKA1fBN4z9wJqUn1Jx68Lx1f8uXqM2xIetuY8Wd5_cRMja6wlmP-tPirbhXSp3X5kpOPm9pLz35C7bzRvSU0N5xVKH20Ha3D1tjHbd-HS0DUMMsn4lSWwAUT9oap0DjckSK6PgufPGOFzJ-36jnk0m7tYrUjWHFsBIARsSUg/1Ccgp5dl_VGiRtALxXfqtmiPqVu3IkMN/10"> <!--[if mso]><table width="550"><tr><td><img alt="Bloomberg" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img class="logo-image" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" border="0" alt="Bloomberg" style="max-width: 550px; width: 530px; display: block;"/><!--[if mso]></div><![endif]--> </a> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 16px; line-height: 24px;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-family: Helvetica, Arial, sans-serif; letter-spacing: -1px; font-size: 26px; line-height: 28px; font-weight: normal; border-top-width: 1px; border-top-style: solid; padding-top: 12px; margin: 20px 0px 0px;">Podcast</h2> </td> </tr> </table><p style="font-family: Georgia, serif; margin: 16px 0;">This week’s episode of the Money Stuff podcast is out now. We have a guest, Giuseppe “Gappy” Paleologo of Balyasny Asset Management, whose book <a href="https://links.message.bloomberg.com/s/c/F6ig2G5tMtZzxIDVWYb4SYuYwvKzOAvF4uUOo2QiaKDNwxuHcMSYs4r8mnEx_7Dj4z4nGURby3E_eVVpJRu9m1dsLcnrXdHyZnuJh0pxUGAY8MGxEW35bcYX7Na39nN4lwVT6v8xMBRZa05OxXiXBE09OBR-8WJuKa49lIi-b2EFk6B593L1RpnAtnBUlbZpgskmQjqOUyeqTfC2omZEKYSGn0IfmxvvWuyrw_yV_H1rvaXPofhM2lKv-fqM11cyqO7n-GIlfRSfpoE1_-ZiIJlMzwTGiOB51yt1VgETKoLnXIUpHSdqXIfl7DmfJSiTEOwGjClDtKyKdvgSSFZm8OWavNwcC4hJ5V2mI5Xdg3f-MZUIWbkSHM6uHw/5CS30cHaMi5-XS7B3eeJ3nc4z2N0FBJk/10" itemprop="StoryLink" itemscope="itemscope" target="_blank"><em>The </em></a><em><a href="https://links.message.bloomberg.com/s/c/mugD5Y79fff9xfHnCK5ZA4m3DNeM-qSN9tZ6fiuSQaBdUJWmCUIVal1tIQyqKj6kJFnT6Kl2fu3cIdnKG-RkD8eyUvb7KngEVBjkuUe9qoJyk12wh43EGoxU8MO6OxirIoeqOZ7STIynzmHu09XEUxH5fIXq_5LniaafaCKE69zozrFGHXpnKjUc-3zYBjqwJzPTYkDfqBFZ8RxN-VAk2OD4w38SQ6WFAZX3qJ73wpmVu7lsDxSM8qDy3AayZCc60OKQUmtI03i9-bwHfgNDpcGMTVHCMHuPBlZdPqtAAmMEDjM0PCsImJC9Mof5h4o2uf0IbSycaHmjfWpL9A-e3SPS1BNbZZ-vVnzGDZk3NQsyTlp2q8AuDOzuRA/XCpILpP0f2wmFG5ytyTf51ZOsaDZLx8n/10" itemprop="StoryLink" itemscope="itemscope" target="_blank">Elementsof Quantitative Investing</a> </em>came out in April. We talk with Gappy about gardening leave, the art of being an applied mathematician, whether quants should be astrophysicists or economists, factors and idiosyncratic returns, how portfolio managers’ minds have been remolded to think in factors, how if you are close to the best possible portfolio you’ll be close to other skilled investors’ portfolios, the market as a conversation among four hedge funds, hedge funds as providers of liquidity and price discovery, hedge funds as talent filters, a little AI, whether there would be trading if everyone had perfect information, liquidity provision versus informational services, the different cultures of arb traders and fundamental equity traders, and journalists as portfolio managers. You can listen to this week’s episode <a href="https://links.message.bloomberg.com/s/c/v9RvFIwsACOWlYwGIJeBvRpU2ZohQzVFMrqt3Tg9X6xTR41PMfuMimMgLE8OnEv8GZgDQkJm2mOMsJN0QwRuuGb48-OO631E8bq5Hq-k3XMFsvM4IaFV2yWcjO1s-p9l3eLqa1lbcHDb_d5friA5jcw5n23hluDFoPYY5Otq2ve8mOJXLCfqJYN8OfNeiqBe-mSeLW7CKJeaBSARic-IkxhArb6hgiGbhS-rrbTL3s9MnXa6juhimLkxkb9X5OKbWA6en7DTank3gp8IGmV0O5ufcFWQ0P5baWzeUkZnrNP2ZDh0nlve8XlXEyQ_oYUQ6dBQhrpbHRIBWJeem9-ZBzjT7kbr7UfIVG2chtLXC3w9AoAIh_WTCBbfeg/dla0cmvuaj5A7OiHEyi4fkgKMin2P5Oi/10" itemprop="StoryLink" itemscope="itemscope" target="_blank">here</a>:</p><div class="body-image" style="margin: 20px 0px;"> <a href="https://links.message.bloomberg.com/s/c/vUmwKCdgTnOyCP8cLMyP4OqvZm7Y5tXPydjaLigJNExUGSwV5GPedvLbAEkSuMsrdp8PgA5Z_LE2GaqYDgJpfFH3KCTjNpD-7RkvWpkcB_HC2x6M1cv-8hBaANA8wVTbEyRpXXQL0FAgD6X3KVfnYOlvIQ56ApkyAsSpV81FnDToYv14Yq2qDgZQxQswkfIWr6oK_rP2TJqCCmQJ_XzLA0sFZzYI4hv9B8xACqJtq6Bq5A-P0xHUUUQ1ciVYkJ_vSRAUIC6RY-zBosLqhPo5sPC_5xOHrwFywK5vRvJTcQ9hTUmiEyewN14zvB8tndAD0ibLSOrvkyjRtBspPWboBLdBkr6AdqvOargEj4DB1carFpxt33wUWHhzjQ/xO_nLNp2UIbFG8iDhKSJwwtSD_qWHz1l/10" target="_blank"><!--[if mso]><table width="550"><tr><td><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iZuLYUeivbEQ/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iZuLYUeivbEQ/v0/-1x-1.png" style="max-width: 550px; display: block; width: 530px; margin: auto;"/><!--[if mso]></div><![endif]--></a> </div><p style="font-family: Georgia, serif; margin: 16px 0;">You can get <a href="https://links.message.bloomberg.com/s/c/jv9tyJBOQFeRt46g0m0iQU9WIHFevs7EbRuD7ZTRLDg6hQ80fKFzTEb_W1jR6DZTevFrpqki50saHHZ-i7aHZ0FYmPJnKYABN4snZPJ7eBHvA4anMPCrPyVL_yYWeTvg1ZTzV1RuwHunCQlfTLTn9V68KfDIHCRvlgslk1F66ynILs9O17G7HY6xXh6tRkctjHlEmYJu5CIQRssOhZRgfoZjSf_sAh9Jw3JQLV64cFHTtg9zvTUoHWH7_KVWxAwUXB6vGmo5mp55cUUjnZw1rTUxNcnj-4_eyd8kxvld0f_L3xXPrL6Kchtk25uEh1gItbHqeC7S4WBh6ROoEYzuYAcfTB0JQDPv20Iy64z6afs8sMJivUKoyDsW3Q/-7shRPcgIx1moywZNTp6EOvAX9u2dnDR/10" itemprop="StoryLink" itemscope="itemscope" target="_blank">Money Stuff: The Podcast</a> at Apple, Spotify or wherever you get your podcasts. We’d love your feedback. You can email us at <a href="mailto:moneypod@bloomberg.net" target="_blank">moneypod@bloomberg.net</a>.</p> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse:collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> <strong style="font-family: Helvetica, Arial, sans-serif;">Follow Us</strong> </td> </tr> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/i3vqOFUfuHmLJmQHuEMa2Arj9N-5wfW2Qol4rQ9dt4GKiM0yR5ZLH153ezQC84rpxQyP72aobpgYSct8qxt4zYJqvf9vzkQ1b4nCGVMTZrCWFt-qL0pAAFXneyy0Vu_RVelqCcT7LeS86v1U0of46qB2LuAztsvIc6cKqjFBSgpc3N_z9_iqK-tFfLLFOR4AqPRvFbyGONLDCF0AYlkYoqk8XFKv4tK3BW55mEV0BOKaSAOrabLbI_VK8jebNIHEl08-NNrfpWlcpXujI-8lTjuEN0ShvHFSRQD-GxgpR9yoWy32Vcy_qrOTvvqBHTbeh5J_f_3h1Z2SVPs20aPQ9q-VOdC09JGhx3I7WH1rLlMXvXQa5sEsWrpGQQ/jmOgzlC7leAiMlrYj7hGt_6FAHl5ZYsP/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i7G4HOaCfw0A/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/2JuIJFdf8s5cHQCDAJ5tHIEVdY9XNEn9O5HhZ6U50_YW28D3cTrYsap2Opqk56MolOrBLiSLKbkgQudYZQN5WE3Y5z0E6mao34TJpn7UXvW76YSZgDLvlhwB-UB7tO0LHEbSV4aQtfl9plUtcPMsPsnlMEHmZhevV8vTjlbOP4zx4yFy14XOP4T4Fe2Qw7dUzDDOo62KDQVSdJcEaw-xqbKPYOh39YRDRWVMzf7pYePZPME1YZZAYME0NRkDE7cYbFJoFaugg8XPBs7ZrFfXWFdDnJADt4SbDP-sujYHWdTy3JxQchlOcM5bMdGQYC0VnuvBnfUvD8S5jb_PFAL3Lo6Yd916f2h18AGyaX0lwavdnsL_HLdxaG4KOw/1eQppJhOQnOreJ4rPDgytErYQwUPQOKr/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iDRduxloBOSA/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/UkywC340uv-gp323kpXajEVit1nsnYMCg-6zCjJ_SngO0o-t6-E_mN6AV4KJFgXBx-tPwyUZtF9KJBHNOW3C_RcybAVoNGYbXBXRMsAnJWrdxc85hK5EAGXASMcq4TfbfJCot38G8Drl8DDN6pyZs3cEmwJpM4XX8BSFjCpkKw-WkLVdMImfy3BZGGh1uXOUEXS9xMMtb7e_vKAqQLsjwWCo6M0XbT8IFTjo_8xllVSpjBTjpGKZ5qF7-M-brpBQLwb8-mKV4K2uTl_lefi0cHS3vCz1fXNQP9Y4VXHKKGDtyzcRqtB98leK8zW-rZbsh1X_-7g3NEU664SkBDjteLa2nr-oJY5KBdUHg6Jc22w_hKNKWmzZmYcbvqw/nqaRiOuIqWRJaf52i8QGIm5djQuvrEEJ/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i5QE5__h22bE/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 0px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="font-family: Helvetica, Arial, sans-serif; font-size: 14px; line-height: 150%;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> You received this message because you are subscribed to Bloomberg's Money Stuff newsletter. 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  2. Money Stuff: AI Is Bad at Snacks

    Thu, 03 Jul 2025 18:08:19 -0000

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width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--<![endif]--> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; line-height: 150%; padding: 0 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">AI rollup</h2> </td> </tr> </table> <p style="margin: 16px 0;">People have been <a href="https://links.message.bloomberg.com/s/c/0cIf9pTQ_5GmdeH-mtH8TEePRSw1WSbM-dwxozA_fne4C2y6pLg3wBN9E2KHKkUZGXsDGjzBqYTF-MVZcvNTw0VQeM-C2PRpul3qOmPoGUMedkKb5pDDwRMtlkTR4hZyNYIiwId3olYvPi8wNIGDA0INCKAGpJ_QD3peg-5pXlbPVxmKnYfQJbT0iG6haslM5tg2alYqpOsDsOWcK4WAT_yAspi7KCivFskw4io3k83S8yXDhkZMVaWiWmO1vICu5Gs7YkZmzJDpO3vuCYcOecCEn8qyFFOhGAljaVWYG7VqrVf79CqZP4XRJcGjcQ2GKNjbh4rtzsfycNdMv4KROG5O5LALv2eyDGmqnU5aOiImYpDAqlL3Flw7MA/31ty67knBZ9_--z-MlnGnmacVcN1IC7W/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">worried</a> for a <a href="https://links.message.bloomberg.com/s/c/B0kRuwAQg1h62yTeieFxI3H_3h542EWGUzknC9DFYyj8_BDTeR7drBka1kkpKIdZ9l7IW9WaWUfM2bfSoMHG8w15PRo3zHrmpBpv3FpHAUnnq5xEMhnHvpWRdxswUVhoYZxQV2rD8nH79PmyWizUhtszC5xPW9dFSfEMMD0XEXNg5iK8G4fwxpW6Bw2so_VZg-ej58bttDtNHgUGY-dWrk80ok6RzYI0PbVk_HTm9hJQoB_I7TgBHixq9IGJL2lNeY2XQ1Pm042Y1EWYm8QHoknk4hMnxyvWgDafWchyTsAb9OySI-y5O-tnS8vwQcS1RZi8wsN1nFSjwzz6YgnJKu7l9qgIeTZA5T8-nKhnccvIjmdweCe7PsXP2A/nAJ04ze39eNYVkzqkh8pTFgePCDrl-S0/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">while</a> about private equity buying up every company and coming to dominate the economy. “Private equity,” in this worry, tends to mean specifically the large private-equity firms that have their roots in doing leveraged buyouts of mature cash-flowing companies. But the fun hipster alternative is, what if <em>venture capital </em>buys up every company and comes to dominate the economy? Historically no one worried about that much, because historically venture capital was aboutmaking concentrated bets on small startups that might change the world, not about buying the local pest-control company or medical practice in every town in America. But that’s changing. We have <a href="https://links.message.bloomberg.com/s/c/o1wJ6WCjyW5avoc1wG85gc6Lwb6LzfISV7pGy6Wwq0Fpd-QxDTCcC5z1qetdvT99H9NcOPn9x47dUsRgQmBgusoYRPApnBjeIpLJaLXp8kgAZ33nO_j11Glnq32fKFB9-FNXWdKTQZ0sdwQ12h8pBqUIIp7-rOkZN4ygfBTN-iid4xxvM6Ckl7aLDTG9wrhPyXRHhsUsW_EQyAR5TNlSUY3Uy0Q510usU7ktO-YWqpgTUz98v41iGCI3toqnC8rmU5eiWpSpRr6peRsjRgSWqBWXX7WXBekTeCPJgqyNc0B-WnnOiyXzSoHoyJ68_nUIdF6ZqxyrXJ4PTuY0x37oL6mrBFPKbOkKG7xwIo306YuYaStNWCC_DZOH1w/2GT_pIsZKArwsnrKOoa2MkvhwX3rtzF_/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked</a> a few <a href="https://links.message.bloomberg.com/s/c/7GDgJJhNXJ6sChKiQczkgBZg7PrsmpxCSSaXbvwFyKMI60CqLLy0XpXfqzkfvLC-9IFyQ7XC7X3tW-ae84e5HvJd7S7ip122uJuD5gwwp3xMv1td2W2NnSAc9N28EK_qCfsQdohM_tDDr_w-DW5t2e5Fj9RgqdbWwMOvZg_4F-mXyZffg9NxOkGnTRFaKxI1uRWLIxsHoolqNXE55H92iA5X5mCss_Apo6M5wLZlNPTRI2GxMNAJIVwWCLHGKuB2HagEI4rv9u74LfQWTOV4bYFomCLYJCoQqW4QsKgtClOTJgAbyPeIK7Q3tkKEqfvBp-N3KQa7zYjZt_qbEOEfVvWT2_iCTsWPM0xUxtsc1T0IcfuJ52oXpBmCDQ/zV_iLGlrQOHL-ClTVHyMCh6yEsMV63Iw/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">times</a> about “AI rollups,” where a venture capital firm buys a bunch of small companies, combines them, and sprinkles them with artificial intelligence.</p> <p style="margin: 16px 0;">One way to think about it is that each of PE and VC has a powerful general-purpose technology that it can apply indiscriminately to every company. PE’s magic technology is leverage: You buy the local plumber or pest control company or medical practice, you put a lot of non-recourse debt on it, you get a lot of upside if it does well and limited downside if it does poorly. VC’s magic technology is artificial intelligence: You buy the local plumber or pest control company or medical practice, you replace the customer-service reps and bookkeepers with AI agents, you cut costs and improve profits, and <em>eventually </em>you also replace the plumbers and exterminators and doctors with AI and then you really start to make money. Here’s a <a href="https://links.message.bloomberg.com/s/c/m-Dym_dUla4s189p5ClLdO-DkyeS_EIiHQg2ARxAm-eUhmUnLdOBl9NOfQ6o4n0DRcduzBa4ZJE1nzyKhsC505QsDzFnTvofOhGbAb9BGZW_4nWfCFFZNvnfRMkGW0kZNf2wL9JYaO_umqc_nl_et7JYc_EUuU0l-s0ZZY2M7Wemr4E3jIfngi5Gv-xWyis06jnNZAYmFJtDom6Cbi42Y1aijgEHnxoE9CC4WDW22JuyccxqAd7frOqmggCONyxIrNkMcxQ9VomXiNRv1KdlESAQsjI5_VAHlgSRJzUSAJZJ79yuQQ8JcK2z-Vm41kfrg6CGfs2Vc9BnBPRyjAcniPxKBS93GO0QECmaq9sHTMY6-n-f8km5sTLn7w/bmzExSFcvog-oXo7oQzVLTPEccoIhnRe/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Financial Times story about AI rollups</a>:</p> <blockquote> <p style="margin: 16px 0;">Top venture capital firms are borrowing a strategy from the private equity playbook, pumping money into tech start-ups so they can “roll up” rivals to build a sector-dominating conglomerate. ...</p> <p style="margin: 16px 0;">The approach mirrors the strategies long deployed by private equity investors, which have built behemoths in fragmented industries such as healthcare, waste management or building services by agglomerating smaller businesses and centralising operating costs.</p> <p style="margin: 16px 0;">It marks a new direction for VCs, which traditionally target fast-growing technology start-ups in nascent industries. The roll-up strategy creates an avenue for VCs to generate liquidity from their portfolios at a time when initial public offerings and dealmaking have slowed.</p> <p style="margin: 16px 0;">Where private equity firms typically make heavy use of debt and slash costs in a roll-up, VCs claim improvements to efficiency and margins will come from infusing technology into the companies.</p> <p style="margin: 16px 0;">[Thrive Capital-backed wealth startup] Savvy, for instance, is using AI to take on back office tasks such as pulling data for the half a dozen forms that might be needed for any one transaction.</p> </blockquote> <p style="margin: 16px 0;">Mostly I want to see a future where small cash-flowing companies are regularly the subjects of <em>bidding wars </em>between private equity and venture capital. Who will win? At what point will private equity’s operational and financial expertise lose out to venture capital’s ability to deploy AI? At what point will private equity be just as good at deploying AI? Who has better access to capital? Historically private equity funds were bigger, but there is no cheaper source of capital in 2025 than saying “we’re doing AI.”</p> <p style="margin: 16px 0;">On the other hand, what makes the VC firms so good at deploying AI? VC firms have a pleasing combination of (1) being in the business of raising capital and investing in companies and (2) being tech-focused and enthusiastic about AI. But it is not obvious to me that VC firms are staffed with lots of domain experts in AI. Arguably the people who should be doing the AI rollups are <em>AI companies</em>. In that vein, here is a blog post from AI lab Anthropic about how it <a href="https://links.message.bloomberg.com/s/c/IsVBOfFr4X9Ft6iIThDqDgXaQNqZf1_gy6QZb47uSQsZQ8CBJBTrCcT3Unb2inXbjiZxmuSjivG7r4OkapsresjnsC3JgfzFfO4PrD4SBICIxpwWYwPvFPQC-jK_hPwGf7t2MVPc8pLay3wr3RUSoIun8V_Y2Xy6XwvkTlJRODfJ78B7n0LgXpfGAuFz36FQb3mnBj2YXsT3nfv9KsuEqWFsT_ams39kXzBqXFZDQJOft9_wRX1huoWBwDxpIeXlztxr_rkPM5HViSCqSSpnp2ddqsCN94JizxrE3n2VVY3KPkg82-KUtq8-HP9bnIK3JyDD9OdeTwjZWzIkJ2RL_TZxybdapgu5UE38rGS8fN_ydG0GDfD8A2SXBJ4/jJMSqPOmN4SZOhMn7U1NNreFobYeDeUA/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">got into the vending-machine business</a>:</p> <blockquote> <p style="margin: 16px 0;">Anthropic partnered with Andon Labs, an AI safety evaluation company, to have Claude Sonnet 3.7 operate a small, automated store in the Anthropic office in San Francisco. …</p> <p style="margin: 16px 0;">Far from being just a vending machine, Claude had to complete many of the far more complex tasks associated with running a profitable shop: maintaining the inventory, setting prices, avoiding bankruptcy, and so on. …</p> <p style="margin: 16px 0;">The shopkeeping AI agent — nicknamed “Claudius” for no particular reason other than to distinguish it from more normal uses of Claude — … decided what to stock, how to price its inventory, when to restock (or stop selling) items, and how to reply to customers. ... In particular, Claudius was told that it did not have to focus only on traditional in-office snacks and beverages and could feel free to expand to more unusual items.</p> </blockquote> <p style="margin: 16px 0;">Claudius had an important disadvantage in that it has no hands and so could not stock the vending machines itself, but it did have “an email tool for requesting physical labor help (Andon Labs employees would periodically come to the Anthropic office to restock theshop) and contacting wholesalers.” And it turns out that it is not yet as good at running a vending machine operation as a human would be:</p> <blockquote><p style="margin: 16px 0;">If Anthropic were deciding today to expand into the in-office vending market, we would not hire Claudius. As we’ll explain, it made too many mistakes to run the shop successfully. However, at least for most of the ways it failed, we think there are clear paths to improvement—some related to how we set up the model for this task and some from rapid improvement of general model intelligence.</p></blockquote> <p style="margin: 16px 0;">I am always wrong in my intuitions about what tasks will be easy or hard for AI. If you had asked me a week ago, “which task will be easier for a computer, driving a car or operating a vending machine,” I would have said “driving a car requires integrating lots of visual and other data in real time and seems really complicated, while a vending machines just … are … computers? And have been operated by computers for decades?” But, nope, vending machine operation is still hard for AI. To be fair, running a vending machine <em>at the Anthropic office </em>poses unusual challenges:</p> <blockquote> <p style="margin: 16px 0;">An employee light-heartedly requested a tungsten cube, kicking off a trend of orders for “specialty metal items” (as Claudius later described them). Another employee suggested Claudius start relying on pre-orders of specialized items instead of simply responding to requests for what to stock, leading Claudius to send a message to Anthropic employees in its Slack channel announcing the “Custom Concierge” service doing just that. ...</p> <p style="margin: 16px 0;">Claudius was cajoled via Slack messages into providing numerous discount codes and let many other people reduce their quoted prices <em>ex post</em> based on those discounts. It even gave away some items, ranging from a bag of chips to a tungsten cube, for free.</p> </blockquote> <p style="margin: 16px 0;">I feel like this demonstrates something deep about artificial intelligence. A normal dumb vending machine, bound by inflexible programming, simply would not give away a tungsten cube for free. But you’ve probably met a human being who <em>would </em>give away a tungsten cube for free, if you asked nicely.<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a> If you are trying to build artificial general intelligence, if you want your computer to address real-world situations the way an intelligent human would, you run the risk that it will be flattered or bamboozled into giving away free tungsten cubes.</p> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2" align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/z_eazolyu5DEWHwbVaMmkrvB4SLnVLWD3L5NlzWIS0H3SBjgCakAwaHHqk06lD2VHpYwBFPQYKErP2TTr0CupHkL_9-cWPVjW8zlKSyyZyp_uJkFG13Ge5r-aiF_yt1-EhmFhdZPBvX-WiRJUKpwP2nwXj3saDPxdNYR0fTXRbY4sVkAgPUBM6y95I4yfqdXmYXtX7w9XeyKGz6qqbNA-qDQKHVLSVCGy-9V98tJuPHZf5cBNq0rBa7CZcLJutketWly0W7qT-6AmnKexzhHPH0ooChjTQBMyKvbsi8MkvI1qvWKUEG16oNE6JcEBLVZCHSk0lCut-r-gkLvrHGODXl830pRMbwLgD8ZkUgW9DgFYQDQDMYbsCmcsDHeWnmFhiGV6Eo-Shz_nMEduCCgqOQ_lQ1ei6HGEOO871Y8soe4D8Zx2aQ4ttzo228Y-PJlXWWetTnRtsK1396iSUXtkf7abaqSPT_rR34VIxsbT5n2SC7VrqCjPGW3NA9C6NUrdTpSTSbHq89kcp_D1mt4nsOyBWDq8HB3-eDX1vSzLtmem4pavWhS6uqDXRB8E10eQa2VsObuPTvnPWhN7RKKO3aTRVnwkaxcniTXv3hKJKi6R-Gz8hzJkrFNRveX55tpuougNcTN8eXX_m1zf7y6obwFlAPC7x1uor9Ecm1qsTjYPkSWeRzN75YXAV-pbQ/PqDhc3feL50za8FkvUJ6Kxv2jS2_VJ3W/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=14103663&m=c869f5c3f0784f1d3b0577b4456d769f&p=07032025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="550" border="0" style="display:block;height:auto;width:100%;max-width:550px;" alt="" class="lihide"/> </a> </td> </tr> <tr> <td colspan="2" align="center" valign="top"> <!--[if !mso]><!--> <div style="display:none; overflow:hidden; width:0; max-height:0; line-height:0;" class="lishow"> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/WFSEfo9aBFFJFvZtY6hkUZazufkHN9NhAYrpLdG94Y95xWL7c5nS-ZI1z79_G5y7k-fUWqRya35eaW2LMxVbJjf-f3guhHVAiN80xC4UjHXtFKYYBaTuaJoDBxDvEBU3YvH0ynzQbuSKNPgnmDOqOZvLL40lSKIZ88YN9p_0ORFNvNEcN-s89cam_lvs80WAvp1s3KmSJ_FKxuvpdRWoTVbxmYNPIfQ0TP7WItfSE1os4CrCj4wydWXwqxDxi7dYxgNB3TmM1PeiQvr904bQlBZSrinqFrZyiHjBrfXDm9B4dAT997C9eLHk4fH3tzESfu-9IMTk5QHNcewr399W2IChyhpB3ML1Mzj35LsUmdIu4U1zV73Wfq74NbwJEO_cAnE_fOoi_hs1kSzLYC4kfEAaDNWTBcfdoIri2cb3m3aTvbu4BZ6pITBEi58nbzJzay7DLG3Q6k0LQXdofnJyDXCVPBlYCzx-HF1zzJ05x1gmi3ziw2ddtsgdoD-mXPSQldUTYDDRmPTOvLeIJbh3L8cMtsqLlkUvIytj4nqh1TEySNBIdHpL-YZCRZNlXbZS1cacvRGGQiVHP8gdwqYzv0Yuco1t-xu3et2GCzWt6fW8T6owtvcpEy5sKTmOz7sn6mZhs9jDa1YnOGfuYwHP0EA_ephLDgURE7nUlOVaQl7AMCHWj3nCt47m7vqDfQ/PAh0Tj_YRRGC7uB0NZ4JAhVx9Jb72E59/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=14103663&m=c869f5c3f0784f1d3b0577b4456d769f&p=07032025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">‘Tokenization’</h2> </td> </tr> </table> <p style="margin: 16px 0;">We <a href="https://links.message.bloomberg.com/s/c/-J3Z-NNQfGDcCDJ6_8agufTACW25vGvTpK6ebc8MCO4-ds7eE_iUP4RSs0H5Onj0_kvZOSyEUIHeIrkLNclzfnZOA7VQoBTG0BLA_CV7qyNN7tlCwsD8H3adr1K7GF-2J1BUinnexQewrFEC3-FVCHqGW_XuM5-kWkdg_wrw1-IyP_NP0aN_CELYDDa2MNqvFTfIif-NYYyc3Piz5PV7lZVRhjePKH49ukcaI7q6zS4TsZAZe2Hnb_wrAtFDmBBKXe762Q6D6SEMxfeyYqMwF8kMbGHsErGeIIUaG5hoZ3FFSJKeFFQLZMMxcS8smhQ5SfKeNqdbwsDp7ydhrY9XdWKZlu9x9wDHFjyUFFrNJux3P6qMWWbm912IJ64/CPGkZALMUfuy0WV_Qa7_R26yTRgb1jZ1/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked yesterday</a> about “tokenization,” which I characterized as a way to “democratize” finance by letting companies sell stock to the general public without disclosure. Current US securities law says that, if companies want to sell stock broadly, they have to publish business and financial disclosures with the US Securities and Exchange Commission, so that everyone can know what they’re buying. Companies that sell stock only to big institutional investors, though, can stay private and not make those disclosures. And these days lot of big hot companies (SpaceX, OpenAI, Stripe, etc.) stay private.</p> <p style="margin: 16px 0;">But lots of individual investors want to buy SpaceX stock, and lots of people (though not SpaceX) want to <em>sell </em>themSpaceX stock. One way to do this is what is called a “special purpose vehicle”: An intermediary (1) acquires some SpaceX shares, (2) puts them in a box and (3) issues shares of the box to investors. This is a popular approach for selling SpaceX shares to rich customers, but it doesn’t actually do much to get around disclosure rules: In the US, shares of the SPV <em>also </em>mostly can’t be sold to the general public.<a href="#footnote-2" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[2]</span> </a></p> <p style="margin: 16px 0;">Robinhood Markets Inc. is a big retail brokerage, and it wants to sell SpaceX shares, not to a few rich customers, but to millions of retail customers. So it needs another approach, and, like other firms, it has hit on the idea of “tokenization.” This means (1) acquiring some SpaceX shares, (2) putting them in a box, (3) issuing shares of the box to investors and (4) crucially, uttering some crypto incantations over the box, so that instead of saying “we are selling unregistered shares of a private company to retail investors,” Robinhood can say “ooooh blockchain ooooh.” It’s like an SPV, but instead of “shares” of the SPV it issues “tokens,” and ooooh tokens. I wrote:</p> <blockquote><p style="margin: 16px 0;">“The general public should be able to buy shares of private companies” is an oxymoron. What makes a company “private” is that (1) it is not available to the general public and (2) it is not required to follow US public-company disclosure rules. Therefore, “the general public should be able to buy shares of private companies” <em>means </em>“companies should be allowed to sell stock to the general public without following disclosure rules.” </p></blockquote> <p style="margin: 16px 0;">That was arguably a bit ungenerous in one respect. What is happening here is not that <em>companies </em>are looking to tokenize themselves. OpenAI and SpaceX, whose tokenized shares Robinhood is offering to its European customers, are not looking to go public without complying with disclosure rules. Quite the opposite; they are looking to stay private. <em>Robinhood </em>is looking to take them public, without disclosure and against their wishes. OpenAI <a href="https://links.message.bloomberg.com/s/c/Cy1NPOmiqUGNx8MIO6akNsJWhucBePvBEeIf1_PimbVdBjUnsiNyP6-S-lZ5OoUh-kjrjLOl9bKwr14EffdWxyQ2U61n12w8Dq-R9PK5Gpk4ZJaMl246mE4cnG0Cu8vz6blg_YNqZaw7savE9cwbsqfzJrCeKtLOfvealOFgrEI-lP7hIWjwXPULxaX3F6c8dFotxdhVrufRXNojxQUAB0wUaWVShxHubNJpLCPqz_rEBXEN4TGHlwPvU6VqBVb_TkCGHgQbSrpZ6tUoCDzhXJZFWsCxBfp_X5eQYsi-YWJEl4mFn51M706ZkoYXqISUxcxS81YVnhXtQQTonHLCL1P6DfeyusF34dTZQBlyxYy0BANE1gvTNxfVCD8/lwmVehcrQ7qqDw3MCew2iEzY1bGwEyEA/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">posted on X</a>:</p> <blockquote><p style="margin: 16px 0;">These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.  Any transfer of OpenAI equity requires our approval—we did not approve any transfer. </p></blockquote> <p style="margin: 16px 0;">Elon Musk <a href="https://links.message.bloomberg.com/s/c/TEni81au114aXZFlcw5R-jSbJ4M0syo_Srr070RdqruPuGWp1yzKE2mlAueoicD9eNAkxH2-H_5eNupOo53P9OQnLWOtOdd8Z3QR7XyZvyKnkeIXx_geYDxSERaeOZgqadEmWoghDjhRdtI5OVrY7mA3u8zG1-XXwkhbnDgudJ2AJhHm_t7ofE8POqCpTqP6TeWvrtTjQUDkodDmxIGZHPzbCJXgbDGMa9r6mvxqwDY0bPU54vfPkgA_EHPVe3DTC7xcI8rwy01IMGxuxCphAy4QLFld7InGcyay5SBuc8zYMBRyZ6gTO9gPLf-w_L_WD5wbcA4XGd1MaBRzKnBPp1JXYoOyicL2b3Fsu_DSQqXva78H6SAfJYPmoHo/CgGU70WOlxODEQRADdcKhOboOipNby_V/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">replied</a> “Your ‘equity’ is fake,” which is honestly pretty funny. (OpenAI’s stock <a href="https://links.message.bloomberg.com/s/c/eplO7gnkzbzcprumxnNg2rIqNYOTPeB3P8laNPwuKnUTlzlKRKLu8AQ3P_I1h-Z0v-YpV-FDUxVIzMc-gUZsKZalrFCVRDnUbIQriqAD8vzCXHSH7KTTj6hqvEw-mKzXYnPQ1dJ3DuCEm1ENaiHxwbJ4Z5IpYxO8WraDnae4JXMQfbwLiVstrEtmJ71nGAHrQCuyrSP5XoBoiadh_YlWtBODXgM4ia472iJt638f6WjH446UBVipmJoIxvUT-Hr_PWeirGXAryKHbjpps__dTihkHYgkvuwPU8RdBSvEbyL90a41QvucOi3SbvlecWQgTrgp0VgQDdSPn-Zz9oUOeUzQQtJCEpTaSgjDZ7CIJQhzImTotPOZC9tlpuM/3HNrFjYhZud3WMgtHmnGk4Va20zjqRJl/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">is weird</a>!) </p> <p style="margin: 16px 0;">A few points here. First: The push for “tokenization,” and more broadly for opening up private company shares to retail investors, comes primarily from <em>intermediaries</em>, not <em>private companies</em>. Private companies that want to sell shares to retail investors have an easy way to do that: They cango public! OpenAI and SpaceX and Stripe simply are not sitting around thinking “boy it would be nice if we could sell stock to retail investors, like Meta and Tesla and PayPal can.” If they wanted to do that, they could just do that; the technology already exists for big tech companies to sell stock to retail investors. It is called “the public stock market.” Tokenization is not solving any problem for <em>OpenAI</em>; it’s solving a problem for <em>Robinhood</em>.</p> <p style="margin: 16px 0;">Second, and relatedly: I have characterized this tokenization push as a way to “democratize” private-company investing by getting around US disclosure laws. But it is also a way to “democratize” private-company investing by getting around <em>those companies’ preferences</em>. If you start a company in your garage, you get to decide who to sell shares to. If you want to keep all the shares to yourself, you can. If you want to raise money by selling shares to a few venture capitalists whom you trust, you can. If you want to keep the circle small, you can require those venture capitalists to sign agreements saying that they won’t sell their shares. Eventually, if you want to <em>go public</em>, you give up that control: Once you’re publicly listed, anyone can buy your stock on the stock exchange. But if you stay private, you’re in control.</p> <p style="margin: 16px 0;">Arguably this is “undemocratic,” in the sense that (1) lots of people would like to buy OpenAI stock and (2) OpenAI, snobbily, won’t let them. And Robinhood is democratizing investing in OpenAI, by selling OpenAI stock<a href="#footnote-3" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[3]</span> </a> to people who want it, without OpenAI’s permission.</p> <p style="margin: 16px 0;">Third: If Robinhood <em>does </em>crack the code and find a way to let companies raise money from the public without disclosure, companies <em>will </em>be interested. Not OpenAI! <a href="https://links.message.bloomberg.com/s/c/cwCcVuGpS8gqvqEzyUHq66KvWr0Gokw8mlQ3U7CFdsZuV0Ifkoqcobl4XdPojdkQnq0PLgf2sR-D3p6k7ID8OUKuUhMKLfodKJFduErb0xt1BaHAmYMa19RrBiqzDLBLvGJBAbZbIhZJINuDsJ-ohVsIVg6VHNauKyGazImIituP_7zF0ysCm3W5cz8Xkrhw_YzmgZlxu1XPL5LGpxs7IdiCvXUOh0IYOXD5TP4lr7bqhotxRsyR9kQ9xsf-5tTT6YAC1SEwP-t9NAtd7aCKTbdBeE7VmE7jWsOi9pcsQHolr7Owm2Z-i3YErbBoJsJBDwbMzbZsaUWL72r53QBK1hhJSrwluUkAna0puZWgIWm6JtUbbmSuG-WsO_0/6idUPR7penUgFMcrAByEto8pz70WPnDC/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Different companies</a>! Companies that <em>can’t </em>raise billions of dollars from venture capitalists and strategic partners, and that don’t want to go public and comply with disclosure rules, but that <em>do </em>want to sell stock to Robinhood’s customers. </p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Gambling winnings</h2> </td> </tr> </table> <p style="margin: 16px 0;">Most people are bad at sports betting, and sportsbooks want more of them. A typical person can be expected to lose more than $100 if they sign up to be a customer of a sportsbook, so a sportsbook will happily pay them $100 to sign up. “Bet $5 and we’ll give you $100 of free bets” is a great trade, for the sportsbook, because in expectation you will probably bet way more than $100 of real money and lose most of it.</p> <p style="margin: 16px 0;">Some people are good at sports betting, and sportsbooks want fewer of them. If you <a href="https://links.message.bloomberg.com/s/c/q0v-n9blmt_xP6ZjKL1wrnHF8DH_PDb8wxUu1vnGyCLFwDAa24aDVs4q0Olh05NNtTUzy2WKfJTmUVRrPNQA_HXvmtyrgbt8Qh0y7yqXUxGGl7yF13HXtdSua5ean8lZssR8PTlICQQDRb6AtCC839N84xvPWZmlpLdaLD2JGe16nPKHAR8zou14y-eNThNx3-gF8T-a-Z_wjYZ25CfImad5TCh0W1ubZ7aGXMOahXZ5fKAyCS2kNzYoR-U4Yba_LNC8NvV0OSPThxh6q88v1Gtlzyg6NzQTSX7aq5YEjATJyhznpkqL-3p7Mv2qbnk5K4A2cs9za_2F7thuiABhsvO-OIwo6I6Ii9k64pIpZJ-ipHUI_rft_EpCo1w/dt4dQJnW1uLcxdwE4SFBqxhBH5YokJ-s/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">regularly make good bets</a> at a sportsbook, it will probably <a href="https://links.message.bloomberg.com/s/c/wmTttP-Oqh2aU9zgxGlK9oLt3_mFUMtT7qCbCR5XJIrFTyHEGQJ7fVtmVa0cgNCS116G-ENnq0rSGDuc6C_sv0AJHgAf2LjFLqsPVV7osNUqIZ4DvuN07Iv7PXv6vhzyjnvpk2JmoO2VDfaV42DQlEe3768AuRrPwEF2Ps_LKuOenW_qcNokc7uqrkSP9Rs_y7xtt1lA0b8MIiQny7W4n6UmRFskjUxdwVsny41afJ_iiQLdJ0EnmcHwahnFpWMXebabM9G50qNSpgsffww2uphPDTsoKpnNTqLqNYwF5epTu8Wp-G-uWy4vTzhHA2KaMiCt5F5oAchck0z51vbUupcPLt-AcoXydkxtZX8_3JfgLI-beqE2WT0PbC4/PM-YiUkIIAd81IMr7yNBGnskOTndOsrx/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">limit your betting</a> so that you can’t win too much money. “Good bets” here means not quite “winning bets,” but rather bets with positive expectation. Bets with good <a href="https://links.message.bloomberg.com/s/c/--U3BpoDQT2RDIAfJCdkvuGRbZpjf3DLe1b6a3_Gp-l10gu55Lc1zXFGQuQnSYI3n5L8NlWbZSiyzJBFou8rBXHBdxtYBbGa4PyZBeYrjMz-6DVpjqYYO2JQjIXE-Qu20l_2FNcKt29JCMIZDH2NO67rXOS800woP7ADVO5bFfhLObt6llCqFEUs6Ka69bWde4uNBE4XFNg-CWOtKao3l9P9TyGcPhoyvg5nZY_kIUds4EVoGaVwvun3Zu43Gy40SBF6tjKdhTn2F6uqkYxhvBRy9C9b0NqAqaQzG1acj6EAWoPz3aS94R3T8CccHQMCSDdsCJRN_UlI18gsCAgFyKWah04CmjrsvJhTsOMRVDDTFpbaaJQagUnjnxw/_XFLls0bbr0DZKAl9YBaQ8owO-2pqCyD/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">closing line value</a> might get you flagged. <em>Arbitrages — </em>where you make a riskless profit by taking the opposite sides of a bet at two different sportsbooks with different odds — will probably get you flagged. Do too much of this and you won’t be able to do any more.</p> <p style="margin: 16px 0;">There is an obvious meta-trade. There are some people whom sportsbooks want as customers (people with some money and no track record of successful sports betting), but who should not be customers (they’ll lose money), and other people whom sportsbooks do not want as customers (people with a good track record of successful sports betting), but who do want to be customers (they’ll make money). They should team up. The undesirable customers should help the desirable customers make good bets, and then they should split the profits.</p> <p style="margin: 16px 0;">This is neither legal nor gambling advice, but here’s a Wall Street Journal article about “<a href="https://links.message.bloomberg.com/s/c/sHsYbvOuVk5X7_TTIj7FTfLF8Z2ukjQYqrWkb7mRRo3LEVBVTmG5vGfvIcrQVRZDQeIXbnvnb7ZnVx8ZmxT3tFY9kJu8pUZb2JWBOEWJh4umjdYVdzW_UTKjbEM3Zbn1J8RKRR3Ctu7a6OvodYkOaOrgCH4IVXFmvHHlep76s5wxbbgqbpvUL2NC7oD2QPf9x-N_WWCf4XiFu4E2e3Vc2ex_aS7waOadaK5l0K1NtriXURbFOupp4SSy3D0m6mTklHqat87sdGRmHE8Z-dyzZ_hiUixVl0RoTd0Hk7KuuK3WudvpAf7kTYxpWps4ZRFQq1kUEmTCYveUHXDjSJLayetz-SRNlUrPgbLInLqhRnj1g5p7hWtJX-CVqqM/QsyOpOWcHr5WPZdhZXHWnJ2z4yn4HYn1/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">arbitrage consultants</a>”:</p> <blockquote> <p style="margin: 16px 0;">“We’re processing hundreds of thousands of lines a second,” said Saul Tawil, who works for AVO, a betting consultancy that spots inconsistencies in odds across sportsbooks. “The Mets might be +110 on 30 sportsbooks but on DraftKings they’re +130. A human can’t go through every site quick enough to find that.” …</p> <p style="margin: 16px 0;">Drew Tabor quit his job in cloud computing at Oracle shortly after sports betting was legalized in five states in 2021. </p> <p style="margin: 16px 0;">He built an application that automatically finds the best odds and uses an algorithm to identify the most profitable bets for a user. Once they profit, he takes a 25% cut. …</p> <p style="margin: 16px 0;">Because the method works best with people who have never opened a sportsbook account before and can benefit from sign-up bonuses, the typical client isn’t much of a sports gambler.</p> <p style="margin: 16px 0;">Tabor calls them “one-and-done” bettors, looking for quick cash and willing to stop as soon as the promotions run out.</p> </blockquote> <p style="margin: 16px 0;">If you build a computer system that can automatically spot profitable sports bets, <em>it’s not that useful to you</em>, because nobody will let you make those bets for long. But if you can find a constant fresh supply of one-and-done novice bettors, your system will be useful to <em>them </em>(briefly), and you can take a cut.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Gambling losses</h2> </td> </tr> </table> <p style="margin: 16px 0;">The basic structure of US tax law is that you pay taxes on your income, where “income” means something like “increase in your ability to pay for your lifestyle.” As a conceptual matter, your income consists of (1) money that comes in minus (2) money that goes out <em>to earn the money that comes in</em>. If you spend $80 on raw materials to make widgets that you sell for $100, you have $20 of income; it would be absurd to tax you on the full $100 of revenue. On the other hand, if you spend $15 of that $20 on rent<a href="#footnote-4" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[4]</span> </a> and food, you still have $20 of taxable income: It would be absurd <em>not </em>to tax you on that money just because you spent it on your lifestyle. Money that you spend to earn money is not taxable income; money that you spend on your lifestyle is. As I <a href="https://links.message.bloomberg.com/s/c/P6ySP-anJ6GpH70EKnfqeZMHObi-ht9wzlvu6AHZ42CNo87sfEVNSHa3Tv--L7W1hNGjsdpc5kM4os3ycQONUq8iZ7XsK8_H3TktzZ4hBQyY4J1Zt3X_F-cGpLIar3MoBfIfPan3-OqHNn81Vvnq9Mi41kCcmsHEbyZkA2BVqz17A4YjwB7BIbmF1vqjEwgSO_HyZBtxK2IlrEs2TCbLiaDBm08zgNFGQEj2LStLmqjrnf-Uwf8oPBQxwqAvzsqbe86LFUdvIFawT80tAMgB8MDrA2C-ICQiWeFqZO5ocputiwxaeJsa3Bhi4avS0KwLApVDy-5VUqMjB7EMc7Emk6pir62DgSmKO7jonCnhjgc0XdBoK2dCTCLKIbU/lie1OzvKYqAo5My8zCHyQFYy_-7-F3eV/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color:#000000; border-bottom-style: solid; background-color: #ccc;">have put it</a>, “the way US tax law works is that businesses mostly can deduct their business expenses from their taxable income, but people mostly can’t deduct their personal expenses.” This is extremely not tax or legal advice and there are many, many exceptions and counterintuitive cases. </p> <p style="margin: 16px 0;">What if your business is gambling? The way gambling normally works is that (1) you make a lot of bets, (2) you lose most of them, (3) you win some of them and (4) ideally you make more money on the winners than you lose on the losers. Your job is not to win every bet; it’s to make positive-expected-value bets. If you play poker for a night, and you lose $1,000 on the hands you lose and win $1,200 on the hands you win, that’s a nice outcome. </p> <p style="margin: 16px 0;">How much income is that, though? Here are two possible answers:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Your wins are $1,200 of revenue, your losses are $1,000 of money that you spent to earn that revenue, so you have $200 of taxable income.</li> <li style="margin-bottom: 5px;">Gambling is not a <em>business</em>, you were playing poker for <em>entertainment</em>, and your $1,000 of gambling losses are just money that you spent on your lifestyle and that should not reduce your taxable income. On the other hand, your $1,200 of winnings <em>are </em>income — that is real money that you got — and so you should pay tax on the winnings. So you have $1,200 of taxable income.</li> </ol> <p style="margin: 16px 0;">My intuition is that the first answer is correct, but that is an intuition informed by (1) playing poker (and counting my winnings at the end of the night rather than hand by hand) and (2) spending my time thinking about professional traders in financial markets. (A proprietary trading firm will do thousands of stock trades a day, and will be happy to make money on 53% of them: If it paid taxes on the winning trades and couldn’t deduct the losing trades, prop trading would be impossible.) Those intuitions are probably shared by most <em>gamblers </em>(and traders), but perhaps not by <em>everyone</em>. “Gambling is entertainment, you are gambling for fun, and so your gambling losses are part of your lifestyle and not deductible” is not an <em>unreasonable </em>view.</p> <p style="margin: 16px 0;">Anyway, every intermediate answer between “gambling losses are deductible business expenses” and “gambling losses are non-deductible lifestyle expenses” is also possible. For instance, what if gambling losses are 10% lifestyle expenses? Bloomberg’s <a href="https://links.message.bloomberg.com/s/c/7XEDZZeo0Oa4mRmHIRn5jgd5fVf14xKssyJtOtTHUCDKedz-ODcH9dnbyEvrIxTx6mLxne2gu5H6xF_8pI0XTpgPZgntAb9EiBTZsV-QN3J0bfJ1J1r3EX0GOUxrrHukKqD7l5Dqxy1vNJ9-hG-Gupf58L9rLRgOP7GRsYCK7F8j_NWUOAvs0a1mgAzJD4_t-H0IZ6qLueZSF3FMQvkd9RaF9jqABl5ADf0xEqVFOOGeyxQ76nwn9isYzrju9-jCH8UOErwyDYzKR-Z_3xoVzbTyTTYZVbbiGRjW9wA2VarJBr0txV2D2PZ2uy4EIAJu_wuaxC7dPnChopZMlNNnbVUCrIPyx-g3xeNw8q7JjQL03zDewze0IhZKX2M/Wk-Ij7-V08QrK9T0ibvGMIWORhU_VpY3/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Yash Roy and Steven Dennis report</a>:</p> <blockquote> <p style="margin: 16px 0;">Gamblers are raising the alarm about a $1.1 billion tax hike buried in the Senate GOP’s tax bill that would slash their net winnings and potentially charge income tax when they break even or lose money.</p> <p style="margin: 16px 0;">In the Senate’s roughly 900-page version of President Donald Trump’s multitrillion-dollar tax bill, gamblers would only be able to deduct 90% of their losses when calculating their net income. Under current law, a bettor <a href="https://links.message.bloomberg.com/s/c/zdV5XVJ-a7i1hwjaQV86bXqwpMKx7Q9shQcDu9bSkflQj9uJewGerg6tseaBR57yLr45kCQr768o83ukAzHNE-xvf_RGYnMiZuPREQA4bJDD1RAeSZF-VFK-Fj1c2sIy_pTl1RKWZfZrUV3ZeRkeoYCsJDgRtqxE7PsjUDz8gg00iJJjomPneKpLy2oR4qOhxiN-aB3d3DfOIKYufkh3aMBEA5pQLCA1XoYWy8YwxssWzqL8149dncpn35R8bMPIUYaevRmm7xq1Y_41cOLRZtBztwf7EXKABKc4L0dzOEjlicLkWiDD20kd8Hxf8q0KBrGj2ay0FOTEsKf2BPzJBm382Zuzh9ZqNTpmBSNWsrCGoIGCpDwcwaZ0hl8/x0qQhXaGHdR2_6sWvFz8qwK0bnfpXBc4/10" target="_blank" title="Click to view webpage." style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">can deduct</a> the entirety of their losses, up until the amount of their gambling winnings.</p> <p style="margin: 16px 0;">“I’ve spoken to many clients and they’re very concerned,” Zachary Zimbile, an accountant with experience in gambling regulations, said in an interview. “If you add a 10% penalty, it’s going to eat into a lot of their profit.”</p> </blockquote> <p style="margin: 16px 0;">Also it seems administratively complicated. Most people, when they get up from the poker table, count their <em>net </em>winnings (or losses); they don’t tally their winning and losing hands separately. But if losses are only 90% deductible, will you have to count each hand separately?</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Stress test</h2> </td> </tr> </table> <p style="margin: 16px 0;">Every year, the US Federal Reserve conducts a <a href="https://links.message.bloomberg.com/s/c/WnipmdFIJ-DPF3Oka55EjUiQ0ME1RnAOWqp23iakJOzgXIH7WqvTp7HlobG3UNixaLYK3Q08Jd_wqUzdHQu4ZphvyhwVceqoBsTwfO_v0BVEh1exZaqzGUQRkDiT-bb9dz15HAMxRorynFVCAOuU9fufFXajI7E4so-Ao1bKC7T90erfJVuLxIHoY8Sm7o821-JES8uZHBQmpzrrxXivXxYA5466JIw9joblqpc3Td3OJ2NcDi75Qx11dR-Mx9HSau1pBOQsihOKkPe26dHZVQnjJyofUAcPhIieDAbPyUgZbn2vntKQdiW88JM5_KULQs61Y_hlwMzH5-hxsJOJGFX8ZgmsAAtcXvXLOpEyOTAlboeP8VikZhlMSRA/JqzhsMf3RRGdLn-x_5C79lUFKHf8V8Y2/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stress test</a> of the biggest US banks. The basic mechanism of the stress test is:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">The Fed concocts a hypothetical “severely adverse” economic scenario: Unemployment goes up to 10%, house prices drop 33%, the stock market falls 50%, short-term Treasury rates fall to 0%, whatever.<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a> </li> <li style="margin-bottom: 5px;">The Fed takes a snapshot of each bank’s loans and trading positions at some point in time; for the 2025 stress tests, the snapshot was taken in early October 2024.</li> <li style="margin-bottom: 5px;">The banks and the Fed then model what would happen to each bank in the severely adverse scenario: A certain portion of the bank’s loans would default, it would lose a certain amount of money on its trading positions, etc.</li> <li style="margin-bottom: 5px;">Each bank totals up its losses, subtracts them from its current capital position, and the result is its stressed capital.<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a> If the stressed capital is below its required capital, it needs more capital now to prepare for a downturn. If its stressed capital is above its required capital, then that’s great: It means that the bank will be <a href="https://links.message.bloomberg.com/s/c/v0yAx2hFqgzyvSqYfrYN061ytgxKZ1Ks8dEt5rusB_EQAeVH0E7c4JUE3iiR9YXEbjr88WuwGLDfDRQvYQ65rcFKwAjQtllDNWcSj7nl_zBz_oAZNIHUP5olIIyc0qPnVOWdrnzDDKwH7MY_1ounq3L-G2xmoAYg-5yl6MNF9lY2iXdgW39jvyX9r8ahT8jrzuTSVbfVkOEcMl82ZdIkg3lxdiKS6ZSeawQo8S7b3kVP6HMDg-3msqQ9WeBi2EDFLiZ2k0CF8v7GVRreK3MNe2djvlXqwF3TK3nSA5rYjdYgkK8Z9ex4jQmMqxDjTCKTQG-u6NHkpRHo4EOu4-gwIVPgaoCJ4-HdAzw7eNHhPj8Jvb1ondaPXFynGX4/sfgqpsOZ-krQGbJDZx00ks6Ho5kPreUG/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">well-capitalized even in a bad economy</a>, so it can return some capital to shareholders now.</li> </ol> <p style="margin: 16px 0;">This process is in various ways crude and imprecise, and you can argue about the assumptions. For instance, the Fed generally assumes that banks will <em>lose money </em>in their trading divisions in a severely adverse economic scenario, which makes sense: It wouldn’t be a “stress test” if the bad scenario was “you make a ton of money.” But empirically banks often <em>do </em>make a ton of money <em>trading </em>in an economic crisis: Crises are often bad for the loan book (lots of defaults) but good for the trading book (lots of volatility, lots of activity). In 2020, <a href="https://links.message.bloomberg.com/s/c/3WWTQDK9U6RxbkoVctj8vJj4T8zkxZ8WLOAVy38fsbBqPWMEerPQgcGo5ihgM86sFbXCmUcqYUOeOHLRbMmWznYQ2dzjRcF96dTYCpx7B0cqqHl_bsw7prWTzF5PeSKdW6u3pBm-5oujaaIBy_kaFSYQbmWZNpc9zck3IzAvjD5ZLwEjsnjjEXhBsxOf68Sdtaa8YJeAJwc-B5giro13GazROOWGZYZ8ILzpnHE7vLtqamE08PDazYnE4z1fuAbRr5ZrusAnetSPFPwMeeogu-r0FkDXkXmOSd3qQd40-7Yfejjt1Yv8UqyVP3c3iuehlaZU-iXMZKD8RmAQiP7sap30YzxayToEIDndrXm19RmLrUpdIIgUV6854zQ/vIgXMTiEaO7wcRe5jSgyxxCbwIrxrZsb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I wrote that</a> “if you’re a bank, and the Fed asks you to model how you’d handle a huge financial crisis, you can’t really write down ‘I would simply make a ton of money trading derivatives,’” because that is “too cute.” But Goldman Sachs Group Inc. (disclosure, where I used to work) <a href="https://links.message.bloomberg.com/s/c/Ad1j8i_RICZMNcL9xok8xgKyb4LFjUg7wfXxJ0m3-1Dg3cqBHW7GbDDFQUEBDWXyKeiz4Yr8i2biHhYR4dKN1qXaWyV5-5adzjbmwOgnZyHjNM3eT46NM79RneRif9cIGs7HzzRNbWYRKaHOtOwASCcyWCJ50WRgX5q9s7ZbNmYYD8buotuwdEZ_VxHSBrh8A35ggKrluLavPBJEoqBBlELlUDCdsTUao3VuQdhks6L62vmC9n4KlrVjst27Jt6jQgqBMg_oa5lPl3Dmdt9Q2n6TBgBzJ23hvzgvz4hih1MHJcuCehYGWF2gfmghIAB1CKZV9T6ZSK7DeOrCnIVMRnngetXzDUYnS2Z611XvcK_lWKrtqdQLMTk01DM/2SKsrtTJ_KbvBSx-Qmb6ktTPxkF7Mufc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"><em>did </em>kind of do that</a>, arguing “that its trading operation was ‘countercyclical,’ because revenues had risen with volatility.”</p> <p style="margin: 16px 0;">It didn’t work, though. Saying “obviously in a downturn we would just do good trades that profit from the downturn” will not persuade the Fed.</p> <p style="margin: 16px 0;">On the other hand, what if you do those trades <em>now</em>? What if you put on a bunch of trades that <em>would </em>profit from a downturn? What if you are short the stock market, short commercial real estate, long Treasuries, etc.? I mean: What if you are positioned that way in October 2024, when you take a snapshot of your balance sheet for the 2025 stress tests? Then you will run the model, and it will say “actually if the stock market falls 50% you will make a ton of money because your trading book is short stocks,” and you will write that on your stress test, and the Fed will say “huh, checks out, you really are countercyclical.” Probably you would not want to be short the stock market all the time, but for one week in early October it could help. </p> <p style="margin: 16px 0;">This is not bank capital advice, and I am exaggerating and half-joking, but it is something to think about. Here is a <a href="https://links.message.bloomberg.com/s/c/GL9qp_9UvaINH6yRkp6Yd12tiFE__-EVz83vJifeKUsNrQz7hFoHsvrJ-LQBXD7kDYzBtxR1edpK6CsJqnOgBHW4Vid3ige5SGI5dME-iJtH9ZNdOiWA9T03LnQ4a-bHLS3n7i_w5Ub-bwL6_jeXOW_TQYjOxfD8p-f6j0SIYm3ltdT4VG-gfRrnNDdLsZLeeoreUrmr1RWTKoUCBD-8oEywwDRcO0-1OM4k8bfO0uS9yNaQd_QpURKLkrmawtRN1xm3o5rUAJbjBiBS3si2C5PyIiFhzxujv7sVtt6wn-M52aqr5pFXaZWdG5m8vnplwKoHcDMGH1EWfrsb40uEGrO6ElYgGa184ZVo8yqb4qIDIK4s23uTsNn2RRg/z46-1wnh6Kq6_UqyAGl9pCAQQNMLhRSu/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Financial Times article</a> about how Goldman aced the stress tests this year:</p> <blockquote> <p style="margin: 16px 0;">Goldman Sachs stood to lose just $300mn in an economic shock under the Federal Reserve’s stress test scenario this year, vastly less than the $18bn forecast a year earlier — and a big reason for the bank’s outsized shareholder payouts.</p> <p style="margin: 16px 0;">The sharp drop is a reflection of Goldman’s effort in recent years to reduce risk-taking, which requires the bank to set aside more capital to guard against volatility. …</p> <p style="margin: 16px 0;">The Fed cited “atypical client behaviour” at certain banks in the run-up to the 2024 US election as a factor in improved results on trading loss scenarios — language that was also interpreted to include Goldman.</p> <p style="margin: 16px 0;">“This atypical customer behaviour, so that’s pre-election trading, and the hedging, where the Fed is assessing and valuing hedges differently, is a help,” said Betsy Graseck, global head of banking research at Morgan Stanley. </p> </blockquote> <p style="margin: 16px 0;">From the official <a href="https://links.message.bloomberg.com/s/c/MGjprDXiXxQp7Bahiw38YJ-Pa1JxyLO8KsWJZVxZEaQF8yAGOnXsIlrypvHzj7OF_Uh3LUUfqOehzEZcM9N_QcSiWKpUqkkMalG2kiCZO2xbdUAdIP8OrNu_302QbkDdtx1bZRR7IXNL4FWpQOQX__4n8seld0k6aEwMoKMrIg6EY48G03kIdnNHUFNooWy_BxKG9DnueHGZKSIyTinid1fvTTlxxK40q7o_kgECB4rtaJQidPnIJn5q0h1iUyOrNG20Y5VeCILxvrHuDi2uqjXMd94i2PS6I17qA79E-gKrRIA1wzYwzMlItx2l_aWZEAtFNcrjOvjnHZhyOmplLE1o1IeptnJioqcPnQplzIWlT806mGgLdcC4HuU/p6sXOUN-sobQdOx6U9ZKlhoRS-DxaXPf/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stress test results</a>:</p> <blockquote><p style="margin: 16px 0;">The stress test results also reflect trading positions driven by atypical client behavior at certain banks in early October 2024, when positions were measured for the 2025 stress test. These positions lead to a large improvement in trading losses for those banks in this year’s test.</p></blockquote> <p style="margin: 16px 0;">That is not “Goldman went short the stock market”; it is something subtler than that, something like “clients were doing a bunch of hedging and speculation before the election, some banks were taking the other sides of those trades, and their trading books looked a little different from how they normally would, in ways that positioned them better for an economic downturn.” Just lucky that they were perfectly set up for a recession, not when a recession came, but when a stress test did.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;">The Man Tasked With <a href="https://links.message.bloomberg.com/s/c/83ICQNzz5dUzv2Y5R4WoBUjoxEWi9sTpQvXts4ZShTSn0GiSwll9or8mN9oZlnRL61at-gfuItYkmr-emhB1T3sUakVrPaoiRwlzeS5aVGpbb2WRQ02iK5dBSrVHxa9SR7LAyL8BueUEzlXzHbQwbkQ5SshgzpOrg6Sk4GmTCj2Vk-LHt7D2qA5R1Nw4ex0uUSpFojJPmAvL2530a56pVWmcmvs_QA11VKzuCNUMOiaSMKkCknXtRvFaQ-tDci1bCg_QYlvaIAXpLLFWKbYVJm97WbLOUqgitaRyO2wKNiS_Vf5yHgqbkgckviS9TdyqKncLESTTl_YiuenotF1TPJGVeyR1qTzP7ZPIW3JdKHlVg_1qBGcubaSupyQ/NbgH5tDub0c8qp91W3tYDGaVv4nAwu79/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Ending Citigroup’s Fat-Finger Blunders</a>. Ripple Seeks a U.S. <a href="https://links.message.bloomberg.com/s/c/Q32Yo4tAERZzVLCb8X4QetnKZWbatr8yLvTJKiBYc9rpiW6rhMMu5qLQiiTialhrVL4TDbki8anBsPrQFfe-K2_NMpArqj_n6PEqbtFeb_iPRoghSn2AG7Ze76Gt5ibKgQBh3QeKutbbxLeQXEh5hQTuX3mqhI0BftnVuq02oUrn--v1edMCz8zCFc9zlC9Je7gE3LoUWmoaimMqM4gf5UHFyyB6OqEGIyeMfRKnsKWHdTO5xrH3XIYITdZnHBcKtnPwtDE-WUXCqEe4aAbA8-1zARf6_di9LvESeTCvxt0_NvutTTgI1g15L8mW7V6CN9LWeaS9s1KyN-hwJo4NdZdPNuqZMOsxo6PjT5dgBMkRmSrjeoUdSd39u04/pkBDg9WYjgRLHjqOXU9b8Ekf6ZY50Y_x/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Banking License</a>, Adding to List of Crypto Companies. Chris Hohn’s hedge fund <a href="https://links.message.bloomberg.com/s/c/vI6KmmrEX0VHC4PUzv8xE6fDTrKCJSOQMKxGF_-6EyDA-WHQ9khYeUfnIXYn8tufcUCiUDlZnMIhRfVG1B6gxbP-jXWnbLcgWmYHdyxPjwAlvZ7j_ko6qm8pjXG3tVAsP30wW5FvUAotPJJ1LyJ6zKRRozJjz_f197eEDhvWkbxfMUI1ydWfE6BpB8EhvffMdOjfOJfKA5_C36ncmVNA1MgGWQDt7BfSkmSWk7MkZT6PAuoBl2W0cO2JWretIhwRTyYn3nAnvj4lLb2Pl4Lb53sxkzPkogQxI0bZ5h4A6MlzU_ZCSO4coWpKI5tAEmXrfwLffWlCIbAzPLru43_3dAS9RMXsnu8uwKX6Dpu83DdVZz34NmeFZ8QokFQ/Ym_GS8MLm2hd6Owo3t_gYxEewq1k0ieL/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">TCI</a> beats stock markets with 21% gain. SEC’s Atkins Says <a href="https://links.message.bloomberg.com/s/c/k62YJ3H_t86XUY4MHD1Hf_UCVrgH-l1vFaA-8zCv9Kvnsn2u1Gn5nsoeg04SEwADsiJdiV0CzrVXGZJmpk0iF4Kq6LXItZyWb8EC3a9FburrFM-shhB5ass4TfQqnlLxGoUY-FkGDRQrQFl-IOdWPet17mduqMCh1rJUEHkC23zeQC1wMukwyLfXYvgeEuayEN-NSZEm5fpRAc38h0XXU4BmoJBP4nPV0NB4aQ7eomYIXWdPbR9k5l-BW-EMkQRNnqBJzbnbiMYNJCcz4Hkk6LDtjlbV0CzqldAxF6ZTgCZ74PdSMX0FdnztadY_5cxujf43R3lG1zc-wiMdjXLSQJmV_kzVfVir6B8Psrg8LMLFJYm8vzDbtsNq_CE/jUBDqw_wBDmM0_CxiLZdm-uP3XGtmKIz/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Rules on Blank-Check Companies</a> to Be Reviewed. JPMorgan Is Revamping Its <a href="https://links.message.bloomberg.com/s/c/bq6PgUxcSMXwBOTP-Mq3v5fmbJydJqnjpxFUKk-ENjEAFqfTJEFdWpaJcuAyGRM7cXOrmn5Ii1uFZLP1FI5wj9D7fvS8g9aAmhlI974gEYheJI03ouYvxaLHPfphq3q_ZoyGAEo1I0l1yJn4HM032v_Qg8VK-758bex1H0l8saN2piNYwW0gAzcXf4dUsGKmLonWHc6gN6vvnPmNjdF9vVP8xxGuV9OInNOW3ZBoNhzoc7KZ4-ahMBnzYK_ehgUmFmoABFNpv5tNFaiOEzBrBwsqSf_9jrAx2r3raef8CSlOHLxW81dfTAJaGB1ajxEh5lE0ZCTabigGrgOiE6xQ4XxWCozOcl_7dGFNNo62Ecq8U1B__Z35dOspz8k/gHNmYzFgS3ukmvjB2S_l8sIA8KO9kfEz/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bank for the Superrich</a> to Cater to Global Clientele. China’s central bank seeks European lenders’ <a href="https://links.message.bloomberg.com/s/c/tMQMKnQZIAOWqaO6j9yRm4wVB8pRh5LAOBXroDwBxTUT66ME1rUZov7rYrGHwcm9Fqmb4uvZcDrBT4_ciYunvsGqeraFoLt1TwkysdXkfRLOfX2ro_2n8CL6cJlHweYjfFHrK_Z-zYlP7_G5myJqDrHIcymYRNHO-G79UTummEcGFuy3lGsUSjM9MUE8ImEoP-tH3yKh-LTBQR2AN5tBNn-chEi-WFwkqYTEZNKzPm_TatsQmAl9v4FQgER44u-t5r-bSK3LPb7h3LSpjqRyAWgFVMVGvUbsYfmZMinnFxc_owRSb379yMdvVkhqiCFrvLJq4xCzACw0UWv3pOyK0rXBkazM0d2BSZZ6YFCBJBARW6z73gSoJvXuDsM/WEPbQKbxhb0_VVp9Dc36qTiRPG5S60Do/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">advice on low interest rates</a>. Pope <a href="https://links.message.bloomberg.com/s/c/KSLhAM1hGpYF0kN5vLDHDhE8EaMFcScbYBjDoye5ytQkjNhRPyE4-FX-Klg3y4F_O1cApw7rIZp03fUK98YvlY-JcikjTpYOY9v-pzi9hEuF3TdotVEhmL2utMFWiWxv07FKBHMMinSvwE3KCOOgymo_M4WxayaUo_qES9bhPa_Ieo9JBfyTg7v9xNSSzgFYegyBdOU-LlDRSiGLrvsqq04pBvg8RTNIEnb9CXSka3iJgDn06nyhCZ1RRo6lJFZ5OaI1nt6amoIGa-DJt2lF4QAZBlTRpKqzDcmklX7X6WsJcseoImH1TP6VKERbWUIqGndR8qR8hBU7n-CYplXwhxpDWZmv_aKcblVePMS6o5Att_3mL2ShrmPafQo/7JgBJDfAquqdOjciLHQwbtJMBClxO5cB/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">house</a>. (<a href="https://links.message.bloomberg.com/s/c/Z1sq9Q3VEIyKAkGPDnMsDtE0-27mMTBgb_tDo8gbMQmYQSlt2z7rm8rZgPvtO7H9gsFKeibDyXEvrJIreJw7D7ZxBKElcQwAOlwDjuJJdd1jNC380iQJ2OXaP0gpt_G4gySwvctOd_P7LDEoMNWt1JEMefgliBcdMop-TSYKbMPCUZ6Lqp6Lkw6sqagbHqzdzw_m_lQI6xl3GPas3GCcQ3CxZFAKFuE787BXQK2BKagSfQ80lcvNrbDZ9LO0Y3iJRsIIDsDWTxJ9k6H2Bqs7BTOhe1d6pwC5FaXEKvzmQChmliute6fX-Ttf9Reca0r19c_iDFX540MM8-hTHTXvbfXNeE3VDqNsBsxgwZ7UwOnsdBLor2aE5KRh4dM/dOwt5mNBCIRkQvRQ9qR8S0do_T5lVXAI/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Earlier</a>.) Nantucket <a href="https://links.message.bloomberg.com/s/c/lNXyFA8rjEG6CSlHsRtAsAarAAFMtispQ4VBMWb_cfTswogYShKBhNj9_Fl8yBjQm4CULCzT4vP_-px2S87y4Lf4R8L_7tWTiuahR-bu4s3bdsX7vJj-3W3qh0HgLGkd9GFZjyTj5hmIlyFoH43BxHwp2J-Fzig6Tl_lI0VJa1uG7JgQPq1cgwOwe9Ym1VEGBT58wN6Es-jEnBw_KI5XQmvslBIDvy8XumlafRobX9jXO2QLdUtOcqlYwH0UGNRHchu0UNu3iHlQEsBq2KIlGcXWwLUxzuJfeP4zsXgmoJ-_iPS8LiS_zcIzH9BLCI3lu9ZBwhrHTc0-C7ynqau8JXtyitchrHD87Z8bXWeCEYApcBueHDHJd5iTajA/7vO0sBgR8RIt8gcDzlsyfKhbmjiH04SP/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">G Wagon confusion</a>. “They’re those people who were <a href="https://links.message.bloomberg.com/s/c/g5FUDiRTEMDFuskGBHPE3qH1F516MB8yi0sHttKudi1_Bu5l4DzISW6BfYjVkdqmCgBzk1ftS1VUnt5rhMasII7efVFu39a2rx02VfM7Rs4O8lTKkoHXzeMBcxWVBx9Qa02rOoORBWahiT-LsgJJ1lEXxu4j-XuzAiZSVqNWWDVU-tV_YoIWp1NrS6nqNWx-i8zdJgFjUbbkPEuUFp1gtU1SFpUClohk5WJ1xnM8Dkd7AiRc6_LqBjt0lebMZEwNoNnB3OfLbxLyrSLX98GTp6jZqcSkSuJyoXThkTu6SStoAvZhdUrMd6C69FnjnF0cBLafGwCQQIW6LgPIZnhL6MlkqYp_Ng945zIrrTS1c0Nh3B4RGo8oT83E9_k/ZdaEp58Zr8S2AKngkS6cTyWSooRaS0RS/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">selling medicines they weren’t supposed to</a>.” US to breed billions of flies and dump them out of aircraft in bid to <a href="https://links.message.bloomberg.com/s/c/FOXzVPB1Pz19cB0cHgMNgVxCbCaUYGjeexuu5Xtc7T1agbqa8kybDM1LEPdk4ytkf_6BUNuz3Gq5zvMT8LB95PLNmPnZA8zFMBIUUrbvJu-kgf0ws0qRqkkmQLHYMejNHdf9ruqccI7z0BpBkL6JyHA0c7HF9giw8TTqHN8OSRaF4hbH1CaoLc0FuRZhsGRsx65jmCsUW3sLDGHWzT0Lh8UXKPBJL9F29p_TSiX5Ujo7HyF1w2_T8QLMNDNm3wam_iYKuSSUV5WZES6Roshjgq807N2_p6EjgAjyUTvTieauWf4TUadVKHsOeIJV81PNvepd9eZxLxa5tLFFbcTyrBPmDlpgF-f8E331Fyy4Lv_vt_JlbnT3wm4PWtQ/XG6KO3WzRji_3jxIA9WKZNJhzyojiNBp/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">fight flesh-eating maggot</a>.</p> <p style="margin: 16px 0;"><span><em>If you'd like to get Money Stuff in handy email form, right in your inbox, please <a href="https://links.message.bloomberg.com/s/c/R24IhHssdcE5sfuskJ30JkPLifEwojwW-g_eaTCUZ65idmR3X026QQ31OYZZ2ZQCpRbY-f311R6-QI0ae-laHBdw9FSYlRwfZH2ib1VEes6H7sw7v3WZy4k2KImgWQFTcaQx-UwOv-D6zvLrFWMw3Avtugq2JO3A7FZR0LVJqQMzzHIwVn72xmG2OFqf1c2dkuKhzlbhdpodYBgmePchQgK0cxC7b5NE33Jv8TCrTC2m4DUHik6bU-IHBoj5613ZGDvnDqKIKQUXPJeSTvufQ5bjM86x-pXYNyUEN8vIgWKY4-oXxS4KUEj_iVoGNiUSkH6jg06AhEMgmtE31ES8YzWns0OX1GkveFmW5TL2BNwd8HDIs5uKHIxTr0c/suLoVpOARpN8TK7Jyev2FRSAUHaYJ7Ua/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">subscribe at this link</a>. Or you can subscribe to Money Stuff and other great Bloomberg newsletters <a href="https://links.message.bloomberg.com/s/c/D_d8DodkoI0i39s1TzDq-2SOTW2WepgQdrGKifNBK_m5ex5a6xqFFzCf_y_v_nekPkTv-hTOkhLydUSGEhgjPanRpCzrbyWpvyr_LJAGWpW8xLo8iN8OOE_HRNz0fgriHDzu9k40Ksd24EA1AwXctZ2pl1szalM5auop7SJLZsg29RIfF73o2rcawYqlV-F_ddoRxEJJAGmuX1Tng_pFtKgG0PHHNtHJEByxtqeQVnKeF_P3FoOqz5TWaJ8Qc-5DVRPMay-OM_Tvx8zq_opOCva9vDMM6I0ILRWaL5euHvyMALtKYN0uhlF1ieFtwQa4SwO7NvLH2e7r69qRdo4pjVNZajqfUq98Pn-vPiYw3nZcgX0bq5ICViWzk5A/5gDHx3amud2EWpu0heqfn3LX0KWoMCBu/10" itemprop="StoryLink" itemscope="itemscope" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a>. Thanks!</em></span></p> <div id="footnote-1" style="font-style: italic;"> <p style="margin: 16px 0;">[1] True fact: Two of my friends gave me a tungsten cube to celebrate the 10th anniversary of Money Stuff.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] We <a href="https://links.message.bloomberg.com/s/c/_QHBJ_aSOjvWd4eAVnOmPV8JZA0GSX91kZPr_UnGURMewistUhD4x6igDJkTgCt9TLwphAQ-71cI3_DN0_UoDP3kpNg7WuAzNylaU-82Iq246GE3j-d_kVuES5CrBjBuWyiA_kd_AZw3IRoZRoyZa0ayvnR3E1zqccKuTsxTeHrSZUUU9h79X55uwnBe3_-pPV6YW2neDkonlU4yfDMiubpYRUuR1cSwVa5mi5PmgUzbGU-U1eqNWgUYBs1vOJWaQwuxwi9N6UMqb1wA5qefL2pL_TBacnhLHSHBMPFl5Rk274lJrZrW9yJ85jmVfdAxLTubgkc_KxTvKggcE9DA9Xkpp8uDqs4hz35ZIQPTWRq_gvyLtG_3L28J8RQ/sGlwqaBVjwI_Qu7sNGH47lox16Esk-3r/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked the other day</a> about Linqto, which sold private-company SPVs, sometimes to people who were not “accredited investors,” under rules allowing a certain amount of that. But you can’t sell SPVs to thousands of non-accredited investors without complying with registration and disclosure rules.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Not stock! Tokens that are essentially SPV shares representing OpenAI stock.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] I mean, for your home. If it’s rent for your widget factory, that should be deductible.</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] Those numbers are from the 2025 severely adverse scenario (<a href="https://links.message.bloomberg.com/s/c/fAibTAb8fbF95jauo8Iyt0J2ouInhap_K2kl28su_bhivDZ0d21n4_tfaYOaK5Rjy6cifc6quHtFeUMTXVsykIgobIrnQIRwItw8wOKA92AM_3BCinZu-P7TrOTV71Fface2mdQOoEEF0_XzhxQ3bAz7Kxp8SgFHLBf1n7yZGWNFLxbpSQR1sWlk0pWVaI-ZJYqP21SACzXyoi9WhpDHPcw16M-HdHeL5rllgpyzjPljHhhJeI2op2quOWHyTT6RPnD3DP5vKFIy72OCA1eKb6TKnZ7u-UFoNPart-Mty-uW1pRBF49QPVWDNiY0o750h4hb1W1K7uoVLRXcj77_fYT70UAffgdgSysbT88YyDVM4h2ihE5XpdUszIA/muvCTp4WefZbiGm1JRuwO1Np5prENLiU/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">see page 3 here</a>), but the details change from year to year.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] This is loose, as the whole exercise is dynamic and plays out over several (modeled) quarters, so it’s not so much “subtract losses from current capital” as it is “subtract losses and grow current capital based on projected stressed future income,” etc.</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; 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  3. CardsFTW #162: A Deep Dive on Credit Card Approval Rates

    Wed, 02 Jul 2025 19:58:01 -0000

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} table.body .kg-cta-minimal .kg-cta-content-inner { display: inline-block !important; width: 100% !important; padding: 0 !important; } table.body .kg-cta-minimal img.kg-cta-image { width: 52px !important; height: 52px !important; } } @media all { .subscription-details p.hidden { display: none !important; } .ExternalClass { width: 100%; } .ExternalClass, .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td, .ExternalClass div { line-height: 100%; } .apple-link a { color: inherit !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; line-height: inherit !important; text-decoration: none !important; } #MessageViewBody a { color: inherit; text-decoration: none; font-size: inherit; font-family: inherit; font-weight: inherit; line-height: inherit; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, insights into the approval funnels of popular cards</span> <!-- HEADER WITH FULL-WIDTH BACKGROUND --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="header" width="100%" style="mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #ffffff; width: 100%; border-spacing: 0; border-collapse: collapse;" bgcolor="#ffffff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container title-serif" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- Header content constrained to 600px --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="header-main" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; border-spacing: 20px 0; width: 100%; max-width: 600px; background: #ffffff; background-color: transparent;" width="100%" bgcolor="transparent"> <tr> <td class="header-content" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 0; margin: 0 auto;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/ff39d1e4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif post-title-color" style="font-size: 18px; vertical-align: top; text-align: center; color: #000000; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;" width="100%"> <tr> <td style="vertical-align: top; font-family: Georgia, serif; letter-spacing: -0.01em; font-size: 36px; line-height: 1.1; font-weight: 700; text-align: center; color: #000000;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/3faaf4ae?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; text-align: center; line-height: 1.1em; overflow-wrap: anywhere; color: #000000;" target="_blank">CardsFTW #162: A Deep Dive on Credit Card Approval Rates</a> </td> </tr> </table> </td> </tr> <tr> <td class="post-excerpt-wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%; max-width: 600px;" width="100%" valign="top"> <p class="post-excerpt post-excerpt-no-feature-image post-excerpt-serif-sans" style="margin: 0; color: #15212A; line-height: 1.4em; text-align: center; padding-bottom: 32px; font-size: 20px; font-family: Georgia, serif;">Plus, insights into the approval funnels of popular cards</p> </td> </tr> <tr> <td width="100%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" align="center" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By Matthew Goldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">2 Jul 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/da959ead?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #15212a; color: rgba(0, 0, 0, 0.6); overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> <tr class="post-meta post-meta-center view-online-mobile" style="color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/c12160b6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #15212a; color: rgba(0, 0, 0, 0.6); overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <!-- MAIN CONTENT AREA --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-color: #ffffff;" bgcolor="#ffffff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container title-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; border-spacing: 20px 0; width: 100%; max-width: 600px; background: #ffffff; background-color: #ffffff;" bgcolor="#ffffff"> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e0e7eb; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">One of the key challenges of credit card programs is that you have to both entice a prospective cardholder to apply <em>and</em> the program has to approve that person based on their creditworthiness.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The approval challenge means acquiring a credit cardholder is much harder than most other products. If you are selling a consumer a pair of shoes or a business a software tool, you only have to convince them to buy the product or service; you don&#x2019;t reject them from being able to buy it after you check their financial background.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">With this in mind, today&#x2019;s deep dive is all about the application process, examples of known approval funnels and rates for well-known cards, and the implications for folks running card programs.</p><h2 id="the-application-process" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">The Application Process</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">When a consumer applies for a credit card in the U.S., the application goes through multiple risk-management stages before a final approval or denial. These stages generally include:</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Identity verification, know-your-customer (KYC), and customer identification program (CIP) compliance</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Fraud screening</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Credit underwriting (creditworthiness assessment)&#xA0;</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Each stage can result in some applications being filtered out. Recent industry data sheds light on typical approval or rejection rates at each stage and trends in how major card issuers handle this process.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">While the identity and KYC verification stage typically has a pass rate well above 90%, fraud screening filters out a few additional percent of applications, and ultimately, only around 40&#x2013;50% of all credit card applications result in approval (this number varies a lot by issuer and card product).</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/07/cardsftw-application-funnel.png" class="kg-image" alt="Table showing the three application stages of credit card approval, what is checked and what the typical approval rate is" loading="lazy" width="600" height="214" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><h2 id="trends-in-approval-rates" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Trends in Approval Rates</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In the past 1&#x2013;2 years, issuers have tightened underwriting somewhat as credit conditions normalize post-pandemic. The New York Fed reported that the rejection rate for credit card applicants rose to ~19.6% in 2023 (from ~18.5% in 2022), the highest in about five years, even as application volumes fell. In other words, fewer people are applying, and a slightly larger fraction are denied, reflecting cautious credit policies. Nonetheless, overall access to credit cards remains high compared to the 2020 downturn, as many issuers had loosened standards in 2021&#x2013;22 before the recent slight uptick in denials.</p><h2 id="credit-underwriting-is-crucial" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Credit Underwriting is Crucial</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The final and most consequential stage of the whole approval process is credit underwriting: evaluating the applicant&#x2019;s creditworthiness and deciding whether to approve the card and on what terms. Approval rate data from the CFPB&#x2019;s Consumer Credit Card Market Report implies that roughly half of all applications are denied for credit reasons. Underwriting relies on the applicant&#x2019;s credit bureau report and score, income, and debt obligations, as well as the issuer&#x2019;s internal risk models. Common reasons for denial at this stage include: credit score too low, high existing debt or delinquencies, insufficient income, limited credit history, or too many recent credit accounts opened.</p><!--members-only--><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Credit approvals vary enormously by the applicant&#x2019;s credit tier:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><em>Prime and Super-Prime applicants (good/excellent credit):</em> Most of these applications are approved. Data show that consumers with FICO scores in the high 700s or 800+ have an 80&#x2013;90% approval rate at major banks.&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><em>Near-Prime applicants (fair credit)</em>: This middle segment (e.g., FICO in the 600s) might see approval rates around the 40&#x2013;60% range. CFPB data indicates ~41&#x2013;44% approval for near-prime consumers on general cards in 2022, but retail cards approved over 60% of near-prime applications (as some retailers intentionally extend credit to slightly riskier customers).</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><em>Subprime and Deep Subprime (poor credit)</em>: Approval rates plummet here. CFPB reported that under 20% of subprime (&lt;620 FICO) applications were approved for general-purpose cards. Even store cards approved only ~10&#x2013;13% of deep subprime applications in 2022. Many issuers do not offer unsecured cards to consumers below a specific credit score (instead steering them to secured cards or other products).</li></ul><p style="margin: 0 0 1.5em 0;line-height: 1.6em; color: #15212A;">It&#x2019;s also worth noting that the application channel plays a role. Pre-screened credit card offers (where a consumer receives a targeted mail/email and responds) have the highest approval rates (often 70% or higher) because those applicants were pre-selected based on credit data. In-person and mail applications also see relatively higher approvals (~60%).&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Meanwhile, fully unsolicited online applications (e.g., applying cold via a website or mobile app) have lower average approval rates (<a href="https://www.cardsftw.com/r/d047232b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>one report by the CFPB</u></a> found mobile and third-party website applications had only ~38% approval, a few points below the overall average). This is likely because online channels get a broader mix of applicants (including more marginal ones), whereas pre-approved solicitations target those most likely to qualify.</p><div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Underwriting standards tend to tighten or loosen with the credit cycle. During the pandemic in 2020, issuers pulled back and approval rates dropped sharply (general card approvals hit ~36% in 2020). In 2021 and 2022, standards loosened again, and approvals climbed (back to mid-40%) amid a competitive push for new customers. By late 2022 into 2023, there were signs of <em>selective tightening</em>: for example, the Fed&#x2019;s survey in October 2023 showed higher rejection rates and consumers reporting it was harder to get credit. Rising interest rates and higher card delinquencies in 2023 made banks more cautious. Even so, the overall availability of credit cards remained robust by historical standards: application and approval rates in 2023 were still above pre-2019 levels for many segments. Essentially, issuers became more discerning about who they approve and the credit lines they grant, focusing on credit quality due to concerns about consumers&#x2019; debt loads and ability to pay in a high-inflation environment.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">One noteworthy development is the growing use of &#x201C;soft pull&#x201D; pre-approvals in the application process. An increasing number of issuers now let consumers see if they are likely to be approved (or even get an approval decision) with a soft credit inquiry, before a hard inquiry and formal account opening.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This trend, led by Apple Card&#x2019;s instant application in 2019, has been adopted by others. In late 2022, American Express launched a feature to tell applicants if they&#x2019;re approved with no impact on credit score (only finalizing with a hard pull if they accept). Discover, Capital One, and various fintechs similarly use soft-pull preapproval workflows. This doesn&#x2019;t change underwriting criteria, but it improves the consumer experience and likely increases application volume (since consumers can &#x201C;try&#x201D; without dinging their score). It may also mean that formal denial rates (after hard inquiry) appear lower because some unqualified applicants never proceed past the soft-check stage. From the issuer&#x2019;s perspective, though, the credit risk thresholds remain the same; they are simply filtering in a friendlier way.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Overall, credit underwriting remains the make-or-break stage for most applications. About half (or more) of all would-be cardholders ultimately do not pass this hurdle due to credit risk. Those who are approved typically have higher credit scores, stable finances, and meet whatever internal rules each issuer imposes.&#xA0;</p><h2 id="underwriting-policies-vary-across-the-industry" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Underwriting Policies Vary Across the Industry</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Apple Card was launched in 2019 in partnership between Apple and Goldman Sachs as the issuing bank with a surprising underwriting approach. Apple wanted broad adoption, so Goldman Sachs extended credit to a wider swath of customers than some prime issuers. The Apple Card has no annual fee and was marketed to be widely accessible. Apple even introduced a &#x201C;Path to Apple Card&#x201D; program to help borderline applicants improve their finances and get approved later.&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/07/apple-card-1.jpg" class="kg-image" alt="A floating white credit card with the Apple computer logo in the top left" loading="lazy" width="571" height="465" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">The most accessible expensive metal card</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The result: Goldman&#x2019;s underwriting for Apple Card has been relatively inclusive (some may even say aggressive) by industry standards. Notably, Goldman set the minimum FICO score for approval quite low. Apple&#x2019;s disclosures say a FICO Score below ~600 will likely result in denial. In practice, many Apple Card users have credit scores in the 600s, not just 700+ prime. By late 2022, more than 25% of Goldman&#x2019;s Apple Card loan balances were held by customers with FICO scores below 660, and by Q3 2023, that share had risen to 35%. This is significantly higher risk exposure than other major card issuers. For comparison, at the same time, only ~13&#x2013;15% of Chase and Citi&#x2019;s card portfolios were sub-660, and Capital One (known for serving subprime) was about 31%.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf_s67llYKHZ8BRI_DKmgmmkUjpIlC_Z-Iu0EU8m2c_mNt-2UStUV04moU_KJW2sOBmM0aZY0NxivYpFHg5IFH-9LNGhoyDB23IAtBnl6bSGBZXJJzGtgXU7-LEBllnPaGThDDT1w?key=N-MISN63JVJzJn2VG7Nr8A" class="kg-image" alt="Figure: Credit card loan mix by credit score for selected issuers (Figure 4 from Flagship Advisory Partners). Goldman Sachs&#x2019;s Apple Card portfolio has a far higher portion of balances from subprime (&lt;660 FICO) customers &#x2013; 35% as of H2 2023 &#x2013; compared to competitors like Chase (13&#x2013;14%). This reflects Apple Card&#x2019;s broader approval of near-prime applicants, which contributed to higher loss rates." loading="lazy" width="600" height="264" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">One consumer survey by the NY Fed implied co-branded cards (like Apple Card) had high acceptance among applicants, but we can use Goldman&#x2019;s portfolio data as a proxy: the bank accumulated about 15 million Apple Card accounts by 2023 in just four years, penetrating an estimated ~18% of Apple&#x2019;s eligible customer base. This rapid growth suggests a substantial number of approvals. However, the flipside of lenient underwriting has been higher delinquencies &#x2013; Goldman&#x2019;s net loss rate on credit cards hit 3.5% in 2022 (double that of issuers like Chase at ~1.5%) and climbed to over 6% by late 2023, driven largely by the weaker credit segment they approved. Goldman and Apple have reportedly re-evaluated some of these strategies, especially as Goldman is looking to pull back or transfer the Apple Card portfolio (<a href="https://www.cardsftw.com/r/cb2b7635?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">it announced plans in 2023 to exit the partnership</a>).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I always thought the Apple Card strategy was quite wild. Goldman has issued credit lines as low as $250 and as high as $50,000. The bank has lost quite a bit of money on this program, although cardholders seem quite happy. As economic conditions tighten, Goldman has likely become more selective (some users noted it became harder to get approved or get credit line increases in 2023 compared to 2019). However, the Apple Card remains one of the more accessible rewards cards. If you meet the basic requirements and don&#x2019;t have major negatives, your approval odds are fairly good. Goldman will decline those with recent delinquencies, heavy debt, or very low scores (per Apple&#x2019;s criteria list), but a FICO of ~600+ with decent income stands a chance. This is in contrast to our next example, American Express, which traditionally requires higher credit standings.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Underwriting is where Amex is comparatively strict. While I was at Bankrate, we saw Amex, amongst all issuers, consistently had the lowest approval rate per click sent to an application page. One part is selectivity, one part is that consumers broadly prefer Visa or Mastercard products, and one part is that other issuers have more alternative options to offer to users than Amex. (For example, you might apply for a Platinum and Amex won&#x2019;t approve you for that or a Green Card, whereas you might apply for a Chase Sapphire and Chase could say &#x201C;no, but would you like a Freedom?&#x201D;)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">One interesting metric: the CFPB data by credit tier implies that for super-prime applicants (800+ FICO), approval rates are around 90%. Many Amex applicants fall in that range, so they sail through. For moderate scores (~660&#x2013;680), Amex might approve some (especially if income is high or they have a prior relationship), but could deny others, contributing to the notion that Amex has a somewhat lower overall approval rate than mass-market issuers. Without hard numbers, we can say American Express approves most applicants with good credit, but likely rejects most applicants with fair/poor credit. They also sometimes limit credit extension. For example, if you already have many Amex cards or loans, they might decline new accounts or suggest product changes instead.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/07/amex-platinum.jpeg" class="kg-image" alt="Three silver American Express cards, two with art designs on them." loading="lazy" width="600" height="540" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">More expensive and harder to get these metal cards</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In terms of trends, Amex appears to be maintaining a steady credit posture. They didn&#x2019;t dive into subprime during the recent fintech wave, and thus didn&#x2019;t have to pull back the way some others (Goldman, Capital One) did. They did join the soft-pull preapproval trend, which suggests their funnel might see fewer outright denials. Also, Amex often uses existing customer upsell &#x2013; a huge portion of their new cards each year are issued to current Amex cardholders who are very likely to be approved for additional products. This pushes their effective approval rate up, since if you already have an Amex and have managed it well, the company is inclined to approve you again.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">KYC/fraud frictions are low with Amex, and underwriting is geared toward prime credit. Your chances are quite good if you meet their standards (say FICO 700+, low debt, no recent blemishes). If you&#x2019;re borderline, Amex will probably err on the side of caution and decline, but might invite you to apply again or offer a different card. Amex&#x2019;s reputation as a prestigious card issuer comes from this deliberate curation of clientele.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">One interesting credit-risk related policy is employed by Chase: &#x201C;the 5/24 rule.&#x201D; This Chase policy automatically declines a credit card application if the applicant has opened five or more credit cards in the last 24 months. This isn&#x2019;t a traditional fraud flag (it&#x2019;s more to curb &#x201C;credit churning&#x201D; and possibly risk stacking), but it functions as a hard cut-off in Chase&#x2019;s decisioning.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">From the perspective of an applicant, even if you have excellent credit, if you&#x2019;ve opened a bunch of accounts recently, a Sapphire application will be instantly rejected. They view multiple recent accounts as a risk factor, either for gaming rewards or indicating financial stress, and willingly deny a significant number of otherwise qualified applicants for policy reasons. Industry experts and crowdsourced data have confirmed that this rule affects Chase approvals widely. No other major issuer has an explicit policy as well-known as this, which likely makes Chase&#x2019;s overall approval rate for cards like Sapphire a bit lower than it could be, because a chunk of applications are auto-denied due to 5/24.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/07/sapphire-reserve.jpg" class="kg-image" alt="Blue credit card with Visa Infinite word mark in the bottom right and Chase Sapphire Reserve in the top left" loading="lazy" width="600" height="338" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">RIP old CSR design. Also expensive and hard to get</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Anecdotally, Chase is known to sometimes initially deny and then approve on reconsideration if the applicant calls and clarifies information or moves credit around fromanother card. This suggests borderline cases can be resolved in favor of approval, meaning Chase&#x2019;s process isn&#x2019;t designed to maximize outright denials &#x2013; it&#x2019;s designed to strictly enforce certain criteria. I&#x2019;ve personally had success with this in a few cases: once when my overall credit exposure to Chase got quite high (as a result of applying for a fourth card), but a call to reconsideration and offer to take some of my credit limit from an existing card and shift it to another card helped. When I started Totavi, I had to speak to reconsideration to get my first card because my business was new.</p><h2 id="what-does-this-mean-for-aspiring-card-issuers" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">What does this mean for aspiring card issuers?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Approval rates at each stage of a credit card application follow a funnel: nearly all applicants pass identity/KYC checks, a small percentage are filtered out by fraud prevention, and roughly 40&#x2013;50% end up approved after credit underwriting (with higher or lower odds depending on one&#x2019;s credit strength). KYC and fraud processes have been bolstered by technology, yielding high pass rates (90%+ automated identity verification success and only ~5% or less of applications flagged as fraud), while fraud itself is evolving (synthetic IDs are on the rise).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Prospective issuers can take the lessons learned by these major issuers when creating their own application funnel. How can technology help encourage inclusive underwriting in a way that offsets losses? Are there proprietary policies that can help filter customers you do (or do not) want? Who is your target customer and how can your funnel ensure they get your card?</p><h2 id="further-reading" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Further Reading</h2><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">&#x201C;Consumers Expect Further Decline in Credit Applications and Rise in Rejection Rates - FEDERAL RESERVE BANK of NEW YORK.&#x201D;&#xA0;<em>www.newyorkfed.org</em>, <a href="https://www.cardsftw.com/r/27ff3d44?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">www.newyorkfed.org/newsevents/news/research/2023/20231120</a>.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><em>The Consumer Credit Card Market</em>. CONSUMER FINANCIAL PROTECTION BUREAU, Oct. 2023. <a href="https://www.cardsftw.com/r/233e4f69?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">https://files.consumerfinance.gov/f/documents/cfpb_consumer-credit-card-market-report_2023.pdf</a>.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">&#x201C;How Digital Identity Verification Works: 8 Vital Data Checks.&#x201D;&#xA0;<em>Plaid</em>, <a href="https://www.cardsftw.com/r/75b4819f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">plaid.com/resources/identity/digital-identity-verification/</a>.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">&#x201C;How the Bilt Mastercard Increased Its Onboarding Pass Rate to 90%+ with Prove Pre-Fill.&#x201D;&#xA0;<em>Prove.com</em>, 2022, <a href="https://www.cardsftw.com/r/5aa1e269?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">www.prove.com/blog/how-the-bilt-mastercard-increased-its-onboarding-pass-rate-to-over-90-percent-with-prove-pre-fill</a>.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">TransUnion. &#x201C;TransUnion Report Indicates Suspected Digital Fraud in Nearly 14% of All Newly Created Global Digital Accounts in 2023.&#x201D;&#xA0;<em>GlobeNewswire News Room</em>, TransUnion, 21 Mar. 2024, <a href="https://www.cardsftw.com/r/048f2a38?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">www.globenewswire.com/news-release/2024/03/21/2850186/0/en/TransUnion-Report-Indicates-Suspected-Digital-Fraud-in-Nearly-14-of-All-Newly-Created-Global-Digital-Accounts-in-2023.html.</a>&#x200C;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">&#x201C;Are Your Customers Real? Synthetic Identities Are Driving Fraud.&#x201D;&#xA0;<em>Transunion.com</em>, 2025, <a href="https://www.cardsftw.com/r/d5858da5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">www.transunion.com/blog/are-your-customers-real-synthetic-identities-driving-fraud</a>.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Howell, Erik, and Claire Hoffman. &#x201C;The Rise and Fall of the Apple-Goldman Sachs Consumer Finance Partnership.&#x201D;&#xA0;<em>Insights.flagshipadvisorypartners.com</em>, 14 Dec. 2023, <a href="https://www.cardsftw.com/r/3fc7075a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">insights.flagshipadvisorypartners.com/the-rise-and-fall-of-the-apple-goldman-sachs-consumer-finance-partnership</a>.</li></ol><h2 id="cardsftw" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">CardsFTW</h2> <p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><a href="https://www.cardsftw.com/r/8a97c9a8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/dcb81db1?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/56433e1a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/d4e9201f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td class="feedback-buttons-container" dir="ltr" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 32px 0 24px; border-bottom: 1px solid #e0e7eb; text-align: center; background-color: #ffffff;" valign="top" bgcolor="#ffffff"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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News.</a> </p> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e0e7eb; color: #15212A;" valign="top"> <h3 style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: 600; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; color: #15212A; font-size: 15px; font-weight: 400; text-align: right; line-height: 1.45em; vertical-align: bottom;"> <a href="https://www.cardsftw.com/#/portal/account" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"> Manage subscription</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-top: 40px; padding-bottom: 30px;"> <tr><td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center"><p dir="ltr" style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span>Totavi, LLC,&#xA0;2108&#xA0;N St., Ste. N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #15212a; color: rgba(0, 0, 0, 0.6); text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; text-align: center; padding-top: 70px; padding-bottom: 40px;" valign="top" align="center"><a href="https://ghost.org/?via=pbg-newsletter&amp;ref=cardsftw.com" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"><img src="https://static.ghost.org/v4.0.0/images/powered.png" border="0" width="142" height="30" class="gh-powered" alt="Powered by Ghost" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; width: 142px; height: 30px;"></a></td> </tr> </table> </td> </tr> </table> <!-- END CENTERED WHITE CONTAINER --> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1" height="1" alt="" src="https://email.mg.cardsftw.com/o/eJwszkFuxCAMAMDXLLeNwMGBPfgxBttJ2qRIhDbq7ytVe5zbCM05zIhOKSQMMS-Qg9OT9-O5Cy15wWwRVKyqBC5YiqHObqNYYkgg3oAlSrXZauW5eDHN2ZjdTuABffIQXpjwNakkFFRLyBgXLo_oz3Wq3OWycU-1na7TuDH8foxVtuPq0OQR_Zfe16FjaJ96E21uUPk-Pp__Szdo3do13voh-AsAAP__nnpCPw"></body> </html>
  4. Money Stuff: The Stocks Will Be Tokenized

    Wed, 02 Jul 2025 18:06:10 -0000

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width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--[if !mso]>--> <tr style="display: none"> <td colspan="2" style="line-height: 1px"> <a href="https://links.message.bloomberg.com/s/c/h2C2ky6yNedfK9SlBKltbQQtSeIRjTHIVL_w0HLdFEGBQtXHZoq7ZBOWWYkD7ULcGRwRTizYbxS9nOwdXDB0qkIqoaiMB4ox6kzUs5ZQOupzUg3eEn_bC7N36RgXJksGwBPZqHEjeyC3Fo2w91r1mMaoSNG4lGjKwRQ8OKB2em9z-fcL6-yn1CFjtsnzGTfXwhosnJbY6iH45lE6RzQbhWMW5-zM0GoBPU_5pK0MYoeexEg5YDnH2-UdEdyFNxSSY-ucNZEPxjxVxRwX_xDeASp5k_41Ge8O0mobC5cGn5ugWt2T23i5I0dGp_KwmLmWQnaAS2fQzfSeXYdTGQWZaNNc-Gpwf3o9Y4dEXEAXMf4WmfpB0-Omw3QSwrPOd1aRuFNhsRTMySEw1IIWRNQZfpzkvTp8isbqhQ1JH9fFbKLIAx5pk-KSDHttFp2_XUv_XsE3SQ1cMJVxhoudHKitx22sEthCiScOE9FNv1j7GTVFAfdq9htJgqUwvXwWIv3ZFF76uEkRP5qc-iKbkd1TKMo0uNrtmii1-rlrnIRmrS3GuXFhWTIYqi0mmqM8zDrz2pUSF11xOpiLOd-LT92iKJY3BD4J-_KIbh3t7lpbR-D9FeHjUzLhgT6FIOjMzARVcAttyPuVcy4Q2xuYBmC9RGgjfy4uZAoKxQGcrsmEbRvm5zY1rlnv3Wxhx8aMzy4/Y3aSZfP1RoJfpAaqneqJPsUYYAHQC1vt/10" rel="nofollow" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=1149004&li=14087850&m=c869f5c3f0784f1d3b0577b4456d769f&p=07022025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869&stpe=default&li_coord=mobile&collapse_width=550" border="0" width="550" style="display: block !important; width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--<![endif]--> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; line-height: 150%; padding: 0 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">‘Tokenization’</h2> </td> </tr> </table> <p style="margin: 16px 0;">Here’s a stylized history of US public stock markets. In the olden days, anyone could raise money for a project by selling stock to the public, and lots of people did, often by making false promises. This crested in the 1920s, as people rushed to buy stocks and borrow money to juice their speculative bets. Then there was a crash and a Great Depression. To restore confidence in markets, Congress passed some laws — particularly the Securities Act of 1933 and the Exchange Act of 1934 — to regulate public stock markets. From now on, a company that wanted to sell stock to the general public had to explain its business and publish audited financial statements and disclose important events, so that public investors would know what was going on.</p> <p style="margin: 16px 0;">Of course, this only applied to public companies, and there were exceptions for companies that did not raise money from the general public. If your father-in-law gave you some seed money to open a local hardware store, obviously the federal government did not require you to give him audited financial statements. Over time, these exceptions grew in importance. In the 1920s, the best way to raise a lot of money for a business was to sell your stock broadly, on the stock exchange, to thousands of individual investors who wanted to buy it. In the 2020s, the best way to raise a lot of money for a business is often to call up one guy, Masayoshi Son at SoftBank Group Corp., and ask him for $10 billion. He will probably say yes, and then you will have $10 billion, and you won’t need to sell stock to the general public or file financial statements or anything like that.</p> <p style="margin: 16px 0;">“Private markets are the new public markets,” I <a href="https://links.message.bloomberg.com/s/c/A5-t-IPx_clZrywmHvtxbqLcduyRALvQ31eJpEpbRvUaIvg3rsIIyo9xiYC3snKk1xt8I91P2Y80CQN_gHJUMu1AwSv-OsxMhyFsmPiVhZ8-NYo66Rn2dys9TcAbrj3aPGQroPPqIRgfw9jT7r4bajUB6wbnPOH9_kpkpbHXvcTzlP45-6-hgTM6w0H4sKyyWCYGqBXH5ESCZX9gCwgU9huQD0jaQsSNruLtIggT1VioDvDCx5QWZqQ0hz5A0PKBZ6SJtJk5uSdaVSQ0RJJqJBLsuIMDmVDs9lXalnFM-mHBf9_xWuaV67O6laB9l2fScDUCoSviPwCBL7gBOvwwPMFUUNszEidMQibbgTf_GwgpuTA1AJJqSwvN-Q/VjgDq_iHh3akW_LdGjfYi5gfCyrexppD/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">often</a> <a href="https://links.message.bloomberg.com/s/c/IAxPZ_uleKAiuhzJ21l6a4ChJmo-s_0x6fs8EMSb50F8XpOr-OySGc7JIVXvNldyrh-SIeKRi3_DhuwoLV2gZghuFBoS5umeWMjJFQnm08szIKmrVj7m-z_GK9EY9D-akwHdl4oirSXSXW-DbZ3yFQ5fH97F3Ix0rmV4UiX40pjnkV5d_lM8AqXE5V8m7x83NQeTek9e1F-ATbZWvK4AgouuZFmSQ-OX-Qy4HB5sT1mOdGhpn8Y5sUJwCcfe_y0207kMc2hC0Vjazfjq4geXz5w-T3dBE5cJK4Ochkuc_Lb4bWkpxdciV2_kVa1nDdn8H2dJU7ZzoLPHFmv2w_PyekmkHO_-gYoSv8sMc6Hd5ZGmMhC9JVZoXFDVHA/xYHdsKwu-2jt5-8lc7dQlvOaN5PReFZT/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">say</a> <a href="https://links.message.bloomberg.com/s/c/T_d4s92JOi-M_F0I324Of0e28Flr4QrILW9DX6szkSZupZFnB98UnMMk8WCcN3BjWawiYAsK34oMPrjZbwr5fF6zDoIxyn1Zw27QagbpY-d74tLeex3i7A4uzHqd2DmolrYPL7apeR4q74fMURP_98AvpXCOHRTHWI873HzdLA8fmtZ0cvCgTbT4qH98PTdST-YCfSd1qluRvnQRhy2TBqNNzApiqJSmpagJsVKmwj_YZfnl0FGRRWKmWzUP2A0sOA9P2UGEUR4Yzx2G4kFrwTe10sPnQSGBg4cytZlfjHJzL0CZ44cMEuYOTNEP-fKcDqSpl8Z2Rph2-nDMdBr4ZF9a8QbRVNiCjNBTWclwrPM2ju30tUNEtYbSLw/i4w14QYGMtHVYDUxLNXdT8bw2MVUsbCV/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">around</a> <a href="https://links.message.bloomberg.com/s/c/fzVdCvmyYESvrAuZxc7hr6_l7_HskUyJk4Iyk36nkMIJP7EXKIVCvnV1KItUHI-D3srqlQV8TA7vyvUTWnxkr_g2mRt9mEZ_AFDhZhn_I4Wfok2rE5vnVQEvVd6ZtzKd_32B0CsAaPo77wb3tKRrb0xQ0mKyEdLfuxrgnCzd4Nd5eKmFUNxMQmBPFJCyK1cLdm7pbe1ifgMW8tNy9znZfo9q4xT22RXy9NDWIB211XEd7A-A25dV0sV7ErBcLKPyFKTVIbIkRdkaNsnWY-dNMfHiOfYXc2WvWOHZeNFk9-2j8OOiMkGDPRhfVQEMHy5Ij3QB_-GPY0zSMvskoklMejk3hjs8_Kr1JJzC6eH-kzsNnIoc6sDQpQDvWw/tcmvMLdyT1Ved1g01mcb8oOybFwwZgoQ/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a>. The main benefit of going public used to be that it allowed you to raise a lot of capital, because public markets were where most of the money was. Now trillions of dollars are available in private markets, so it is less important to go public. And big exciting tech companies — SpaceX and OpenAI and Stripe — can raise billions of dollars at 12-figure valuations without ever selling stock to the general public. </p> <p style="margin: 16px 0;">And they often <em>do</em>, because going public is kind of a pain. You have to disclose your financial statements! You have to publish updates on your business, and if those updates are wrong someone will probably sue you. (“Everything is securities fraud,” I also often <a href="https://links.message.bloomberg.com/s/c/UtnXRvEsLlxIrVUC6sW5geqlEZACZDwXmlbqmMKNDtKuY8yb7MmPr8XAcClo9a7hkdBi7MEg2n7rkIlQJx_LK20lL69Azg8sanrZuWZ2oLF7ffgmx1VlHVro_14iAv_QR2HZqrhsYBkORNlXPKFJBz3crUJTKx2uCRwK8xEvzHs9QbD7wDboc8Wvn5qvVt1t82z1atCoGt9xra9BA40SCM6ZWUn96XH4yegrLnPfH0Zz6fSC5f_M58kqS-0ROxezLJCVquZYMqaIhG89-s9fd9zt_9R9Fxl9jyBgaaaLtpplwVJ6gx1ZX3n_pVHGMkt_DOzTYqinMyAUlIi1UCmbJdqVfo67r54i82omQLP3ei6T6tSBSYA1tEA_Sw/sqVcVrp4C8kiDPZphg5JtG42BVxMAeGV/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">say</a> around here.) Also, if you are public, anyone can buy your stock, so you might end up with shareholders you don’t like. And your stock will trade publicly, which means that sometimes it will go down, which <a href="https://links.message.bloomberg.com/s/c/dBut0qQeeAs5kARg_QYT2AK89lKVarU0mdlzVVxXALva6sgjI5OjLA3boL7WTyeWu4jewLJM7Ee6ImDG7qvP5H5pbOtpjciN0rdL6mwl7ghyAu7n5LE1JkVHHZsYZ73LKhNbyy_eFmpG_CCBcV7bZVS_RZSndPNhI9epFuWjh7Ab1vVGPGLlvXl5bRifFv_ZLJS8sryghubpg3B2fRotMYL9PtOUWkF3zs18SCrkokU9K0atqkXI9kwo2MtpmlSUgumy8nqnsMBlviHgXy1T_mqsXvN9LEfnh6alxVbxKflv77RDzjaMAr0NKz-ritWSU-UOubSqEpaqL35eADO5gwIJSVkNS62brKnWYb6X2CJvm4Dp7lG9R_AAcd8/rLiEPzcvLkjjn6ic_SjbZDlnZXyjcVdh/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">might annoy you</a>. </p> <p style="margin: 16px 0;">This is honestly all very convenient for big hot private tech companies: They can raise all the money they want, without the expense and distraction and annoyance of going public.<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a> It’s a good deal! They are in no hurry to go public.</p> <p style="margin: 16px 0;">It is arguably less of a good deal for the general public. Those big hot private tech companies are hot, individual investors want to buy them, but they can’t. We <a href="https://links.message.bloomberg.com/s/c/w74s4hLFRHYrVKgCcSR9wXECHR_vy0w41J_Z4XFhjoG_vhfjAfKixk-DNx6hEiyvSwgH6Gt08V3oMPi2F0I4X5_lN4DQ_XEcCgSKEC_mSKo7TSBAAZzdwg9L2fp8kIJ42FLI5uxPVKM2F57HoyhJAvhHAE3pMSDrMGFzxMpY-NBzpem4CdtnO--JrEY2m5PG_51z7tN1XKhLvUY3fYabplClWfAZpy8CNgektXkdIoT1WfoOvdtRmhwMHZSBPhNzdQLMYgIbQIU46Vgc8dn1IdIP7lJa58bxKG4Rcm4Z6o5QcT2fwIHCTDOQ6xy8qiaAyyQ_AW4F6S1s2DPQwIxnxv95wp6SDTeOy7nYlg5GfLpxlYEpQ1l2EUn4Qec/5Qb8brxSNPyAUfPMS6ghinM4gu2ATkgP/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talk</a> <a href="https://links.message.bloomberg.com/s/c/V9kLoeqZEsEOxpW4NPYuh9Utf0s-fDc58nvwF7YtkmI07hwAhCR0zJ9SGrGayrQPwprKO_ASGcusIY7WQzHYhdiCq7VVCh9TIkzKJ5Ek_wRKEwgvTBobpouJl1N2cXbgOYXqKATQOXhijys96fSIkxhTi01sZ5WmA6Ht9r5vzLbp6BDhLSYUcIrSOAizoBXtGEaNMQN9Hryf0XJRhAgBpRlVWRIam2lsPJaW14IGKR9F-EbDaepMTs_kFYIyAQrDdYYSr9Y-gLCZZJjvZBR5yo-NMtlt4ecfh76LFdxPU0gogOVhvcdb83XdtA8WeyUTPPDyovr-LOpq4i-Lt6kMapfK8B1APLPsGMq_KJdN3CRo4HudI0Z3XBOtBXE/MG_b0gXVIJi8W0XiJUMKsGUkrI4cAOU2/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">all</a> <a href="https://links.message.bloomberg.com/s/c/ZSDFGsyco4dQWLN9lR6rK6pfvNcLv2OOGG_u0Quyk4gBBtC6w0YlVFcDQm_Rs20jiGsXSW-JqPJKbWcZj5tt2M5b5U8Bw4b-8hhtSeogxSEgyeHfid21HSy4OrVcdJ_MDE2Fg4t55Me-n6plVZ1eVnhchUNOrKITy9Zf13GKlvxPVD8jpl1Q0tHOP7JJAVLPKyFBHf4wZJTClSwbY3dDoOxK183GcvMc8qrj0zWiaOQmzgF60JjVGvSgHPKkh-oETO5MVWjiOev3s2Cx2uzczGEIdALNPjLEiqgDshOoylAW6hL2d90WM5FmuqAyzLF2uY8cLw2rnQ7cIjlNwgv01Hb3XzXb0jPauktNL03ZCu11z07VkGxQTeLAzfI/9WbEdvQyqiPOyhXuA0-rwaym0xhhHndM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the</a> <a href="https://links.message.bloomberg.com/s/c/_xWR-YAGUY1cvgb5SjF_SBKo9e47n4jiNQmjef6PNGYLoxfhP3-hPmRnkbuH0DyN-MgxXLVnkCuHeZ1H-V_bjRB_3PEltdebBEswv5-cL0JHTjBzGk-JYlBJeON3eIvWm3I9ygpuv5OBRZ3skMgE40inZ0Ln7yKZUXAbtqAZ7WKbyY1DfVQ1eiRIhFteLeRHKDdlnxCWYRzilUnNtAHVj3RKn6bevPNtsSsF6tZ8wgCIpx7_7_IloEAg2ANRyghUC0tXNfyUnAU_cK1iTbr9YPpLjwollskverBWbvfrNpr3xHg2Q9WEu96B63d19O6hg8UBUhtkR2OZb0_iEmS6rfl64-OZrrHfWt_2J-NVBW8doL4d7f72gUuPQog/oE6nqh8FrxdgRgGRlDUOyoB8CVIhMaqv/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">time</a> about the lengths people go to to buy shares of SpaceX and other hot private tech companies, and how hard it is, and how much theyoverpay.</p> <p style="margin: 16px 0;">And so it has been fashionable for the last decade or so to <a href="https://links.message.bloomberg.com/s/c/QfFyyWAuFxCbwMYdSLsdXs6lzcBuE_408gQk4LkZcRExdQiSBf1t0O-AJRvwbjwfCj8STaqny2DPMb6QpbniRjPd_EJpWfIassA3J0D-_HLB_qwQ0WGPMtKDGuIBvLH2oJcKcMkNxJIW4TOTYuT4lxlBHrUrqzoiAhDgPcmGYNSzWFx0ANO74CbEOwDTj5w6rHC3HhumopiuumqexAwRwCCLbN0fQHL5h4w7iHVHALEGucF6WDk0h8E8hArBxWpGYg7lPFqKIISRF0VUZhwRBAUgfT3SNyym4gdlCzB7BMHnmHVlNWu5BQI3A-6w5o7tMJIkbpyEEDcuCakfrkZaTTKt6wOj2dNdEgX_B43uNJ11xkmB6ZnNqJwH76E/PjpWrd-feCt8R8xSkzvl6Z4xtCKhZmUt/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">say something along the lines</a> of: “Much of modern economic growth occurs in private companies, many of the most exciting companies are private, it is bad that ordinary individual investors cannot get access to those good investments, and we should fix that.”</p> <p style="margin: 16px 0;">How can you fix that? What I hope I have argued above is that it is <em>hard</em>. Many big private companies don’t particularly <em>want </em>to be public, because they find public markets distracting and annoying and expensive. The main reason, I think, that “private markets are the new public markets” is that <em>there is a lot of money in private markets</em>, because huge global pools of investable capital are concentrated in the hands of private equity firms and venture capital firms and endowments and family offices and Masayoshi Son; nobody <em>needs </em>thousands of retail investors to fund their businesses. (Or, rather, <em>SpaceX </em>doesn’t need them; maybe <em>some </em>private companies need thousands of retail investors, but <a href="https://links.message.bloomberg.com/s/c/QlZ6wBmDN1NRiMg1erYETJpSIZp8QNkUd37JSX2DySjRVHhT20KCsnqOXoESJLeKDj03xcYP__mGJmnm-icg_3qPkbmHjSGNHBD-z4r7UMNs4zh-YD9gZdBgWVqv_wUavqe4dLz9P_sDdAGBIXzCTj35tXxzUxcSu7gkfFHng_edGXhyC8cRba29REjHe6GoMJdvjVt5OOtUGoxvclJWvfDAZN6d6q2T3xUk4Fq1V8KpGhRDAiw7PHjKMHmvjdlOVWdxJXc_rHW_qfUyDfeFBCX1lrcUcKuH_cO30gVmE2y1vXe5Jvi1bsgqvqAd1_lEtvNmuoA-eKUoQY99iq9NcAbSzHkcswWXvzCt32O-lBWm1BMM7ICP4BJBfhA/ot-MgTV3aGvq6gv1y09dJ8jUbm68oyeb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important;border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">maybe those aren’t the good ones</a>.)</p> <p style="margin: 16px 0;">Still, people want to try. Here are, conceptually, some ways to fix the problem:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Make it easier to go public. Cut down on costly disclosure regulation. Make it harder for shareholders to sue companies, and for activists to win proxy fights, and for short sellers to criticize companies. Obviously there are trade-offs here, but maybe they are worth it. If being public is no more annoying or expensive than being private, maybe SpaceX and Stripe and OpenAI will shrug and say “sure, flip the switch.” Historically this is the standard thing that people say when they talk about fixing the problem. </li> <li style="margin-bottom: 5px;">Make it harder to be private. <em>Increase </em>costly disclosure regulation of private companies. Pass a law saying “if you have more than $X of revenues, you have to publish audited financial statements, and if anyone finds an error in them, they can sue you.” You see <a href="https://links.message.bloomberg.com/s/c/EptKVxOTBsozTS0V56VLNd_0zmN3ffdsaa3BwpSnFd8EBPcmlYtyFHeu6FEFzkHMiXMeHn3UY6z1MeFgXInlRiZg_NbcBhuMQoTreaCSq5vvrNyPiZTzI67lmxLGmeYeOI5KV-dq5NymNL9az5zit9SAD_qYSALy4nzHCn5vvIkysAfOklqceQz-KLnQBu6JqA2JBs2gQEk7GsNIzWTZUNIR7TjFwIFUiiGRKyssYA726xIcC4JLfbLCMzameap4hfmkM5B2kS4BbfOC-LUAp3DPwgW9Boxiz_dWs-m6wmLpIfPTwyEDTKIblBwA7EZM4yzgBBwiZjJ4YFSTbO_4fwNdLWUI5gXQDmJKyUWqtkSkEhA2rnpBo4NyMMM/r5PsIJJMfmuQ_GLUBW1juFPQqgpG-k3S/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">occasional</a> efforts in this direction; <a href="https://links.message.bloomberg.com/s/c/eyivkJr-qmbPZxohqfKrPKWnIletZqzHOSSBQ_l31Fx4Mn_giPsNx-S59eTuZmI1QJfg_pxTwAvs1f-0KXCq7OTP7YWg5h7bgvQppicTLdtW1poWs4cZFOh0Z7CH58CbQUEj2gn4pBbXAIJQsDzbl-yCN6O0VJGG3M2mCO_vg8agXRLV_ikPhMUcMplKVRhWJfJGld_Dfgv7PHvyDLmOJgxhP6cHi0vld_7gc3Sy42jFUkmwGJS2zD5qvn8lZTbqlvt84-vvj4_20jRr-15v197xXWOgqvwkWMsiGXrjJEPxshHM--Ll3Z3DBWKOIu_b7olIbex_qY3svA1RRbpK3jFZD-TQFI3pONpS3MpRAaK88Y-oWnHjSMzOWHA/A9-v-c2T98VKeiebHSd-DbAfFFIBO6M_/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">in 2022</a>, the US Securities and Exchange Commission began “work on a plan to require more private companies to routinely disclose information about their finances and operations.” </li> <li style="margin-bottom: 5px;">Restructure the economy and distribution of wealth such that there are fewer large pools of institutional capital, and the only way to access a lot of capital is by selling stock to the general public. This one seems hard.</li> </ol> <p style="margin: 16px 0;">There is, however, a more extreme approach: Just get rid of the public-company rules. Let anyone sell stock to the general public <em>without </em>any disclosure or audited financial statements. The general public can make up its own mind: If someone wants to sell you stock, and you want to buy it, you can buy it. If <em>you </em>want audited financial statements, you can ask for them; if the company says no, then you don’t have to buy the stock. (But you can!) <em>Fraud </em>would still be illegal — if they give you <em>fake </em>financial statements, you could sue, or call the police — but the whole apparatus of required disclosures would become optional. Companies <em>could</em> follow the current US securities laws, filing audited financial statements and annual reports and public updates, if they thought that would help them raise more money at a higher valuation. But if they didn’t want to, they wouldn’t have to, and they could still sell stock to anyone who wanted to buy.</p> <p style="margin: 16px 0;">You do not hear a lot of people explicitly advocating for this approach. There is a widespread sense that, on balance, the last 100 years of US securities regulation has been <em>good</em>. Our capital markets are deeper and more liquid, our valuations are higher, we get less fraud, because big public companies have to disclose stuff about their businesses. </p> <p style="margin: 16px 0;">And yet. We talk from <a href="https://links.message.bloomberg.com/s/c/Z5vReRCLtMRZzId18WodMCRP7BmhCp6XLiN3CT_QeFyUatWzRLWSkRUSyksMXMFsEW3ydcG39SQpQFCyE1FdOq1s35kAvc6Ru335bEsp1oacPh3dIjP9kQeCiPhs2iHqITqZcaPrxb0xxqJW-x8-E11nJkVFLvWN1grcEltZnPRZNASeeaMkUQXOML5VGTAdoKqORRFjE0WVkdJf9KW4T-BI-vYVV2M7-AuPRNweCaHiIj-VofQeeltahh0wHYrEXEY9DqlaYU98ggV8KJSaTPdsE-m0XXDzauo7QU455Oqm7NYUWokSOVYtTgrUQaehdHfPjA5JbXWy86U6M9UIB1kmJlKxNJWlImvzB6V2z8rQ5a338jIUUiScqGI/4ON7SU1v3FV4Ol2W9F21YCV6R1jFF2C-/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">time</a> to <a href="https://links.message.bloomberg.com/s/c/bjcNRMgWYoZSlvHAokt4mHOXfLoZfJ_XiDmQfydN2EwURdv9N0zbSI8iuKaufU8_0Jd0zZhIUWqn92XwipjdAi0Aw8yV5dPFFGb1fjtWRrDtM3bbk8_apov_ysZM5OdXkrf3YiCPCiMe2oAFq7_cRBizGDZmUGNGW7RBDcwPKkIoOH5ojxnGXxuSXELZQk4e4ZZSiJO2tUESbF04IS4BZNcxhmjTidxXTqq5APQROQs9ePiyUHQowTuyMb19v8VnvIb32TM5Kiv9_TmqEVks1WNBtlS6Wo7g8Wi3oe5WVGR2ga8LXEa8zs983XhZku4rmgZ36321tg2eDof-PadX-r2USthPQ5YY7zoTrIFA8Nz8d84rB1yUeKWmiCc/VOLHQphNSYvCgNn6JGDWhzYRPORNsxvb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">time</a> about an essential discovery of the cryptocurrency<em> </em>industry, which was that you could raise money for a business idea by selling quasi-shares of the economic growth of that business — “tokens” — without complying with securities law. That theory has had mixed results, though these days it seems to be on the ascendant.</p> <p style="margin: 16px 0;">Most big businesses still sell stock, though, not tokens. But the token approach suggests a way forward. Take private company stock, <em>call </em>it a token, and then sell it to the general public. “Tokenized stock,” you call it. You put it on a blockchain. “Just because you mumble the word ‘blockchain’ doesn't make otherwise illegal things legal,” <a href="https://links.message.bloomberg.com/s/c/NKqODx6S9zLFOOGsg5cAWqZpNbQdQiaqZC_l9YL0boyGQ6bMMs3bCBd-icbAKtVSjsjBH4RqJg5rCjQTRMhQ1VJOFa4ZVl0byR7kHd1ZOLedbzaMWEz8xOJoU4WGokKDzRcZt2GlyE1C9OwoepQt0Gr7h7bv2ILuFs9bZ8rQDw4eMakp1SVbbUSUZ22fr4uQi15v7eryzg5n2KwFoaPgNv0RDbNbt2mxyYRCUcAvbyz2iRjOxl9EhmY9LbswZzQmypG719ZPb-SuA7cTYRSI06Uph2E5kE31BeV5KmZsLDUxLCEoxk8VcFDzDQEq-iwePQOLQzTNroYyBtCsvXbBoluh2wWD_0vRZ9KIVaxGqEV5VzWV9GfTEbYExwo/2klSXNVT9xR7bvooqS4H2tOtet5_K3RF/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I wrote in 2015</a>, when that seemed true, but as <a href="https://links.message.bloomberg.com/s/c/rGNhWyKs58kxSTfgf7Fe_cdbprj5pMp6t-fevcS8vNEZKZ-TnCi-zLPR2KZjaVPxYPYdUTvHG7FZH-13cYjoJ-3Vpff6prKbKfPk1_YL0kYBVrPVfQZ8AUzonG9ouomhT4esDZtAFYiBM2K-S6TNcZPxwSyVeO28CUNICNiLO3bZWc_8dQ-lQMsWeniSS3VplpJDzDokhTy7lDdiXSBxgjDp9JjxSGXy8yeKdIpek9PxLUbhQzAOf3e2ks5Ysh1q3a-yK12HHW9Wjs32X7pffwZ3psyc7KpyuoLNF4xeCdpFy8inm2BCG5G2pcCA8mY3j5MP4i6e2-yM7SJM2kEC_zytgq4fkRmjvXDHEyv0QPxvg0k9o5g6l-BqTEs/20U6u2F-tWJ4j40iXe4qmkVDw18_wVTZ/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I wrote this week</a>, that is no longer obvious.</p> <p style="margin: 16px 0;">There are other reasons to “tokenize stock”: Stock that exists on a blockchain, rather than in the traditional registry of securities ownership, might have some convenient technical properties. On <a href="https://links.message.bloomberg.com/s/c/9tJSSO0sMXsLiS45kRMscRw27zcFce3d46n37iuEiVLvX0Awb7VeEWT1jWX-EUj5EV4pAhx-gtjTjgZc6vVIQ347fH5YhAKss2z2E-0WSKAy1-KXXsoPX7iRUOxQHt157wsTXsBNjkYReVvjtE_xUEIwCxduOmf839Wd89muJS7qGzUuRYS8wacukQAxZRdCTAizxKN3WgE6R1iha5_uMkqnMQ2Bg5OLtdd-6BMTkovauXQgjsHaqEDjI7DwgnmKwlUghgM3cQIx98poIc3EeY87Ju5fMrOQPEfU3HXGYkzJieE3o6zsmqwDDT1xxQIkiDZuu9MWd13LDgU-Bl_fLAwt-3FpMMahRtL8MI5R2sqFmPWuDiGaGEtJTLo/GcpMtkdDdE9w3vAkuuLSMiafHhOu0hZc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bloomberg’s <em>Odd Lots</em> podcast</a> this week, Robinhood Markets Inc. Chief Executive Officer Vlad Tenev talks about some of them. You could have custody of your own stock, rather than keeping it at a brokerage; you could probably get a big margin loan from a decentralized finance platform; it might be easier to trade 24 hours a day.</p> <p style="margin: 16px 0;">But, <a href="https://links.message.bloomberg.com/s/c/-CFiuaECbKmZ0YtUfJTM3uMEfSHVZa6P1X3AJ1fnm8ViIeAdHQpgbQ-cDWqtm204BwK8w4AMjTpjg9KiFeJV-ADhkwjU6qQ_2M_D8uuiOcOrWuLEFj5JoH33PVJaCXnf0UEyesqsRmkG4S5p_BT6lwr_rinQq3-n0DCc6d7bXUBEnnwdIV9nWk4hR_TZS2iDRUJYFndllC_rQ1N9zLylzgjJXr9cJcftDm-iZRVkTp-qxMsfY7I_L38Y3a5hLgp0mCEaulDpn860JixKs3sUrULaNaf2IZhKdPt07XeJ4RG81GqsRvqSJB14He1F4zonF5eyD47aY8kDyImWyU-9cMMFu5pEe5zu7_K0xjbqPv3Hk6QZhBJE7raJmbo/SV6gE06nPIxZ1WVkIDsTMbuGC3uiHeTO/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">as I have written before</a>, these are minor distractions from the real prize. The real prize is that if you utter the magic word “tokenized,” that could let you sell <em>private </em>stock to the general public. It could let <em>companies sell stock to the general public without complying with US disclosure rules</em>. That is what it <em>means</em>. It means that the US securities laws that were put in place in the 1930s, that require companies to make public disclosures about their businesses to raise money from the general public, will no longer apply. </p> <p style="margin: 16px 0;">To be clear, we are not there yet. But that is the goal. This week <a href="https://links.message.bloomberg.com/s/c/baO_u7YmfxeFWztPwOZgHfSCVz1xwPmF2m02K3H3k6EpE0pF8HKpfOOIUFKtaie-MZtl6rMZF-IB0YOF8CZ8HaGCiO_aSXNZ-xJtH3EtrglSQz7CmLX9Jty8Iw63zNvE7fYs2WWGH8Q370fxnbRqvUBvjZ3w-OhS3rCmWbV-zmiEXwMcb0qQ2p8pVIPH7vu5ScLrVzbCkfS3uwFq1Z1MXOGzhNn_WIz8bry4Xf1fD5tuUJxE1eox4mzFKYd3bStp6MEP8aqJaYOTGhQYlnM5FbVUyCS2PxOt1GPjeOVwS5qjkvKd18EDQwqgfqvCsw50fKHRD4ar5FP-r23V_Lt6JYXO9LqLo0DlNbqx9LU0UI_0vUUj91lNyj95e-8/pW6ER2y4jybhWJAKNIjbFe5XbikmJpBb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Robinhood announced</a> that it will <a href="https://links.message.bloomberg.com/s/c/v_YS6VQxSSgW_IRUDqUgnnkzGiIk_UB3eCo2tH6GrOLqpSnyuRJPa8nBL0pHkjdy_6oBoH1lH6MlL6nJsj3pawx5CfxSyWdGLI6KzSWqbdfh_Oe9EpveiMKk1nqXrcwb6S6dgEfFYuXsg5AV3JWdMSqqG2s4IADyvCukyqFfoRAkZTqQiui1sLMM2GtqA5oIIvH6ZYbobfWNnASyHMqpN-n3sr06ZEcbABT8pmk5bRf2DuwHzJ7Lr9iXRSORqXXpp7u61vSD3bEygnyHL1LtN0Ni0RKf9Vx5u4QRpThz_OKL1Oba0VO4vjGs4Ne8s5G2Rfz4ANgMKZ4ixFnCuPmXu8LwzBINvPuHccr6X1VzK1ODORPm770dM5LjY6w/LulLKCcDI1DRAIIZg5olwC6AhIGwM40-/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">offer tokenized stocks</a>, though initially (1) not to US customers and (2) mostly for US public companies:</p> <blockquote><p style="margin: 16px 0;">Robinhood Markets Inc. is joining the growing push to trade US equities on the blockchain, making tokenized US securities available to 150,000 customers in 30 countries, 24 hours a day, five days a week.</p></blockquote> <p style="margin: 16px 0;">Here is <a href="https://links.message.bloomberg.com/s/c/dxe3DMix1p_lCFfhzSOCjS96Nx9Gd6wOQekjbnSdKjyhrr7kK6tmpeCEoFQ1H7dsJEJomzlb4_gfrkTNP5bPcR50feW0qRp3YUE-ztHYL-toHdqyXO3U1pF6lVkkQ7jkTAvUwBuvCGWhXpuZ2aZacHtuWgwjSjmqiFh1I0JCpJxY4_lCm7n_lZ11BjTVRP3FH2XXDVhQ2t6ZOOnVxVYXIQKwVQcqYqY0E3VlJfKizYnOBCVoHhqtt3UlYr_GQtL5fi1uI4RddqDoGg_lE-NCuYlcEyr0oF9D34vu5qYbyKMuWR-2lg9bWA4GtOkZLnBIY6Hoj9oyjzTyEaf3xFThQbgen9r627ur0aYDidet6U6-9HbPByD2ntQ93xA/JtRbzYKraJhZjkLDI8LDM1Y2F4J2rYC7/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">a bit more detail</a> on the structure. (Note that “The underlying assets are held securely by a US-licensed institution”: In theory, <a href="https://links.message.bloomberg.com/s/c/jwG5VXISCzBBsab8_5NSjAMlglHAiZ9_pM1Znp4-rmG3Bs11SVmwNpdRcycA9wb9wvGrqRFHF2_TigdaqFVTEAh1Cd8aPMSAx_E_1LXJw3lEgBDQUxrODsEsCdOMLLVxkI5qX8yLLFYw2ZumzGyUcWDuFrxZz54JbYHypA56XcBXkVV-94e1Khz2Ihr2qhKleMsDCeoehN2k0UHhtZ9JWbK1tMWgQbflIVsqrKclBJnpoVCyvzO6EOgCu_wuFCMEd-4WKxS2RpsZan4aQCPKhJSEm-NEVd4BFtyuXghjvgo4OFBFbTmO-yVFsTmF9Eiolagfv0IoF-Hdnqa23wEBaNSUz7GcmODXOaG_Dn3T3FnFqDlf7fylIFmVK7A/e0sUe3WZaIOV889Trofj8nJuARZmOcVU/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> as we have discussed</a>, tokenization <em>could </em>be a way to sell naked derivatives on stocks, but Robinhood’s tokens are fully collateralized.)</p> <p style="margin: 16px 0;">But as part of its tokenization event, Robinhood also<em> </em>gave away some promotional tokens <a href="https://links.message.bloomberg.com/s/c/6WuI2M6HCEpfwP0J0I82PdPBHL7zmaFsitHkbzbXo-ZMwomH0Ihi3gXp8DsbU_LriILn_Okz-oAtMGdX4I9y4V7hovay6d06dO6BsRay4OW1A1UxDY-9rgFYmK4NexIe2mWTR88cWr-Cjo4Ja4hbrDr55Y_8_MsaIeaPD2POxGZTipIGbxPd86hJqczNjePe6GYtT4fvcFGodkELIv7vRhDIjByhVmldpXxQu_VqtvRNmXRxNe9TDllefE--JTqGE9cf1VUXumV9n6VO9E1U6HI_PjFfmmrgZrEtMcvIBXbcjWiRw3wepo10I8yWnl1KUwcKLAwhgoXk32Uz-MHDXjKgd4MayohinxziZdvDvxNvrKP6diJDZ652ZTc/dPFCy0rB07RciIRxYX-mece5kdcg0xhF/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">for <em>private </em>stocks</a>:</p> <blockquote> <p style="margin: 16px 0;">To mark the launch, Robinhood is giving 5 euros worth of OpenAI and SpaceX tokens to every eligible user in the European Union who onboards to trade stock tokens by July 7. The company has allocated $1 million worth of OpenAI and $500,000 worth of SpaceX for the campaign. ...</p> <p style="margin: 16px 0;">“We wanted to make sure we were giving access,” said Johann Kerbrat, senior vice president and general manager of crypto at Robinhood. “What we discussed on stage was how to address the inequality between people who have historically had access to these kinds of companies and everyone else. That’s the really exciting part: Now everyone will be able to get it.”</p> </blockquote> <p style="margin: 16px 0;">Again, just in Europe so far, but you can see that the goal is to offer OpenAI and SpaceX shares to the general public <em>without</em> complying with normal disclosure rules. OpenAI and SpaceX would “go public,” in the sense that anyone could buy their shares in a brokerage app, without actually “going public,” in the sense of publishing a prospectus with information about their business and financial statements.</p> <p style="margin: 16px 0;">Tenev is quite explicit about this on <em>Odd Lots</em>, saying<a href="#footnote-2" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[2]</span> </a>:</p> <blockquote><p style="margin: 16px 0;">I think with private companies... it’s hard to imagine an argument for why retail should not have access to that, an argument that on its face isn’t illogical. You have access to so many things. You can just spend your money on Amazon and buy all sorts of trinkets that immediately lose value and depreciate. You can buy meme coins. So the idea that those classes of ways to spendyour money are okay, but buying OpenAI or SpaceX stock, I think on its face, it’s illogical.</p></blockquote> <p style="margin: 16px 0;">This is not wrong! The general public can buy all sorts of speculative things in the public markets (<a href="https://links.message.bloomberg.com/s/c/Wz-qHFVe4is95I-0r31I8MIgGnATphQcDCiV_9bFaxIGAICzQKA26JKhf6ss-Pum697VoBGRxy3Bh34mYA1fCtYetFezv1kmPWdqo6bLr5fjfTtvniuXB3RpjWN2f2f2iWDWZ_fK8i6EFyBjzW6B-IQKuev7QYoYIo1yJD7XL9KQKlMLb1DSrqWaDXvrIW9QhTb1RwfGZbDwoCKm3nSzukNtOeRED1D0-aaDzo1V6Ptw3wHDXTyel9_fmPm4KGznMyQ1LhhIoV9rOs7sDuJe-jtyTBYos5EivOLbYT6V_fD3V89kXP9o_X-aa0IPajGgkWjTxFMdGe6hXDrWFkd3gjXH06IQbpsRCZoDxCZY10E05NnVOvqWU-YEwNM/pwYyw7AWFS6L2xIiH7c3LwDNT8nNvpao/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">zero-day options</a>!), or the crypto markets (<a href="https://links.message.bloomberg.com/s/c/ZzL10NXzYJxzAGsTeHnKiVmglyu6Iz6xhjpRnqg_z0q0BNGiA2mOEVUC-dmNg7v_jNLvZNjOl6N6vcUEiKaEG1htiMTRSj_Ga4PHL-Md4aGC03KatNJcQpND-mS59-PynmeLRQSKxlIujmxC6qgyROqA3aA1iMhQE6izQ3Tn9yUfD9xEHOUbnDOHXq6O1H7jVrz-_V1jRf6VpHRLYDjbvKfQUdh_OVPe8ezOb1Jc-OsUqq3TvV7IIGAiGfb-Fel0LOplhaD25v4ar37cFTNOIUTOqsSwKX-5uFr3nmueFOtQQaXV6n0aB9rv_sWeQyAGkVknLaiuAG-90dUqTUlQfaHlgU5ajLui5bdUjw2gHCTRf2_B6bepUU8R6Ak/hACCu0OTJKpi5Omf1A_y1uNFe2JOFWEw/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">memecoins</a>), or sports betting (Robinhood briefly <a href="https://links.message.bloomberg.com/s/c/2NmrWM2tiB7JwoJ-wCEC6e2S9JEl4ZW1ZmWuNObcf-LN9-Ah3Okv0sBTdKDqBhqjXelO0A3lenDgZAoP5c2A7dGdXfIfLJbwcqgpLLOl-p7pmQYv4Ag1CCXGQr2tqKh0YiIMuySDTS94n_ce9xYdQcQQInnFk1h81Obs3VM7EvLKnwqmWDYU3SSqrKLDE6Kp1rhKckq752wYgP5D-pHPoeSTlSdFZlT4zowu9puJV4bMO-5yAByk_4HvudNrQwMh5te4MY81qiDAtIRrElGV_77PqbrPIg86E1PZFLtDbwnC_877QCT7CW-IaFU812ydNTzn8Jb3ODolZ-HEV_RMUiW_R5Xa2Mzpc1UVdKYHUxZOt4FKiVHUsmQn1fk/BkUbY5CxUoPaM3tM3HAjtfVUlsY4-cId/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">offered Super Bowl bets</a>!). Compared with that stuff, big exciting private companies like SpaceX or OpenAI do seem like better risk/reward propositions. It is <a href="https://links.message.bloomberg.com/s/c/XV8x0Ok-9FuCTMgeUNFhU2B-1Pu_V8cPuZ3dF31cAzDE39h3dKKRCi5v1zuM3Qs7lZ4UBZAuUF_CGpBNkUU5X2DnOlzMI0xYhMVoVyzp9B1HQn7UFbD_Yd7oQkPI1VOXISgipH6BxBanQy_cWr9vZVQfNnHD8SbRr1Msa9ZZceFsLpNSkFu4bQ0K7zQpx8RR4bJa4zCxLRkDqvCgJIT5VOQqjRNntLlXakIQX1SuLMJo1KvWxkKBO4BQXbIHPGtY3ya2_P5mLKd0pBhK37Erp7hX2t4okKp9rYJAVQaDWJHDimPS0Q2WlOc0CqATsQX3paXw8c2N44ozJoc6DeMgxwTV06MCTDvVctaqSaWnYSNbNqNMIQgYKHg9fTU/kiI3H0oT1Qqk_Ub-FZbqZGoaKmFEvq5y/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">simply, undoubtedly true</a> that the historic public-versus-private distinction does <em>not </em>map onto any sort of coherent good-versus-bad or risky-versus-safe distinction. There is incredibly dumb risky stuff that is widely available to retail investors, and there are safe blue-chip investments that are not.</p> <p style="margin: 16px 0;">I just want to be clear about what he is saying, about what is happening. “The general public should be able to buy shares of private companies” is an oxymoron. What makes a company “private” is that (1) it is not available to the general public and (2) it is not required to follow US public-company disclosure rules. Therefore, “the general public should be able to buy shares of private companies” <em>means </em>“companies should be allowed to sell stock to the general public without following disclosure rules.” That is not a <em>crazy </em>thing to think: Maybe you think the disclosure rules are outdated and expensive, that they deter innovation and capital formation, that they cannot be reformed and so we should just get rid of them entirely. But that <em>is what we are doing here</em>.</p> <p style="margin: 16px 0;">Tenev is not an outlier. Larry Fink of BlackRock Inc. has also advocated for tokenization, and he is also pretty explicit that what he means is selling securities to the general public without public-company disclosure. In his <a href="https://links.message.bloomberg.com/s/c/t0P5NnS3_JfiF6S298xEaigWuyQ4-qcB01Cd0wQI4Dd3i5gzmAuyXFeJ8JWOtU2Tsecl1Bvi7-1QnirVZz07C8vagVmOAJEp_oekkKGFDCef7ja3dW2seK-exwqK6mojuorq5U6aU5RFuaBU6_UVz8Pjq1jIs5_5GcCP6CIEvJdenHJwcWMjph9kfvna8_YUcbYrSawgL8dSVXs2ZnUbo0qfrdoEAN5Fqa5NPZ42KW7z2pfwJkEDbsTU06Q--sQA9GiWjG0qdj50tEzmQojyQA14aGgmLcrFXrMox3LYba6Minf1GymLTVS0ehFhjqsV5S19egiMRp8aE-59iatk1v8WAQiMOWalUGrC54eZjvimTvwjk-uJtlaFG9Q/GaVcFME7lOFvHJL7zr5TMwAQq1amjYPW/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">annual letter</a> this year, he writes:</p> <blockquote><p style="margin: 16px 0;">Tokenization makes investing much more democratic. ... Some investments produce much higher returns than others, but only big investors can get into them. One reason? Friction. Legal, operational, bureaucratic. Tokenization strips that away, allowing more people access to potentially higher returns.</p></blockquote> <p style="margin: 16px 0;">The “legal friction” is that some companies are private because they do not want to comply with securities disclosure rules, and tokenization’s solution is that they can sell stock to the public without complying with those rules.</p> <p style="margin: 16px 0;">Again, this solution doesn’t <em>work</em>, yet, in the US. You <em>can’t </em>just sell “tokens” of private-company stocks (or private credit loans, or private equity funds, etc.) to the general public, in the US, without disclosure, yet.<a href="#footnote-3" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[3]</span> </a> But a lot of big players in finance are advocating for it, the regulatory environment seems pretty receptive, and you can understand why. The general public wants to buy private investments, intermediaries want to sell them, and the disclosure rules stand in the way. Saying “we should get rid of the disclosure rules” sounds bad, retrograde, greedy. Saying “tokenization” sounds good, modern, cool.</p> <p style="margin: 16px 0;">One more bit of stylized history. In the 2020s, a lot of crypto projects raised a lot of money from the general public, often by making false promises. People rushed to buy crypto, and borrowed money to juice their speculative bets. Then <a href="https://links.message.bloomberg.com/s/c/ATWWrd75UA_dGNphKHRU4oELtnkoe3KU-_X0ViUgQlIz-hMz8c1M_vpTr9yGFK4jtVt-obM2_BLgYaenO1eoE7VfvycshmVs0qZ8e0S3S03qDwcw-g4NE-dI5jgJ0cAjIHp8YYLUn0F2xQXfpk4fK0H7v008_8SLs3DhD6pnLfLVkf4sOu9Y37k8nNNJUvG1Ce-rKsSca6Aolsmmdv6L9DWhxONV5oGKf0wA04l-GQzXugLVjxefkCZlXfEUBnY4Ft3d4BfAEaMw1Hr611Ds-ovfFi2L6ENEkb3zHoH843GjGOJe2iwNvYUHNlwz29SrS4VDdTyshM8eeRf58j6HA2T8afmsf-STVl4zx5pJ87kPdmgfSfMgOS6vrUE/ACgMVvyJRtL6p0qLyQMYCm_JFBesBBLe/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> there was a crash</a> and a “crypto winter.” You could, in late 2022, have imagined various possible futures. You could have imagined a <em>permanent </em>crypto winter: Burned by the crash, people might just lose interest in crypto. Or you could have imagined something like what happened to stocks in the 1930s: Burned by the crash, Congress might have made new rules to restore confidence in crypto markets, to require disclosure and regulate conflicts of interest and impose capital requirements. (And we <em>have </em>seen some of that; the <a href="https://links.message.bloomberg.com/s/c/JpNq6rxUB6c93FRjzKLzr_r00gMYMmh7omyiTTZSdrNAZho9vMxXLJhZt5vLcB2L1Nl2X6kHt9qlsG4dU8ODjAOpiIsq9KiTCM_vxsNiEMObFQvuTEB3oGVjrYGcBnO91LdooWHvp9dXPsLEUrOCcB6LGhklVgL2UATLexQFs7fJmgD8SbW4WPkmwDTiv0fIMNXUS5P3pejHN_LcwTtODoP1zs4HKgrjdAlfFptP1zn_F8041uAoFbeeq4JDZHwETqdWwYxoiyBv2qWUK6TQ0Xd4zKho-XuQdhURRK4DrRHdoBLctUQYJuhNj6JXSg4TXUY2gDZCW0b9EuUaeJp-8cYEiBTue5No7f9hzpIdq5HuBuDhpYBs-nZdFUk/KIvInOQPaw7MLfMJ-_Edy_ZukINYNk5J/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Genius Act</a> imposes capital requirements on stablecoins.)</p> <p style="margin: 16px 0;">But I personally would not have predicted <em>this</em> future. Instead of regulators imposing disclosure and trading rules to make crypto more like the stock market, the financial industry seems to be finding a way to get <em>rid </em>of disclosure and trading rules in the stock market, to make the stock market more like crypto. </p> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2" align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/LmZbysV5CptXfBCyg-ZhHya9amdUOB25XIHyfRlUourHFQPQW3Iv744IwxecpCiuCIof0bbFc9zY_0R-pNuSjzTw6vWFqsX7tznMhAxHJpF_IZf__HklqDFZAJ-4dhgq47pWiWW1iMb6UE5efZIW1RtQBcZZpfMUKNEpB6Nn-g3K4hhsKmGSz8utQw_K8xyl4pQmMd5etcooAfpswpronTggSw186j7v9BBDpA3fwGZOvF_6TJjq1fOuT2whohfENMgHUP_9GWBwlU6me6nzwxToscB_Vbod-e1RZNhf7T4qS6WzBREFuyi3yFSkQKCxatSmTRTFCcl0A6S0BXKS4CQdIq9rz_FCxRTAwm8XbF4GZqIpeTXl3-2VEeJ2omT9cai1eOEoH3HcQgbtShIjdRwtFiL3_i34YS005EgnS8P2UJxu7HFlNnUBNEpLWFcvP0xyPS6RtTYNr40rSOIJpq9diIiPYisNTOHC8SZ906lbkazsDKDoRE-WImvzst-wUWp_dt106WasQcED6pFnF-LswPpNXaW8cxgRGv9-mljTzv2__CaznwxjMG8jS6DJlVNZyLsU6l5LzHEdmhQs06XOnZ2ZuVUAEECLnUEIvCJXK9OyF7wmtITy1GAMpudy9Mp_osy1PZgSY5ifX5FC3igIz0c7kNQfeQZXFB6BoxhFsAoL-_NVLXu6suxKsw/PdCS-SU9ihzvGV16ARvROfqMmwhigL_0/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=14087850&m=c869f5c3f0784f1d3b0577b4456d769f&p=07022025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="550" border="0" style="display:block;height:auto;width:100%;max-width:550px;" alt="" class="lihide"/> </a> </td> </tr> <tr> <td colspan="2" align="center" valign="top"> <!--[if !mso]><!--> <div style="display:none; overflow:hidden; width:0; max-height:0; line-height:0;" class="lishow"> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/cMPDIdncE0qd0WxqTLuwMBehpcMPMFvz4LqPADLYwIbCCLJIFrKizec3so8bIKJvb3O_W5ssxlFAnUipLG4iyTSqP7JpnZzRrvkS2NaYLHPu_7nhytFD582ooY3q5IsBd3hx7oY_k5k8YRWqVxtndm5S6z6dvkBynANWrgobj8CLKupsAp_4sKDVrZXHqa_OIQ-aLRpaIpGmXjbUf0xTY8LM14I_BdL93up2BVxoT9qwsts2fDIK_wh_DyvDnK5X-jmgloIHsSQT527HA-EfeItGJMv1QFl_th1Lo0nuxg9nw5rshw-7qkm070ZBACdWOogjeLJ6fidGLRf9B32dQM0TrmOUg_B6hjoqbJW-q5F3muFNV9BHb_e4ol4r_LJeAaoT9loWoJtDv6cFGJy6eiieH-60siccCa7uyPkvZYPxKFH1C_9zxQgncnZL5H3NNqU-YtyEY062PqDO7Ilpv5m16QT-Da4nV5Celrw9NfyyBXrfR3YSLVBy8EGwDLHoXFcsSOLaBOAZb7JByBeWu4AdAZ9D2vOToPPElSYcoS7fb_nqUoAC3-KsTKsOoswnaOHT0g1L_GiG1vO6o_yROwCTfBIfig5CgmuL2gj-E198uBXU_QkotmjUyM7gBHtKfqYo2toJtKEJBq3VXuH55cGr55ePA0Eir1-Oe5NV2MgGylS_UfbCCq2M0iXpUQ/OD5NJPBACJj-OvHjbGqSvzfI5QmmrXJf/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=14087850&m=c869f5c3f0784f1d3b0577b4456d769f&p=07022025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">HPS</h2> </td> </tr> </table> <p style="margin: 16px 0;">Elsewhere in BlackRock and private markets, Bloomberg’s Silla Brush and Sridhar Natarajan have a story about <a href="https://links.message.bloomberg.com/s/c/3bAT8Yx7VrDIQwvKU7l-7w7G9ummMaSa0V7WMadNZTc__eymMU-GTCu-EwIvlaXqHiNP9G_1vQLTSW8vrG9i014o-iP87M4UpN2n8yPz8_CoeBugAjE5ty2AezyGBkcxP7A_BJDZt9bilCC_LfBiqL4ExGgN8xYg8SwT7L-asIla5VT1bIcS6lYnSAl-lesh6jqqWdk-XG1wWGoy9luiVnFjSjurvRvlWmwJIobZaqYhbQUpcLKoAPkx8t0lGZuvngOksoqW02vNiVGJucNBFvRqerqdJz04QRhNt0zbKtlfwHTGbq-qZLyDFMFKJ4rdx2u_PEbn2N3ucEBRhHAGkcaD8qewTGnuEVFuAsfciy9z9faqwQPLUbGJdOE/vSzrv0CWjlXnIdu-WxjFjWTJehUKT5Ou/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> how BlackRock is integrating HPS Investment Partners</a>, the private credit firm it recently acquired. One way to understand BlackRock’s deal for HPS is as a matter of shareholder value. BlackRock is a huge asset manager, most of its assets are in public markets, “public market assets” in 2025 means largely <em>indexed </em>assets, and so the fees are on the order of a few basis points. HPS is a much smaller asset manager, its assets are mostly in private markets, and the fees are on the order of 1%. So private asset managers should be <a href="https://links.message.bloomberg.com/s/c/WBrUmI5MfDv-zh6gHceA9wkO__YXgW2tf-ZMnpG0yNtcchbg9KWD04lR8EpgLdZBMieddBuGQEMn0IILw-9DI9O9wdukJkTx4isI6aukfpY42gqECX0H0XC9TXY878EA6YqpAmY4tV5UjOSuli-pxh18xAz1v8iYCTnIlF62RqebZPalirGiWMuu2y8ziCeLdWf_uf-5bXD4f78XbJ85E4hjog0eco7KTEnTpD7qpzbm7IUsRoqRSVTztcTRbIZItw9z90Yd4gl4ZbtokoCpp86q3J_-Or24xvMrGLdVoLzIhY8DTDTXOIaZ_nd8rLKJWJIMNntB7qedZPSBgVVuNe4yKZM23WPndlqLi2HtR9BCm2IByiOtt6y8H9A/o3W8p897LgTp2xUIqsRmE3W0yI50CSlt/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">worth an order of magnitude more</a>, as a percentage of assets under management, than public asset managers. And if you blend the two together, maybe you get a sort of multiple arbitrage. Maybe investors start thinking of BlackRock as “that company that does private credit,” instead of “that company that does index funds,” so it starts to trade at a private-manager valuation rather than a public-manager one. </p> <p style="margin: 16px 0;">But another way to understand the deal is that big financial services firms are <a href="https://links.message.bloomberg.com/s/c/FoF9Zph3CjNkAcrJqDlOPwE_jOJgzxX8qSirqqvGYjbGk6Ye_feQMucnBIOpji6IPei0KFZuwIRsS7Gb8dOcS9FgHQIN5i3WrMG5VNqLhaazgOYDJlXuzZMBInLoDs_OKXcXfl2B_3n6imq3I7AlTtHA63-2yxwZiUClhq4ED3jmtI_SnGWBDUN3zbUF92qyCZvrkEBRXHGvzvBWSpd_BmcJGiNNYzAl1rbgZonGmyvux7b-RfhPSATCnb5c1HUmyBRFEhWu3-5fhRT_mSj8g2uOaniS8Z4WKu6u8hQ21l_L1Prpj8M8IyL1TM9rrrLgwNMoUDKdWP0_x1Cb2Z8rlGYlN8IKKR21sRi0n0sIcobgy8wx8BpziyG0_oI/AXJTqiHLsO7YTDMtcs0hEizogvQE7h0o/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">socialist collectives run for the benefit of their employees</a>, and private-credit investors get paid more than public-market investors, so injecting some privates into the business could raise everyone’s pay. Brush and Natarajan report:</p> <blockquote> <p style="margin: 16px 0;">With HPS, Fink has acquired not only a private-credit powerhouse but also a handful of executives who are richer than just about anyone else at BlackRock, including him. Kapnick, for instance, is arriving with a personal net worth of $4.3 billion, according to the Bloomberg Billionaires Index. Fink, the company’s ultimate key man and a giant in the industry, is worth less than half that.</p> <p style="margin: 16px 0;">Fink’s board has said that BlackRock would bring executive compensation in line with how the likes of Apollo and KKR pay their bosses. For the first time, Fink himself will be granted carry.</p> <p style="margin: 16px 0;">HPS has typically allowed its investing teams to earn the vast majority of the incentive pay from their funds. BlackRock’s portfolio managers in similar roles have been accustomed to getting half or less.</p> </blockquote> <p style="margin: 16px 0;">“If you’re the smartest person in the room, you’re in the wrong room” is one classic bit of self-improvement advice, but also, if you’re the highest-paid person at your company, you might be at the wrong company. Even if you’re the CEO. If you want to get paid like a private-credit executive, you’d better get a private-credit business.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Vanguard</h2> </td> </tr> </table> <p style="margin: 16px 0;">Meanwhile, here is a <a href="https://links.message.bloomberg.com/s/c/zzZyFR65DifnPUFqBLWPklK2-LBV9GX6RlRxMBQVBwnmFsIguFguWbmCZEBxSIYMLz0AP2FFDbLT8t77x7QuSqUKH9cpjLumcEjdKbHMX6k5bXVAMJR0x5D4TMT9Qjij2IzjIxPfNdDxUHg4FaIn4ytGue8GLFnhwN96yCCHbyPPggPDFz8zgh3mMwAsvQi298wBsvoW5YkexTHQIZhUHxq5nOxOlUpRhR5EFE8xK8uN_GQU_H7IX8GAdAv7JdLm0NDbtei0goLUIJYdEYulNzPzripjPPS14i9eg1uHUyfSnUMsilnAaWvOw26X4d4iK_SkTsuoZlJTtyTDIc4YWwX7W-zqZpSL69CG2fjcfRBvcd_i3HPfzEZoTZ8/vv2_MiqCwRlOzxqu2aOd_jhukIMe21RK/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wall Street Journal article</a> titled “Why Vanguard, Champion of Low-Fee Investing, Joined the ‘Private Markets’ Craze,” and I bet you can guess the answer! The answer is that low-fee investing pays <em>low </em>fees, while private-markets investing pays <em>high </em>fees:</p> <blockquote> <p style="margin: 16px 0;">Wall Street is feverishly embracing private markets and Vanguard, like other giant money managers, wants a foothold in this booming business. A new fund it is developing with Blackstone and Wellington Management will offer a mix of public and private assets. ...</p> <p style="margin: 16px 0;">The companies say they want to democratize investing, letting people place bets in areas such as private equity and private credit that have long been restricted to pensions, endowments and plugged-in elites. With fewer publicly traded companies to invest in, people need to put money in private markets, they say.</p> <p style="margin: 16px 0;">But the investment firms have something to gain for themselves in this shift. After years of driving down fees, retail fund managers are nearing a wall as what they charge approaches zero. The chance to sell more funds that can charge higher fees would boost revenues for the likes of Vanguard and State Street, which pioneered exchange-traded funds.</p> </blockquote> <p style="margin: 16px 0;">Vanguard has a <a href="https://links.message.bloomberg.com/s/c/-HryxFocz7l9TbUBKhmmGROcOhO1yuiWUXUEvnVl55i53zm8Jc6q_j8jg5oqDh831IVf-1sZv5XZuru3nxCyI2jFHrLtCCNNvPcxJirMx14e2vUBODnsdodoyXyPHMd0hJPqddLOmlGu7l1-YdHOJNAc_IRjXh-8zhaQkTuVQqKOyK_DuCP3azgTW8hc_UNj_gyMt1h4HSV01MtYpXiDqccfZtwcTb1pQQ_IypWxT4FF-qpFHmHLZ7W6XRzv4XkojNWI5cd9gRDvn3XyUjzriHpFnZwpCwWnbsetDFs7tNY8F4rv94sWbiq5PWErpJL14CWFPMPaVRZV2YUA63cb0SQqNO5vEDBJx4afnNJKWR4-EDvwr-PDPSsSVXM/HiRiRT16OeWb5ajcJ1z69eDleQksv8Tg/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">mutual ownership structure</a>, in which its management company is owned by its funds, so it has fewer incentives to charge high fees than its competitors do: Other companies want to maximize shareholder value by charging high fees to fund customers, while Vanguard essentially pays those fees out to the fund customers anyway. Still, if you run a giant asset manager, you will at least be curious about the most lucrative bits of asset management. Plus, not <em>all </em>of the fees go back to the customers; see the previous section. </p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Is bribery securities fraud?</h2> </td> </tr> </table> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/s/c/bIdTZdjtp4MxJR2TBi6NgicaIQMjt56dn95n8u9SY4Ae03pAQwoIfL8LK9TUa723Y_ipfmaB5P_Z4pcI_5RltJ4F8Eh_ifo5Wq6pSStfvSInPHkwGAwmyQqf11Ui30ylwmMVC7Q9_gMW2S0iuTwOeToAf9dshvm9v5H9lGsRhSZoCcy2UwfbyvgtqkyNyS8Nne826t59awVaUitSbWbCCzsxHPEW94KQ6oiEiRPk1lEJbcWyejwMJbIe_HcQQ-LsMFlKklOZsUOn76D8IO6IRvA8Gtf32Z708oGxNUJiD5lQj9xorDtgha0qFLuSK9NyQK7zLQjMDdGGTeZCvACCC9UL4KOW_RIlOt_cOfJCTaKyAfXQxRpvqxEs2q4/hPcmWGrBhyyeF5ORPR38FnK7d1a4QZ88/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I mean</a>? </p> <blockquote> <p style="margin: 16px 0;">Paramount said late Tuesday that it has agreed to pay President Trump $16 million to settle his lawsuit over the editing of an interview on the CBS News program “60 Minutes,” an extraordinary concession to a sitting president by a major media organization. …</p> <p style="margin: 16px 0;">The prospect of being accused of bribery, and perhaps facing legal action because of it, had vexed Paramount’s directors, who had to weigh the corporate benefits of a settlement against the perception that they were greenlighting a deal to secure an unrelated merger.</p> <p style="margin: 16px 0;">Freedom of the Press Foundation, a First Amendment group, has said it planned to file a lawsuit on behalf of shareholders against Ms. Redstone and the Paramount board in the event of a settlement; the group has retained the prominent litigator Abbe Lowell for its effort.</p> </blockquote> <p style="margin: 16px 0;">The situation here is (1) it is widely agreed that Trump’s lawsuit is frivolous, (2) Paramount has a deal to sell itself to Skydance and would like that deal to close, (3) it needs regulatory approval from Trump’s Federal Communications Commission to close the deal, (4) <a href="https://links.message.bloomberg.com/s/c/EbF91XZCVeBxub8qZd-euQHUP42dtCwUPZRmKQAxKTTM7vmJhjwl_ms3mpAbI_avVxTz-721aem-leoqk0hK89bWflfDYF0IarCh27m7hLXihcyrggIAsI9nuhEE89hZwtozmGpm4i5xXqJEY9G242QTQAS1izEVFd_zIJ16t1AiJ6EZfu9sKhKa6EZxkONjDQboxj3A3QybylxqhzPNaGN8gRe0BttWe8L0BnQ9PlvlwGARhZJB42cbow07je1_RIE8SZmLMdEIPM1K5r8jNaciZV2r788E_viKCnYYZ62ii35TXfpW9d0JR5mHtkSS0AGFVyEinWwpndgKbhJF5tmxbPK3It_ej4YDNyssp_GKUWLVXMNxHNV-WBk/zRtsIPgc_8nBe0bGqTWBqee_GZlH6RYR/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">uh, you know</a>. “Paramount <a href="https://links.message.bloomberg.com/s/c/7HtROBW1DvF0QulEuNPew_cxQ2h3R9xkJu_C85Yix0FNFP1kzRnfDv5F5MQbLH8ZdLE1YoNuOkAUEGBm6bVmBfQ2npfY4Da6xez87M_J97Xa6CineErTrthL-FDyYTF27zv7OA5tDJBDZAAa9RAIl9s9j_UZ7ikNYCv5W6VKoCWAl4ToKxQmDHKhbnDj5lRdO4rM4GB1uCjOLD_BIFReCVG64gR_ZvREO5hOfofYTWqsnByToPOkVNxqAxVqe1SvQRT0r3L1_Yi_XU1SaXTRFu0doV8K-sosVeIvLWQ0YApX_2SAYSirei1IVtorosR86HUHyHaKQ32fH2wT5USqQmX7mh3IIcF5xwhqQ2OpvdqanS5YpEpTHmAq2B4/2tA9hhQtn4Wf4YCC-Yj8s08JL2a4t4NA/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">emphasized in its statement</a> that the lawsuit was ‘completely separate from, and unrelated to, the Skydance transaction and the FCC approval process.’”</p> <p style="margin: 16px 0;">Anyway. Presumably it is <em>good </em>for shareholders if the deal closes, and so the shareholders <em>want </em>Paramount to do whatever it takes to get the deal closed, even if that means doing a completely separate and unrelated settlement.<a href="#footnote-4" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[4]</span> </a> Lots of <em>other </em>people — people who care about the rule of law or freedom of the press — might object to this settlement, but it is strange to think that the victims here are <em>Paramount shareholders</em>. </p> <p style="margin: 16px 0;">But, of course, the point is that <a href="https://links.message.bloomberg.com/s/c/aqjadlsWQ7aRiD8G0P1N35KANBrs0kprLDKqZZiriyUjmIvX7Ylk5zx8b704zMnu80anizgwfshO1DNOn-K0Q4iJnpr7Nc8qutrRiJnMtz7JepVlq4AZKEse6mxnOGJrcAm5KXE9lproOO5kyt148QeOXgloSnD02xbkbJ44KQjxgdn5P0g4SvndyncdgsjRcrn8tm0T9A50O7vWplXVm9R-ylNGIFpCj3FuH5TYxGKcYArzzVBUhAqy0q8ObxiFUTRLmZCWHsYgaM9gi4kM3imV94QXZOKBmbVpb9a5FUuCwiZ8MUF80Zbkmbvastn_e_nV8ZQKJ8ioDYxBk7dURONyl9l9XIo_mrh-W_dkFLoKUHcRNw8DjP6v9Xc/-m8n-qMdH19Nc0V2k3m9hbuncGKx3WT5/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">everything is securities fraud</a>, and it is generally much easier to sue on behalf of shareholders than it is to sue on behalf of people who care about the rule of law or freedom of the press. Caring about the rule of law or freedom of the press is a little passé in the US in 2025, but everyone still cares about shareholders.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Enron??!??!?</h2> </td> </tr> </table> <p style="margin: 16px 0;">What if artificial intelligence renders white-collar work obsolete? What if all of us who work on computers find out one day that our jobs are unnecessary, that the computers can do the work without us, that there’s nothing left for us to do? What will we do all day? I mean, one would hope that Sam Altman and our other benevolent AI overlords will give us some universal basic income to meet our material needs, and I assume we can watch television, but jobs are not just about meeting material needs. Where will we get a sense of purpose and a structure for our days, once our jobs are obsolete?</p> <p style="margin: 16px 0;">If <em>The Matrix </em>is an accurate picture of the future — and I don’t know why it wouldn’t be — then the answer is along the lines of “we will have pretend jobs, but the pretense will be convincing enough that we will think they are real jobs.” But: Who is working on that problem? Like, Sam Altman is <a href="https://links.message.bloomberg.com/s/c/S6YboZ8neZHkd9OZbjolIN02ejsPmuAWt4RAkirUUaAnr-1UgAIdMgM2pw51RcWjhp8MCmgnuWd-h1KRH5l-q_N1jL0zKWeUrlM-gtzfm63h545gnP_DoWWOjNyiQt2in4QGgVmaiPsDu9Bg1tVgsN0jk-trArG9XGx2yNY1pBTe6H-YoIaBceUkk8XjvNU3ibG-SGwoOZbbMJV_53q_l8xRBdH36SIxtpori8WTGve94OQLYGvsl3Sz0Yau7gOa31zNM1kcFds4TO832d8uJzQrfkftmS62rjSvJcwRlIHnT4y2bMEGuyvPrlJgEnB6sK0ocT8xEVRKqWhy7mdZPlDgBPQ3mxI918CgxmlXrStpTRt_9v6bNgY3kFw/TQjulL3o0BTrqHCoIppa_Sd4O6Wm4FT7/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">working on building humanity-destroying AI</a>, and he is <a href="https://links.message.bloomberg.com/s/c/ITCOgsWNOe_-MfvF2GZzt2BDQXeveGbHtHmRniqhsuSx5hJKDOnaBmTZOiCSinJv8hWYNfs0gzi9fB0reP634T8w5LlyF48ARIw8RJEUr8hJswkigspeCHntO46lOQHMHDObn_KeiZQsTwWY6q0_JvrKdAb7-aezcGA_M2UYS6wF-G1ZSzJ6nCB-acMW3yxZUceZ1sQVvwQttpjzYG728CX4kUsSI21AasoCu3_-Rky8PGOnWGeGV45IklpCPG1GFT18sb_JHC3dq80M4PKqIkTp2MTv6qkvYl5LV-NIcVDQeNkpC1v8CUG5PbzknS9uPXIkBHLbFwZPZ8vpHYwgC5SjnjIiedIYtnYNrlYH94X_7Yh6pX8fM7agwIk/JNLJftaKXwr7p4zmQWVJjhRqS9EMOgOe/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">working on universal basic income</a> to meet our material needs in a post-work world, but is he working on building an infrastructure to create fake businesses to give us fake jobs that we are somehow tricked into believing are real? Not that I know of, though if he was maybe I wouldn’t know; maybe that’s the point.</p> <p style="margin: 16px 0;">Do you know who is, though? We have <a href="https://links.message.bloomberg.com/s/c/uVRHj6h0wt0a65nSzpJduZHS1kMQnkP9Tzgu7_L5cZy3ho5Gk-Oe7ZtKqKtifTa-R1ifnw8qOgZB4-zR-xqBeXKIzXixqWXOqnWBEWnaXgM98UxjgDRdEYy2lCq8edZErBmS3EhkBgJzAedW787dTFVmWx546XPcwsQPQlMrGrSjcXPyrV2A_PP7E7UGoEquW0fLvWqtc0h7dlIst-iezcZEklS5IYvrcyDnSNa4yR7exxbM_wmHg2leBZvib4U2kxmmpqHymZ-8sW73yemAKEXYZ4bXKUwp-Bl_mtzV0-zW29XonwuDwWcjt7g80k17R8XhcJSQoUGDVx68PLy1VewFYPMrkLI7GG324x1noJ1wnaaAD5iOEhaOyXY/JdzGYKQUQhbg2dR-k42-jNVId0gX14M1/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked</a> a <a href="https://links.message.bloomberg.com/s/c/FmKPak4TP1Hznrl0SUSMbSvIyX4w0k_uHyR7Hs9WD1VMs2ztfzj-s93tTKIshxclmVIa1RdpFhlLO9BubfXm-RnUHClgELC5BGy5cDELq45E_-DI8tFI0iYSShIQFGxfJeslJhut7Fg6TRlXj2kwx9qY-yhnvPoETTp82nUCyjdx4VVxwYdpJPvy09msr8Ek3MjeIUIB8O_mE7dwcrlsAo03qZ345Gov4Dn1zEoBVQpIRr3wz2zKXiIYOuZI38t94hoq2f-u6LlqSjdk3X2x86QJYQTnVrjQs-bjz03MKphQNGe6u6gRZ-SYg8ORDbJJt86pZbB_I1INhQcXEdaU_dfernzOFH6LjzrCxEN8FlZmdlZvepkM1DwFfLw/BQ7WkCszgFfE7nA61sEKo62eVOQs-4sP/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">few</a> <a href="https://links.message.bloomberg.com/s/c/WKthlDbnM9PIyeEza8QsAErR6qyL_pDT7LnTO88WAa8NEI8rCM2lIFlVLL0KwD3iqyY7lg9fnA1yMxYm2MEfUceYubPKIs6PDEIC3lZnMx8_Zb4Bv3Lz4CJHOoDgf7vvkbwMdOqOpgphWHi0UuBxGp5zgJPc0XZA9AQ5N4-6eHe4KCHDZ87nu_naECsulTcTMIsk_uKf1Aw-inZBJqpuWSq0aorMyO7PuS4LAnSJZ4VFuW3rfBLdj33Q0BBjKW26FLjf2zYdSe_jcAQkGdXLas6tlQ4Svqk2nZfW04Xugj5Q4a_9EAvjFhGAagim4S-rjj3ur0CC2FOdXqIxxUea63xC5KglHhtQ-nZtm5neCP1aLF_ACNtGT04e_V8/sJLoRila0V5cqiQhNWd8Qf13QUNOGZ1M/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">times</a> about Enron Corp., not to be confused with Enron Corp. Last year, someone bought the website and social media accounts of Enron, the energy company that famously went bankrupt because of fraud in 2001. The new Enron exists as an absolutely deadpan combination of jokes (Enron now <a href="https://links.message.bloomberg.com/s/c/GarNtZCq8ZLB6bRff048KflJs6XOhAKum3SeJEk8_LRjsS4ofzlMT3NAMG0bZyDvOnrYm36m3Z5wq6yjt-UIc8WuBeYyWW494QxVQTkpBaGuJFjCn-zHvb7p-6Pxn9mfgRNe1dl2we5iddxz-yvjUi7m-D8gwpedNOivaj_tAC6UvBzpMJrLx6Hts24dWhWOrhkvQB5wJXoTde2oqxX2GzAz-XI7WWkQ3bYVKl1ActhqfDitYxewD9TfOP7vbxHiBnCx9Kyq5NZZ30FKVPN66cUd5Tvm4bv8Jj1Bjv_4CWS_sa5GLzOs1fZ8gBPJvaZ3sGwhzoSFfmbbzNI04O_tSaZ4kcuoTpyeY8kIbL0OnB6H4XiQEwqu5uYMS_Y/WSyx5cclGr4AuDf73srttqB_pzCjOiv6/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stands for</a> “Energy, Nurture, Repentant, Opportunity and Nice,” and <a href="https://links.message.bloomberg.com/s/c/ca4yyKNJiCw4mUtcpDu8j6X4EaRJ-2VNd7C-i2LmCWxeP-qV2oU4VQb3dm3ATXtd4lzaSxwfhW4AyCYh0O_qTPWSyjrieb-4N_PA6gBjaio22WzCTpreoMYeog8wAPdASClw6VoHeYUfStmEtfefP5evQD_psU8OUncdMzql0GJaXSYILAjHCODUUgmH6IkVqNQDHqKp1rEZES9qawkeonUzm8s86g6-kM_p8zvp28GuL3NvfzieYY36hn_aIXJGiY2MwKHC5Xa-oIzjhx_cOfG3Ba1gsnoa0fe17Lpbnu7rqdXpbC3MPhNdtRq6ryPWk_KhZNlkiXEVlYPAmZlMta6_ARkyda3ot3ofLoNhrH73uYtbuB_gZUv6z5E/ReDI2czSpj_9xPhM4Gotd1cMRMNinXMY/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">there are</a> “impossible claims about an egg-shaped nuclear reactor capable of powering a home for a decade”), apparently serious business plans (it <a href="https://links.message.bloomberg.com/s/c/7eZQraY1W7aomrJ4r7bc8KnxDev7PMJIcBgy5s-T2af8BLW-1f1lShMeboa6juuQ158PbXedZD0iscKvk93vTaaFYr54McYVev_7AgLeqt44nai8ihAFGewDxcAvvTmWNn3_6g4f6mElq6fKmTkk0YNypE_W6pnRdPR0MYjBbnkZZ5ZxhJqjaEK4dymAnXATor_bDSAxljVOH6VbjgQ815D0GlsqrTJ7doVrXZktI20GzJtN8uHR4JGONYddc4vbeV20EtsKmBxnHzlBxVhPuUFfd2JCP0cwSDbRRLiIg6MbytdvLId-zekJEtl6CYIBuz89lUmHy8daFGBjoLfg2aCLnT5JSl1w3XKaijtkayEBeHO3Sut6t9G-zFg/tzYPh2v32ZRlQSp3Qec_oGqw4oXfqAIn/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">seems to be planning</a> a retail power offering in Texas?), and <a href="https://links.message.bloomberg.com/s/c/HZUjVU5hEajyREd7eDEDi2NSHzVsd3DIS53uMkVmNxGE8ZER_pFLeiqkJ7_HYxpPB92nyWuaCFk9OO7wxeiHFI2UdZ5ighJ3RwWAp8Z9BQLbhNUpYebtR531B2zPiUzuJnsUiNbg4mgoRFJ8cWmM4wn3l4wQOGsAMGcpRzCg432yQJ6qAS5Pfcr2lrpnl_B3-gg4or1DN19ADaJAFtUGuWZjzPYjJNwMZOysRePyqQNz_ueu1S0TxE5DnNLMRocDtI1YjllsYHUde4uhMXAoSbc__r0gUTgPbOQslHg4-TCT8tvgW5jxW7z4mFepua6v7FOrX7rXed-wCBeR2580pcX5wUtyhcaNFuPlQssAjV4FR4mlgpz40N9YVEA/CLD9NMAZNjPgPj_TidIdB_gfAnj2zblD/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">crypto stuff</a> (all crypto stuff is by its nature a combination of joking and serious). I once <a href="https://links.message.bloomberg.com/s/c/J1MttPF5UeFp5Zz6stOKqwhwITEG4ThFMpdIVyPsJ7OICrwGr5KGprStaj3oERoMt1fOji1GsY5Aj_YgdwwVKCrzNFXxhycj-eU-kww3Sq3p866dOYPho7MI_314clWdYEYI_6eZfyin3LtrbC0Ys_JzsSglfnG2L_zZxRRpwqJYAPfEYWQIRCbXlWBS1IR-eyVU3130d4cJ-brc6a9hCPuV2M4Buc0YQb5YU1YaOH-NkdFu4CoSoD0pumXqpCrFgUyPH2AAySvKyA6m31EsKtDX0Hh_0DlOAJ0fS_TOllEeMrigldoCpIwlc8J5Fqa1U-L49VoAQbhPGUlNF2jFfI3wid4i0LcWI4Q5A7dp71G4jgfnLZd_o9pIrq8/SdxdIg73g2OpuK-0gIbDMRQ2X7hETL-e/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> wrote about it</a>:</p> <blockquote><p style="margin: 16px 0;">“The information on the website is First Amendment protected parody,” says a disclaimer, “represents performance art, and is for entertainment purposes only,” but these days you’d say that even if you actually were launching a crypto token, or a meme stock, or for that matter an energy company.</p></blockquote> <p style="margin: 16px 0;">Last week, I was <a href="https://links.message.bloomberg.com/s/c/xpAAxF1fU5VIBFIIJ1Bo2pN4ljqnEAlJEsbrw1J943IeELCPnUI8NqmZkUj7rm9cmRfaVMOdP-889-vx0sJ3Tyw_Ker80jG3-VOm09JU2-Tgnh27GCPARUA0IdvhDHySgkLF06DFExSjj4mIyE1cNKoe5AsdwpP-fUflwaCsS9Nmyh3YhiHddj66eaxWBtxxVvOUTLpQ-P5NQfhba14DzlIokgNYvOi-xpwtTxAk8Q8JvrEjyxbty3eZITU6AHplr-Kr3k07oMzCE91CPblt7oHtBxMVZWKjJQQ8nhf33T_XMbR_Kfd0PNTW8SMVGdyUccM4B_wWvfMn6au865nNfRu72oQPW5MGalF3_YD41eYxrrUxm8kAmiaLDOU/YayXTrUtrDU9rpBEvGOLlVOHr6hL_gpw/10" itemprop="StoryLink"itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">served an Instagram story</a> advertising the Enron Summer Internship. Very few corporate parodies are funny, and obviously tastes will vary, but I found this ad much, much funnier than it ought to be. And yet the jokes are mostly subtle, except when the CEO character says “we can fire up the engines of this Titanic and fly it over the iceberg.” Meanwhile, Enron’s <a href="https://links.message.bloomberg.com/s/c/rB7J5L5YVQzNFduAIrFmO_miX2GwCBpA6QLHjITk09WO2UHVcig8YV8liz9PX4lqoEh-Q4Zrzwe5Pv3do77UMQ93smMbi6PCLGeM5_Ya6mfopcdiuCCKC3qCaD3wrfSffv4CC2XHT-wHSMmPk26zOQopzbV6I4XcAKrPF69VamKtQXhL73_XGeCJad2-tPnVxpLWo6kGUllMvsz34ChSh8mmh94wffxoyhJdPHT9mcU4UwLNZHiWMOpQC2OQ4eot55Z0AgVQRhiw3qu2WoTljtqnRD2CnevDgezplZoMG2P0l-odr8byPeNb_LWEA-eYd1VabEp7w4tFkkyA5MzRYnGLQCGu15vhNhVRXZhMSmtmUx2pJp77REz6tKE/P4_WZDWjpWr-n8KUSTPgzFuFpQyxPcPC/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">careers page</a> is completely straight. I feel like some people will miss the joke and apply? (Or it’s not a joke???) And get hired? And actually go work at Enron 2.0? And this might be the future of work?</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;">Biggest <a href="https://links.message.bloomberg.com/s/c/eHKHpH9NlbRcZSHla-Lmaeju2llsgTdKbu--f2aXGHl9m8OBhOEJzOKb2zQJy4IQq13cPwnwAxaSe4pbJw7i4LIgJHNnaTC7pfZw9apDKoojJHp8TafIkxC7s4CfgojPNm8kpXjtxFFueEv-s_rFXjdmCAC-oTuxCbZRX1d1elZv8fRH53w9RsRXlImkHJJWT6lFDc51N0W-f5nqT5Vcm_gsvN5y40mPGusi_bPwPwr4PsWD0zZOMu1Ndr7eW-WIirUKNelJoIoVEgvSVtfTNkPLZcnXOz3145-wDcoVSsPDqgM3tOTDOJfOfuepC18GcswJPI0NihAw0XunoSOz6jfuwcCa2yUu5InEiaAc4-N-PhnGPsbhF23cFZw/6ZzOxm4fd894qC3liLt_jtwtlnvYRJw2/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important;border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Hedge Funds</a> Extend Gains During Chaotic Six Months. US banks announce big shareholder payouts as Fed eases <a href="https://links.message.bloomberg.com/s/c/sECEg7dytFY-RDTlB5SCqL8Bp3yctBIeny5wJkMGsWKaA3Ctqf5liWU8u-J-AlnNm83KYj7_QMPNFLCTpnPjo8g7CjtqBjKfRJT4UbyFXkyHS9tQV76gHJC1wtehXS0Dzq8_YwhyTVuMEyC-wx1qygYmyDtvhe35qkbq1KXh0YXaKk6SS79wbbxJqpIR8qTllC34zDiMC2dvd2gpPoe9MHUPoXcoCizD2HlcKgeUvwCaznZF3wbexX5OZeqrYszWKsFYD3g0fPRmIZHgV9aQeCDX1YIZFMXGIL_TBDZwAnXruJX8yxU2WFFkRkIlZUZ5VjZT0NISDtNxRe3T3CEYQDSkjzjlqtB0qTrD-vdjKc47RalxRaHDGmEGvB0/Tv92kPn5bsLHWYd9FGdZkMEWsS1dOpti/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stress tests</a>. Peter Thiel joins tech billionaires backing new lender <a href="https://links.message.bloomberg.com/s/c/6f8QdZRkBG714cwnKJOxqf1_SGI3R3LbuAFl5e2htp1x9GnaNVppeGt5cF5TY2Ug_NzZqI9vW_83jCAzA3dAZdZ8Rg7ZYLV0ABbgyWZi26WBq6AIOBmLKNc_gPyFzBdqEicHDmGGDcM5DP06JGbVxtqBYL0xjcqtBysVLIzQruNzqQYCyjVbnNfhNNGqCBMLTDJFS9ZWJ-XtEIYjd74avAUCTgQPnFp6dwZg7E8-eJGSMUVXPhu8mu7IFxxc5ceMBBIm3WafTjNbYF3DRGgJx0W81opMQGE8pMhsn-GSE9pXvV6Y0s63s3zXTRDvgHEsHpsGVaEYiEU9ZiHY0vNXQUCMLcUvhYOXI6gcd2QSeRTQi89ZCuhwX6WQVhk/9Aa04ipTHIsmbEUJskvGtRuNm4zu2dWT/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Erebor</a> to rival Silicon Valley Bank. Private Equity Caught in Crosshairs of Elise Stefanik’s <a href="https://links.message.bloomberg.com/s/c/nIap4OSL5wX_XmLspDCmcBlVPQDkswPfCMXusgbX0Y7oqG8Mn6Pyebl0wU6H_8mFXSdgH-otMQyZLy3cNCfiKKKxEfXKnGD_OGAjJzA-IVUVSy80HJgcReN8lOM3vDEG7UCRzL5VJZszl4CECJhYYn8vmyulztcnl2wOV2dV96YUBLwYMnupn95f7rPOh7K9FsRDWRSuRE5kktPaaLP6jPa2F60hn0-RT-U8m8dGyVAkSabuuCXWPOcJB_3dIK_g2zcysEVoaNzEN58LLdWIiOzUKMPWS9_ruxUw7Ix6bqIQ0Im0Sw0uBPQ8h6P0C5smUVjIUlFu9b1s-pN4gLik0zJXVQDwP21MfT4GEpIE0aWn4xgvb7k776oFC3g/yzZBs_Ap_sGuSo7V3j3_MO_Dxu3Ak3iy/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Attack on Harvard</a>. <a href="https://links.message.bloomberg.com/s/c/xbm09HndrDeELg02BtNgRNtsHHr1wf8NNDlqWTvGZiKA-rst5a8VvP5sDiqC-XAPz5smF4oSCsUPP7flMn4t8H5WVWjohTJae4s3XoInyxn0RXONpWaQYNJfzVHlz_-wAAoaa-_OxkekTW8bzVktWRg3_YIPGPQMiHDzxCfLbtGmb4KXqfBNT7lhAiVY8Apjbc9Axh5u2oNXC92P2FKNWmF4Xrqxo_SOSwxQkwZWsGb251mzc0J--eKWAu6QKmT5No37jCOOgnLNWVwfmD1S2do-NqSCpC9KfJxoT3H5Z8PMpoeY_MgeYQk2J1OlBqt40HMdFwud2QUPAVV8fqFgkY4mLsvGTynBQZD_NpNJEK6DVEAiA5LdXlQh4XI/Py938wnOeKFeN9I4JNKTl4BpHTlBo0Nh/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Tesla</a> Sales Fall 13%, Putting Carmaker on Course for Annual Drop. Last-Minute Twist on <a href="https://links.message.bloomberg.com/s/c/PC5gd0vjREp7TjMJ0ioL3DKeq_Y8vJGN_XB66HQJhTr3lC69DwJIQ3i_BTNcwSFXilUWGKWnzGwNLUaCc6rA1seKVGOCAiwoPKTuYxgE1gWvxgOHIt3jtdZDt5fdjIwB_TGV54lVCohybQCrnvMnvA1h61MhTAOd2km8V14UAr6TKhr_PORMLZM53u30EeRuM9nE4Qo2klr2OBk6lzfRcAihTMFEJEhBNPtrVbqRxncdqUa_do4V32qrQOfNoI4id88loYgut4Xm4V05Ww2Qskrq7NlpCpB4A75deEKwvaZidxfxGIdVK8iT99xzfdfpHnjXulL2qvBM6Gt64nGfLQMailnsDltVWWKLhViENkcUkyxiIkK829wZkBk/WMhoxc5r7VmtmEgkiiGu3LSAca5hHMVU/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> xAI Deal</a> Adds Banks Beyond Morgan Stanley. ATM <a href="https://links.message.bloomberg.com/s/c/VX8_gEGPtzpAk77HEPWpZHTO4pxO_KSTjXLBiUg5j4wXGKH2Kobb2hXwXutWCdr9IlFNseL6rrfTPZv2TM0Duxoc2bF7YVITjr_-6GPwECD2Qfs3EZHjM0vaqaJR60aRXYPMzEjhFQw_HJXSF2mJJzhhx6VRTCsKcElMoXthjJ1CUA4XSxlVLjaMqSJtX6vV5AM95eS-Rp7kI6MEOLIHAiuwOG1Rd3JemDpbFB3b2jsxSw5A_HgUAYFF_Xb1K-oD46eAM7xeHmyjybbosuCAZGwmLwWpGcSqbsIX2vH9S2mM-Wc7Jn7zaEje4fPqcq_jXQUNodfaPraLF51eaDGnRGTZwMEwMCwX1CuA46XwkYhWoh4kQ-63GLJ3Kx0/qQdfUvvKYzIa_mlAsN-ukhgL_xGKnX-0/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">theft</a>. Gen Z acquires <a href="https://links.message.bloomberg.com/s/c/wegiVNDc4Ps7n-3VV5EpFbBY_0UH9vZTOgAuQ2W31I-0Sn8QI13aeYQmua9mgzkp9ZJ1Gni8FIjsKFCpC9fMk3h6hOKa-iNiGWrSLzehxyu9sEJYxSk6YoNX20tViujdgE0F2zPtuzQq2lWoCwkBF9r-7e_neh3gnorskTSTjlxvf6i485ddZDp1hejV1WsmgVbX1UzbrZosnIvsmDJhYjXeZI349cK4auPrimrSDyHZOgta4f5_m9ySKHrnHcPlYg798OdbhiBffcTKrtyGvZvTEt4ZVLPYUxjcvLQ_T2W_dkoWTl2JF2RFuBiDK8TxuvCGvBJAgWslXFgBBuJ3QWz8TDDsQRiwNYw579u9X_laZldDiZzOd7p8JMw/iSeoP-8uM_lyI5gfVS_NqMo1UY_YgrD-/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">taste for drinking</a> as cost of living pressures ease.</p> <p style="margin: 16px 0;"><span><em>If you'd like to get Money Stuff in handy email form, right in your inbox, please <a href="https://links.message.bloomberg.com/s/c/-xQe-2ztWK9FZVLp-DOqNXzafFgEJ6uxGgELq0WrJNu0T3AeuRx9BEZJaLcxQbJMV5SBMzIRyG_KWBB01eOGjUZkxBpfhntAh6I1j7OG-m27aFw-PLn6O6Zu_R6-QvAVzIjcN9BMA2_--FZjHN7uF_VEZqVpFS4RRrSKgPenxXqN9RSNVGZojrf2W0jgZBGfdnDW1DueELh69UOvg2CWYlf3viHkfPaffI6-TfINI3TAJoWFDhN67RQQTe0PhSWMAFtABeGl626Ssc0g5ToCMW31pk-QGp3OSmfJo2jZ_R4CpD6oxkbvdoAoQUZkGCUePD1rKG-kZbDptjRBg-QPIbRQnwi_qeH5PW1AFJ0KwlsJyN893yTuG9AynxI/kZoaHWHqrhqjM6kmo9aopS7s3Dc6RriC/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">subscribe at this link</a>. Or you can subscribe to Money Stuff and other great Bloomberg newsletters <a href="https://links.message.bloomberg.com/s/c/SEOo4F6xxHQ_frzVhNjHuoi3Ab1jPHmdF1UeLdei-dsu3zhHwgvyEvUk5_MQ-fYiGpxCZuOKj6H7DSJV26aWR9QflVjdMFAJ4L8e1LyXIGsyCRvVoYNPLdF67SZN3oRl4iMhw9v0ldzNJuyeyvTbIHgQOU10wejD9KoUGgU5o5pkfULj686y0QvI1XiVPmInN5jTkctlsLcoNVUABL958-3U7ite78qTP6hIE5ST1vi_oFqeZ-JP3WAw43VFMwjTb6y3mSnK8LniL-j2oglnG7yjn1uIwBXrfil-69apugO3xl39xBg65I02sgGgxUCY1vsGOq3OEdQWAc1LrX6vrm6lEBC0JhmtvkhFjqi3HKOqzay7pkFBgSqz2Fg/xjbgjf6cSWdyKO-KldcP7ffUuEzOXgPb/10" itemprop="StoryLink" itemscope="itemscope" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a>. Thanks!</em></span></p> <div id="footnote-1" style="font-style: italic;"> <p style="margin: 16px 0;">[1] In modern markets the main reason to go public is often not “you can raise primary capital from public markets” but rather “your employees and early investors will eventually want to cash out, and going public lets them do that.” But even there, private markets now offer secondary deals, employee tenders, etc., so companies don’t need to go public to offer liquidity to early investors. Another explanation used to be “but public markets will let you cash out at *a higher valuation*, because investors appreciate the better liquidity of publicmarkets,” but that is also not at all obviously true anymore.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Around 56:00 in <a href="https://links.message.bloomberg.com/s/c/M8H5MVW8RDY7VXPWuhpuP2vu3hiLFqjYIN18TE3JP-4nDQOPU9VKxQpHiZkUX-AYGWt4tmLzRgDhzijD0cvF8rRDMo-5MIq_7ZclwZiP_Uh6d10kevsqcrcugvGEq-xgzcxj3G6qUihMySHnWIru-aIlhFxSNGcXzD_yKdwm6Dgr4QZawxlp7L0HHaYxsj9Zr8Y-LkKO2csuHyBswFPEtwCUWHtWNq55xGfiL3F0XZSoXwItjnBKdmCjYOd7YjHIF2pG57uYYMXP1ya1StTYhjEfY9hxSaJuXCpSINLJASVcN3bkBXP6qiT6Cf2zi_XkiROJil61W9TZnwHAZCog4G-5Rcxa6NfRnxzsgCm4AKRNdyJlY8w40V6mqbk/hK05Sj_sFpySI2_YJ-C_6L6lNYorjmXo/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the podcast</a>.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] We <a href="https://links.message.bloomberg.com/s/c/ZkjBV6_U1bNT_lTjO1-TMTJu9Y4edRkE_wAXQfkLzhNkjp5GZuI-OMutsAZQPvyDQYdEn8WaNxGmvQ2mEQGTPN67VX7eeMt5ymhsJN6vZlLz3iwtEPKOs3PY1Ov2Bma6YIXZeFbuQOMw0rds9jDEyl_SToJxQJAZeexHhA6ixfuCY1cUm5UFu98Vh8gWRX8taDhG8M4VnyHAuY_pXrzNjf8PwqZ7WWDcwz802Ict7cVJXflotkRN_uWfLa7Xy82UYbU1HL_pkH0dsFL2B4VVyP_StKRwbXA28riaNDQKKXpMRP4kNCZPSQCNieN95dQNe8S74dPnu1-aBrDBZUmGV5FXqlLNrNlipz0F6MUafp6jHrGj9t_W5aD2AMw/CUZYe_dgGoz83PgDeQZuRPB6QDSokwoA/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> talked the other day</a> about a tokenized private stock offering from Republic, which would be available to non-accredited investors, but in small size pursuant to the Regulation Crowdfunding exemption. Robinhood and BlackRock have far bigger ambitions.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] This might not be true. For one thing, Shari Redstone, Paramount's controlling shareholder, has <a href="https://links.message.bloomberg.com/s/c/wG47uPe_MwYm0Q8gBlEGhNkwb718goMM9XTGoVqoIx-YmMnuU4VQsW2HNI0rnkXHl3IdQJVmTy6Ov7nJZdu_eQoY1A_vlMUKOI46d4E6nLDKnVV-EGBO5sS_Elc8ihdwHuTu32vdaQAS4bx297pCDbpXfRU6AuxRV59OyK_-AJUQqaNMKun1zGxytiVRW0puDV2xZCwQew-rS2-tsbsXhHYdxkDeBFG0ykgYSPy-otijGcBp4zuF8ZdTTJeaSXwCvK9bDinsD4US-qxX-ny11NSZgaj91kiuRuINnR960PSRN3CUyFnYk-BT304-UOJohiU7J7WhMVvu_4FWUYQatzCdwgiVUuqVf0pwE0x5oAuR9GDme1MlOJTQ460/Bl7qsxT5YyPALg1O92XlTegg7M6deWYR/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">interests that are different</a> from those of public shareholders, so you could imagine public shareholders not liking the deal and hoping the FCC stops it. For another thing, <a href="https://links.message.bloomberg.com/s/c/dHtTxDfypCOUAq6Q2n9GVixzKO5U9jg5yk5QcaBLpCBty5aEdH8K61uXUfANmIpc2X5yZqvcp2ZzfbiWQ3PYS-PO-iBxQvYNlOHyuf_C09f44l7gTeSHhyEEGgSNli3CF871mJM4xi2GRpPzuNbmHRz7vYL4PI7vaRS6rjZTuMbneULvEkL9P2-KtiOZW6XwnXoPEJrj-edBqR_HasYJxVSm7knDVtejt2ztglCytbwtHNiV4kyl7nEK4HmqTT4YKLjmqh8b22ruU4WrtgPP0k19xrJ5MNZWYfJIM-_Ce2vHrzp3IdDDApBdXbe01WOgUX7rM56Mtv27KTqHFxRtJlulPvFdeVe5YbHBG91Q7kNNfiQWpK3ZgI7unOs/SBmQ8vhMGDcisklJ9HivhtEizvaE_KB7/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the deal has a stock component</a>, so if there is any future liability for this settlement, it will be the shareholders’ problem.</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="width: 100%; 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  5. Money Stuff: A Drug-Trial Stock Sale

    Tue, 01 Jul 2025 18:27:03 -0000

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width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--<![endif]--> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; line-height: 150%; padding: 0 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">INMB</h2> </td> </tr> </table> <p style="margin: 16px 0;">Here’s a weird little trade, first reported by <a href="https://links.message.bloomberg.com/s/c/_jHV_bQTS02E2KlTnh5O_zDZeKIaqxFKtQuC2Xgymm8W8S-b_p4pUe9rED8D_WQW3mz0L5i7rX63m8Ce0Ny_Ny_py_Q46e7hnNvCuid_9ijhVdjcM6Mqnwt4HFpbHN-7Y54gd_HbOa1hKwtpYYJ8-bb_59vG5tEICyyFkVdK0FKrD_r0Jge58ZGl42LP4W6LRc7PQ60qyJekw-9TlMl_TV9cWaBo-QQ3xpM6Z4QE0W4L_Mgy5Y8rWvtAkaSN8P6CwSn8C6RKP7Yn6w-3oCZiMlbPhS2quGxQJzA0diRd5P5TuHavB3UPiopEWrjBeyAk2l1sPOeb_TMva3qMf-Bo_wf1PW3P9rIFzHfVID6w0Ya229uWg5JffKa1Ng/uj2wxnOaiBr3hl-FHktXacnoGQFhdHA6/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Adam Feuerstein of StatNews</a>. INmune Bio Inc. is a biotechnology company working on treatments for cancer and Alzheimer’s Disease. It recently conducted a <a href="https://links.message.bloomberg.com/s/c/_ahAIdVS9WU1dlwF8DftGauhttMYLIWQ_TF1pDKDKdboHGbJRc6g9CGV9gwHSF8O6PNtdJ1dM5ZqlUEZmZ_W-wQPpM21_-HiBobRnuH7_TvazjchVdykDL7aLjUHDVTZZhLsrbu7vvnwQbz6Z_tc5SD4CtV4BI8ts1zt2lp0k_vzGpwVU_UWnMMqYWD53JhyPxQzV6tCrQidL6JFHNDxHLhL60uNbwESGeBZzv9o5TEbzeSVTfoBRtcPbIX-p5oNoNzAsnWiehG-2Wkgx85ZCuFfoyQfjfz167VRlddo6QzOJ94SWNW7t58lIuT6NeQO6IddmsA92gwyyFk19Pxkmi43zynxPo4rwR-u7R5HM5_r4yIPiNHMUNTcgQ/LmsO_qrEIFyscJogveRtfb76TAbJo7xw/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Phase 2 trial</a> of an Alzheimer’s drug called XPro. It ... <a href="https://links.message.bloomberg.com/s/c/b_h4BRiVPgCwpIy5nsMeg6cZrtSxEi0IqlH1BCizjiNPyL2cfp-IX-v3s8suBCfgflS6HZMdr6eRYFfVFtP92FAHsPyI2NIkj2SkZ6qKLXJ2r2qKC6yDZrbX70cOSFLE0zoNINlLNVGNX3bMhlHzI6l1yDw-0KE297khwFZPJKn_fpcCI_cfqHQAkUbFJ30Ah6fhgWCn-HhqdsUVnULpjFB0s1X0gbP00hAb-m0tceJxwIVO1lQrUecfoVUMEAghbZzebFIT9tLD264jqI3ubyaZZi5x_l-lIouf6mZwiOpRjgRNRnQ7ZsIjntxB2-IKnKmJTAYvsVItX0bwG0vnjgPy9uTzdedGLWLI0onb4Cjkx8F2zm8RI3FVzA/v71v4F6Hms6yfdNhoa_b55qiBINYgShI/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">didn’t work</a>, is the short summary (“<a href="https://links.message.bloomberg.com/s/c/X0wb4GMcqARovnEUJjvd63ZFWyDPDUxEdkpAzXXk9xAn8XooZQVarw1nT_AjmKJeYPyzHJ57UCYIN0ykhG6d4yRnvD4YAHIdszQ53xq6r47f_5hh5q2h8ik_i1YFizFi-1tksnqLN7Fi9RY3vOlYfkCjB2ccU-mXXXJ64QOCNXZZl3ypNwBlH4BIC58rdFFsYiY7F0bWs_nfMvLr6ytSyMnyeeA0ln1zIEVDYaUpCUtXnouIG-glME4xFgy8ksquG2ddNXSWVuCzDDqoghfAGmuO2DDFdS0Ghe2pYY2rpEEhN2tAX6Jn4-YzE-GHy5RXCJwJqkrKUFN29QjrfE9_MsFxBFhgif6LyHUrTLcx-kWB49udvxcFT5ACIg/X1iYeNffgCrvfXs98x1fyTFfSEk9u0P4/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">showing no effects</a> in the modified intent-to-treat population”), though there is some good news (“predefined analyses demonstrated a cognitive benefit for XPro over placebo on the primary endpoint”), and I do not want to give you any investing or medical advice. But INmune got these results last week, and it seems safe to say they were not what it was hoping for.</p> <p style="margin: 16px 0;">As a small biotech company, INmune is not exactly awash in cash. As of March, it had about <a href="https://links.message.bloomberg.com/s/c/NC82sRwIcl17K4tXBIY32End4i8yE_Oqak9Mhier3397BGAV9t1Sni6sfgzaXoxDjKtMmhZqP2rCuvhQetaio0aTnPiIprYSa31jwLKtlAL9RMs1lrszCzHE5sTFFFByWHuS5nvsaXnNfrDuxdPjAVNr6RIV2JlHROf_9sRZpqLpbZOOR9quFvWnIZf0CmLMVvLfs6ze1KMS9knPdgU3OeqhCzNWsONYlwWy1u9_JQ_-g4liasjtHYU0HBHuKO0mV5T1iVl-DdasjVeA3cgBU57OqbIsDB3S-U6odBIGgp7RssIjMmkYI_jjbNpvobFUS65iepVf6hbyAHF3bbMNzqmmUy81ofsWovezktlrOrCMqt_SPAhQibBGWw/sREOwc4ILVdIaIzyR9Wi64INCHyIXaLr/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">$19 million of cash</a> and was spending about $3 million a month. A little more money might be nice, and for a small biotech company the way to get a little more money is to sell stock. Ideally the way to do this would be (1) get <em>good </em>trial results, (2) announce those results, (3) stock goes up, (4) sell stock into that demand. That option was not available, because the trial results were bad.</p> <p style="margin: 16px 0;">That left some unappealing options. INmune could announce the results, watch the stock go down, and sell stock into a lack of demand. It couldn’t really <em>sit on </em>the trial results: If it sold stock, it would need to publish a prospectus describing all the material facts about the company, and its lawyers would probably make it put the results in the prospectus. And then people would read the prospectus and the stock would go down.</p> <p style="margin: 16px 0;">There is, however, a tiny loophole of sorts. What INmune actually did was:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">At 4 p.m. on Thursday, June 26, it put out a <a href="https://links.message.bloomberg.com/s/c/V_ZjKACoWbkYgEoRDDnvp6iu2M72Yc0skc400SvLPFDKTB9QwCTXuQosgvxPsBb-poTfBeFtBmBpwOxsW92w5Be9aboV-fbOlEvpoXAZZSUN0rh0t1HvcwOK2xs9vWx_UGoreuGD2fpD64WbNqyc_h4wvQN6W2DLv-wxK2PXAUUBg4ZwXQNTKL77bVMQdFJr2GxUNr2bDn0yX7i8nUhgkSDrdljeh39oWsdHEVDs1HHUTQQ7S3Zzm1QnXEa--B7nR_vjF1KIwpWfJWISV-ARZZozRXX-_3-wsSy5SjUJeeLaIxgnjeGKY83ZDsmYk9dse8-wyFDIRYkK9S_92tfXQR_myBdZl2xpbczmsuZMAvnoWmBOSn4xnuZZHNU/v_KVxe0rcUp-tETBubg9Ye9hgRS9Urx8/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">press release</a> saying that it would “host a conference call on Monday, June 30 beginning at 8:00am EDT to present top line data from the Phase 2 MINDFuL trial in early Alzheimer’s Disease.” Not saying the results, mind you, just saying that it <em>would </em>deliver the results on Monday.</li> <li style="margin-bottom: 5px;">The stock traded up: Investors read that press release and thought “ooh, an announcement of trial results, probably they’re good.” The stock hit a high of $11.64 per share at 10:47 a.m. on Friday, June 27.</li> <li style="margin-bottom: 5px;">On Friday morning, INmune agreed to <a href="https://links.message.bloomberg.com/s/c/fP6EHtkexytM0e68VFCjOxE_s6AzaYZ4idUrdMbPqOQ29BVWMua4LdSJR2PGCQKdKMB9Aigq_yRzD0KDlJdNvLOumRrRnrQ8s9itL1Ci0SGnMWj5Jj9WPxUISWIXWqCVwAyAB1LEBh-YaDQH98yiM_cwMBlwb4Gvh-zycr5aktBuZmqY0OAtMHPNcZOdGQlCEVWKXViKKoE0hPpDljWmP_raeBrPRexXqSk1t33iCiBiE6Tg-W0mSf4hZwTx14JzXnxiD_veYF2nfldKMZhbQ0AOE801pkm1FLVoyRFNe2kQhptxWKg9Nw9_LpG_A4IBFt1hYfSVcbHfp6KHkU9ORJeRK2IrLEXhj-mw6WBB6geZDpUzWyc-ZlUyx4s/GfcpUXFdzYvpZzpw7OeBplTJgwHDdlci/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">sell $18.9 million of stock</a> to “two healthcare focused institutional investors,” at a price of $6.30 per share, 2 cents above the $6.28 closing price of the stock on Thursday.</li> <li style="margin-bottom: 5px;">On Friday <a href="bbg://news/stories/SYIVUOTP3SHS" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> at 12:16 p.m</a>., it announced the stock sale publicly.</li> </ol> <p style="margin: 16px 0;">Because the stock offering was a privately negotiated deal with two sophisticated investors, INmune didn’t have to tell them the trial results: The investors signed a “big boy” representation acknowledging that the company had material nonpublic information that it wasn’t sharing with them. The <a href="https://links.message.bloomberg.com/s/c/4hCE7aoIA2ILJxvN0vH6jGZrKudQ55VL8dnCaXsZdFZA_-JkqRlpSa3UJNrnJSsssQoHd5BmPx1BmJ15mROvA809qM-amr9TYqtGuf9D2Gy9cccjcrmZ028im7KUAt0P3Mc_cFgbDg2qrhWpMC8G0LxWvmkUOZy8LzoWV6FHQLRfWafM_JFjFqWOIVk0VbdS0cGlok4mdsxkOta7QgEWw1Dr3OFq-sC153YcU6hkh_Lqx5SOJzospt7DjhS7eqYkU1DNuflCoY3Ju1C6gW3dFXnnHwsBDy18ykjD_AF1-pv_dbALYXsgyQseZx5NAxREusP5Vok_CMwO9s5VmM_Qz6xFjBQiArRxVU9jLl__aql7Tz-y350N0gOhz9c/ok6pxYmCJScArlRxL8nm08uXEBFSmmNA/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">purchase agreement</a> said:</p> <blockquote><p style="margin: 16px 0;">Each Purchaser acknowledges that (i) the Company is in possession of top line data from the Phase 2 MINDFuL trial in early Alzheimer’s Disease (the “Phase 2 Trial Results”) and has announced that it will host a conference call on June 30, 2025 to present such Phase 2 Trial Results; (ii) the Phase 2 Trial Results constitutes material non-public information that could adversely impact the price of the Securities; and (iii) such Purchaser desires to proceed with the purchase of the Securities under this Agreement notwithstanding such pending Phase 2 Trial Results.</p></blockquote> <p style="margin: 16px 0;">Why would the investors do this? If the clinical results are bad, the stock will trade down to, say, $2. (It hit a low of $1.89 this morning.) If the results are good, it will trade up to, say, $15. In a vacuum, you might say “I think the chances of good results are 50/50, so paying $6.30 for the stock is a good trade.” But you wouldn’t do that trade <em>with the company</em>. The company knows the results! If the results are good, the company will announce them and sell stock at $15. If the company is selling stock to you at $6.30, you can guess that the results are bad.</p> <p style="margin: 16px 0;">But there is a better answer. The investors can buy the stock and <em>resell </em>it immediately. The <a href="https://links.message.bloomberg.com/s/c/FV7WYZI0oJCWz_xClXfAFpOHQMXoyF-9x1WojaZPxbWM8E-NU-meNFJmpVd3z_Ji0TBiZyinj8DBht4KXShH2xvogaUJalQqjIE6B022cYkqOtkaL-E1VZmoP-Gkznkb83e1JL50p_V4jub1QdFPzFI5u8YdGykv-sT9KpGUrY4arTSdeoO5gmUpw8SvAmqaaXOwlL5rs3vSz4l-8TLJ1GIkm1xjeZTVTvB9v098F-0r3pC83Ff2qvRZ2_VqOR9KYwfcCtMoirgIsr3TvEJVi1l-hi0o3_jf23yECALjE8QNKWVpkJWqO1CZCxTQTNj-cxw84VAFfmrGi6dO_H_8CvOUMosu8DqktURUp5UpfjT-XpZLFO0xFK0Wr4M/u5XLpEEG7RTWDcKJbdVrbRgL5sG4N5iK/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">offering</a> was a “<a href="https://links.message.bloomberg.com/s/c/V42AWAj8spoCjYGQ4z-O-Z5hGU0CqVG47yBXo4Q8GeJ0TpeET3iVgHZw6sXGs7mrmvoA1PX84b_SdHAK7-GU4t89OEEjehUQbnpeUT4NFnEd3WTCHLoAaq-Mw5nU4f_oaORmp1kt2Fd5pcTRypz31MO8e7k0IwTJuCJBHgrRr5AXegapsWVFYjjOo9P1YEyvnFOPMQ5tAeOCifWPZSIQHHrTFHHmVBhZVbQ9oYWAcKa8TTmziK9o5KdMzBF-XH-UylaySB7bSXwEPMPrLRoWZMYruQ3NVJcCJZv1yZb3rcqdOTzOK3iayOeeoCNHx7r75Yujnm3tBeS_20EpHjBHKjf2LhgAB3S4syMzU7GT5TGcOOZpJ6m-3aUlNHk/BiTDjIBo8p3tj81bVKF_xu0ML_W_rQFk/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">registered direct</a>” offering: Even though it was sold only to two institutions, it was structured as a public offering, INmune <a href="https://links.message.bloomberg.com/s/c/rpuFi4t_fqTWRONKXT8Q_NCh95yu9JOGyfjWYd0C-XpPm6uO3-uTSI7zpNHlTVwvit8mvnzKFCwlOX9KI4xwPNMdnxMaOWxHkuOgBkyf9P61iphNWPPtI74FWpZu_1cwk5LHu4QygTvvXwSiaH1zi3_BumxC99UQJ4QdEUU6B2FtVqhiV9faIa1Ecp05ah_9UMBrG4KmYC8439ETS7_PWbqk1GBw_L-l_04b_235Qo9-QIh7GfdQWupbu4ojB2wfTJbTNbNbDb_vXNgdNAZJsef9y3ZrvvPiVl9suZjpbjRGOPU-P_gA5ZvWiDSNR4Dkf7vQxmcDqfXdmVpzOK4kG29Yp6k8mpvBkhZWrwSdDXLSYDyNtxMTc1LckAk/ms9_pp2qpAmyibcfr0O_joXxv_9sMJ1n/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">filed a prospectus</a>, and the two investors got immediately tradeable stock. They also had no material nonpublic information: <em>INmune </em>knew the trial results, but the <em>investors </em>did not. They could just sell their stock whenever they wanted.<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a></p> <p style="margin: 16px 0;">On Friday morning, the stock was trading well above the $6.30 purchase price. Then the stock sale was announced and the stock started falling — it closed at $5.33 on Friday — but, still, the investors had a decent chance to get out at a profit.<a href="#footnote-2" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[2]</span> </a> (Why did the stock fall when the stock offering was announced? Presumably some combination of (1) everyone did the calculation I did above, which is that the company wouldn’t be selling at $6.30 if the results were good, and (2) if the investors in the offering <em>were </em>selling, that would drive down the price.<a href="#footnote-3" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[3]</span> </a>)</p> <p style="margin: 16px 0;">This doesn’t <em>seem </em>like that much of a loophole: It was a registered offering, INmune had to file a prospectus, it <em>did </em>file a prospectus, and the prospectus had to (and did) include the disappointing trial results. From <a href="https://links.message.bloomberg.com/s/c/tWIRAJ0vGkgWwIpRmZhhzh_diDmxSuzHIR30_NCiIM5OUMO514T4vMI-bo0QhIR64pl83-Y75W6U-ORK2q56z-qgAN-GI0xXKGMJWacsQvnxlE3heW-efPUuhhcCL4VYPTk8t0y5SJtRFPxbC35-dZV0xpQDWWuDuHr5qzIE1Fy2cujapd3jj0fBLqqL8Yvtdw31I4EPBDQf0dumbf4wK334c_qTiPMS2eLGqzwzSa1CsBs5TIog82geR_Crb-nCGjZaFpSS57uhyUKgLbnmz7piip0OLHYVakiKE9IYBcQw0CEGok6iUBboU-eBEWLVr9Nrhu9rTI8Fkql1MgF6omgZPrZKosKwtOlnmEplQL7NXDb6b_0EEmAu5jg/-N2PP6L09HJmFPm4Urk1tHslXvEo3APc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the prospectus</a>:</p> <blockquote><p style="margin: 16px 0;">On June 30, 2025, the Company announced topline results from its Phase 2 MINDFuL trial evaluating XPro for early AD. The trial did not meet its primary or key secondary endpoints in the modified intent-to-treat population (n=200). However, in a pre-specified subgroup of patients with amyloid-positive AD and multiple inflammatory biomarkers (n=100), XPro demonstrated cognitive and biomarker benefits, including improvements on EMACC and NPI-12, and reductions in plasma pTau217 and GFAP. </p></blockquote> <p style="margin: 16px 0;">But the prospectus is dated Monday, June 30: The investors bought the stock, and possibly sold it, before the prospectus was published. INmune, like many US public companies, has a “<a href="https://links.message.bloomberg.com/s/c/wLSVf16SCh12vlLoi5qqkF12OsvwxNiTjicUaXwfSJ4JvwaqFyfH9oso6eX7kPUZpSCKuteF-lmEbo7m-4XCvgVfwCr4ou0zpcqUOKmVtPa7PH5Kf1b96gjM4ee-4SWTh7LQkOxHeBHqTNjT-DprC1nwMkQITl_E9ihc-LII8fTpLrEWBY7x5lP4NnyQsZSOj32Yfa1waoR-lEV1tyMxasCLO9u2ahjRTel9gPsiJsAk6MeuViTI7gbobZTaD_s1JiVMsAgoX8tTOAgnbik7jBfh7f5B4vCfJ3vaP-bJBYgEyT2rhniMhgEZyj-7iOPpQRQ22ILrCBODtNa719NBzEjZwTYE3QGBbc3rcZlI2q7jWL4gPUltocREav0/lRbcOrUTgn2XWJOHDxg2h8L1D3NIGPOn/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">shelf registration statement</a>,” allowing it to do public stock offerings quickly. It could sell the stock to the registered direct investors, and they could resell it, using that generic registration statement. It just had to deliver an updated prospectus — describing the actual offering, and disclosing the trial results — before the offering <em>closed: </em>INmune couldn’t take the investors’ money, or give them stock, without delivering a prospectus, but it could agree to the trade before that. The closing is T+1 (one trading day after the offering), so Monday for a Friday offering. Technically INmune delivered the stock to the investors on Monday, along with a prospectus, but by that time they could already have sold it.<a href="#footnote-4" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[4]</span> </a></p> <p style="margin: 16px 0;">This is a small, weird, occasionally lucrative niche in the capital markets. Sometimes a company cannot do a public offering of stock directly to retail investors, because it would create too much embarrassment and/or legal liability. But it can find an intermediary, some investment firm that will buy its stock and immediately turn around to sell it to the public, interposing some complication to save the company from the awkwardness. (The classic case that we have <a href="https://links.message.bloomberg.com/s/c/XxyRIgF_YNXz9lskYWgE-KMZQww08sNMscUl3-rqqBlZpPAzCQtwQUVV2-_XrKOcsSVX7TbJkWUBK4O5hz1gzyEcGpdhjjKAmD2B750nYEjTLDyjiBcXUVLz18CMtTMQ93pDJb8D3n7KoFkANXeeDXU8FrZ44cvXlPSQk7njnibW6oodrGeEL4uhJB_NAJ3yukRBioZ731mdiWjuYox3GNV4prONZdfPE1cM4yFHQpLAD9JeiaofLTCNkZzQD4beUBUJ-jVYXVRXOWSeM2k0MqJ16Y_cxZOzo4VgjkHfA_iPmNUElU9S0jBOQAsIJoQK-tg2DL98VsHjCkhJlY3zXK0FNFfDYyJwGuVhBUvepO_eXHNqeNQPuOJDwYw/VIxlhmgY14IbWB80xg2X3zAM2O63w0Ub/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> discussed</a> around <a href="https://links.message.bloomberg.com/s/c/2UWqRmsnm8O9k-evdyOJ4f9-Xymv7NBYObu-Ec_UcatLc-mkgq7GU4dE4pz6tC_-_WerpkAkrWUtkXxna2dA9rlbdVLF9MZsE2xr2ficWeGNrmXLCuwFc_qJQGvKvBbOI1kK0vu9p5hNHaIrPwkK51Y-0DKDy_zEdLwCEjrf9pMABblLoMyj3dEi_BdiHLmExWXrubaVwJzuYO4iFzuYlYI7j7fa5lwYyUvsIshYzrBbxrNLvkuJf4U_TZZKewUjYZafB7Y3BFBCTq6p5t3bGAZ4la4VCZNgKEsP7Tg-a5NtLp-810-sIw6X0XilEeqPu9BcHYiHdltG_yuWkoJUwryj6J656YOL5rlRA6l1DUaKddL8O47ubkwmX-E/ceMkCW_37UBirO7TrUoy0ylSpugx3mJ0/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> here</a> is Bed Bath &amp; Beyond Inc.) Here, INmune probably couldn’t have sold stock directly to the public, but it could sell stock <em>indirectly </em>to the public,<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a> and it did.</p> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2" align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/H75KI8sDSKq2UL4gZmeeOpwpwEM42wlpYCms16-dp9z5AlcgYbugfvr8SXR_nigkfZciJD4N1oKvnu4fluLmFS7XTsFjHRtpWoQeUaFlk4BRzDjKmZDXJCpEm-uWGtc1YyucqCgE4Dbvdt418IjIINUSbODPQkEXd_Sdmt7ZHJiu8Ozk33IS49QK25QRjR0Lci7RBV6vLLDYsBPHgKZffSpZESQWRu5qpDHlObTZJtVlYuOGhEgEKACvQI0uEPvd0GkKvuARhhdGQ-95wiHvvk6lUKhm4ad5V_dMJKIOXfgA9dZvNyGD011CMJaIXSXP1wz_PhbtgyISq_LGksDmwXwJ_N68yUHsregflZEIHkOiOoqpnKer9khXg9TXJn9cb4C4Dq33h_KnFJ5JLjeR2IcVnEDeCZtp8bZc4FrOQXtW0tmG-oKUQy-2T1qJijmusTcA--3WUzzmwD69Cof90_5gmcovO_0WtHA3rXgkXHNj6se8IJEiOZpph23UrWuRkoKQ9mAN99iab6brumTTwhXCTjvVbruHOji6tW0uXJztgSdCSumYoDi14OOCct09LyF4IRvchxZyX7DPkI_KNFhTQRlWYDJWFX0_vJzApV4uMKt19OehKpTAZJ0StHQuK13HRcNT5ZVse-9ODYTQYBjIwqSAMyI3Wp_ELcaRYqpoaKLvgVH_WHmWh7jwOQ/1p3xSjw_IGVOWjN560In2tuASRRONMms/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=14073266&m=c869f5c3f0784f1d3b0577b4456d769f&p=07012025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="550" border="0" style="display:block;height:auto;width:100%;max-width:550px;" alt="" class="lihide"/> </a> </td> </tr> <tr> <td colspan="2" align="center" valign="top"> <!--[if !mso]><!--> <div style="display:none; overflow:hidden; width:0; max-height:0; line-height:0;" class="lishow"> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/5YTkiYPw9r6-AMAPY8rwC8DrBWJM-EO-Dgea-69zDwBMn4ix-ioV5zXIj8_iHYT9icjuvrEEA40oJryUfGAwJzt__38z9TtbtAHvd1SkabFMaY1oLGiZupEPqksVcDz1kagIiE7CNp_NBeGDVivttZXcAUTJUiz7e9iYm3w1uFuvSgRgzZzBKbUmVuJa-zk-nCA6JqZIdHmAoYqaToaNbhCQJTT1KyIZnu389esVYvAfaig__uQIPTJlBYhGU0e_8kR5VbjJXFYFgAFhP07Srp8ED0stwQjqhygm1TIM5UBeR8tI3Z0zIonHnN1jVaBMd3mgeuJOFBc_dlfu_qioN_w2w5GqhnKeBA2GxgIfPQt9pVMLA7xLMZJ84LDkummidSN3Y4DJ-JOXS6U3G707LZtECJe3EDwNP9JaVF2ZCAiz09dQGdD6XnKMVsxkkrQW8wwW_g4X9pDDcVRkpjaaA7u830mT6pMwkQ-9cgbw_2UhpU1iD-2eHg1M35T6vqiXjYYsh9XyoYrF2vWQmx5xu02PwPyF1iSxGz-T1_Lr59YIE3QZhV_R_GkfgJlLS8kx2viyhgmaqh6hnYN4C6SY28sMRlaemSRdBMWew5Xm4F-0sakwNqpZUx1sXO7zBTUdP_7nc-EacxxE_gqfGwvDXI03dsGKEyCsc79DiG4dcESqOEcIqfP9gV0h1UBhJA/3XR7Off7p18WZGcxUahcr1rMViz6YX2Y/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=14073266&m=c869f5c3f0784f1d3b0577b4456d769f&p=07012025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Linqto</h2> </td> </tr> </table> <p style="margin: 16px 0;">It used to be that most big well-known companies were public, but that is not as true anymore. Now a lot of big exciting tech companies — SpaceX, Stripe, OpenAI, etc. — are private, which means that you can’t just buythem by clicking a button in your brokerage account. You need to know somebody. A lot of people want to buy shares in big exciting private tech companies, but it is hard for them to do so.</p> <p style="margin: 16px 0;">Also, the fact that these companies are private means that, if you <em>do </em>own some shares, you can’t just sell them by clicking a button in your brokerage account. You have to find someone to buy. Even though there is a lot of demand for these shares, it can be hard to cash out.</p> <p style="margin: 16px 0;">One way to put this is that the bid/ask spread on private shares is really wide, particularly for individual investors without direct access to the companies. If some hot private company’s stock is “really” worth $50 per share, and you want to buy some, you might have to pay $70. And then if you want to sell, you might get only $40.</p> <p style="margin: 16px 0;">We talk about this dynamic all the time. We <a href="https://links.message.bloomberg.com/s/c/v1I_kGXDxCHvFqTCdNtfTsKdlANx_ecR-DzFS2Dh6Qp965hRkFvnGbpiLdf2u14FnOHDq_MDP0NP7vE5ZQi0L54OECfMM8Reg75zUJ4DaetQGthrf7IHkethFqHTV8aEx5L33NfDyA691h-fLcU938CVAzu1hmfM9d2RO_TCvV-nuTlkMuod9GJEJJ1zgJLTwSu5utBCSG4CrxhSnk0gj9XLUAylSNXoGgjedIVvdlsf1u1oM2F5DTC5KDgHiAY1gz9YrGaV4YttUHjaQS1ks_Dcqu2s2idygEr3YleXgbj8h6Sj209KbXwPQI1CWgdoQoXRbHts3LR2gp9yczmLicGhpk76p6XAJVPmz_GXLDzsb05XxZT0P1o18Ts/MxyuqfIQSmMZqpmABLqxplqz-dYyxj5v/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> talked about it last week</a>, because a crypto-y company is offering “tokens” on private-company stocks to, uh, possibly increase the supply. In December, <a href="https://links.message.bloomberg.com/s/c/AgF4XD-X4NDGFHZGWhn0NIUMRnu72axFS55XVfjULLYCyWTZernHeq9zUzSc2_BOyVkaRIToXjfxXnPGxD7ctOUS2_PXNkrKhuRrONHpqhdjz3mZeawkJshHS6XS_FECcmrDvJCMCVRqIxmmkYN5VWSp7G06TcAmwnp9Z5rcRS8RCJCHPvothj_JbFHPfNzZQL4BfwndBs8zes4S2DFUuzSOfGhgRvcJ4yv_kEaFKeKr9kTSDaauhuhiQM9mtkVj9coAayQgvhrOZuOvA6yWRSKov94UhAISV3P1NHH1u3nCEEyzFimNXz99JVIz4imW2M6Yv6H4wRignIJYRhgpkARXo2HYDbOrqOgLkrSYDLlaWUjP7DPeZCrFrYs/nO_2ynQauS3dw6aScO11xwKkeyHcH8Eu/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> we discussed</a> a company offering SpaceX shares through a special purpose vehicle at roughly a 100% markup to the actual trading price of the shares: Institutions were buying SpaceX at $135 per share, but if you wanted in on that SPV, you’d pay $258. Even that seemed pretty tame compared with DXYZ, the Destiny Tech100 fund, a closed-end fund that owns <a href="https://links.message.bloomberg.com/s/c/D0b69CaiW1wSxRXu9j1ApuUo1nGLj0cJFpyb2b7ylS1m97C6hKRU8-3lTq0TR2MqStxVH8OZeCJU-aEvfssHjP4opweVYZcQEvLXm39dn8DMsBllU2mRkRdIe-AUc-L7eRhYR17O5zMioUGAEoq3slNSd8dR1Aw2kinbGkxWIJADAY9GQeqEtOhRFUJS6_G_xtFN7Iz1oQdMVCUdxm6tmIyXj2RoZhkyw1Lzi30Z99QBNypG1i8JM3L0zeLibMmIj7EFKqB3ijYt7LgNYISeUvzE0Y-0C__hF2U-5ObNZ0dIpL9FYqZ7W4FWNoKyzPAOGNrgV_Wbdm2OyIZcD14vkAXtGS3lnDWpcT8VVAQHJ5HvMjZzdlXhLwqcSNk/oJk4CA68jea-RUs09v5WYbZkajpAf_ab/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">about $70 million</a> of private-company stocks and has a market value of about $400 million; when we <a href="https://links.message.bloomberg.com/s/c/8JB9JPyASkqQwL9PvSUoL8P_vS5hdwr0S_QtOmal1w6ao7sik22-PQ3lADl3XM69jSvb9rmvQ562_E_ONButlX6-yNY2K7tyiIW90a2phi7Txbb48cACba6BSrmkeek8SOV16XXN_Y5oZ5OxOJ7nfoxJ83XfGCX0Qb3HufgdF_h_RZ8gqj7P65VjamE6j54dvGsxG-fQ09QewpDjNhFO7zBEnQdnP0sSwTD6pfuhwvXjAelQUmQkiXHau3sVyuYp4N87bC7KtqFa9E9-iwW3KBzHZu83kmZ7IlctEf-bO5Jyw6HmzltvvfrUznLlatNNeg0bWJynfQ442sP3IONYOWG_RjLa8nmvBZ08SJXjp3sUYea9hhaXFrRrJBc/5UAWy8JSXN-OI6Tfa28YakckBXM5w6XQ/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> first discussed DXYZ</a>, it traded at more than a 1,000% markup to the value of its underlying shares. </p> <p style="margin: 16px 0;">Each time I discuss these things, I get emails from readers saying “actually my broker is offering me SpaceX shares at a very reasonable markup.” I am sure that’s true. The point here is not that retail investors will always pay an enormous markup for SpaceX shares. The point here is that retail investors will pay an enormous <em>range </em>of markups for SpaceX shares: Some will pay 0%, some will pay 5%, some will pay 100%, some will pay 1,000%. There is not a simple single “market price” for private-company shares, the way there is for public-company shares. People can sell you private-company shares at pretty much whatever price you are willing to pay.</p> <p style="margin: 16px 0;">Here’s a <a href="https://links.message.bloomberg.com/s/c/edxNL7fbW8l0IQo9oXcTB9HDglKN-enEDamQr95XBX7a_jgNxT-T2tvRdrzO5amQ56MT8mVCBBhzL82vyjrBIry_F4K8fdnUdT3LBB8xmy6rz1aKWBlcatxj5alQo8ZAU4BLTPYAithglDV14ul24VMP3DmqsHe6ZKWerVGkFPt9OREyDMqaov4WyfAl6omwkRU_bzDZAelwSJ9mvsw-RVqxJVzbatPLwCTEo1aMo2GQnxnYJJ1FaQyXKuxoAeTbrT2bx7EIHI13IAwhLEk0HEg8uV7UojURYSmgLlsWZTuFUOXAje2ORfGqJVqtt4TEtJtHEpgyA_ZxWT98QW4rhO_8cNI3vKyp2Nj0ZC-bQRiDsbd1xFCA6oY5zwA/QhP-NE_o55HpoIXH9Ggk5t9GWxpk3j2a/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wall Street Journal article about Linqto</a>, a company that “said it would make private equity investing easy, and ‘democratize’ the rarefied private markets.” If someone in finance tells you that they are going to “democratize” anything, hold on to your wallet. Basically Linqto’s business model was (1) acquiring shares of hotprivate companies and then (2) selling them to retail-ish<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a> investors at enormous markups:</p> <blockquote> <p style="margin: 16px 0;">In January 2023, the chief executive of the private stock investment firm Linqto announced a “Spike Day,” a one-day sprint to boost sales to its customers—small investors looking for a shot at buying shares of coveted private companies. </p> <p style="margin: 16px 0;">“Take no prisoners,” the now-former CEO, William Sarris, wrote in an email to staff, reviewed by The Wall Street Journal. “This is guerrilla warfare.”</p> <p style="margin: 16px 0;">Sarris was trying to unload shares of Ripple, a privately held crypto company, to Linqto’s 11,000 users, at a price at least 60% higher than what Linqto paid. The Securities and Exchange Commission generally prohibits markups above 10% but Sarris pushed ahead, not disclosing the price hike to customers, and the company pocketed $2 million, according to people close to the situation.</p> </blockquote> <p style="margin: 16px 0;">Well, for a normal brokerage firm, buying stock and then reselling it to customers at a 60% markup would be <em>quite high</em>, but in the context of the 100% or 1,000% private-company markups we talk about around here, it’s not that surprising. Meanwhile, the nature of the business is such that there will be fewer cases of the broker <em>buying </em>from customers at too <em>low </em>a price — mostly the customers want to keep their exciting private stocks — but not none:</p> <blockquote> <p style="margin: 16px 0;">Linqto didn’t just profit from selling shares of private companies to users. Sometimes the deals went the other direction. </p> <p style="margin: 16px 0;">At the end of 2023, Linqto learned that Ripple, which remains private, was preparing to buy back shares from customers at roughly $61 each. Linqto reached out to customers, who were in the black on their Ripple investments, and convinced them to sell 144,000 shares of Ripple back to the company at an average of $55 per share, according to people close to the situation. It then sold them all to the crypto company at the higher offering price, booking more than $8 million in revenue.</p> </blockquote> <p style="margin: 16px 0;">In the private markets, the intermediaries can take a big cut coming and going.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">SRT</h2> </td> </tr> </table> <p style="margin: 16px 0;">There is a financial product called an SRT, which has the amusing quality that (1) everyone knows what it means but (2) there is no agreement on what it stands for. (In the US, it often stands for “synthetic risk transfer,” while in Europe it normally stands for “significant risk transfer.”<a href="#footnote-7" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[7]</span> </a>) The rough idea of an SRT is: </p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">A bank makes $1 billion of loans to various companies, which pay, say, 6% interest.</li> <li style="margin-bottom: 5px;">Those loans are somewhat risky, and regulators will require the bank to have a lot of regulatory capital in case they don’t get paid back.</li> <li style="margin-bottom: 5px;">But the bank can sell the first-loss piece to a hedge fund or other investor. The bank sets up a structure where the first $850 million of repayments, on the whole pool of loans, goes to the bank; the remaining $150 million goes to the hedge fund. If there are defaults and only $925 million of the loans actually get paid back, the hedge fund only gets $75 million, but the bank still gets its full $850 million.</li> <li style="margin-bottom: 5px;">The first-loss piece gets packaged into a bond, which the bank sells to the hedge fund for $150 million, and the bank pays, say, 10% interest on that bond. (That is: The bank gets $60 million of annual interest on the whole loan portfolio, 6% of $1 billion, and pays $15 million of interest, 10% of $150 million, to the hedge fund.)</li> <li style="margin-bottom: 5px;">The hedge fund takes more risk than the bank (it has the first loss), and it gets more reward (it gets a higher interest rate).</li> <li style="margin-bottom: 5px;">The bank gets better capital treatment from its regulators: Instead of holding, say, $80 million of capital against the whole portfolio, the bank can hold, say, $8 million of capital against the much safer $850 million senior piece. The bank’s cost of equity capital is higher than 10%, so paying the hedge fund to reduce capital requirements can be a good deal for thebank.</li> </ol> <p style="margin: 16px 0;">There are variations on the structure, and the numbers here are illustrative and not meant to be taken seriously.<a href="#footnote-8" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[8]</span> </a> The point is just that the hedge fund takes the first loss, the bank takes the second loss, and this is a very common theme in modern banking. <a href="https://links.message.bloomberg.com/s/c/FE4YL5U5hoVSZBbGY5r2SxZO2Ro7tSqW63O-AbjF1Dym7kwVf15ubQEM2nWtGSlhGjTdj1t_qG6XUQNWbbWgYBnEbW9Djo9b6QOHD7cIv0pr5Xg9RpEzYpbSzzyzlAGRevdSYzX-1MDAMhkSu0R4WXvef8-y3V6RXD_2a3uwCTYYJiwl4gqv1yZOHj1QDaeoqGmLxLIuLQ5968_z_wQZFoZZiCy32p-HzQRacqo4LS03jZRWCVRJyjQ6nh6ux1ChZ6DX83cWCYVquZE_4qgm5q4laTT368Xp9b13nZqVyocVsxDjn5x6w-QAR6-ZnuVsJxw05Zub48ACCiVLPYtZduUcEts7fegkgdUP6bKb09sVzgddE4vrl3Vc8B0/_UeZWdixQufKkuKLrDMwXRKaw01Zjvum/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Banks are “re-tranching”</a>: They are stepping back from taking certain economic risks (like making corporate loans), letting other players (hedge funds, private credit firms, etc.) take those risks, while the banks provide financing to those other players and take a more senior claim on the risks.</p> <p style="margin: 16px 0;">There are various more-or-less economically equivalent ways to structure that tranching. In the abstract, the SRT looks something like “the <em>hedge fund </em>makes a $1 billion pool of loans, and the bank <em>lends</em> the hedge fund $850 million of non-recourse leverage<em> </em>collateralized by those loans.” It’s not quite set up that way — in part because the hedge fund doesn’t have the corporate relationships required to originate those loans — but economically that is roughly the same thing as the SRT. (And in fact, elsewhere, private credit firms <em>do </em>have the relationships required to originate corporate loans, and they do, and banks lend them money against their loans, though usually not at 85% loan-to-value ratios.)</p> <p style="margin: 16px 0;">And then there are some funds that are in the business of buying these SRTs, so some hedge fund will buy $150 million of this SRT and $100 million of another SRT and end up with a $2 billion portfolio of SRTs. And then, being a hedge fund, it will think: “I have this big $2 billion pot of assets. It’s a pretty good pot of assets: Sure, it’s first-loss pieces of corporate loans, but it’s diversified, and the loans were made by big banks to good companies, so they’ll probably mostly get paid back. Perhaps someone would lend me, say, $1 billion against this portfolio. I’d take the first loss — if $500 million of the SRTs don’t get paid back, I’ll lose $500 million and my lender will still get its $1 billion back — so the lender should feel pretty safe. And I can pay my lender a lower interest rate on the loan than I get on the SRTs, so I can juice my return on equity.” </p> <p style="margin: 16px 0;">And the hedge fund will call some banks, and one of them will probably give it that loan. Ideally not one of the banks that issued the SRTs, though. It is arguably a <em>little </em>awkward for a bank to sell its credit risk to the hedge fund (via SRT) and also finance that trade. </p> <p style="margin: 16px 0;">Arguably it’s a little awkward anyway. <a href="https://links.message.bloomberg.com/s/c/KktMqvAHwVQjVq3qubgGOb05KB_LucylzhYssVnUSUyjlKzpfge2Om2C_7chEnmi6gBfsp0NSWBTo2laBUjOxNNZW7b4evmh-7oMaj9DE2pUmOX7mkEUoyKongmeCvYrq4aZtQa9RzmyDc1ZqMPxK9h3n9H09PuoNywcgI8iDjzFIbZOov2R44d0iUpr1BrpfTio57-MzYSc3wvtdKEF1Lw65XlrMk5y5MizWtlwgzuSz88kNV0RrTwqB9qoyKI6hRcZL9fVtc8VO6IbwfNS4WwO64QT91zy47J_mnevH_27uq-3WG9ki89GaVAr3SlZpk-sK0UtbUaBMdH3aFYGfIBGYKEDsQ5ZW1sIvt-utXYAQxYd3AWuZnKVF3k/cjA0CMX2dmZUsSYVCxttL6McSA_SquMf/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bloomberg reports</a>:</p> <blockquote> <p style="margin: 16px 0;">European authorities are pushing banks to disclose more data on loans to investors who turn around and use the funds to help peers offload credit risk, according to a top regulator.</p> <p style="margin: 16px 0;">Regulators want to ensure that risk is actually leaving the system when banks use significant risk transfers, or SRTs, to free up capital while keeping the assets on their balance sheets.</p> <p style="margin: 16px 0;">“We’ve been asking for more transparency, more reporting information,” Jose Manuel Campa, who leads the European Banking Authority, said in a Bloomberg TV interview on Monday in London. “Potentially you get a vicious circle by which a bank sells protection to somebody that’s been financed by another bank.”</p> </blockquote> <p style="margin: 16px 0;">“Banks Transfer Risk to Themselves,” is how <a href="https://links.message.bloomberg.com/s/c/DSwVUHepsIkg4gYAnEHhBngFBL7aLlTOyydx7w_UiSLTaYVmOup_RtBNbF1qtmxEBfyhiGgyUMGLXOZBbxepBhDM7IFP6gKFTj44knyjVExzt3lRcW3e_g98meWp519kBGJndh47t2RBpDFl-u0ugPYKnSVoA5Ntrbgtpmyl8pA9_0MVwq3_4bimhmaCXYeS--bwSiRu-A32cvLR2-gQLap2_lpBFRexNRBBakWdwR5TpEW2y63eOFBAtmWu6UPc12V1FKl1_50dCHdSarZHNHDBieCnL8iOjFtCKyWEAvqUjiZPPzHBoc5DjajAZpwvzPNtPEW4uDsOL0seRE5BrsfZwF44A4btonSG-Np3xjbrzEVRI4TrRZR_weI/_EL8K53_qOHN8OyeGjkKKn9nCRKJ-0ka/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I characterized the concern</a> last year. SRT structures tend to be driven by regulation: The bank sells enough risk to the hedge fund to get the capital relief it wants; the regulator says, in effect, “if you sell the 15% first-loss piece and keep the rest then you get to have less capital.” If a bank then goes and lends 50% against the first-loss piece, then the banks collectively have 92.5% of the risk and the hedge fund has only a 7.5% first-loss piece,<a href="#footnote-9" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[9]</span> </a> and that can look like cheating.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">AI agents</h2> </td> </tr> </table> <p style="margin: 16px 0;">A traditional early step in any big investment banking deal is the compilation and distribution of the working group list. Some junior analyst at one of the banks will put together a nicely formatted list of all the principals and bankers and lawyers and accountants on thedeal, with their email addresses and office and mobile phone numbers, and will circulate it to everyone so that everyone knows how to reach everyone else. </p> <p style="margin: 16px 0;">I suppose in the not-too-distant future, each person’s entry on the WGL will also include contact information for their artificial-intelligence assistant. You have a question for me about the data room, you email matt.levine@fancybank.com, you copy matt.levine.ai@fancybank.com, and two seconds later you get back an email from the AI saying “Matt is on a flight right now, but I went into the data room and found the agreement you’re looking for; it’s attached to this email. Let me know if you need anything else. Best, RoboMatt.” Eventually you notice that my AI assistant is much more prompt, polite and helpful in responding to your questions than I am, and you start emailing the AI directly and not even copying me. Then your employer gets <em>you </em>an AI assistant, and you give it tasks to complete, and when your assistant needs help from me it emails my assistant. Eventually you and I just go to the beach, and our respective assistants negotiate and document the deal. </p> <p style="margin: 16px 0;">In the slightly more distant future, the WGL will be put together by the AIs, and it will <em>only </em>have contact information for the AIs, and it won’t have to be a nicely formatted PowerPoint because only the AIs will read it. </p> <p style="margin: 16px 0;">There are other imaginable paths for AI, including perhaps:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Banking looks a lot like it does now, with bankers and lawyers interacting with one another and putting their names on the work product, but using AI tools behind the scenes to make their jobs easier. </li> <li style="margin-bottom: 5px;">Entirely AI-native workflows replace the normal banking workflows, so instead of a bunch of principals and banks and law firms getting together to negotiate a merger, corporations will, you know, be autonomous entities that combine and split without any human interference.</li> </ol> <p style="margin: 16px 0;">But the path I laid out above— in which banking processes look kind of like they do now, except that a lot of the actual bankers are replaced by lightly anthropomorphized AI assistants who sometimes deal with humans and sometimes deal with other AIs — has a certain creepy appeal. You sort of know what that AI assistant is; it fits into familiar categories. It’s an assistant, a junior banker, something like that. (Over time, it gets promoted: It’s a midlevel banker, a senior banker, a bank CEO.) You can’t hang out with the AI banker in the analyst bullpen; it can’t make small talk with the client over drinks. But you’re probably mostly communicating by chats and emails anyway, and the AI assistant is good enough at that.</p> <p style="margin: 16px 0;">Anyway here’s a fun <a href="https://links.message.bloomberg.com/s/c/SBojIZqbQN2Bmj3yujuc5EUSwbm7XQOmrx87EKkYUH7-clnNaKNRlkkc8Hklbor-W6erdK8XkyZ4Up07eUtWaXW-K5r6G6jQfWy_OvHd-Bbe1mExoc5r3VtJpJRZwF1oJh8_ZyJACcMBuVzRS6M2Mi6PDK-ckYe263HfM9EOlrlFJxM12UyD5Y7C8dYHXnSUkPMN4SUnI6PwIknRO3JrQcki4fIREpXNldxHGgXDocaHalUGU3pDwmBLaB5E0lnY9eQMMEPijeTNvNU-UiftxXU_UCAmcF7cfagV60QDTRPK11CE5CD_CEhmEih1K7Sl_3a_t74nhik0kVxaQiAcO1gWx0CDq2CxnxX_ix3idUBRL3TLAVu3vU-7lZ8/vEVWCbB1xSaGbkoUtolUFTEQ3qvG7Moz/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wall Street Journal article</a> about “digital employees” at banks:</p> <blockquote> <p style="margin: 16px 0;">Similar to human employees, these digital workers have direct managers they report to and work autonomously in areas like coding and payment instruction validation, said [Bank of New York Mellon] Chief Information Officer Leigh-Ann Russell. Soon they’ll have access to their own email accounts and may even be able to communicate with colleagues in other ways like through Microsoft Teams, she said. …</p> <p style="margin: 16px 0;">BNY said it took three months for its AI Hub to spinup two digital employee personas: one designed to clean up vulnerabilitiesin code and one designed to validate payment instructions. Each persona can exist in a few dozen instances, and each instance is assigned to work narrowly within a particular team, Russell said.</p> </blockquote> <p style="margin: 16px 0;">Man, that is absolutely the dream of an investment bank, an army of identical perfect analysts who can exist in dozens of instances and be assigned to work narrowly within particular teams. Also:</p> <blockquote> <p style="margin: 16px 0;">At JPMorgan Chase, Chief Analytics Officer Derek Waldron thinks of “digital employees” as more of a helpful model for business people to conceptualize AI tools. They are fundamentally different from human employees, of course, but also traditional software systems, and so they may need their own type of system connectivity and access management, he said. It’s an open question exactly how much or how little access to give an agent, and it’s going to have to be figured out on a case-by-case basis, he said. </p> <p style="margin: 16px 0;">And while it’s not clear yet exactly what it will look like, he does envision a future where every employee will have an AI assistant and every client experience will have an AI concierge. </p> </blockquote> <p style="margin: 16px 0;">At some fairly abstract level, the job of an investment banker or salesperson <em>is </em>to be a concierge for certain categories of client experiences. If there’s an AI concierge for every client experience … you know what, never mind. Elsewhere: “Amazon Is on the Cusp of Using <a href="https://links.message.bloomberg.com/s/c/fpCeLxxCRjnEwhuOLIGqEzDaBiACweatwHHoabk1RAhdcgeu5VRidZwwgYS8wzcMrXNrUZRzFlH9HxrLd2HgHRl_BTPYpVOugQIbPBK5LCr0QL4mcqo__8HtMBAcqPdZSrhUyTcW2eOYYZ0zYXJW9NqN_0SEh8k28ZSS2VPB0guvq9pcP49ncRVxXoM9z_AUNdyi9WmwBADojmY7vGUTmeVAx-Bo_QTtzXW5mkP90xBbMcVGfl17Z8QeXNFCKwfyF8kAVWs4m8l3ocpfXmXIyxqKKfMFcUerc_GFJQMSxwgWict4Sw18r5VjIIvvMjgKgNiLeRRXouOf7ZDQDbgtAqTW5c8jfLYqlmpHEGELsz7Vt0tCyXv_Sd55rEM/qZTa746warxkurYt7fHzIV7kW2lOOpsT/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">More Robots Than Humans</a> in Its Warehouses.”</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">AI wars</h2> </td> </tr> </table> <p style="margin: 16px 0;">I <a href="https://links.message.bloomberg.com/s/c/5rzzL7fJ5cX9b7FtaMmBpTiOMu4tLShKIdwkBNnkNC-4Ag_gAEXgPrdtQFSdzhQRYrScOg6iYBmSuWfFTKHLQk0EwO0ksXG34_jdXgxCInxoLP3Ua5mP5fsWGrgWaQxYVIWcmUeuEg0K058ri2gVgo-XJSt1QX9Uu4AHyjQnzV6YrQE2EsYqqhf3V96h_d0wDRTSEpyaSxKbjb9dAPkDL_ersKM8uHSJOW0T8xTmYuymVHjaJqABKLFR6wEfOGRPWXiE5lEB1GQG84BSf1x3Hx0Fv7wAGfVX-zTLHrdI02xgT9bWQ9WJdKeWz2UOtPEnQkxI68T7GGUilot90PuuEoR0RCh7Af-cqCBTZMA-8kInIaSSk7UaxoVe0QA/ohOukrcdcfTxGk30ZLaXN8wyj5HyIzIs/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> wrote yesterday</a> that “I don’t understand how anyone who works in artificial intelligence gets any work done,” what with Mark Zuckerberg standing on their lawn with a boom box and a sack of money. It turns out that they don’t. <a href="https://links.message.bloomberg.com/s/c/dhYftFWe6SJ9anyt7D1VIJp6boPK9_g9cB8PuPnaU2vYpzK_iQ1oER5FzR8EGKVSOz2X5wFZjuWsQoM4I_47uIf4hUTGZ_deUo0b7pez3Vt_Gbb_2Ht3gd5bFm1X2he3zEUJ0X1hEpaqyG5JYBVlh0qIYYrvKIF0kYfBFmHsXZAJA794JIAHNQn_0md7Q0F6zw44TD8WCSES0J3I_5mg01dA8AnkXtm3Uwokm1kHFvtwUa6obIY8yNHXpLAWgbuy0Wsbu7a8zYVue1k8-3GJ9VOYVy_kw811bGLQcBAyyvFlHSjQrMSvjoYz4w5levjYt76dcVpZZ0fwlY43pX8e1RCz60jKpWy05eZTJvNxbWSqzsvNCq8nweqphqM/vxXKKpt4kzivGDzOrJy6AAoWrVjZCFk_/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">The Financial Times reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Over the weekend, Mark Chen, chief research officer at OpenAI sent an internal memo saying that he felt “as if someone has broken into our home and stolen something” following recent staff departures.</p> <p style="margin: 16px 0;">OpenAI has given staff the week off to rest and recharge, according to people close to the company. Chen added that Meta was trying to “take advantage” of the planned break to pressure employees to make decisions on job offers. </p> </blockquote> <p style="margin: 16px 0;">I don’t understand? They are so exhausted by getting offered so much money that they need a week off to hike, watch television, and not think about all the money Meta is offering them? And Meta is trying to “take advantage” of that break by, you know, scheduling interviews with them during that week? That does seem … pretty obvious and predictable? Anyway, I also wrote yesterday that “the AI researchers have vast reservoirs of intrinsic motivation that I cannot begin to imagine (they just love AI so much),” and the FT article also gets into that:</p> <blockquote> <p style="margin: 16px 0;">Researchers often prioritise the reputation of team leaders and the quality of work over the huge sums of cash being offered, according to AI recruiters.</p> <p style="margin: 16px 0;">Researchers are “incentivised by the type of work they’re doing. And there’s always a risk, if you end up in a Meta, you’re not going to be doing the level of work that you might do at a DeepMind or an OpenAI, or an Anthropic,” according to Firas Sozan, chief executive of Harrison Clarke. </p> </blockquote> <p style="margin: 16px 0;">One possibility is that Meta is the extremely cushy semi-retirement home for OpenAI researchers: You do good work at OpenAI, you make a name for yourself, and then when you get tired you take Zuckerberg’s bag of cash, go to Meta, and sit around with your fellow extremely well-paid ex-OpenAI researchers reminiscing about the glory days when you used to do AI research instead of just polishing your Ferraris. </p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;">A Trio of US <a href="https://links.message.bloomberg.com/s/c/Gj4eyvrE7a20PyeL8_Sa8T421XSdG6g-81Mq-2--_M6ZIhgQN1aHSOR2VFnGf8E9V5P2wWHYoV3Z7fcYhw8rCh8oRBCQw_U_Na1qHAOnql4jISETwV5WQU9Paqji57AaLyxZpI4r6Y-BqH9X__D4-rh83eWqOWbHGat_q1RzukzJQg8PPv_Ep-eMmBwOnWPdpwVwcabKFan3DMfMsWwmA_Sed0a7GLXgapETa2NzTcFCk_yRhOIjjJstJdNiXjWf7FN4-pzkuCvDfrPgp2K6XEuD-ljxo9B4HFiJa0itS_HtEH2Nfxgj-EhpJccfIlZS98Br6wauMi40S7raJ2dUYzBIvo_ITR8cLkNhHTDyrJSLIou7wPhyNZ0A4SA/qgQHV8K5T5naXsJ795fi4pxheGhnss9Y/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Treasury Hacks</a> Exposes a Pattern Making Banks Nervous. US judge orders Argentina to give up majority stake in state-run oil company <a href="https://links.message.bloomberg.com/s/c/vS_I8vK3_vHeSjth1pbFyqMcHGE0RVZSOTquPc-cSyrs041OveFHwdxvIllW90YpULFXsV-lcLQNaovAN17arwWDTwkGKWK48WQ5PGOnjmanivw2LPRiZ_5dlJbyJePeVyzauBqUX257kE-dzPL7doNbwdQ8ljF0-kZQd7W7WOMuUsAgS4NORXgoIpKls8rylGq9V5XioiDflcuZp3IUqPXuqpIY56Rm1rCjE_zA_qk_2l5SCxqDVnrRdVhskSZhvjbMShXx_EDPaamrvmBXFB1lGzw8Pd2hnn_qZynikpw79Ia2n2ox6LVDDTNuK7XRry9IQ4PTvyr57rjnNGgV5VKAvsxYmiO6acfjA91tEqmJXF3O-k5h4n-VFyg/jKp_TgBm-N3cy1XUR5I7IuTKQYXA-eYK/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">YPF</a>. Standard Chartered hit with $2.7bn lawsuit over <a href="https://links.message.bloomberg.com/s/c/leDQ2yjWMhdqh4LDBom9G-ftRRlguAVTGWFmwPaNwe8V4z4K2RFuPEnJ1d8ZekxXmqKhVofRLs9zUazio8Xy6gsFO2b0q-wnaY7CunVMbh6uKnruXYqe3LmLgEh_KFyTd5PhX737J2pocCs-hDFDgo6HL74e6qr-gmWZCFlFsQaymSzGE_KMpfoVPnjZrPDX-YuJvlrcGBqcjGMK8cEu4PQd7sH_IJCp0mW0HIfq-id1unlP9fLOeXLZsgNRk2VG2TdmP71624Edm2cjUt2Z3Hryj-rhgoFwdlPpMnjZosFpr6DWmsKNiB9FFgeR-n7oMdpZnbC2Z958m85FfbajOMS_sc6jka1vRig6rO57IzzxNOqqsUbBp2-RxCE/R7Njz2NGSadWNSoSm56pZDcEBE83XSMa/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">1MDB scandal</a>. Aberdeen chair says ‘<a href="https://links.message.bloomberg.com/s/c/0lLgsjweqOT8bPMAp2yWVQs4hrEKa7rneu27n9_46XqG_qNsWr3sfdOxmDHQ-ZujW5i2DFe0eC_oe9T27KKIT4tDwgstK7rPZiHqDeHE1XiId5opGAgkr_jpfgFOYDhPNtFoi0KtLwRkcfgUlc7U90uunp6xPEs1kNVghQsX0hukioC5B1P22iQlfwwGb653z8RljUZ1i9-eJdcT0XNQuyyHy0JbyQURqRLM-QjvG67aiRI3qpG1hB9XqjorvEQpuBTE4lnD1D1IMe12Bg_crrU0SYOs5ExHwx9Vd2xwY5rK3CbJM71H-WWadxrWYTaxOjx16ju_8vphcp3M6nSsts0HMRmgNe581gVyKGq5koZnAqCO2BZfnbfKtGY/_YzhGwKRdXrgCk7t5mQHYwb5eA8r5g8V/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">save the world</a>’ claim by asset managers was a ‘mistake.’ <a href="https://links.message.bloomberg.com/s/c/Zo6FQ6a-1Eglmltqag4QOsPRV05jgfhyRjpFGP1BNMEraoMgJsOQNJ5Y61HgSUJnaqR1ucwo5DWoJW7sgDocgCHd37UCn3AtstZDXFcDz-6pl3yQmC-FHBU6fyBQufShM7FAyx2_qAydEAK3b9FHsQ1Q7N9Ze_ZE853kVKTtodiLTiJHg_DjH-WFQQ0OnohLGeWNeuZvrPRGoFc1C5POxkEBlLsKbF0cEf1ZEz3y8BK_AntvPKAWcVgQhwUhZdJ98MUvrA2Bx11BvarP-kC9oVc1JNJNlg9WfXqASSX77s8Nx-krS1WU8qeQp-KoLZyIYi6QktBGEwTIwkoc8CE5HoEIlXMHlrzxlOk5Xiz4q5tfTz2epuFH7N57DEM/uco2mGk9tW1fCikO283N4ro1H8IgFwQF/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Greenhushing</a>. The Oil Tycoon and the Philosopher Threatening Big Oil’s <a href="https://links.message.bloomberg.com/s/c/Cnt9b_Zg8R8OLHT46JKjKd_aG02Pyha4x8GUZoEv_htJPPXKkWzAx9SZh-e0Tzv5HGwy_GUS-9-YaMVygCwOBW576fr_C8_VpxyLJjmWpWkIy7q4zDI7VJMR65Fzxyvcwai3l7FWOTDtrtMWG_IMs_BjgZ5o6eGhl9XpW7K6beeqnvpHh66gRPVakS_ZwNKdsDrTRMdM3mn9XX024u4pgl_w2MrMpgZYwJFs3yVd1K30PHYJLBmCATFbSBNnERxKvS48QBbS-Vr69t3dlBfd1YEQDwGduSUviEUyy6w4OnWTbm9LgYNv1adgDOkoGCslyfcFCfsMvblTGYKNAC49iQeg_2NTlLAg6-gClLe2JkcmRScD474HG-ACw9s/fwCyRecLCFIAGogyV-h3umPMUVbrJKQn/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Carbon Capture</a> Plans. A Desert Oasis for Youth Sports Was Built on a <a href="https://links.message.bloomberg.com/s/c/SGURr2rrVGqLKRFww9IlrwxFzulY4InSkUWJjzVG4PEdGM6xldB_kIh9x5xt8-uMzwzoCnjsWENGcyw0O8kprXARTBpqzTVlRwnu34NVE9W27AwVSztXFjjW2op7_-kQ2Cp69dLPac6XCJAAMhC8mpvgACm7n-UnjgvIN9FOPL4gDSYHNjDnxNY63l0yJXYNaGszCq7YO7QMibTOoUYb9ds1CMsAkPy9p04RsFriXu7BZowHcubt7moQqXDg6ZPdaTol3emtpNNmuvVSBbaIZvfAPgL6L92cXBVgfSkvBztis8lpFaGZtaB0ZRmA0zSrjRyGFTgHCsNXgRwocsAMHts8QLhg-bafXc3AGrjnHO7olhPdyHhQ7I-ByH0/z42TEUpkT-POxCG4OyFjdzzm4v3Q9N9H/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Financial Mirage</a>. Britain’s Royals Give Up Their Luxury Train in the Name of <a href="https://links.message.bloomberg.com/s/c/XteWf8TJmyfjWXI6fOUaVJu-vSjO9epy-BNeumvHm_kktbnfi5btPpC21UV_Xs91TOq5viAJT_GfBtmv1s_mEVGCZSXVv8BYqUtGC-D1f-h6L6AfWZnTn3LR4vxS2AGC9SSyvHqC_jkmxlLtgXr-C76_g3N5nbl9y6w3_jJbgNGWYjkCgTPPjWiNXTmEKenTKJsGl73eliylbg-pyKWZQeGNACJqMDLhQlHKQuuIpEV5a3MSqq-ap7kABzybjTQvEi8b3aHxudiNURV3VOX7ihTAaLoy9GMvpjSQQ4MOXD9n7idzrnlD-19U5E1VptZ0MPdytTt94QF9HoBJdsvtHAMV0Nqw7mGR6b0vxjkzW_3YAd2sfawzgPB21yc/XBM6VG2m_tPlj34kv53sK1Cz5Wn8p5mE/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Fiscal Restraint</a>. Cap and trade, but for <a href="https://links.message.bloomberg.com/s/c/ZM9yepsKVYpF3NyAn_Zn0wkYKX0FZgXO12sAN0UIDQkZ6F3QeB-l9UlAxvzXrSZKQJzPb78OttNw0h1FHGAo4rvNsobMalJthDrH7cWGXM6M3kVC-yhY6ZeU6zyPQ0x_yHxXH53t9sE-JFYuDRKmR6utHg6bOlR_y6O3UsBLhziMaKNrC-QYC3HjiTp3ZFTvTQTtWtYfRzfd2-kTINsbnf56H8XAyWDqtzvR7Fsujb3H8PmVLkSJQYVCd5Uu7NAOsXLx4y4Rod9Vvn8HHtbozQLE34-I6wDOSiKK6bNbYhvkx1JSGBb1lAGeFKg-sZoYWqaaX37D85Qj6QJkuHCdcAPuLoQwfidauoIEDOp9s4AmW9MPpf8e6gORAK4/aMSa28UXfqtB0WZzKPnjQ2_Tq9StgN89/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">rent control</a>. <a href="https://links.message.bloomberg.com/s/c/EPG3vKErjh8kznSx1nzw4Ks8WZzFNLT6Sz_W8vlrtIfTi-qph7lAgKsCTgGbuUtEFTzty5MDqRD6DEOzgEQCiO4bI23VnrKSPqIx0G9E9yvK2idw_q9yf45SD0DhC2rBPAH36HhpgSA3Oy_TwzaAtgLMgKF3zfth5ZPq5nSWKk-5u-Ru5y3kWOPIgWPzIvQaxP7BYkwwBufEw6_5Iquk7wfmCTMVTc9_k6VH1bD-bcwv1h2DR-cQBxcEKfNxreWJqGYML6M-5PYyZGBJOYUVf0-2GUUBex5ve6cV8xfnrwKHgIOKqVDdTE-Xz6KYrCTYNxmZkDDOK4_zNRhBV-TcWfd34kEhIV_hClMXWvDM9ct0adGk5d3EYtQbNSM/d6vWQNFlWrN5s7w2iTE5ZjdABmh5Fc4L/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Snoafers</a>. CEO Spends 1.83 Million <a href="https://links.message.bloomberg.com/s/c/yC5ByFj94QW2R91qklYBfnNvsoZiZnsltdwI369hcH5btLZj2VRcaH_lfVCF25yVABziC9DNtTiXnmXW7RdJDx3L0GnGSJJQ4IM94xM_GYZ1o_Rrbfe7CTurtlakcbhtqlB1KDe2UFQuHXVU_n-C0eYvS1eXtyJrCrtVT6dWfi-ev4naOQGb5pCplECo1X1HYZuHAm68DW2VMUw6pjX-nDJOPdcoaxd3LLHCvy-904wHZ0qaca7hNfeBJGLJQ4EyNOXVarefFewcb5xw2mrzY4q983mt9vbe8EAk-zPFKmryYJqzz8xvvLtN0-MlLEaypL2vsQ0tuBG0dBNEbI07uo4C8WXWeI41J9lLjXU9CgF_a03gHvDiPp8AZig/55YbQssfgw_s8xttVUVEgf4Qlg2QvtFJ/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Amex Points</a> to Pay Surprise Tariff Bill. Trump Says He’ll Have to ‘Take a Look’ at <a href="https://links.message.bloomberg.com/s/c/5e8J1vyrwFC-NQa_RWe3epEhd49Wqga63X6V1VCKGloGpoDG7Zrcdci8sWC6pOWPeYetYLCtaG368-Pmu_kGIIrQgubgEu1d4FnJ2x7E_ENYkhhVCAR9F0hZIpAg22akf5fz93r8fzGuklX7Q8ihW8589nytJT9bHFlocyZ-N3bOhPQ_QXO5a0NH1RGGT_r9bfrDbVAD0epDryrpAQQJoiS4oYWQJuCqa-26H5mY0iRxuILEkdUt_C3FlLNL3Mt3l45ydKaOQ3S1oaudMaUZ557TPtBJP6ztBpyH2V6mb1hHxiILuWpmN7Mxf5fnc8S4Pm-kZEm7t9RWn5wwcOUmXL9LaHb8WjEQx6-XLuC-Zd2pizfofPzL6odIs9c/FwjBTUh5ZCTJZxVpbGco8syI8hYj_gBJ/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Deporting Musk</a>. Why Is Everyone <a href="https://links.message.bloomberg.com/s/c/3O1FSZMyQC1jHUM5apptE21KgwUErSN8nOKafe0OQs633mxS36V5kn_5Mgy93MNJRur_c8jVjDA5AiybqGDoF4K906iEReIS6UfB-XbMakDPXV6M0TOUTKUBl-mO-SReNMld4FA6_WSCavX6_p2h_GZ1cQdI59fK-c8OBzerhyEE3m5iENbji6uKmRnxWkE0RxSS8rpt--wu7s2podQxlS3xFvFMC-vtwdqaxMUnywdGHZjzKXg27XHP70KqnDJzInNLUpdlIUMZgpSdkMNeh5H1DVrHhi6KR8N-w7fxommxHNpKdPbU-Pu35jZp-nJrdvdUzKHYWi7bKkyOl5lYJr5bHAVdNUokZegEpLJHufTgFSffIbEJM_0J2IE/dttrXZrGvyOIQkpvY5LFYU1k3g4qHjer/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Inviting Strangers to Their Weddings</a>?</p> <p style="margin: 16px 0;"><span><em>If you'd like to get Money Stuff in handy email form, right in your inbox, please <a href="https://links.message.bloomberg.com/s/c/H3VEJMyC8AKOyX65dIkCr5ep5MuOwvRgRdlpJz3qM8f32hu0fDLYb3FptGPqclg0bz5fCnznglqp_xlOX7HeDMKznnn3dIib6AMCNPFI_90g9oO0Ds_YYmW8qnBjVDzFsmMzNlBlAtXkPAAI0mjiISC8O8bLpOtKXH4FqIENg-12S2HkMPC2MeQ70VT5mqWGmCFvjVQ6E9XYj06bZnvm0xl1pxMa8cmdauMhdIIkygKDHlGrWk6vECCsy0LcwN1IZHAyoNhEHM8sVQ3a8PxsSLUo1sd9LzuGUmZN6FYhfOudbRRDnaAiTAhrt8sHUbRlfTjXecKKdjVa-s8TZN1TYfHLqdZPgvNMER_3-EHk_d53nL7cKL1d0eeDwYw/JLngjRZlrA19H_M1HRTjRt-xkUBeDS55/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">subscribe at this link</a>. Or you can subscribe to Money Stuff and other great Bloomberg newsletters <a href="https://links.message.bloomberg.com/s/c/KyawC-tMCpQ4Qyk2HPyXcgN8LxvskH9-3fedoXEdAAPOL0OJjlLzrNq7Ny7ZgXwLaFmiNcUjNiBC8iP0E6c6BxydYPn9lG5V3ukZ832tVgubweKjR95BtE9EkRFhdkbdJvjm96uOWiEZSIfEhJJsLMGYS7swsOkR8JwJ7XWO7Dl57GqC34f-kTIpcs4DAyBOm2nGL0ZckK52cDjMaVhS8XGtVj74zFmo-l3flvYo02KsZxcuELG9qguTsH51M54Q0-6j_bkpfiINwyxVoOFmavCy6i9_teJBdtfLfjd6TQKcwF_5lIZ4u8GQK2A32z8_SotVGtRmdMHgj6ObQcccY9qongwM5JmOyjAOuWRkD0aVuwdjZDVvNPwLNM4/XNMEe73ETmbc_ejd7Dhq9_Y0bEe0mPC-/10" itemprop="StoryLink" itemscope="itemscope" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a>. Thanks!</em></span></p> <div id="footnote-1" style="font-style: italic;"> <p style="margin: 16px 0;">[1] <a href="https://links.message.bloomberg.com/s/c/n05DrS76rhDkCG5F5ofcpQFcAx9riBHGiMDKRSI04_TFIYVVaHI_yiCbH7_2EyXpNe1zd5QCrHjr1wLXeepZmzTq3_Re8ecZyeBQJ8lwGBqOrZvuHDXeXSQUaFnIleh44_P2rObLSKA6Lx-wwPBblbtzCFX-xk6QbeZ12P8PnKzP4tWzzvdtrK8UJ8UWq54tz-mqG1hJofnVAazl5pZrVATOvyc9HfTOza62UdbOQB18YDomzR-HYJ-BEqQEnAgcEJhLZroArJnDkFy28HViuRLrO_RPROuQoCnBFECXrL9TCDkGNX3mznSy1yQajCvDwMKAUsDSxfhuD0jBwkMNCP7JtMp0A4nIyRb8D3oelpWAboadt0tm-qrqGOQ/nYfYLUsrGJfB8WL9c-2Hxn-ofxWdZ0EH/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Feurstein reports</a>: “The funds immediately flipped (sold) the stock — instant profit.”</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Just for fun, I looked at INMune’s trading activity between 12:16 p.m. (the time stamp I see on the offering press release) and 12:46 p.m. on Friday, June 27. Bloomberg (page INMB US Equity AQR) shows me that 6.2 million shares traded in that half-hour window, at a volume-weighted average price of $6.68. The investors bought 3 million shares at $6.30. Could they have gotten out of all of it at a profit in that half hour? Seems like a lot (they’d be 50% of volume), but not completely impossible. Total trading on Friday was 59.9 million shares (the company normally trades fewer than 1 million shares per day), so selling 3 million shares over the course of the day was totally possible. Also the <a href="https://links.message.bloomberg.com/s/c/Hju04cpSX3aTD1AYP1A3ReV_yf71iyZM0xbF4pR3q6YshuXLWK0KgFAhO6RX-YwslBMnVQ6UdZ3YTBKJctVySKrnwOGYeGgkGISSQAeig8EirOl0CP-bsO4UHVMU3BWvVsXMJqVsZAlniV1H-_GF8QyCXO6Nuo7kUGC-rV1Skkkm9uUB1F2-4-1NKoWbbUBIuinmhaht5HvDiPhr03sU9qsLUSPDINPUwLsAhPu9Ep1Mz7byrD47LRelgNooUjjvHWR8dq45I8YRWoR1V_yjtscqd92tXV3Ss9bkTHBSWih3raqBpkf4mIUX0LwJ-csJy4b3EF0k1E1AQ-mUjXqwvR9pW0FFdnBpI62Wfqsn5ufbqHUcXxXYWiM9-lQ/C5L-tJxgUy8oCYa4wPFPHo3edMc_AXyM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">purchase agreement</a> specificallysays that “none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company” and that “any Purchaser … presently may have a ‘short’ position in the Common Stock.” So it is possible that the investors sold the stock short *before* they agreed to buy it.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Plus “dilution,” which I suppose is always a worry in stock offerings for small companies. </p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] Regular-way stock trades <a href="https://links.message.bloomberg.com/s/c/w-2slcfaKfARVQ89DMSIB0uwScoEk3uKqJacNjhtxgCRWw7Tys0pg5yyTp9O3ZdtsvRUqQzNsDYt8pBfmQG1qde87Yxqho8ZacsI5mw8HJuEfIBNBhGDLNzrXcMgChPTwaDMg9hAoY917BhovIwS-ph_X7pk6pMSszvZN2JbUh1avOpFd2i5RZPPkqRa2fptXLplu3grDy8iTTEbMjS_xMdQtVkPG8G3OR3GmWp25uRWO2wEv9AvDXEiPjSkIEsK_mY5UVXjApMLvds5nXhyPfAnAY-eZAUnbdd94aYlEIMvqoG-wXPWEvMhSRyzGrAinOZrW7Gd2Ej7HSFRpeDALzYLvS4rQS69qHFOiARwfKjsVrrLy11YogfWb1Q/CTPDjOBbt05zvy5_ZT8wzUrIFW_F5Ft8/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> also settle T plus 1</a>, so on Friday the investors could have sold the stock, even though they didn’t have it yet.</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] Not legal advice! One could raise objections; this does seem a bit unsporting to the people who bought stock on Friday.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] The legal situation is that, for the most part, you can only sell private-company shares to “accredited investors,” meaning people who make at least $200,000 a year or have a net worth of more than $1 million. This is <a href="https://links.message.bloomberg.com/s/c/Menu8NNVXbIBeJfd1eRH_2zbVkBuYkIPS-C_EV80PYsPuFmHhT4xKYIi7dLte4XRxQ5d3YOAUeBVkZODf3vawXejQPETsJAOsEg280mH4gXCMHA211SJm_gzNvpUoDUv45An66kdB_FY5h1b8anEwxkrkCiIJER_2w6MCOTsyRb8zjGguKmHJy0XGnFp9f-wSWnW630TOtUpavjGCNk6Ww0jbl1R6bVmdrVYEtYGjXBT1Jl1IhumqBmoUQja5TpnnZgzSNBSR1LtF8b5Xv1siweGL9U4qBe4fRAW9eghiAarM76oPZ8xoA-NOcT35OwroNUPlHtSSxQwZXIsuUv4mYhTXivS84MD_dND9C_VzILXIYlhZZbZRDY0PWc/RpbxURX3Yizg2rgf-UOJJa-OFN0gGVze/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> not all that high a bar</a>, and I think it is fair to call Linqto’s customers “retail-ish.” But also there are some exceptions to those rules, and Linqto did manage to find ways to sell private-company shares to non-accredited investors. The Journal reports: “The company even allowed some people who weren’t accredited investors to participate in the deals. Among them was Thomas Lennon, 33, who in September 2024 invested $10,000 in Ripple — the minimum amount for a promotion offering investment ‘slots’ to 35 who weren’t accredited, he said.” (I assume the structure here is an SPV owning Ripple shares, with the SPV doing a <a href="https://links.message.bloomberg.com/s/c/r-6R2nLqP33WGXRjTXDV-604LnHgfEXaZn8_ka0fxsaPkMAk6fUMnsJeEOgLI2SqKzMOKQ7_U7u4VR6qbM-zSYlRAkuZGfsLpShMlxEAq8ZwKxnSH4OiBszaveTbca0uiyP-pUV-nOC18Yj7PW6P4vhBoV-mWmn07k8KEHfdXckOm3TEC1h2vezieVH0yw5EvRZASrwdfLgv8WzdHr6EN8HWuduGq3KLJhhKJ5Puh-6n9bXX2rRHJGwaIV59vIs7lKSCN7-8JESra1iXFMbuU06wiS-PrGjoDX4SD1iVllXdF8wDyBCRfdPVzjY6Uy_W4zHASIDcrtmkj2aVGAnNGSAu7Iquni5IliS1X0PHIcWEC7K3Ipa6aBtkZ68/3Q9A50xZzRH376ZDiGv-QGd42se14KJt/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Rule 506 offering</a> to no more than 35 non-accredited investors.)</p> </div> <div id="footnote-7" style="font-style: italic;"> <p style="margin: 16px 0;">[7] To me “synthetic” sounds more descriptive (you are transferring risk synthetically, that is, through a derivative), but “significant” in Europe refers to a <a href="https://links.message.bloomberg.com/s/c/Rben53rM9TXiNiBemU4IG6whtNpfUgYztzZhjsdXS3Aj5J1ldCg-IzkJnt2kPX7cleYaxctr5XbRRGcSxvZXr_5mzp41Lhy_v0c7WxJAnyzZzcrcDUOLi04_3uS4OKkJePEkhqTTSHARCxYIFhJxpJ6ug5x1seou3qaum-FXv8sleyAYxpIfgInAu3XuvPmk3QGSKzk0yxztebMtI2pXUpHix4ohbe1CgC9R_A2tX3Cb8KEFdoeziWB0c0Cq80mpkTnvqRaNXRk338hRFvzjmWcnjWkXvHPqwvRzPvIZXvEZ0PpDWzOUQ-h33rIBOhAE8ex2t_9tubjLPC7FQNFocNumb4j_NeF5xvYrPBfURBjwexIykIAt_sZW5Gc/Q4rnj4cUrb4J-ZTAYB_c68X5ODWtzOUT/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">specific regulatory test</a>: You can reduce your capital requirements if the risk transfer is significant enough.</p> </div> <div id="footnote-8" style="font-style: italic;"> <p style="margin: 16px 0;">[8] <em>Here are primers on the structure from the <a href="https://links.message.bloomberg.com/s/c/1G5zf7nKEDLh1mAoa0JS-cnpdnnRqt_ioIQCHXkHC-k69u0LVApatUoCGpVWdn8VQ8lJm6MhYOx96O4pGeNCxCwSI4yEp8guxYBw4w6XoMF6BJCCDgXJ3PM8drvxoxK1cyw6Ouyzoxu_TRDfa_dLBqOuesRIM19wWVTY02evbZ9LZQrfDGhKBbm3ia2-7Ff8sfNYyvFapv1bOeqC6b-awA3pWVAhvejeawQkZGVdbVPqqH4zH6AdsTIYW1ZFFnPTuii8eM9sH-zAj1emwGDWI8Q3rtFECLDojbs8ZyYsue_kxFEYCWcEfJZ--jCuXqBxwNRDLRQTSt0622BPZWqqtdVSn90prGiBrMqOOvmtpO6yokeocKvgZow-zxY/UO90fHpAv_kKPR5O5j17wxL19CzUqO7t/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">European Systemic Risk Board</a>, <a href="https://links.message.bloomberg.com/s/c/bH3IzIWgGuciOzYziSPkKhu-EiUbL-SRY68X2HFJ4x83NV8SRqN0t50xXVcX4eWxOONRoh6TI8QmINH9PFaR56MvcYgcEZel1vEB5cpn452PoLTWFkDi4Gz2Tj2MoP7WzA5mWh2lad7DENpWV9cm2FCccg0saewNTneRijMmX7HK473nqqNEQBl3IbVOo8zU8GEct1q0P_OeBzz1WVO6NGWl8Bs68hIRieEbLfpcD6xg7xGTghwRJGWHhmSMRN4Hl1LzgoK4KemphLqtOnwIWHuGX2fw4VA_9xsE5y0iZ-9QijMCGD8fQntwSdhm0aXR6YgOQRRelLVUie1vGJqC_VkzU2l6v-FCwfd3wV00gJqB5D2kHD8HQUdD3Ds/PoSr1XFOraisRy9XHDH4NJM6HZZHkflO/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">A&O Shearman</a> and the <a href="https://links.message.bloomberg.com/s/c/WGtNKvCjZhpec_T-PYPArQQ_eX7fvbi4yEFxVTSRUNR6v8vFHSB-pOQBcSNHG7uKDYnGwSO4f7vG6Gq1dXvNa3O2vcO9w2MSblN8a079CXpdcROV3cEa0ZHTqaifJjeNUF7WZgNgzTJYqbacbP14sCtHy5fAXGb8xxKyL5FrGlC-2MGgcqXo059hk0omKZLAd_EdqHn5jQH24kYAyZXNpGUH8Y3We941738JTtXx_g-RN-bGc6bl3FXflIjfDm51Ka8h0GUe0lwAPLfCkMMRDGrA5xzmLL7drcY1aYCQKpp1xWNTA7-uWL3ufewKpTYhEVK2Dz690FQbUNMJRLhlbWQv0ustZAK-GvCIWM8aloj0JSaPAb-pDwWJ3IY/brLrhdNL7Ayng_jb7gQSpvyNY_BrtdDl/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Managed Funds Association</a>.</em> </p> </div> <div id="footnote-9" style="font-style: italic;"> <p style="margin: 16px 0;">[9] This isn’t quite right, to the extent that the financing of the SRT might have margin triggers and create less economic exposure than a long-term loan at 50% LTV.</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="width: 100%; border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;" width="100%"> <center> <a href="https://links.message.bloomberg.com/s/c/EQXd6T4ztAKWkrWJJOZ3frxumyEvkttYR-i8Spz7g0iZ47zvOKD1Lxa3j5-JjQd-bXpjj0Rceb58if8ryxCohnuWNheGnN4wNu9NCX59d12Q0h159YjWHpKAkzsCC5N4JwrHAFPkYM-bQQvt5Q-YP_86dJDqF7MJLuCASxCgSgRVuDhcZpliqAe2MfqwlrNMs1PiMrtegoge5_1PtskysAvgoNhmLeTOuNaxX1ygO0JB8YkD_AhCk2ZBxNj0kjf79Vh1Vp8JSIUj4BMN1RMhMHI2tX9lN7y0sV9bape3R_9-gOxo-gfKNbaNOzrUxjshDgk_3h_-mlmnwgBYN8OyUIrcg3q12oY-lAhYsP2T-J8kXXEdkV8oMyDpqRk/slHwasHtvA1-TBesScWiA0LAGhwk_Xqb/10" target="_blank"> <!--[if mso]><table width="550"><tr><td><img alt="Listen to the Money Stuff Podcast" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i6H.ue2bNPOA/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i6H.ue2bNPOA/v0/-1x-1.png" alt="Listen to the Money Stuff Podcast" style="max-width: 550px; 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  6. Money Stuff: Insider Trading on SEC Filings

    Mon, 30 Jun 2025 17:50:39 -0000

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width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--[if !mso]>--> <tr style="display: none"> <td colspan="2" style="line-height: 1px"> <a href="https://links.message.bloomberg.com/s/c/cBOq6-gWcwoI3f6LL-fTtvg2ipQ9btsLKj9T9O9XpUxUkBNbYxYfqWXZm6YYMPly1blwwEa1ZT9P6BQVTodE83SN_60YA1m_2b5YUedL_KJpmIlazIhxqudDsuMqHzp87zcvHgo04gKpEJDNi5SQUpPtMTUg7S61APCVDJrf2iKIVUM7WQIlkLKlAm4d8WFAWrnuBMqiQJJzJSnvF8gt1TquocdoVcLs8Pqzel031Q5oHbrTUwLDKA1NuvLw2QuWdVQycrjqv0yF5N0gi6C5_srur_TAjx41UQj-hy0Eum5qOj19RCVepy0jJ-531pZfbMh5ZUrrDdPq5WSbQgP7WRTlLcTgZ6RkZbYbJuHTdTpTsGGdhVD7wHpOlK2419nrzatrBQ2IxF0ztXQ-9ntapT5B8lM8She8dgulaZZhQjj54IdTsstjUr4mo9E88TLDBBBVMF4hx3XmdKui65nwyebPXgG8Xzm7qZgNbbAnYWFHvh5dv1JZCLBeU854jeeAJmGczk_xVIygr5m1lN59eZZioshN-7FMlaJac9FsiplckCAJ0cbbkLHuws_sB3kDLI2KPZY3wIosoYnfkbmO633M2UbWmt4JASXChSDHA5c8lwPlOtxG2ZWlop6c68gNyQnWoKZ-Aox3z2NLzrzvpkZ9VZ6OcE4YOywtWcacV2F9_9z3OYVCOZt6Qk-Y0is/VB8dvXMYuDyJgPbffyFdBatYsEx_TTcn/10" rel="nofollow" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=1149004&li=14057759&m=c869f5c3f0784f1d3b0577b4456d769f&p=06302025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869&stpe=default&li_coord=mobile&collapse_width=550" border="0" width="550" style="display: block !important; width: 100% !important; max-width: 550px !important;"/> </a> </td> </tr> <!--<![endif]--> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; line-height: 150%; padding: 0 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Edgar insider trading</h2> </td> </tr> </table> <p style="margin: 16px 0;">The essential fact of insider trading is that there is a gap between when the insiders of a company know something and when it becomes public. The chief financial officer will get the draft earnings release, and she will circulate it among the executive team, and they will fine-tune the language, and there will be a delay of hours or days in which they know the earnings but the market doesn’t. Or two companies will start negotiating a merger, and due diligence and negotiations will take weeks before the deal is finalized and announced. And during those delays, various people — executives, advisers, others — will know the news, and if they trade on it (1) they can make money and (2) that’s illegal insider trading.</p> <p style="margin: 16px 0;">But there is another form of insider trading that relies on a different gap, the gap between when the company starts making information public and when it finishes. When the earnings are finalized, when the merger agreement is signed — or often when they are just close enough — the company will fire up the computer systems that it uses to make information public. It will get ready to publish the information on its website. It will get ready to put out a press release on the newswires. It will get ready to file the information with the US Securities and Exchange Commission, whose Electronic Data Gathering, Analysis and Retrieval system (Edgar) collects and publishes information from US public companies. These processes are not instantaneous. You don’t just write the press release in your phone’s Notes app and then send it simultaneously to your website and the newswire and Edgar. Each of them has its own somewhat temperamental interface, and you have to format your news for each of them. That takes time and specialized skills, and when the CFO says “let’s push the button on earnings,” there will be some interlude where the CFO knows the earnings, and the various filing specialists know the earnings, and the market doesn’t.</p> <p style="margin: 16px 0;">With absolute best practices, that interlude will be (1) short and (2) not during market hours. But not everyone is perfect all of the time, and, with the move toward 24-hour trading, “not during market hours” <a href="https://links.message.bloomberg.com/s/c/JfrtkOZWfgEJPRWfQKbrjrUjmbnlC5T5_ols3oz0Mt6YzR08WHWE7E10FCQC8S_ydCpspf1K04q2aSpvj-ucFj_-FZqQ2hCanwWuic1x4lgI9DyZxq8NbEwG5Z_tM3VFJhagzUvIqgOrggv-xD3F7oLOdDQ255dINGBaK8HBzqcJOZBvzuLveuv_9Iazq2dtboXdpzH6lVmLZvJ71BeVyt6mZqLgxzx3ht3r1zhXHtsUzfdsViBD6HlFXqcvA5oq2fif_zLYHhKRsOlP42E_ATM3eTlB5QWSPAvw5XrSmPQmnfNbBYLY1qYfoKxyyGf_ztdXPiiKeBO-zkCDhXsHMxoFdw5u-HTeQMON0vzflelAdECA5EkOQp1lJA/fUN2VDtrzk-S0EEBkx53I2rCwyOTG5Cr/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">doesn’t mean as much as it used to</a>.</p> <p style="margin: 16px 0;">And so we have discussed people getting <a href="https://links.message.bloomberg.com/s/c/VjT9f4l7tVZLNgAlx2K6iAPbBphAl9eamskXrmUk6tSpgkcjGZ3aqepOyAiyhSlLn9o8_h4AovY7VnMivdpLZHxgNNUAJQEpv3PEMr6EFtMi6Fu8m1Qks0BK-yD_Z33-L7Jro9l0Ai_g3cz3WA8NpIRTk_0vERjK1zDwKndawebY_PWeiEA9tNsXcf5KXC9HRpZYo8b6DB1GiKauwnxdIOt3o2nGabWt0e7q33D5sYcdNzHzFNnjLoBX5C2KP7hKX4o-g2l7319LgIofE4HNtqmMkVQ8Ia1SSu372X4pcYLflj9dGn-MPaschZOdbAtNlyIq8tROhD13PhTkR5GliLwbkI53o_y7dIibG8gHhOu29foZ6TFAsIpE7A/V3TeS3lHt-eyPJULupblmDAT3iAq1fvC/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">information</a> from <a href="https://links.message.bloomberg.com/s/c/pUGzklP2G7TV9A0b3yQ7zAo5vgxkpXpoc38Ru1hlrONxoJr2xX-PxalZVPgj5zsTn_xsYQ0H6dyNtsL1kxbgiSrlAqVW4WZXsGJKoGjXlRqVOx2pe4Yizr4GKYqJQ5w6C8ZllZo9rE7kEyjmsGVlGxU54vNU_Bp9b0Yb3q5UNz3Zb6UHXTIxwR9Hsi5GpxWouXgjGgwSt6KkElV8dX6-i-iC2wG2tKshcCs1AIrwnImmsm9r5C7GbXYmdVEUPCbYq-qUR7cLzMTRBJ1Ts0GO5qYoCJFE1rlJ8iyvkl9yCmk4wurqlp9Q338kQk2TaBE0QbUX8SFs5NUbEN1eS7eMt_9OaC1gZ4_Fb41qsyKwrqQScE-cN5RRIZTkvA/sA-FACnWl_W7CXOetrZY8XLenEHHrIH4/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">companies’ websites</a> before it was fully public. And there is a <a href="https://links.message.bloomberg.com/s/c/9lry4FPXkL8gVeCNGtJv1Oi3SZGia2qaUQ_XhdItPAtEe7NWBjVsyCKDP0tiEb9jorwmbfbIyxe87ycVzrPww2WZ4z0_anbqJVf6OCrh7CSJ_eD41HP5k2I89e9BJuuG4HIg3FoTckacX1MBq8a4TK5pyNm1eYlemDl6IbJbudWkfhenSk81S63nLq7HQMBZsdVBvT_qxONaF3SlAG9LOXcpmElAhPfuj4fOifes-p9aMLpdG37QwAdiF6JFlTDDA9AKEZ6O8_3zvW3biEqYTBenPl8pVVIFGXf461egLTmRdUnK2m1vSYMkRiIM2PGlX7E39jzYO6uuY6Wg48zQcN6VjtMctn47P3fGDaoioTlvvd8LS-InM1_jgQ/1noHR4HU3kRvX_Knbk25QfYqI7BKxv_c/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">famous case</a> in which hackers got access to three newswires’ servers and saw hundreds of thousands of earnings releases before they were public, with long enough lead time to trade (profitably) on them.</p> <p style="margin: 16px 0;">Edgar, too, has been hacked. In 2017, <a href="https://links.message.bloomberg.com/s/c/ck225u_BXH9E-DMhQFmoD9O25YzBGrvQ5FoYcm0gkrsa2gdB5sdA21kDjYHhcdGi7JBamup0WVPeFqb5xGiP1dunKECXWmZOjmCXuu4bGWN7bKS0xm0b1WuqGMFOYMjskQapXOZ5rD1g2HU0H4x5RIzJk4DqYIXl-j22GPIeSKKBWZX4EErsPo20AbdfZnI2ta2PsdhBsSgUGHx9QQUWJUbPpxT22QPVUN9A0vaoKv08oYHjClm7pmrCoIT41L4I_6XAedN1GcHrb8erFE0QPS9QBht0lyFsnE8MnYs2D0lBaC2V4ZwtHh89iHTXRwXvtQSoz5ijBzBwXNAHraqXcBvUsbGGVIxU8NsRVRzbsY1_oDGGu02X3IfDUA/R78CVJ8hMVepgCpJMPrzoH289-E4B8mb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the SEC announced</a> that “a software vulnerability in the test filing component of our EDGAR system … was exploited and resulted in access to nonpublic information.” “Test filing” means: You want to be able to publish your earnings release at exactly 4:15 p.m. on Wednesday, you know that Edgar is sometimes temperamental, so at 2 p.m. on Tuesday you upload the earnings release to the test system to make sure it is properly formatted before actually publishing it on Wednesday. If someone hacks into the test filing, they can see your numbers early.<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a> In 2019, several traders <a href="https://links.message.bloomberg.com/s/c/HLFDL5dFb4m6mmJnWBcf7PPyytP8rXOdhlDrBtJnVYJ9z-Y2vLjn3uLSkCAS738PgNhK4HckVR2_eYdF3rQ_8A4QBO9MnB5QBdP_FGjM8LE8hP1LPZckpUGfPxANTuY2BA2rr0NtK1yDfZSGSIikVERo7lgQxSCFS970esH6kTReeuPVqkbLw8GLedN_4YMR5_Igds9Nso_x3NN6Mk0kBjV_LBXcRUKIxsqj4wwwdJnpTQXescNHsvi0XcjXYaG-eH_rXcn5iREp8MGILkW5RbfnwXruisWs796pG57pWbi1f0oCFXaQYGRpTS0tG4CKyz4q64uP0NBxGR28CroZpxKQQ_R3Gs1pk_nsN4v9KOPWLeYbFVyLmBQLiiI/wYx00uAbZK9qz9xfdS1Wb_VX-UJEj0uU/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> were charged</a> with trading on that test-filing information.<a href="#footnote-2" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[2]</span> </a></p> <p style="margin: 16px 0;">And in 2021, the SEC charged several people with <a href="https://links.message.bloomberg.com/s/c/bT5hK0uylJ9PRc5zYQmxT2w7gZhY3Kv3kzWPJmfK_TOgNCtvo9k0a4soZ4SORrnJCnAXUKYlLsdsI4VoiFW0Bl_ClMuxgpsg1DRFyJLtt0hXBIfCF9UCyq4iTAd26a7nHcvNnobdHDbwbV0r7r7f91-hzAHKKBOoNqgce4uBkztBg1CtW5plSJqW75Otl3rLNuJGwBNNtTtrwCwkbE6GKiYw3eft2rYIE0DEmg06QzgGb-C1QtXqRI7Eea2qTJ3EtSjPbFVqiuoyA8SHJA-LFCbVwaV516CRqBZDP3MDA3vLvH0HE4J6He4YQnUHMJ04jx7zA13Q2XRttKFsSyDGHYLg5UBpdZNnmuuMTtOX6RP85Yw65WvPgMydByI/Pm7FUQOikKnpXS5w3-Gy2HLwkea34ISb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">hacking into the computer systems of <em>Edgarizing </em>companies</a>. “Edgarizing” is the process of taking information from the company and putting it into the right format for Edgar, and is complicated enough that lots of companies outsource it to specialized Edgarizing companies. And you can hack those companies and get filings early enough to trade on them.</p> <p style="margin: 16px 0;">Earlier this month, Bloomberg’s <a href="https://links.message.bloomberg.com/s/c/4BEwnuoTWqTVTfq0URQXU7Xz_88e6NUDKkK8AFOsfoB3tlt3aqtjEDBRCVDDgiNlfdgYYt9Zzf06Zk2KEZj4L5BD1WqUZ97rDeWveMLq6cFkIc6n-4tPeqinlDYDH_uUZQsb-tLdqZW9txJV7qW_h-KZNgNjkcitDrTwGMhDOYaUOMGiA9ht9vYZoqWpRmqkbYAVCFWnzvSuM8fIzmPAcbCpMICFy3tbBKj_F3uGI1YSX6EJDBrCFf0xli4hsQZSpxI-uG8QB-ObnGIb7lbiVaYdD3RVSE-OSQWs2EPC75fDw4rX9ml6R1etBJ_bvyTe0BQLjfYZDyhbVIPuY6MTD6li33zMQKkBehzM2VZP2k9VISTcg1vEY_qOPrs/QNMJakeLieCepcVgKzhfIubqMBBqPzcD/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Liam Vaughan described Edgar</a>:</p> <blockquote> <p style="margin: 16px 0;">The SEC’s Electronic Data Gathering, Analysis and Retrieval system—Edgar—is both a marvel of information technology and a wheezing Frankenstein’s monster. Created in 1993 as a way for companies to make filings online and for investors to search them, Edgar processes 3,000 new filings and millions of downloads a day, using cobbled-together code, outdated software and a row of dusty servers installed in a basement in Virginia.</p> <p style="margin: 16px 0;">By 2016, there was consensus that the system needed to be replaced, a plan referred to internally as the Big Bang. “The challenge was how do you make this massive change when we’re flying a jumbo jet across the sky that can’t stop without disrupting the markets,” recalls Rick Heroux, the SEC official who was responsible for the planned modernization. “There was always a reason to put it off.”</p> </blockquote> <p style="margin: 16px 0;">We <a href="https://links.message.bloomberg.com/s/c/zEF5J7ekjczXUOCyydhxZ0FXZ7GLqQB5OVB8LoEsFLrzJmk-5_UtJI9nusy41Gltip8B03VuWAwSLcJJwKkzOw93_PozRf4vyZhL0xfVyrr_oEEtUtYDJGKLWCBaYSg_fygQ_JY-iXp1HUqwMuA1uOWFQl8kC-_abtSpWIqtEGSent4MfluYfG6RwMUmb3pirZ0Vo-cOBM2laQsoNcRMClPZo46V0aMTML8urLXCxwX_xvLyXiLAjz3H5znQ4O37mBjPWSWpMl0hj18xLCe-f0cTwaiQkh9qFLK3r-_XqL-3T6V4W9A_laGCI3kh6R0Oog7nkH-1BfYsDH4TdQ--C_MqfnNA-gzJdotJFKxfy2REYNg06dhGI_cC0Go/vlL805IE2bsSI6yRIi0acUz-oFYZKOQM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked about</a> that modernization project a few weeks ago. I quoted some <a href="https://links.message.bloomberg.com/s/c/W3zuE1MCDA68g_mk8m_JxGb3j8_S_OxJ2P9S5Bgwjac6LQDMSJGngc88d-JWggKqs-CVCX5DGfbzLqM5lVpNwyhwQI6rQJ8Ct1Z3ra5ckf4WtccQOg-y_nXEMUKke9Ky6wbGhSr6OraoURkvwv9bAFYWi7KiBv5pPzeLGCY4r-6nmANrU0qyfX5fXoAKaOQHi8lppp1Ias-nvDRXXa0_ltxfnR8p1e2r_LFLGuH5S6jFA2X34lw1b16y04Ype5lHfTAZ55mQcZzf9cdA_M0lrkR8VlD2BMq0v8uPzdZre1Y8C4d2fc4vvBWpHSPWTdt8CiK-3CbDRMCAbvpTFIQKcld--K07bclpSbzesV8SP6F1lSoVVl9Hg72cSzU/eGMATlueZMJE2jNwNAbnXZjbaJ1p_o1I/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">amendments to the Edgar manual</a> “removing sentences such as: ‘The SEC accepts electronic submissions through the Internet,’ [and] ‘The EDGAR system is comprised of a number of large computers that receive filings submitted by entities.’” Because Edgar is from 1993, and it still <em>feels </em>like it is from the dawn of the internet.</p> <p style="margin: 16px 0;">The point is that (1) Edgar is quite temperamental, so (2) companies tend to put their information on Edgar pretty far in advance of when it will become public, and (3) they tend to bring in specialized outsiders to do that, so (4) there is a big gap and a lot of opportunity for hacking. </p> <p style="margin: 16px 0;">I say “hacking,” but there are other vulnerabilities. For instance, the people who work in the Edgar mines themselves might face temptations. Bloomberg’s <a href="https://links.message.bloomberg.com/s/c/sR8mVk3FQynzQO8WL5KxsNZDPECl1cQoH6TbgrA0n8mloHYjLMVnriVrwwLEjfXqwLBBA-U3511RvnQ21k7hDlkEtzeh9v2v5sucshVdCxSCS1b2ckOX24VRkYqGpFoxgSjR8hJ1MOoMzta81kn1YrGlC-31u3-I3IRUwvX004UF04k--K0-5QYTrI0_BSUzLyHyA4QvOcAJl2FC97e_xRTk-QHTGA8VKtPkYk-MCY9u2cgr8Rsi_pwMRackKIUDextUHt0RXghlDvpIOJTNOaQo17cc1MNKG-2bbVer4AyjTrCiUGzaYKr2ng8IJOMbjV5nXEyv34HZMmqXd_9pZIS8IRjWggOi0V-m120zjiOl0wDpwe3iOhbqblU/C_IOw_Q9UEKtwnmbiP5QuuOuwyDYKkHc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Patricia Hurtado reported this weekend</a>:</p> <blockquote> <p style="margin: 16px 0;">Two men who worked for a private business that provides services for companies filing to the Securities and Exchange Commission’s EDGAR system, were charged with insider trading after allegedly pocketing $1 million by stealing non-public information obtained through their jobs.</p> <p style="margin: 16px 0;">Justin Chen and Jun Zhen, both of Brooklyn, New York, were charged with obtaining non-public information about companies like Purple Innovation Inc., Ondas Holdings Inc., SigmaTron International Inc., and Signing Day Sports Inc. through their work, according to Brooklyn US Attorney Joseph Nocella.</p> <p style="margin: 16px 0;">Prosecutors say that between March and June 2025 the pair engaged in a scheme to obtain information about the companies, which announced they had entered into merger agreements “that resulted in significant increases in the share price of each company’s stock.” ...</p> <p style="margin: 16px 0;">Chen worked as an operator and assistant manager at EdgarAgents.com while Zhen worked as an operator and typeset manager, prosecutors said. The two had access to the company announcements before they were filed.</p> </blockquote> <p style="margin: 16px 0;">Sure. <a href="https://links.message.bloomberg.com/s/c/hvtOZlT0cAYiTsNYzy_CQq28nlytoXogMPnjWsSMZlAKdGQCuS6NLRvZr7G-CFEd5-brX6lckvUEj3wyHYWDPbaDAuN4uG5z0XNas0kZu-kuBQrVFIxfEH6GOc61KlfHNt5jw9J_kIXGZEBrzyvggUaU1G3Hr5ExD-ZPmOkEXvHG_Iybjy3FTT9IZQt5qG354rhd4bVLxLsWRU1Q3I8IKlH67CDsRuVWu5G451bQ_mQUXeieCtsqrr1Tl73nFTgW80N57tk2ABpPIIUEAORtoeQakPJusuk1aEljtUSbE7VYvZIeZYlFAwyNjts85upCWpSTN-OrafISoy7lEZSQ1WjybyKpDIjRit7-cUMuHAaXFGuPvisvb-mmsGQ/2X90w7jb8ivsWKUDQLvgHJNv15nflVsW/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Vaughn writes</a> that, in the investigation of the 2017 hack, “attorneys at the SEC’s enforcement division struggled to believe the agency was a target: The SEC scrupulously avoids retaining price-sensitive information, they insisted.” If you are an SEC <em>lawyer </em>— if you look at this system from a reasonable level of abstraction — then the way Edgar works is (1) a company sends its material nonpublic information to Edgar and (2) Edgar immediately makes it public. Information passes through the system for an infinitesimal time; the filing system does not <em>hold on </em>to a bunch of secret corporate information in its servers. Edgar is a publication interface, not a database of company secrets.</p> <p style="margin: 16px 0;">But of course if you are an Edgar <em>typesetter</em>, you do not look at this system from that level of abstraction. You deal with the actual system, which operates at a not-at-all-infinitesimal time scale. You are like “man, this stuff sure takes a long time to typeset.” And there are trades there.</p> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2" align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/zc2_DoC9mzVFi-BNJFSUXcJmQCgsqdbAPkrb8Rk3Te3lonh8W1Lb-6hZ3qoeSqbC12tApLJjFsDSpABo5ybmRdiy4xJ6v6ShZST3fcgbnnTzrIgAEqhi4C0xnOKl4mK_uMl5OoU_ieLVqhY_BsYmLy1ag7JanA2KmVEMrK6_qRPt5LLf1qMOuTY5kZDFwkRpccgot7beJq1wXmwHKuANn2Ngz0fz7no4xOvPiOASi8gV7B8ce6WWNbPGjMreuZXfIvh5vRBPc3dHqdasq6K8_-6vUoDFr81JXjeHL0OgrtpXGrIMwz7uAzmBsPSGIDURJt_bsoeKEe5gi73HohNN-tFMxQR8sRbxpryfv1JPofxVpaUB3kuP036BAx-Kwu3Ntz15qB9kvO0sltjDGjEdUqroOhk85DRhEz1Kxv5-7UOasGkEdOWyo0GCT-eVREbYtPdLpjd3Q4qEaWQEzdp9QvcZz_MZg5AglcE36Lunf9YwteZw7RZgLwAA5TpQN6nr3RToskL9Bnlow9u9BtibqCrAwmcOR8fis_pl8xnWzTV00Dtd22OMrM6gGvxl5sRYaC720WhdahsQHfD6Gz5G79vnKLEQFvwUzz_Ka80VT83jIyiMAE3uOQ9vw-m1XthInC10pvNGEqltlRXUBqmD8QnOsfQ0o9mVh1_bweArr5GiM_cckrdId7HPeB5_6Q/p88LMp5wjOcwqFrHMhudK5KrEO4Q0aDd/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=14057759&m=c869f5c3f0784f1d3b0577b4456d769f&p=06302025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="550" border="0" style="display:block;height:auto;width:100%;max-width:550px;" alt="" class="lihide"/> </a> </td> </tr> <tr> <td colspan="2" align="center" valign="top"> <!--[if !mso]><!--> <div style="display:none; overflow:hidden; width:0; max-height:0; line-height:0;" class="lishow"> <table width="auto" cellpadding="0" cellspacing="0" align="center"> <tr> <td align="center" valign="top" style="padding:0 0px"> <a href="https://links.message.bloomberg.com/s/c/4wutOBsi5IZ0DmtJIfMoTUKqOXC4Oj_xs3E3pkSRbB9p4Hj1wd24JKiRC23pTGoG_gOWjESMdm4lqljrKOtViCd5sDNIc4i7V4kmuiIjW1VmyjbOX4wWPiefwJpovp6AF4s1QtrSXCSMm_4shMyGntltMuLceAAgT3bZWzmPYZYG1zr6xK215P3VSQGwaKik2FPk4sD9WIUlb4T5Kl21q7Sf78Zp_Cvldqp0Z7Y4yQkNYQqrdvTMbP1fXLk2-rx3a2uzZ_bVCxN9RfyB4ybsIbUbwg7REzu577gI2ruRv7GrJd1LsKSW-lPE4td_bBjYqPPiVWwUQJceayHkZb2RgcB2noShf5BMahElrg4zAsNPP_53eVC34boyzIvo0w-S4yEEQEcNVR0uc-oZ7fvdsdI92DadIH8Ln7srB15_jBNFAZmQxm6ORBJ1qo1hNxad_4JOdqn4PPLkjnqTnRNppdNGjPeBGGRcHxj-HFilTSCI6CokLOOuSgpzrFSHYcbJzJgfXtrwocXHKrl_rZ9OIyvtdY6q0dG3-L_N0vuNOTcaVI4I0a26srt5wpM16nZRlS980IsjuIgB5MBPqraN4OFb9Va8sJhaBLpKDsXmHXYIBmlpF6Cs1vlOJ_eyA3Oetk7ucBCKjqepLWFMas3bK3gHhfbvyp5s4Vvugo2FXiQnj5AI9Tw_EgrajGEnGg/awU_0UqhdM7bbCjQjYEzaq6w_otJwABg/10" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=14057759&m=c869f5c3f0784f1d3b0577b4456d769f&p=06302025&lctg=a19ab05d-8da0-4a2a-9dfe-e93d8d341869" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Private credit</h2> </td> </tr> </table> <p style="margin: 16px 0;">One <a href="https://links.message.bloomberg.com/s/c/dzKnoMWjhe3rxH2YMYDPai6r-WddoGaFg3q5K0rLLVeLjVhN26-MNDTNM-7WJKU88L2haB_uUTT1I1l6gYn5-RoQRLNZePHGPaH0hZvWpRDrNRR22vPekfHfK43wkFksEYVU3SP777Ki9Dc95eADFr9PICBOdgdDLI20h6FaT-n9rQtAJpD74Z17GYIoD8tLxHL4MfCd61DBY83LIKVfGKa2kw1TLgPKwqGtqOM96_KaCI1O9vBPN7b58r5DSc1RdnX9LfCC5_33rWYf9Wc52tiUgYuGI9ZViX18Z7GAf5lomFgBrrhEQDBHVVBZ2mPlKtjlbB6ZB01xbhUjCaAdP6nxcO9QBmJVpI62jFqul3AeyZthXJXA3qVjEMc/NWq3dURYe4DVNwIGaGCvYIKHoVHNLIE9/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">theme</a> around <a href="https://links.message.bloomberg.com/s/c/dXDmR06Ng3wjMkhRCJCUWQW4AoElowNUj8CSdf66rroYDzNOfUqCws06NcgV7T8uHRmIiSCeQCal2NxHjv02APM2FsDRben95BAm4meZH6FK0B6IWWdKGjj_R92VpTt6eL_iDBlLTOUPTI41BhhR3_DtmVAgojKW05T2p7Cl4WihvyfeKmWeuD83vLwGho5-AI6HiKPEFLP0yhd8d4nOm_6Eqko6nl_x-wkdtde0V1tW1dhlbKDTgA-PDhN0lqKJk5eJzEpMuzOfVCsZ3fWNSxmoNXCYdVtoI8pqOTIzsbfbGcCHtvThwslIgIZdVEnqVf2V_1Pfw0zVgH54KMB5n4ikz9GHc3zm0pOR4xPviVgIKTemxySYgBIbby4/BHjPH-9n8r9wEetfAngT2qY0v7Ple1PM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a> is <a href="https://links.message.bloomberg.com/s/c/rvk3rXVjM-9BR5ADm1Mt-NpiPJoIIgVlSGWmMC--6ToMknh-0cbIdT99b6ix-e2BQN1krgJmjqmbITtgdHK3mtSiABtcsc5ke4uALH_P6BS-Mv0RAGTkJUJoUSgzczpsnDJjiR08MkFI5Mxke5qofsDQUfROp6H0aM70lNtdPSyumEDyvijnYd8gmV5fcGAj-CIxaPMNICxmdOeXr6zL01QgOuplPFz6sQH1gAO3lIQDj4zTzByEVUlUdg5_2RGvdBM54E0_AOnvHuosh7Bh1jRTSp8jZs8nFmTWv0omUOXdehdt5RHPNB8xjAUMCg7B9JD6mcYrCukAuR5z3miG_pinHQHTnZXu2G3V9bpUQdMV4ldKnU9PaZR2DsA/UXkq-kII_U8czhNk1y_VrTdW33mnCxRv/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">that</a> the big multistrategy hedge funds — Citadel, Millennium, Point72, Balyasny, etc. — are slowly becoming what the big investment banks were 20 years ago. Before 2008, firms like Goldman Sachs Group<a href="#footnote-3" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[3]</span> </a> (1) helped customers trade stocks and bonds, (2) invested money for clientsin stocks and bonds, and (3) did a lot of complicated trades that sort of sat in between flow trading and investing. Index funds had to buy and sell big piles of stocks whenever the index rebalanced, and the investment banks would help them do that. Shareholders of merger targets wanted to cash in before their deals closed, and <a href="https://links.message.bloomberg.com/s/c/Vh-ec0IKrv10e0vIHWNOwWHRrlHpCFqXyPkeVZNuJfwbUNzh5uF9A4JMsMu4B6PtSyV0wMOskdCBi7_R5nFuk455sJ8NR-q2l4IWnSvE1BQqgh88puWi5Wq13nHZx6IvsHs79vjpvWUk3fDFuorz4c7OiyEw4KFL_ZLi_CEaU3rDHUxcMAqJSw8F-njgRAXXZS5ZoQbbXCacMWSTIbCfw3PmlKarZ58lTW3SgpBZvV9VvzP3fPxb0y_N-tFZyiL_eCKtrzYCB9gPStbJpFO_7QJA2urp89uu7I4aOvC5yr3bKz1ZCg5LA--fVj6urEM886KR0U15lmWDOvyQILFmQCnMFdOC1FZ6QAJknkzQfZiEByuSadYN8PDt_CQ/WzHXNovvBLSM0O2r9vY69p2IzX5DVhsi/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Goldman’s famous risk arbitrage desk</a> would help them do that. There were <a href="https://links.message.bloomberg.com/s/c/ztdJy7UYsuG8iJgq0g5RMPhau0YIEHi5wLKwuj7xC4DLTDUVwzvLKIkqzRc2LrikLXs_sEqTYjWooiE_6JsLqPr38uh-9OEGU1ZuB4g7BvdYHp9z6AtBHYohLg3yApCH-K09hTV3KXYG7vfZLUTJ_LscSdOYlNxTbNbyEPy4P_b0_HgFf3KQKSJTzpoSbGAgmSriaMXOa8l_uir-57LUXY4cvZEEWxQ-iX6q7GOzjybuhffdlB-famZFg5KwkdLMpXzeqzyR2Xq29LDXouzpDNhjSa_EVGjON27yrWjA1N3yZJOzxVBUqB9eD_hRIZRubVWkavLk8RfugLtWkjMH93jvSZgwI4pnzulI74Z5-FT1FTpt9BYf4W_b-N8/wbIEA4VWA2ygMrP0ujNzl_Lvyu3lxHXz/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> basis trades</a> and <a href="https://links.message.bloomberg.com/s/c/FACzxpFHK9iZqs_8fUdDzNCbFlVJCW5XeLZ5R2s6Ms97pJsTZfOFud4uc30ZZ-zkjLIXf50WL4ILJhqfrkY17SRj-tnFe0MrFpMbB9WhnlMe93GW-oA92Tu9bdKrj23UTpHLikPRZS8IpK50l_Wrc8sPJXbsHHXPyMmqrZIU518Cx04nAxkiF-Mb48yyInyyA_oQjSQJ3BEaRo5zhyFvQugWtL6yZhOXPkIxm4x0j5UmKhOgHhWTlWolESsZSEXVmejBagbzjf6CwdVY_mZ_fFxbXr2pZaLNSY6m40MJd94a23cyOUX1T-ufA8cgVtMwESyJL2Y7eYxZ69fg_NwIHBarpguMhnq0BxDGm6yNS8cLEB-_-JfQuWiOQCI/BjM6Ro0wwDSEj2mZOL7CXzZUf_FGx8Lc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> deal-contingent hedges</a>. Sometimes risky companies needed to borrow money in structured ways to do complicated things, and Goldman’s <a href="https://links.message.bloomberg.com/s/c/fTjPT0UrmoRRuWpUGkSuN0N7kgVf93vwTz7oQRIzEve14tH2AXOCgS0jbNw987X_4e7f9a_CHmEe-A2ROx3TID1zd1u_s0DY8_Okk_cwTr0RYJJ19degc2_QtgCntu2GrGv_W5HsmcmUA8drwKXPgDrMgTDxAaBg5w3eFB6fcFPZXm4_zDBz9UK5L7WZIVjCe8TV741x1aaBUkRzq126oE7EVV1trDCab1PFkbsySVVZJdprEDoNluiE07TnH3CL75Nw2OEmXAbcEViQ3XQVuI-qlNMzGMzIi2Ru1hJCX2O0q33iOsMbIwTR_-Pfjo4nUQLdV2vuR8uAWLfTQx5gGyDvQfYouTBeoOolzZI5vAF2P3wlXhzjMFhOK2w/jdY9fxu9niqQ7BMc6TDtZ3jCqANlvixq/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">also-famous special situations group</a> would lend them the money. All sorts of complicated bespoke services that Goldman could provide to the market, not because it got paid a <em>fee </em>but because those services carried an <em>expected return </em>as compensation for their risk, and Goldman was happy to take that risk to earn that return.</p> <p style="margin: 16px 0;">And then 2008 happened, all the big investment banks either became or were acquired by regulated banks, and that whole genre of trade largely withered away. This weekend, the Wall Street Journal’s Miriam Gottfried <a href="https://links.message.bloomberg.com/s/c/Oafne5S1LZLpsAzu6SqGvORTMwtEThdtVQAGD0G-PfgrirDNLpPLdti-EXJzBv0YilecW5ffxzh0nJhC5lwk_MQ3fguxwu0apX0FbCbdUZPuorgD9vT9uIq56Dc-cqdJkL581eQEwHEMJXHYeepP3nbBbHaatas7mFvsvKlEgY2SdMGFS9_8i2tUtvqzeoWKKQQKjC41TyrYg7pM4i2NTc_vaf_EiQdo7pNkNzh_5aYhNX9y6_j-z_4ZcjFRgMDKJvkGnS5MrNte6S_60W9GJcflUFvODhuikr1jQY-bsb0pbNoTJG4gF6t6WckC6ZKEygHGRARANbuwUtiKkGZMf7ah3RpY-EpQYnd5rAzcgeDcliLM0XDjifn5MeI/Z19HlqsOstwLuPBHu_ZYnyJDze8ENCiO/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">profiled Alan Waxman</a>, the chief executive officer of private credit firm Sixth Street, who previously ran the special situations group at Goldman:</p> <blockquote> <p style="margin: 16px 0;">At the height of the financial crisis in 2008, Goldman became a bank holding company, making it eligible for emergency government loans but subjecting it to stricter regulation. </p> <p style="margin: 16px 0;">The next day Waxman decided to leave.He and his partners launched what eventually became Sixth Street, with thegoal of replicating the flexibility of investing from Goldman’s balance sheet.</p> </blockquote> <p style="margin: 16px 0;">That sort of trade worked at Goldman, until one day in 2008 it didn’t, so it immediately started cropping up elsewhere. The basis trades and index-rebalancing trades and risk-arbitrage trades and even deal-contingent hedges are now often done by hedge funds, and those hedge funds — which are lightly regulated, highly leveraged and financed in the capital markets, not with deposits — look a bit like the independent investment banks did 20 years ago.</p> <p style="margin: 16px 0;">If you’re in the general-purpose business of finding new risk premia to collect in financial markets, at some point you will have the same realization that Goldman had with SSG, which is “people want to borrow money, we have money, rigid old-school banks won’t lend to them, but we can, and we’ll get paid a lot.” Gottfried writes:</p> <blockquote> <p style="margin: 16px 0;">Waxman started as a junior analyst at Goldman in 1998. He worked in the special situations unit, which invested the firm’s own money in areas such as corporate equity and debt, real estate and infrastructure.</p> <p style="margin: 16px 0;">Early on, he was sent to review a portfolio of loans Goldman wanted to buy. The loans, to radio and television companies, were made by a nonbank lender. Waxman noticed the lender could charge hefty interest rates making loans banks wouldn’t because it was willing to account for the value of the borrowers’ underlying assets, not just its cash flows.</p> <p style="margin: 16px 0;">“By looking at things differently than a strict bank, we were able to get comfortable with making loans to these businesses,” Waxman says. “I thought: Why can’t this be applied across other industries?”</p> </blockquote> <p style="margin: 16px 0;">Nowadays that is called “private credit.” It is much more industrialized than it was in the 1990s, but even now, if you run a big multistrategy hedge fund, you will occasionally have similar realizations. And so <a href="https://links.message.bloomberg.com/s/c/fUyvBuQ_hKFaFfDZTGEs52-JGevtXDTIqLI8VDKi-gnDHTzf3O3TEZJWL5AR55ScokpEFaTuJABQS_P4xNAYYn_1HTYq09Y2PUjaktNSGIat5zp-6l0OjmvUevMFe4QSxrI74gFmBsaUlTYN8Ahq0FZDVlyR35QaU1u4JCP5jzLR9fdED_qrbDXFt44pTQkXlQjFAVtQm5ydvcGzFPFmFpMUtUHg53Nfwr8ANOu2GTIpleEY3Skfog8nXX07SNBlfB-bLjyqDv_j5kPQ31nLnfxdkNpbiAfn9yrtXK0LR3mGb3mhW3jNj3n3AMBC_EdF6lYcD3NhuWdOsCD9aLdFjBBVHHXp5xFPhaKfs-XgyQ2wvBiHggN-bTq5XNA/oXwn4axYivLIAWDAyGcRMjmJn23hbyFm/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the Financial Times reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Big hedge funds are pushing into private credit as they seek to establish themselves as diversified financial institutions, with Millennium Management, Point72 and Third Point all looking to launch new funds and strategies. ...</p> <p style="margin: 16px 0;">“Hedge funds are in the asset gathering business,” said one leading banker to hedge funds. “The boom in private credit has really attracted their attention.”</p> </blockquote> <p style="margin: 16px 0;">Yes, it is hard to run a general-purpose financial services firm and not have a pot of money to lend to companies when the price is right.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Security-based swaps</h2> </td> </tr> </table> <p style="margin: 16px 0;">We <a href="https://links.message.bloomberg.com/s/c/gmyRLGSbMHUOo4liaPSlT3fl2JAhFKFHLZkPzTE_v3wvIaH5x4PUIkTwEQael2Gt6xAPqdzTJJHP1Oc7ebp51Sw0DO_0GLbOuPtr8aEi44drLzfsEwsgiNxZfVvYcnqv2asz3gZqkVE1eVBA1pZtjH1qPJRAUKYwFmekTEYIuZEb_It8Uj-tnens44RXCvxkLVyu_mKIeeZmcqDc4-RXfYGuLfhHYTgSm1Bdt-Sdl6nFwHlw4JXXByJXl84ZHfTNRtHoZqqz1na0ysO1H9qfzIHSdYvAi0lvyZC-lNoh0kTITgDsy6HiEQ_4sODFtRsVGK_s6iYu42xK2DzYM7nI0P3JmIi55O3gylF-4N7ob3x0Y8P8jbg8aZbSdH4/C7o6m8G1rmE5PpnXlzqYdEXaVBnFJSh-/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> talked on Thursday</a> about SpaceX forwards. Specifically, a company called Republic “<a href="https://links.message.bloomberg.com/s/c/mMakogCxitr2PpZZUZHNx6Z6hrHK1VZ3TSy5PYqNzGeNGimbAMdiSre0lCSm-b0Z67WgTYAGlinsfhE9opMGfi6pLmolLeVIXmAyvUrWj3kXLULne2Pk5crc2VpqHV4Xj8GaAZJaImEGZowUXOQCqYMHl6BUtW_icpE6-yLnruMmeIeCYs7pC-FZxOD0GAq7XpCMgNRBXVFQ4LH16rHsxnf-5wRrtCXZDCid_YqQbC5cngiosaVVxQPpI2LvJACoPKxOLVWdzHRAEcZTY-GREvbBsxKEzc3bo08jQ0IwyvItACEx3kFh0BhnK1o0OOgUuqvcL4Z2iJAXxZ0MUtaBOOeZLQ93pgQxSJo6cAWC6MlSoHzuEoSbCxMPC20/wYCiQnpt1F_05BRFdpAeUS7_bA3hCjKd/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">plans to use blockchain technology</a> to sell investors exposure to SpaceX,” not in the form of SpaceX shares, or even shares in a vehicle that owns SpaceX shares, but rather in the form of <a href="https://links.message.bloomberg.com/s/c/Zn4JPc1c7mGhZfeDV5KuyXXpM3BYsg8TqmORShbhmMJJrCjjt9f_-ep8WmG7scDCDnJ6H9_XJakArFkITRuRIDX_VuamgM8EDtpQU8oq7PgI6nXEivSru90A9T-bhtpFYTMH4nGyz3T4cahMak-ySFGTGMJmbYJb7GGHmCtKP0UW1dEz-RXxJrFWAJeiodWYxxSoS9aZFJAuT8Ilre83pO0QE1n4A3oNh6EpKMN3KriDx-Qg_dRY-PlN08rx6rscQUwWC921OFJmKkNxozAzII36tLNQefHwP9abAbZRxJmRgJI7JgtQe4Dll_Z-5xMToFzSh8as9gptIPGazhANMYW5p5J6aK6-AM7Qta2_CxWiuqSygyjy4CMNk-0/LLyrDy7G5Fq6zkgbvCASgVnMd3-5XnBb/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">a cash-settled instrument</a> that will pay investors the value of SpaceX shares when SpaceX eventually goes public or is acquired. Republic variously calls this instrument a “note” or a “token,” but I said it is functionally a cash-settled forward on SpaceX shares. There are a lot of slightly different terms for the same underlying economics. The point is that Republic sells you a thing for $1 now, and at some future date it pays you back $0.50 if SpaceX is down 50%, $1 if SpaceX is flat, $3 if SpaceX is up 200%, etc.</p> <p style="margin: 16px 0;">I wrote that “this is an obvious solution to a real problem,” the problem being that a lot of retail investors want SpaceX shares and can’t get them. But there are some legal complications. The <a href="https://links.message.bloomberg.com/s/c/zCOTd52vYRa1wUsay-Sh_L9ITLT42jCEWttZ3xgWpdnFBCZfLUb6FkR3nwrGgag8E_qW_CPGr8y8z1FlVtkZlHlklu4aJozSYwVrCxFSqMc318T6J6t_Lsxg-yObiDVcC7_W6VzMJRsnIdISjtqNEmjBO28PpEr6wKkqLLSzJRLpSCtpv2bIzP0lCu0821rHxgTVJkUGd9oPhnzHSyTgVuFaFAWNDaXbwgOIwOA0HnIVzxzwE063VFnwsqphYPFCPDtsYp3jfB1IHefcA8zhxqAiRjanGnV9fQMltaOOHQRn77otlOyRjH9F8lKkw0esDuoaR0Q8PHl706PLRkjRlgOUXnK4QO0ui9w8wJ_OwfKrGOF9GZPjz6DNXuE/-BtqdqzcQPJKrgn9ysvnWZzKvxHy3cWr/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wall Street Journal reported</a>:</p> <blockquote> <p style="margin: 16px 0;">Republic CEO Kendrick Nguyen said he’s confident in the tokens’ legality, but added that it’s possible regulators might take a different view. </p> <p style="margin: 16px 0;">Republic says it is able to offer the tokens in part because of a provision in the 2012 JOBS Act that lets private U.S. companies issue securities and raise up to $5 million a year from retail investors. Republic says it would be the issuing company, and the tokens are essentially a note that assures token holders will be paid any increase in the price of SpaceX’s common stock if it goes public or is purchased.</p> <p style="margin: 16px 0;">Republic has a license through the Securities and Exchange Commission that allows it to use this Regulation Crowdfunding exemption to sell tokenized securities to retail investors. Nguyen said Republic won’t need permission from the companies whose tokens it is selling because the tokens represent securities sold by Republic. </p> </blockquote> <p style="margin: 16px 0;">That is: Republic’s theory is that these tokens (1) are securities, (2) issued by Republic, and (3) sold to US retail investors pursuant to an exemption from US securities registration requirements.</p> <p style="margin: 16px 0;">But several readers emailed me to object that these are <em>securities-based swaps</em>.<strong> </strong>There is a particular regulatory regime for “securities-based swaps,” derivatives contracts representing individual stocks.<a href="#footnote-4" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[4]</span> </a> In general, they can only be sold:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">to “eligible contract participants” (meaning roughly people or institutions with more than $5 million of assets<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a>), or</li> <li style="margin-bottom: 5px;">if they are sold to retail investors, only if they are registered with the US Securities and Exchange Commission and traded on a national securities exchange.<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a> </li> </ol> <p style="margin: 16px 0;">(One sort of securities-based swap is what is known as “contracts for differences,” or CFDs, which are <a href="https://links.message.bloomberg.com/s/c/ZbPtw6Kublm6PHjCI4nYT-v_3-gd2i8xJj-iVCAEZzAECLVBHCswIjxQs4g65de67ZvKSSaxVI5eCj8ETnHMyySsdjMFveuoLEF5xub3Jgdmp8melnr8o7ISP_qiV5DxfnIQjSKXX0_CHJrte028djX9v8IvJJ1LebLwFIVXI6U5PFw_qojUqmwEQ0gB48QODv7P54rD9JRxvq289Uh6cQGWQckPX-p_7DlaJpxVILKQs1Jx7AE7lljvPlcKu95OLUSmnhZD8ptMSD3UxxJq-rip9CIberYmFJaElyKZMZMDwl1doUrfCg8vCqg-PtSrP4J8Y6aqK10u86DwuJWPqESsLfk5f7wSzbusrBXr74Oi0gawlhjtson9EJ0/902MzhAm1l8g4LrrWMU0v20nnDNQ2Gy8/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">notorious in other countries</a> as retail gambling instruments. A crude summary of the securities-based swaps rule is “CFDs are illegal in the US.”)</p> <p style="margin: 16px 0;">Republic seems to be offering its tokens to retail investors (so not just eligible contract participants), and they do not seem to be registered with the SEC or listed on an exchange, so if they <em>are </em>securities-based swaps, that’s a problem.</p> <p style="margin: 16px 0;">Are they? I don’t know, and nothing here is legal advice (especially not for Republic!), but my guess is no. If you read <a href="https://links.message.bloomberg.com/s/c/J6WI7EWtzsAcHzc5J6ktkemwLgOeM26nzcI_Kd8sVvjTFfMwxTI59_Q8VuEsgNeXCAIzF2E4EBWdxwqMKxxFzj7ETavGjEZJBjZPLf58NSPLk1bCLcmKKQt3KRUHMCbnds62mLS4zc6WGoA_PlDdktRx9MK346s56itDQin3_YRQtvEmjKA4X0tex6LFwa1EbDOlNMwDaqv3qqQn0TsbbC3s8rZKK42oBemBWMu5g9c6wGHkkZaoJIYqKHWoAliOGMmWf4wpzbIfpv9oU9QAbrSGiRIkPs83aaJFE_VYeHxHj2i1JQm7BhtKOvKUoRguLn9zQH4Z8TADW94rLGABOqKCYVpn76Z_Fcu4DZedmUQlGt3AT_jVRl4N71o/hwRCeXiTFu1zvIjNBh5OGTb2mCOJhgYt/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Republic’s disclosures</a>, it seems that the tokens are themselves securities, notes of Republic; you could think of them as being like <a href="https://links.message.bloomberg.com/s/c/hKXGN2gImrv8rfqO3p1WLnc5jvtoKrRhw0n2HJqgjJ9us18s-vAWRUQk76seJsqs00xoAVTP0t4NjLR6DQCGJODTslPGC9NZlDzHmaOZQW22_hCLmMvydY1XRBYwOIxRQoFqCnDzcj79NtTfu-Ifxn0Z32BQf0Y7Ader3ylT_eZUdGWpHWpe6j8DVzuxU6qm4MBr-BBTE-HNuR2P6FPZEXt77CeGf9TmafTcA0pVeNFcZKD9YU1euRdFsRcuIDPTwK_uELtDzbNZn_Q9OQf3cA8OC_0yhXG7RRwF7QIWn2Pp6vX4m1OsEAf9y4Ooq_glg1e6XFu8o55i1WkhWaM0NEaEVKcUBlFNyXLw1cxZKnqAcQ7EeWVUnoeVPz4/-e3TuOKZyWLC9Ma5X9PI9C5QSPtuBTCl/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> structured notes</a> issued by Republic, and “structured notes themselves are securities and <a href="https://links.message.bloomberg.com/s/c/BTecJVz_jPWa5IlJRrAglVH4ue0aHFnoIWZ2enwFM3KNlHVU2AGzSDdAsIzv_rmDlVqUaNliQNcEIJwIG7qyXoy9r4KlPmlGxMH9OvB2zuNzdZIKmD-PWMOXMCIb1GhUs6tEUQfY6NX-QuJxXgaNWjH3JHbFU6DcspSf2OBPtJZb4jb-cL1dqXSm4SG81EWblzHfEuag189QnshPubZsA1Qz2PD9l3dbZ_w041GmdHdby8wHSnjZ2yNHcFfMYl6l5keMMdqb4jFkD1j5y8ctoWdHJ8jSfglYeEaUxhMCNg1hsTy4ItHd1LoFk1ziCjq3Z8P1u5ZdFgjFqWnKp7-8KkGjsIjfO66puWXJ1G4NQgMhhzDMDajFSB-ICMM/-gPRjORCxIpwJgu6GhbBdSoPlbMmmPnK/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">do not qualify as ‘swaps’ or ‘security-based swaps.’</a>” In the general case, selling synthetic forwards on private-company stock seems like a security-based swap, but selling synthetic forwards on private-company stock <em>in the form of a note </em>should be fine, as long as the note sales comply with securities laws.<a href="#footnote-7" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[7]</span> </a></p> <p style="margin: 16px 0;">However! There is an important precedent, or at least a funny one. In 2015, a company called Sand Hill Exchange launched an exchange that allowed people to trade futures on private-company stocks, futures that would settle for cash when those companies went public. That’s essentially the same product as the Republic tokens, and, as with Republic, there was a lot of blockchain talk. This was a fairly early (2015!) application of the theory that, if you put something on the blockchain, it somehow is exempt from securities laws. As <a href="https://links.message.bloomberg.com/s/c/oB6qWH1YY9bOnvQnrt7EtOqMpe6ohYRJBJ0Ws2jqFIh9dIXxh2Xk50574TgWfgF60zO8SIP8q8lwp1lLdYK-OM1ss5DZ85JpqTdxgoM6StyNAJ4rH47z2SJ5feiqIe1r7nJSIu2yDfCGFF122c0LTtgIW5NKJ8qKDw9duNEjkIWIwCU5g1ZO9oOiK-z6AgUiku_qT1SYXM0wVSy7GBy9s5Tht9SL54s29DodRnWRgwC-THfNzm4ktJBV90INok7NFgR9azO63psTnXklgk7zAIXBpXdknLW9P0n_bB8YAtmbVUhGoqLX-iiCMVGvhYXmTPBTxx7G6UqhUw6X1P_-OTu_mSV9LSaeldNKH4hLgrU5lrET4_DDgZ4a478/g_bhDoelZ_MOZw1TPEHPvuyoBi5WCB38/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">FT Alphaville put it</a>:</p> <blockquote><p style="margin: 16px 0;">What Sand Hill appear to have done is to simply sidestep the entire 40-year old edifice of the CFTC by using the blockchain, that bit of the Bitcoin infrastructure that acts as a distributed public ledger, for transactions.</p></blockquote> <p style="margin: 16px 0;">Or as <a href="https://links.message.bloomberg.com/s/c/vpSBPWlFEXSIAj8k4cbqob_XiR9_6x6Ao-FA5wxHKhZwbiG8Cr2eDzeZ2XCPfWHbJwHrP3EX3dq0BiUFuOwA7mSKyHDrvqaDXrPmk9llm04TBUKHQibwq-Z-47TjsWIN3qU5vh7nxB3I_7BnOzYNEkqMmHwGak55ltWxI9mSFdoX4I_0voLdW4wJ2HqYUc3utTskIIjnv8uS3S95KXRemp0zizgezgB_0h3cN8ehQ994n-voiHa8k7janwUW3WiCvqSFyIs97wcamdDo9fzC5Vcznyc-ox-woyykqO_IgbBp9kKJYzTiccVIdhEZ1FSE_Aud-2ho5KhHmSVB0Xybp3biUE_i7T2vOklfDmU3V4G3rpePF9K9FlBay8M/MQLqL6ARQMBfV7bgRZTou0y2fMTmdUU-/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I put it</a>:</p> <blockquote><p style="margin: 16px 0;">Haha what? Just because you mumble the word “blockchain” doesn't make otherwise illegal things legal. Otherwise buying drugs and ordering murders on Silk Road would be fine.</p></blockquote> <p style="margin: 16px 0;"><em>At the time</em>, I was right: The SEC quickly shut down Sand Hill Exchange and <a href="https://links.message.bloomberg.com/s/c/r-25NXoU0O5kU49s-1YVYsP2X-x9wSw5FBtbyaASLAEGNaNxKZNTt48Rs3cRneNs2XuCpfHnAgMxk9K_r0lgJC2n3dY7RuSeEAg_kqtuSjJBx8z_JH8O2Y0PkLy_7EnsoyLh8aStlBSkyL9yX24mU-iLDGoqymmYkTEHO20w_ADn0gGZDoyE52MXn_8AJ7oObf4fhVblBuik6CT-Q47kS39n045qumuF2oFH4Z7-8Rf2WWWk1YVWEpLP37uf0XrSz6cGyQpDYK1d_KacKgNkQhHPvb8wuBq1p04YYkRNZ8U6X9xFGy0pU3dNGeVFTwrTFze6TjqBu-QQXTtC6dWT8SiGY8femlOQa3H7u2WqAc0vic3b_JRfvQj_BUo/PP1O27l7r9JXmBcK5JwFn00eh3Xad-75/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">reached a settlement with its principals</a>, fining them $20,000 for illegally selling security-based swaps to retail investors. Disclosure?!? One of those principals, Elaine Ou, <a href="https://links.message.bloomberg.com/s/c/fQyJU4z6GVtbXKKKo5VHN4FcMx2KiTUAHEc2o2qn2_aufhLRMzRV-9iWNDMJmDZjsQZIg-IOuMYg0fKKkWRXd6iyPVWGrH8LPLf55ZdNXqrzi-s_qVHg0pdemmP8qZWNRrvelc8a0qHQzyZyZ0_o9k6DLdm9OqVrYuv5oOER1nXR23bx58YwGRE-oeKeXRdGAyEa9Giw2EO0nS4TaYWvtqhitXC1SF7k98A0bf3s_TpUOZogclM0la1FgNYjCpPYTrJ7-dEI5JwFMMcQvbBIpY62bnSbEIafhW8m4rnYpmY6l3XTAUY4fcQgOF5CUGduggiHeQlhEs_3mlkqDqHYLNszUL6LSosO0EbhhQsASouRNm9tjMQEtaPqe5k/sx4MR7ekhq9_DtsDw2WbRjVraWK1xIee/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> told me at the time</a>: “We were just app developers. I thought a derivative was just a bet. Everything I know about derivatives, I learned from reading your blog at Dealbreaker. So in a way this is all your fault.” (Further disclosure: Later Ou <a href="https://links.message.bloomberg.com/s/c/EATP2LtgMsLknY_c4FUWJ9bKLWL4nLIe9SUfsWP6hWjV_tU7bevgETsAnYXH6ElxbwEPZ_DIPwS7AY5fgyutn1rk5a6AtSU-dKeFlqWydp27FEHWaN24h1lUdOoIGNSMw7ybegBd2qojMZPALsK5Pa7W6ocOXnoVxrvGVs1jgIqRnhfQmoWxJ47W5gZ8X8hKy9SE0DSsSgbA-qt2UswlYd6uxhvZjE2D1tqHxiB6hugsZjxqK5cg7lOsTAlo0MSBkcS95X_Mo49Ibn9WHVX9fKdUAGZSKwkirrcfP02QvDK0CjNqRRPpFs740_7h7NfIOxQUeW_v4fVwMNbK3MrpgYVPVr1-MfkVAZGgYq9kCYJUKS1etrHDdpPa0CI/Udc68vPMTDWk8KtQpGXEBvEO_Aoc_3Ss/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">became a Bloomberg Opinion columnist</a>.) So, arguably, <em>I </em>was responsible for a previous illegal offering of forward contracts on private startup stocks. </p> <p style="margin: 16px 0;">And then last week, having learnednothing from this history, I went and praised the 2025 version. I suppose there are three possibilities:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Republic’s version is just as illegal as Sand Hill’s. “Republic CEO Kendrick Nguyen said he’s confident in the tokens’ legality, but added that it’s possible regulators might take a different view,” a pleasing bit of epistemic humility from a crypto CEO.</li> <li style="margin-bottom: 5px;">Republic’s version is legal, because it has done a better job of <em>structuring </em>these tokens than Sand Hill did. This is my view, both for substantive reasons (notes are not swaps, etc.) and because the crypto industry has done a lot of maturing in the last decade. In 2015, the people building crypto platforms were often software developers who didn’t know anything about US securities laws and assumed that, because they were messing around in the niche world of cryptocurrency, those laws were not relevant to them. In 2025, sure, there is a lot of <em>philosophical </em>resistance to securities law, but everyone is <em>aware </em>of it. Crypto is a multitrillion-dollar industry, it has lobbyists, it gets politicians elected, it writes laws, it has lawyers: If you are building a crypto project to trade stocks in the US, <em>of course </em>you will work with serious lawyers to structure it in a way that at least arguably works.</li> <li style="margin-bottom: 5px;">Republic’s version is legal, because in the last six months crypto regulation has … de-matured? … and now you can do whatever you want. In the Trump administration, the <a href="https://links.message.bloomberg.com/s/c/Z6qoQGMhE_avmNvM0UAYP4f5nGZVsZqpg9s2K4cQzatKP5ck8-Il4zoXcStuBWb5iCsfjLycOWprSiIrAPRK06-hZyYYIZooF6NH8gq5RJfA-2R0I4vEhONWW0LRPfPmVOFaUAgVb9hKI0vyzt8J327QcuO0qjtQUmTxBbpTAZ0NiGfe3TYUD94RfbW8lUfHf24z4wOBM8DEK2ovEcQJ79BkYAiToSy6VM5uMNLoYQ89laEP_06ceRCJNKxNhkygmd9nzhrrVLyiZX4oCqcElaKR0Hmv02IwQFrwLJT8BnPi6GwO-OKsJaV4J1-onluZtYPvo7iMivTifnPzlkPw2UHxbjvL9iQ90SzIWcVz7JR1ODJrFROh5WQt9zo/oblw3RDpUtnfohDoS623iMw088-yPXeg/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> SEC</a> has <a href="https://links.message.bloomberg.com/s/c/NkB-Zt6yhUmXx8sH7EKd2uS7FF1VS0si5LI1ur7P2-tacaMS9e6CxXpIOpexHFc0EbPqjZXSfoxtT4iQKJtFmmZpavlvbRCHFbLKVdlrJpLEpHPtqYBUK9hcP1DLctmWGXMHE68xD3vCCPk7zh4kolw6zJvOlfUso3P8mfhY0-Po3xTLWglwrURSrOeyfGGUqKWHAd_vgT4pvXM-VAM5cJk-XJGlYeUKZjwr9c9iAG4Prof2QyY-Qg8MUq77SxdgIElk8Pr_JApaIovvI3epXMsY0d-8JajvJtgiFN665USzd_LoCtVTjLnevyuAMGF0HCpFBEDJ87zOyOohmFocg4j3-ygEYoJ2pQH2xY3ixBkwIA5nkTlkQDxXVYQ/igxX612jnJ7d-Cb4DLM8oQ221kg1yx_W/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> signaled</a> that it will take a much more limited view of what securities laws apply to crypto. I don’t know that <em>wrapping stock forward contracts in crypto tokens </em>will be exempt from securities laws — it sounds pretty security-like? — but I don’t know that it won’t be, either. A lot of what I read about “<a href="https://links.message.bloomberg.com/s/c/fUleWTZ0B7TYTDot9I5JZcyAbERUzQJ59L5cX8tErnthTN_b6rd2h5y587bxH65fmc9n_wp31E95e_ox1ShWkLneD4kV6bcGWa2yV4aSkFRQAaXDMgQJYGqwV2377Y6n2K8C5jfIlQffyQcIySNNEaObhOunQNTmzTlbD1u9bSiewAas6VgZ4e1cwQfAkq-7nYQerxCpl5Bxfv3awln9oS1SPhYheYCyfNbyx9ErrdMeeQsmdDadJWmcoCPDWtpp1lIVlnbitajnE4zo1DbsayCrTKKgPi4PhzQPRJ6cN35WLwOywTi7F2ZJ8zQw91fn_h2bNCkk9mLEowNrKSqwK6V97xrJ_zHqAmt-zzssE1TnnIIADURIihWIZfo/x9IyaimDlyawEuY9XQd9DfGEdkWQQPn7/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">tokenization</a>” these days does seem to have the form “if we call it a token then we don’t have to follow securities laws.” In 2015, it was obvious (to me!) that “just because you mumble the word ‘blockchain’ doesn't make otherwise illegal things legal.” In 2025, things are less clear.</li> </ol> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">AI wars</h2> </td> </tr> </table> <p style="margin: 16px 0;">I don’t understand how anyone who works in artificial intelligence getsany work done. Every story about AI now is about researchers going to MetaPlatforms Inc. for $100 million paydays, or starting their own firms with billions of dollars of venture capital. If I was an AI researcher, I would have a hard timing coming into work and training my model, because I’d be too busy shopping online for yachts. I know, I know, I know, the AI researchers have vast reservoirs of intrinsic motivation that I cannot begin to imagine (they just love AI so much), but still. It must be hard for their bosses to keep them focused. <a href="https://links.message.bloomberg.com/s/c/lms4Ij3DDdd7SwYQUzHP6xdn-8PCyVIQIwXyGZ__9pFrdVOQ_5mm1yWXwcqR6tqLUO6uOHS9boRy4gC1q8Dm5rCjWDsEuzAGJskzo2PpPCUpKoCva-pir7_Ctf8-iNJi0kRD6zJMXT0xwGMl88RZY6It7Sq0ORKOnAzV-xmB5iFSXmXfGQW8haEHpewN8NNodta1YqsmQt40g--MeXLOtCDEVwCsHOIHvkCZH1smfD95quDdr3pfQ4WuMoIx_NcHBeQ8E--yUfGv8kxuQfuGTjgQYUBHJZ9SQr9ybI256-xx_1QSGn3Giav8VhS0-xCJ_mgZQJxtuDpLy2N7E9_LQKvBa35MkUdftxaLk9StSTdo4ZI9DcULgJilfkM/3fQEndbf0jWGs9ywY1dpNJNqRriJvdm7/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wired reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Mark Chen, the chief research officer at OpenAI, sent a forceful memo to staff on Saturday, promising to go head-to-head with the social giant in the war for top research talent. This memo, which was sent to OpenAI employees in Slack and obtained by WIRED, came days after Meta CEO Mark Zuckerberg successfully recruited four senior researchers from the company to join Meta’s superintelligence lab.</p> <p style="margin: 16px 0;">“I feel a visceral feeling right now, as if someone has broken into our home and stolen something,” Chen wrote. “Please trust that we haven’t been sitting idly by.”</p> </blockquote> <p style="margin: 16px 0;">Do you think that the employees have that visceral feeling? They run into him in the cafeteria and he’s like “I’m so mad that Meta keeps hiring away our researchers for nine-figure deals” and they have to mumble “yeah, we’re really mad too” between mouthfuls of caviar? Don’t get me wrong, I would be <em>furiously </em>angry if my coworkers kept getting nine-figure offers elsewhere <em>and I didn’t</em>. But I get the sense that every good researcher at OpenAI has found Mark Zuckerberg hiding in the bushes outside their house at least once, and their visceral feelings have to do with the planes they are going to buy with his money. Anyway:</p> <blockquote><p style="margin: 16px 0;">Chen promised that he was working with Sam Altman, the CEO of OpenAI, and other leaders at the company “around the clock to talk to those with offers,” adding, “we’ve been more proactive than ever before, we’re recalibrating comp, and we’re scoping out creative ways to recognize and reward top talent.”</p></blockquote> <p style="margin: 16px 0;">I don’t know, man, Mark Zuckerberg has found the least creative imaginable way to recognize and reward top talent (give them $100 million), and it sounds pretty good to me. </p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;">Meta seeks $29bn from private credit giants to fund <a href="https://links.message.bloomberg.com/s/c/W9q_xHZWrQnDvjdlkAXEdhTthbq3lTI94KJvEtx_ovVkvqpVuurpBkyP1msNlInCeqEwCADQLcR6aK-zwwpwH3gt38_zhgB1Dt22gHy_hVlyGkZJuhIEcmuY3bw2eqwAFfcfGDciu5yTXN5J07-h7j-hm_6oldtlYDS_otxBf_llRshfti6Cr5hQ_DpqobIaepnAYzmHtoBtaMp40N3KIznEnmy2RE6mrfpqM2kUeAnKc6RPaawzWqmWhKT9wA8YTa0jMFP2VsuPTUvk7Yl-2nAseP64gP-j0ck4W7DidPk2GeVJjLCG5rrOa1-QRFsgzDQ4WrToACa3rjbFEky1fjteEmWB1GrMzstxX4rZwTfv6I3UBvPLaadbIps/JZYrnrvo1LUKPsuiEd9TleZ6FLkEDiss/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">AI data centres</a>. Canada <a href="https://links.message.bloomberg.com/s/c/jjg3g-DelMIosH5f4XCgBNaBcoDeyQ4E4cqIK9VVZKziMOci5LtmGVTQSvTGvuZm8Wio8Q79Zjbq8H8GiCa11NSX5QDiwwATqSny1BREUf3Dn82vAy6-XvF28_Y3d8gV9VqwnF7nvpFUPDCP0iwTVXOsQhqdTe3RSnBBKuR6XuqxI0XOxqcA-0Gq2OTzDN6q50Y8W8RjtMafyS7AibEvOJ4v1yiRmy7yJXQ9yS7ESDO9QmgLcU1meoC4dxbXgzSMixkKYnIGh9eLAJV29C22nnx2zrfabHHPYlgXYjXOoGeE6YkJjpnFwmy4i-bU8jl9p3TC4HTWM65ypLOzyPEUfKuC9F0fc5aQa9xaJe-iE5GWU8KRQlZvyQTsprw/yKjnkkBd-FqrpER6G3VTUCEU0yohaayW/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Drops Digital Tax</a> That Infuriated Trump to Restart Trade Talks. <a href="https://links.message.bloomberg.com/s/c/4FDih8wCdRyoTtR4Jz8tbYK9gXZNgNII30PClU42I00LU_I5C8Z89gT-3_j8yF8GeiDlTi-ultNe2SKbYLznVZiux7qeRw0J1diuwCxeuXVQHJt8JtxPnC46J57zZgSFwrHL9xxcOamHQxFKnZZWG5dGs-iyqx-BGOuaiK0uD-VEI_nyB1Nk2v53aQx46liJDv2oc1vAghTpqXiXLH4s7MMjNiLltJFXe3nr7rmkgsd1kqCDpcm1b8j0dhwn5XymrPdhsGHivf-6G_DoWXdJv6KFvWBFZshjz6kE8oxObCKspawIW7X6QIFdSfHjO6yatEC19ySmfulY-SPpc_oTu2qUGgUS3tz4SmSpNeOecRvQ6CfuOjtm2C5cnis/fQ1bTp_FoAY3dXifWXcUZtuorRI2tmVt/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Saks</a> Secures Financing and Plans to Make Debt Payment Monday. Klarna accelerates shift to <a href="https://links.message.bloomberg.com/s/c/mjYtbSP-pUtA0AVnZ40D8msVWz6IlCyz0Stdu_tuHwKEb4iAyLFpt9qCgF-LZBIVbxSiyvYLgI8Zw3izlP083ghBfA0iJ6hptPoy7G68FMAcyk6UZinLgT0SuQa287yHlDWSbGkV7qRNz4y5pDgr4ZZUoMI8ubBAqPLM-xEt8Et3bo7y5Ypabu0jbw4jH08lSGGP5qG6QDUkGmFzl-_qasJRgWpW5-Eq-nKFKb2owrewkYHAwSSY0v1_X40stPA7StVTfs_2toe8SLfNnaM7iAb-vTugBNaA5EbuHJY2F-DT4EAeiPogo5DUDyZR1wq0Nf_OmgaUNUpTHYzOdlF_P_zY8TikFf1tzHryAmyHEGEBlqmUOMiuOVnKnjw/1c8lVvSsjBucyGZbwvsRrVYG8_NoaEZg/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">digital bank</a> ahead of second IPO attempt. <a href="https://links.message.bloomberg.com/s/c/P9CMYbQ_x6UYsDpBVXXR-b5_FoFbtvB3RVQRT8NHOpInct_z0TyD8TToEf7HXG0nzQE06US8u6OhkdmZ7_gSEtq-5Wht_x87Pi0F4lc1yMEvGvOxOyvlShB4hkb6ZDrw71WKSohipI-L4_3hfFcnkid93KI0qWTAQc3J18hMXgSXpxBWQv3qAMV8W5pHpVCeDv85Cm5HAl2SRc4Ufa0CNR3Tf2GDwqUhqBneV6ifW4x14fCc0mYPiUqKjGQBB_jHaiTUVdA0J22H955OJQNVuroHZZggL_GzYZw4CaVKqbTeT-1v4PHjIH3K58i5X_C0HlEWLwK75ZlxdvkglIXnkUg1Nf8H-MbjiQ41y_C7uFKgxwfNTzTYq2fXpg0/HqkUXHWWWTfwf7xp8hCg2hxr9rJlLlW5/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> Musk Fumes</a> as Trump Tax Bill Cuts Electric Vehicle Credits. South Korea lifts 14-year ban on ‘kimchi bonds’ after dollar-backed <a href="https://links.message.bloomberg.com/s/c/4phnVlYx1O9P677byRq_nXhoLDNPfauqMpNJprTlk331tltstY43jRiHZ8ZYRCS9QJ85sZztIpz_xvhkmuH6dKSdIgsIvElH7p9zKhZnWWKJkb7sChTexRsQ-e5sSdCGmOUFyElFCT3YcxsgLvP3Lu_vzXvhe0eM-40nHYJMJNLLq6AjRGtcfs24AlMheLD32PJ3XX9M5BnCj3t5OjfCrj6wfSv6EPoinINO67ProTs70oCqFqxzb8ZANqxtiJbfY31W_RqpfWvlt040MNjA2K9eJG2qEzmHzVweGv33dPVniWPzYc8aH6mmcWsek_aQ1uAvjagcP_1QEojHJMHCJPa8EpnBDE0h6zdOi55LHv-HYBrjnoqHPXvShY4/OWwkM5lV9eVawuPTSIhshJ4QGuuMJ52e/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stablecoins frenzy</a>. “We <a href="https://links.message.bloomberg.com/s/c/fenmnWQjREwiWh18uR79MeyaAXLgroPCdgtu8z4dIHXiCndNK1IGDAVNMOAEkMYpeiPQ82aVWJYCiiGcTMH0shxIBJDmKhWySfUtgltTi4vy_LwoRTC1wBAOVOjw0aO9Ffyc54KKPl2aZFiJI3_DXQFCSGq7X9KlCc4v7R1sRI1PXiofs2eDifzAp9KirDJJGsoy3PpPUxOtr7wbLfaqC-026k3zFdUyw3GKR7TJJ96-dxg4pc6iYpR-ZLvp-hkU2Tm_ICHtogdt_RQ_gfZ8mR_KGin8os5XY6W8TNOFGinZ_8WNmLciEkJBG7URX07Ttg_Xbt6XJrjkVlDvf-xGCGMa-hB3RANH6X3ghqgOb4zBGwxVqj0r-p32u8U/hsfrvlmJcMdE2SxdkFTDX3oZOqGoOgZm/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">take fitness fashion seriously</a> out here in the Hamptons.” The ‘<a href="https://links.message.bloomberg.com/s/c/gu41XtKtX4kDuUB_gzKTEOQWjccoppO8aOWBUY7p2PiMnFJwzSZiIOED9gYBJLPUO2EOEjnN56u4Usb-W1epGhzmS757YSVF0BUf-UQTIBc_ojzzMujIHRX0w7QjEvg0OUFM7ylaweUAI03OucF7ffHnfrlffB9qqIXyXyKmk-TS9RSdeFRF-oUS69SlbReJFXvt-BVjufze6OEhqUi-s-IRbTZ40DFQ4vVDXronabXXk-YRLSmNCV5sNOnayCdNwQ_O51abrgtRgccCFNYVqMsfl7i3kCPe8yRhBlPZ7M95yLyfcJYeoqPCRKMg3kJBIpIdiyUtgo-z7slyz0e93YYta0iE6EwP-k1QAa4VIrg7i325JZLFwu-67RE/oIV90z0PRK8KeANWsXU9OKzuD_tat8Zc/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Enhanced Games</a>’ Is the Ultimate MAGA Athletic Competition.</p> <p style="margin: 16px 0;"><span><em>If you'd like to get Money Stuff in handy email form, right in your inbox, please <a href="https://links.message.bloomberg.com/s/c/1bcA2WizzWLRT48pbmwCRxCb3fAsYlyCJ5Rnx4jHPsRUtUg7lg6RqOK2NnVbzxQSjNt02b82Cn60ImS1-CypLG0QaX6K_v80KUAGH-FoiS4ILi8Qv0ut2-aZRJa2gKXpEbbp4-jlICm9xZ9Hqv44SviNrcJO7j-7Gk-LTi2I_h2epveFlU8ZHnnGIMdYGelm6YZgO57ks2ItDUdqSOCKMZDHUfu0dR044mf_HVfDfXzp1421lJPrR728z7BPrPyIfH4M8Tf90F18mBbsRYy8I8UXzl7zXtamaZn11ni-ebhyzQW5z8YyJjwcD97C1SEtmUKwmqV3I8Fq5bkLzVtsfwVUugqBPDtoEmBLVHvSkpuFszE2Vgj6Xs4N8mo/KRuy9puVrqU0WyYI4QCutjMWepsbtPju/10" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">subscribe at this link</a>. Or you can subscribe to Money Stuff and other great Bloomberg newsletters <a href="https://links.message.bloomberg.com/s/c/QpJCZnRJoXRHa5c1SqJcMaFdhktJMofuQiDMFvzhK1m2kPdbb9qbgF3M2WMaZh0Zt6oaNybSCsBYO23PVjHmKaqV9fsB958YgWalsewgH30C9mz-QCyK2Ov4Smp7Sbs2p8-RzxQShfcd4_rYklTAagMXTlh0lJM5XfBp1dT8CgmUSyXMUCGNWA-_vg9bXPna_nODncHflbU7osKxs0LfaTF1fwNO5R9iMkiodZercXid2ya8b2WpmfCmQZMIPYudfRquQdEZGts_kFBcPu7w5PUcFjGLcyDEkZPgN_RIfevzUxnYhF1EkKgz9njF_5QVVBnH6D0DFlZ-A0OQGqJGmqoLOegtVMCk0rESiMy1-ZQ-LOEmlrV-DQwfWCw/bZSMx6f_-j3ukjt4lluvtkqgkJrBLv6y/10" itemprop="StoryLink" itemscope="itemscope" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">here</a>. Thanks!</em></span></p> <div id="footnote-1" style="font-style: italic;"> <p style="margin: 16px 0;">[1] Bloomberg’s Liam Vaughn <a href="https://links.message.bloomberg.com/s/c/a0zKC3jBaQzrY17w5lU5icU0Gyq8cPKdIzGX4Dvu15oWf6a7o8YdFA18nKq17HTE5aFvVrG7KtsbiXAwO8tWdArcsDE_OJKfUWFJLL7YV43zelkE1muSh0xY_DRlgmTirvpVcYGqzbOAIvqsPilKQq7yJuk1D_j_P_bPlEgBZSZ4tUu6SsnzA0unit2fWqj5jWsy1ZEJECYDnw_P9ax7AyhtIfnsuBmpoOS85RU0FP_YNUrILiIO9A6V75eIc-DK3_mHUQY2w2R7xHqOwGyKQh00bm1kBUWPQ-OgL61KhobkQLtaV7-ff2S6yRzA0wCak8pqrnG7H7y993mNF5RWrnSrt4yp8tbSAW50xkBrt28qy9rUxomwiORmbek/SHxCF5XWpsbQgwF6Wx9aPw4bTYjJlYn8/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> explained it this month</a> as “an area of Edgar where companies could upload test filings to check for formatting errors ahead of publication. Some used fake figures, but many didn’t.” Best practices would be to use fake numbers, but you can understand why not everyone would do that. </p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Vaughn <a href="https://links.message.bloomberg.com/s/c/WoUDVurflWzD3ZXUQTUXL6m95ahJDy_8WRS1tLiG8RUJ7XIo2W6GtSfM5a8-tqal4SiEinc1te-Lc4j40lCyQCNFdReAs3LOhMKPZMzB0PHjzIe1kFicqmWhz-tnt8ykdQ-WbV6khpR2iKG2ZJJim7tPvAK-9JPHAL46jgd8cuzlhge64vKOjpjg3TTjSiMTeVB6hGEApcfOZd4bBR4lwhcZzPvj_q6s5GgEZcL3j1cxf71VtlqDaajlD9hYfOLh6SJGFqCJjUOQbJG0exndIqMqC45cDcKyXvTdN_38r2B66wylJYUoWobGLj0RlAs5JJvHqgcYo2sp8MW-JtbYvBJXl6kQQnTto87i4S3ikRCvhkNU4o_q7IBTkwc/bXIpP6LN2YsKSAWMu2a0jcghGGEQPW5r/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> makes a convincing case</a> that the SEC mostly got the wrong people. </p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Disclosure, where I used to work, though not on any of the cool famous desks.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] A security-based swap is <a href="https://links.message.bloomberg.com/s/c/IVxTIaWLJ6hFLyEv4owkGtKB32f5jh5oXEweVGxIfBx1nCk27UQVgzzCoJPncioPxk8gObyGyToX4qeSZgP3J2ffFBOPo5NRz1DaxW4_0jT6FSYfIP5OuCnpJXSZ2zZsctVgMaNceU2ldiasaNI2uQY7woCEs15qtBgznAzG28a3aODCQQ5ra5UBOoXa0RZSRN7kmj7vwNNlGVPKnY5MCLgTXAHUl5AwvXHuvSu4DpBJhCbDj0eXt7iv0EqbSBgjjJhGSRGuIF7fmjmXGhy5Inbi5JhVTwYSkyOcqlyzW0I0e0B4zxVw5EVPMwlSxvQkMMHjHJb751-Z-7y_WtppxvGfTFbDeBXxXjZxlJQQweMrrYl88eIo9PneazM/n6YY_q4-u9q0DIwmkBig6gfRsWmquGRT/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">defined by statute</a> as “a swap … based on … a single security or loan, including any interest therein or on the value thereof,” and a <a href="https://links.message.bloomberg.com/s/c/EtWHuywXiicJGD7c1oz4IKE-yWLpYgutQ7adH4k5MU5rTfQu7OrguMkTHaGHhwu-KQo7Peq1CgRrvbb5CZ7jw40Kp5FdVMrwkGAWgH6vu34rnqLFVidgmCXg6VUEJPY-X3VDnCfrsWt2GTRDXo3ddZN29R18rDJP1TqP0Qlg6cV-B0iNa0T1b1Qhls2k50oZXHmhAK4DKV6e53XDrYZYUY1wIYk5ayoHquxp__pda4QYjDadMT9v7omQvMNSneuYvEmknlMvlazzibXsud6U1bW_zOkZvnzPZUpZ0EO3sNtxbg-3lmhLVU5MM4pMOQyRAHTm7ietYCz4v-_3xtMIlEHgrn1i5CDkLLr_vrf69n8YLFj1oHzjhGQJJtQ/ITMXd_5Ac9sqqyBx3lWvDLoydCIs_inM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">swap is defined</a> to include, among other things, “any agreement, contract, or transaction … that provides for any purchase, sale, payment, or delivery (other than a dividend on an equity security) that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence” or “that provides on an executory basis for the exchange, on a fixed or contingent basis, of 1 or more payments based on the value or level of 1 or more interest or other rates, currencies, commodities, securities, instruments of indebtedness, indices, quantitative measures, or other financial or economic interests or property of any kind, or any interest therein or based on the value thereof, and that transfers, as between the parties to the transaction, in whole or in part, the financial risk associated with a future change in any such value or level without also conveying a current or future direct or indirect ownership interest in an asset.”</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] The full definition is more complicated (see <a href="https://links.message.bloomberg.com/s/c/nkOGehLjDsh9TEgnnfw1d2cIp-rWTkCElHsKMSHsTvyyJgYpum3QxGQR04CtiX7M0Bw-K9Fp2NZiSUkwMOjdEHspC5OItRzmFoIyJaSzVHcZzoQ0AAP_cevf9wXFkeU2nUmxj_4Q2rPm27COfdnl3UXbKK09hstBo-PNmOTbJVmrAjl5l2dpBWl2VaGS-nbO5id4jligOu2YhnVbJM4aJeoKUxlButv_1PIfHF1xQ6MA0Ie5VO-OCjPAaKeTJmHlBTAv86feq64cR5p4qu17agYyu6fgxbzvENouqgcw18ku211QjGWil_bSYsfyLvOiNMom_meYZj9I98SZKcyFn1z1W-y_tlbmh3eFkRa_Wi7jJKc7dDYBTJmtpcg/WCOtKZ4_lsM1AktLjo_XtZ0r0n0GDxui/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">subsection (18) here</a>), and for an individual the requirement is generally $10 million.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] See Securities Act <a href="https://links.message.bloomberg.com/s/c/T51UqsrsoLkuWjqJkyjj5UUKi22PJzbdboJGt-xPCCvHytRo8XL_yVO7G4ZjOVK6jyy5-dH0_vbEoWoUAw8KQCBAf8MFpUSaSG5FBQM20KVOirV9RNS0G-pX8iso_pcgV2Ei3U-j5QdPuIOq7MsnxGsS_yXddeUEP2bu5HRl3hDnNH4W9GrXYg8ho4qleOFLgi6vjFjaYhkdNErH2IoZtkodzOPqypJQUaZutfztpo9wjrsbRy_KVqXI2TJaj9kzUpRfs4kXlORDZFh2SXB2mF4YO3xsolomzxogETHWH-BLrWxnOzsNhXfDJZCXktkFxlvAJQLZLxXglzMrwsQ57i0lRb22qPnt39_wYAfHCzE1U91YHEcL3irbbVc/hnORrdacB6Qo3z5x59IuSzjamKc7cO2y/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">section 5(e)</a> and Exchange Act <a href="https://links.message.bloomberg.com/s/c/prVwsYVM4zww3tEiFSOZ-FayAJDdOyDFChz8xVhYH1UuohuG4wROd2VWpj-cEUOvvugkhGb-FZp8S7yxk5pD5W3LrV9wejV4gRMEl9l1geknsiQd4zQ72TuHkRfT21keEHvlNuXUF9dNephwp7rit4hLjyPHT1AFqIhc-h-PBRx5HXfa4yjoA_89PmkCpsMZ0mShKG0bcUNUw_ti_-_d8pD1217LOnCdbRHQouefhFIH_n4nakXrZ5ambo4vbVaPMcD8TrVVGki-oqw3J--scIphAZ0zC8A0WnIRxxy9_pR1N06iTCdwMVxW2fEg4wszzRPXU0VdiGL89KBPwkiU8Kz89g3CP64yonUJFLD05rz7QRPBxadUZzj_4iw/HdqCCCxGAeheZYXERVtpPnZQe0YV3tYz/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">section 6(l)</a>.</p> </div> <div id="footnote-7" style="font-style: italic;"> <p style="margin: 16px 0;">[7] To be clear, they are still *securities*, and subject to securities law, so they need to be either registered with the SEC or exempt from registration. Republic thinks they fit under <a href="https://links.message.bloomberg.com/s/c/Kz5jiymb5xdX_f2n_-ALPs-aqAsLXOt806DPghmQ3a7Ku7ykHPlHsmpPAjymLwPvpr8gVVRwpaiByNcy5wOMEtrF3xSVi4jtmHmZKgmw0oJj08CeE5ArmLvYfn4RpfYfqNlZaomGNJUBJ7v1uHOXOo-rtIVIEJtQfcH2f896Aof9mgo3EfSDAbGZhVODHbAu4UyoXVbz8HVuduCGqd1TIxQ9L39MgUsceIgSj5pj17jWGlHMxWJs4D7DNaeCH33peg9DgBIWZYw5vcknDpwMnu24gw_LqAgUH5dQnWs_7xdL8VD5Od-Oyofa8huAIMQK1j75FbpO4lYlq6kCxhHWSF8OgqUVvVT7YlPi-mKmUPsEObLMh1AXlCwABAo/YKQ0Ua0MfX4qGzA9zFWvnM5brUVOwOTM/10" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the Regulation Crowdfunding exemption</a>.</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="width: 100%; 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  7. Canadian Fintech: Conquest Raises $110m 💰

    Mon, 30 Jun 2025 12:32:41 -0000

    <html style="scrollbar-width: thin;scrollbar-color: rgb(219,219,219)rgb(255,255,255);"><head><meta charset="utf-8"><title>Canadian Fintech: Conquest Raises $110m &#128176;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { .typography, .typography.editor { /* Disable offset on mobile/tablet */ } .typography .captioned-image-container figure:has(> a.image2-align-left), .typography.editor .captioned-image-container figure:has(> a.image2-align-left), .typography .captioned-image-container figure:has(> a.image2-align-right), .typography.editor .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } .typography .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography .captioned-image-container figure:has(> a.image2-align-right.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; 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} }</style></head><body class="email-body" style="font-kerning: auto;--image-offset-margin: -117px;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwNjMwMTIzMDU2LjMuZjc2ZmJiMDkwN2NiMzhkNkBtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOjE2NzE3MjE2OSwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3NTEyODY3NTQsImV4cCI6MTc1Mzg3ODc1NCwiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.Fq9fkg5kQiOZF_FO134_fA7PgVL0Vlg4yILxDlGNB8c" alt="" width="1" height="1" border="0" style="height:1px !important;width:1px !important;border-width:0 !important;margin-top:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-left:0 !important;padding-top:0 !important;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !important;"/><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">Digital Services Tax is dead. Canada Life backs ClearEstate.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; 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Canada Life backs ClearEstate.</h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;"><a class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;color: rgb(54,55,55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-secondary-ls1g8s line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;font-size: 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Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>If you are a </span><a href="https://substack.com/redirect/0bd6962d-d2ba-4c0b-bffb-dfe659dd6fcc?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">paid subscriber</a><span>, you also get access to:</span></p><ol style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The </span><a href="https://substack.com/redirect/32d468fa-3dd7-49f9-9da4-2fe5f8f5c2d7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech Database</a><span> - a detailed list of every fintech acquisition in Canada.</span></p></li><li style="margin: 8px 0 0 32px;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Discounts to the largest </span><a href="https://substack.com/redirect/88a763e9-0d14-4a3f-8f64-124f49abc44e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">fintech conferences</a><span> in Canada.</span></p></li></ol><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? 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Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Conquest Planning, </strong><span>a Winnipeg based financial planning software, </span><a href="https://substack.com/redirect/d6cc3949-9510-4ab3-8a13-dc9835f8da96?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $110m from </span><strong>Goldman Sachs</strong><span>, </span><strong>Citi</strong><span> </span><strong>Ventures</strong><span>, </span><strong>Canapi</strong><span> </span><strong>Ventures</strong><span> and </span><strong>BDC</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">Over 60% of the Canadian financial advisor market uses their service.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Botpress</strong><span>, a Quebec City based devops tool for building AI agents </span><a href="https://substack.com/redirect/f3c10950-f391-49ff-ae9b-b695478c7864?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> USD $25m from </span><strong>Framework</strong><span>, </span><strong>Inovia</strong><span>, and </span><strong>Deloitte</strong><span> </span><strong>Ventures</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Momentum</strong><span> </span><strong>Financial</strong><span>, the parent company of subprime lender </span><strong>Money Mart</strong><span> </span><a href="https://substack.com/redirect/e4ea0923-c385-4427-ab73-62f4413d306f?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">renewed</a><span> a $658m credit facility with </span><strong>Ares</strong><span> </span><strong>Management</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Canada Life</strong><span>,a Winnipeg based wealth management firm </span><a href="https://substack.com/redirect/1509f0a4-e365-459e-947c-68b9a2e2f777?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">invested</a><span> in </span><strong>ClearEstate</strong><span>, an estate planning and settlement service.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Last year,</span><strong> IGM Financial</strong><span> also made an </span><a href="https://substack.com/redirect/1509f0a4-e365-459e-947c-68b9a2e2f777?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">investment</a><span> in ClearEstate.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Both IGM and Canada Life are owned by </span><strong>Power Corp</strong><span>, who is also an investor in ClearEstate through their VC arm, </span><strong>Portage</strong><span>.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Valsoft</strong><span>, a Montreal based private equity firm </span><a href="https://substack.com/redirect/3f49faf6-1918-4d44-82c7-7f2bcb8d1ce3?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> </span><strong>Alessa</strong><span>, an Ottawa based AML and fraud prevention software.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>CentML</strong><span>, a Toronto based AI firm was </span><a href="https://substack.com/redirect/e9729927-1eca-4fe9-89c6-554f9ec6e4cd?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>Nvidia</strong><span>.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Stablecorp</strong><span>, the issuer of </span><strong>QCAD</strong><span>, a Canadian dollar stablecoin </span><a href="https://substack.com/redirect/1aba464b-7235-4154-8299-09e9ae2bddca?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">filed</a><span> with the </span><strong>OSC</strong><span> to have it officially recognized under Canada&#8217;s interim crypto rules.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Mahalo</strong><span>, a mobile app to accept tips, donations, and other digital payments </span><a href="https://substack.com/redirect/e5cb3bf8-c9e0-480d-8b0d-ca546a0bd6d4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span> pilots across Canada.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>RBC</strong><span> Direct Investing removed fees for account maintenance and buying / selling ETFs.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">This is a great example of competition bringing down prices. Canadian fintechs have offered commission free trading since 2019.</p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#9878;&#65039; Policy</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>OSFI</strong><span> is working on </span><a href="https://substack.com/redirect/993762c5-a67a-41d5-9dc1-a8a16c784923?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">legislation</a><span> that will clarify how stablecoin issuances will look in Canada.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;">The Digital Services Tax has been killed.</p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">This was going to be a 3% levy on gross revenue on giant tech platforms (Google, Uber, Airbnb, etc.)</p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">It was a controversial tax for two main reasons: 1) it&#8217;s very weird for taxes to be calculated on gross revenue instead of profit and 2) it disproportionately impacted US firms at a time of heightened trade tensions.</p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129485;People</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Andrew Moor the CEO of </span><strong>Equitable Bank</strong><span> passed away. Andrew was a huge figure in the Canadian fintech industry.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Francis Davidson, the CEO &amp; Founder of </span><strong>Sonder</strong><span>, a Montreal founded short term rental platform has stepped down.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/1a689d33-500c-481b-afd2-6386c93ccf42?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/f6d91a6c-eaf5-4fa9-bb3f-4b32f8ec3d9e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Want to get in front of 12,903 fintech decision makers? Reply to this email to become a sponsor.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Have a great week! See ya &#128075;</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;"><span>-</span><a href="https://substack.com/redirect/2a47706a-8ee9-4ea1-9683-0a3c11876759?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Tal Schwartz</a></p></div></div><div class="container-border" style="margin: 32px 0 0;width: 100%;box-sizing: border-box;border-top: 1px solid #e6e6e6;font-size: 16px;line-height: 26px;"></div><div class="post-cta typography markup" style="--image-offset-margin: -117px;font-family: 'SF Pro Display', -apple-system, system-ui, BlinkMacSystemFont, 'Inter', 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;text-align: initial;word-break: break-word;margin-bottom: 32px;margin: 32px 0;font-size: 16px;line-height: 26px;"><p style="color: rgb(54,55,55);margin: 0 auto 20px;text-align: center;width: 90%;line-height: 26px;font-size: 16px;margin-top: 0;"><span class="pencraft pc-reset reset-IxiVJZ" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">You're currently a free subscriber to <a href="https://substack.com/redirect/13e41188-d6ed-456e-8751-ad02bbc032c2?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech</a>. 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  8. Money Stuff: The Podcast: Catastrophe in the Name

    Fri, 27 Jun 2025 16:01:40 -0000

    <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xmlns="http://www.w3.org/1999/xhtml" style="width: 100%;"> <head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="initial-scale=1"/> <title>Money Stuff</title> <style>body{width:100%;-webkit-font-smoothing:antialiased;font-family:Georgia,serif;font-size:16px;line-height:24px;margin:0;padding:0}img{max-width:550px}@media only screen and (max-width:480px){.lihide{display:none!important}.lishow{display:block!important;width:auto!important;overflow:visible!important;float:none!important;max-height:inherit!important;line-height:inherit!important}.email-ssl-image{width:100%!important;height:auto!important}.body-image img{width:100%!important}.logo-image{width:100%!important}}</style></head> <body style="width: 100%; -webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; line-height: 24px; margin: 0; padding: 0;"> <div style="color:transparent;visibility:hidden;opacity:0;font-size:0px;border:0;max-height:1px;width:1px;margin:0px;padding:0px;border-width:0px!important;display:none!important;line-height:0px!important;"><img border="0" width="1" height="1" src="https://post.spmailtechnolo.com/q/_Y9EeWofQbAXkE3-fLxMHg~~/AARGbBA~/y-LRCANyxryv4ESKS-OBUkncTHSPe1dtOfsTvd4FGeccODQXY2h3dlArcH9ioxhxNrCoHPpti-F9CH-jZ70a_6LLSXIt6yYhkrF0NaseLkE~" alt=""/></div> <span style="color:transparent;visibility:hidden;display:none;opacity:0;height:0;width:0;font-size:0;"></span><img src="https://links.message.bloomberg.com/s/eo/_5KJ7rK7EdI7YcmnbzUKspp2sVTTzsLTFgwJ9B7sUZ4ykRfsegoUpVPmHuZGP0qxMpP6348UtNb0PpvGVkoqF3pXiAhubPmrf5cgJPD6HBq6NjEAJwhTAtteGd52YGo2jDMkht-ym0BcyAl3dPZ-Par74SoWe73mUmqgxLE6LB3uu30Ql-RutHG7qAIJFvMSYKPNws1u7dPAkXNgVhlzgTaf_m6oKRIHkFW4/t8BXYyMJ7nWj5s93q-P1a8QcFDg8zl--/10" style="border:0;width:1px;height:1px;border-width:0px!important;display:none!important;line-height:0!important;" width="1" height="1"/> <table id="wrapper" width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="-webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; max-width: 550px; width: 100% !important;"> <!--[if mso]><center> <tr><td> <table border="0" cellpadding="0" cellspacing="0" width="550"><![endif]--> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <div style="display: none; max-height: 0px; overflow: hidden;"> This week’s episode of the Money Stuff podcast is out now, in which Katie and I discuss all of human existence being sucked into ETFs, crash </div> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 15px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 0px 10px;"> </td> </tr> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 5px;"> <a href="https://links.message.bloomberg.com/s/c/kfh1MJciEHLiv9snd_ziSpVx2DF4uo9S3fM70ZOZul77tyBcfqdLRs39vHyuKkUNNKU09pKMhf3EqTXMfb0OnP_j09OEQ2ZSYbbxqtBBvTo-QCpKdZ41pBugFgPDsDIfSt-siWLut2-UoBYEEBKoqq3SWo4FlaEub76ftTcgJbQ_sh_tu0VpkzE5UyWg7m8-BP1BAWxTgihK1COkOoN-rKGRPwLgr4N3FLViuGVCzO6veneSl585pfogdfL4z24H90XVXkU8kG9vfn4a2X0ZLUSJi16tDTqy7yiGbehkCmW7nAcY-iXY9RYJD8cweSkFE_geJf9nUKW0ho2LNzkVLmXBvdv_q6AYxNOrFpihXbU5de_G40toe7ahUg/Da_-GS-Too4EDtPPPmYYK3Jp3stLkwmf/10"> <!--[if mso]><table width="550"><tr><td><img alt="Bloomberg" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img class="logo-image" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" border="0" alt="Bloomberg" style="max-width: 550px; width: 530px; display: block;"/><!--[if mso]></div><![endif]--> </a> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 16px; line-height: 24px;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-family: Helvetica, Arial, sans-serif; letter-spacing: -1px; font-size: 26px; line-height: 28px; font-weight: normal; border-top-width: 1px; border-top-style: solid; padding-top: 12px; margin: 20px 0px 0px;">Podcast</h2> </td> </tr> </table><p style="font-family: Georgia, serif; margin: 16px 0;">This week’s episode of the Money Stuff podcast is out now, in which Katie and I discuss all of human existence being sucked into ETFs, crash insurance, autocallables, Boomer candy, volatility-targeted indexes, starting a trading desk from nothing, private-market volatility, private-credit relationships, the DMs we may or may not have gotten from Mark Zuckerberg, the AI job market, how to pay high earners, remembering the metaverse (?) and how long we would work for $100 million a year. You can listen to this week’s episode <a href="https://links.message.bloomberg.com/s/c/gPnmUFpW3-aMCcIB72H-6ArId9XoFTaz2E8aXWklSUFZHcgNax101G3YORj7Z4A6INm3ldL1K49XS2ZAqlHZQINBo35dzIKrbvyw1vSmbfk8MfuwZfXHtOws9dpG5bOl8tep-DqU2ErCorDKkG1txuG-krk08P_AyiAhlnHxWp8sEuhnAcxvJwxRp6SREUbS6Cf1UqKcqYW5mCHlUem5A-T2ONtSbM8kUuA-L5Lp8om2UjAFnOWPU5ULJ0_2gkzFOvlWI8hIRSWP5jj2prBjASVhPoNCJttvONror7ep2RlzMZmDfeFKZmugkQSkVtlD4-Y8no4tBCSw1-2GA4xtlv2HjIhMh3MLEQ24D02Fp5mJ4dI8aygRyJri5Q/Di3lYUSmaf9vwdee_TmtcByahPCYwzJD/10" itemprop="StoryLink" itemscope="itemscope" target="_blank">here</a>:</p><div class="body-image" style="margin: 20px 0px;"> <a href="https://links.message.bloomberg.com/s/c/IV82UDEnq-BtqT_rSJ2o8c3tQxcY_-hfsAe3Wn1RNkv5nb2L_hcUUdVStIGB038EhxYu4bhUE3edtmStpG3ce-R8N1mUt80dZO9lnKCXxLSYNPvVpiwxtO19vcWTxNGTtDjs-6GMRxglDBMDmljLyUm-iaf-nEFgw-WUkUuFjvp1upCh-ofrkjK0GfrzW7evqRe-q3UP3KSF8aek_Wujw61cAKb9dAJT6ryb2MVu_9hzwU0pdpmJ3VA4818u8tQBsxHcAtdmkwjUcLyruQ1bmvZdXqNLgPQTb5o-_QRZD29ChSm77VQwA3EhlWzLpuYTeBpURVmOmze2bUNRD4h8mt7GO-g0Dbyi1kLBNkJTvRdAK52JszkuxnfLLQ/QzpwfjjIb3YpPqemTyoBNp8WZKc_TlKd/10" target="_blank"><!--[if mso]><table width="550"><tr><td><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iO5FOhuWV0uI/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iO5FOhuWV0uI/v0/-1x-1.png" style="max-width: 550px; display: block; width: 530px; margin: auto;"/><!--[if mso]></div><![endif]--></a> </div><p style="font-family: Georgia, serif; margin: 16px 0;">You can get <a href="https://links.message.bloomberg.com/s/c/905IZpLQZ6ixjUtSvTEUjB8OQnb1AZJa7-MOXs35nv4YXRLUoaYK-Oc8BnqN42iaNxe65mUvk2GMmvN8HzucV1Y844gXXLYSpQHgC037-cGQ_ICu4Qw_OylFXZE1WP19dI5p-jjmU36_sGxMIpphhE6Ypcm81iJP55Vua1c7ZoDt8RsqedS3xHcJCQK2ZsVWqJEdAW7CBV1spb6w-tM1f_UsE1LkohXj4XdHw5_pDCQsIsojrDkeDOrIwqzq8HsEvNaoPW3WHgrDcxRqwPMljOQFG0yCB1S0nghm8fQ5rBYxasCxakAMXvLC-tEWmt8PZ1eGjuFfXhyOhr-9ZVzt_mKza3cde77RW6uWH7ZznTeOiIUNdK01Hgtc4g/uQYW2SR4m1hdJryueNzHaj93kMYuPKrd/10" itemprop="StoryLink" itemscope="itemscope" target="_blank">Money Stuff: The Podcast</a> at Apple, Spotify or wherever you get your podcasts. We’d love your feedback. You can email us at <a href="mailto:moneypod@bloomberg.net" target="_blank">moneypod@bloomberg.net</a>.</p> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt;mso-table-rspace: 0pt; padding: 20px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> <strong style="font-family: Helvetica, Arial, sans-serif;">Follow Us</strong> </td> </tr> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/xXMobXduNty3mNGu-62iI2qj0f2fNHrOCXuPYOs3XiheFPvJHv-rcKze67LHbWK2GX7SLPDc7dj9ZZO4uHOUReOZLlJuV8oaiigjDfkjuL2qLPhRx_BY7cvv8-wTybShskFah6vJAiiUxaJrcc1A4dnDYDIjesFouQwsrMHKhphWGtyHMRvu2anom3vgjqo9sRN68aeCVN5Mq45KpbqSkU9CZr7EGkaRHwkKKjR08K1EEJZvLROEMSG5XaI0GCgJL0b5eGIz1QxvZaB2gqHpHw2Ma4n2-8ZvJP7il0a9KPT5TVCWELuNMMdHXeFtHpZHlPzpxRA-XCqB7D-zkiwwCdEvDkrB_U1IH7yCtFrtDe1R9m_ypbrGwdfNbw/yp0w2arpjZKPxaRbyJGLkpAPM74n2FYy/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i7G4HOaCfw0A/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/bFbjoUHfRGJKzAMCalYxuUcGhZ9QQObPOGTk-foNW9U4WUCA_Kgs5xjBLE5MPpfeBGDuLzFulG9dU_IUEfdpyiEh-Pcdp0SdFZHBU4JBpToVVxmwUhAac5gB9uOtUPbzhYSS67M2N_q2pMBDAx8XT1kjVhiUPlzKWlXnC3IKmKjnyFMgzyNf6Xt_qnoeaUGE7e8jYYseXF8VdjEBqFhQVat7owuhTFQos_a5bT3scduG2sNGe0wpM9z_To7Gbe0h2REBsa2sg2HTFfGc5vwB3-H0paPLGcpy8rqaOVcC5Q1wITnZpAyGsfCWsclAer6Le16FMq0uHdKRqQuIjAFVx8n_QTN8grK8W5w5BLEZ0z9H8s1ri09vKa4qMA/WTbILPr8wnkn_o6Q_kVmo-SNxxnbZsiM/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iDRduxloBOSA/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/s/c/daZHMCmsS0rR1WcfG_JxJFu8IOUie5IBrIKU6-VuXcQ410u-w91oYdJm2T_ktlmYUb0TQwLoG-zDtmN5zfMUkDHtzA7d-3MZw_BiKRtvWpIBeKtQU8o1kXMo6uJYbLowW92cYuO1629-949DlQ1xpRppOMawh9YEG1OgWjDFzq3s2HnJ5o14g5LY-iNfEBWIV-_YOPSzeDV--pHXZRpS60MBfJLYSUDRvFdZEu49gzGeRlDOtkmtADbglnRm8MoH6h3OrbPy3-o3fHLHK170ZMF4T7MOA4E751psDk8nBsU3pYYVBU82iItW4Wb-z-sUMnIblMj_VhdcmO7B9BgJ_G0ataRNQNM1PPHsagFpiqmuQAnKAW6Ff_r8GA/ZuwcQzJ2dNYZHCYoFGye29Ptpj0doo_a/10"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i5QE5__h22bE/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 0px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="font-family: Helvetica, Arial, sans-serif; font-size: 14px; line-height: 150%;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> You received this message because you are subscribed to Bloomberg's Money Stuff newsletter. 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  9. CardsFTW #161: Chase Sapphire Changes

    Wed, 25 Jun 2025 16:16:08 -0000

    <!doctype html> <html> <head> <meta name="viewport" content="width=device-width"> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <!--[if mso]><xml><o:OfficeDocumentSettings><o:PixelsPerInch>96</o:PixelsPerInch><o:AllowPNG/></o:OfficeDocumentSettings></xml><![endif]--> <title>CardsFTW #161: Chase Sapphire Changes</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #15212a; color: rgba(0, 0, 0, 0.6); text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; 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font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Stablecoin Settlement, Lending Club Checking, and more</span> <!-- HEADER WITH FULL-WIDTH BACKGROUND --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="header" width="100%" style="mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #ffffff; width: 100%; border-spacing: 0; border-collapse: collapse;" bgcolor="#ffffff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; 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mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;" width="100%"> <tr> <td style="vertical-align: top; font-family: Georgia, serif; letter-spacing: -0.01em; font-size: 36px; line-height: 1.1; font-weight: 700; text-align: center; color: #000000;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/255ca27b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; text-align: center; line-height: 1.1em; overflow-wrap: anywhere; color: #000000;" target="_blank">CardsFTW #161: Chase Sapphire Changes</a> </td> </tr> </table> </td> </tr> <tr> <td class="post-excerpt-wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%; max-width: 600px;" width="100%" valign="top"> <p class="post-excerpt post-excerpt-no-feature-image post-excerpt-serif-sans" style="margin: 0; color: #15212A; line-height: 1.4em; text-align: center; padding-bottom: 32px; font-size: 20px; font-family: Georgia, serif;">Plus, Stablecoin Settlement, Lending Club Checking, and more</p> </td> </tr> <tr> <td width="100%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" align="center" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By Matthew Goldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">25 Jun 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/11425350?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #15212a; color: rgba(0, 0, 0, 0.6); overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> <tr class="post-meta post-meta-center view-online-mobile" style="color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/d11fb314?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; 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font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container title-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; border-spacing: 20px 0; width: 100%; max-width: 600px; background: #ffffff; background-color: #ffffff;" bgcolor="#ffffff"> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e0e7eb; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h1 id="nerds-unite" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Nerds Unite!</h1><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/fintechnerdcon2.jpeg" class="kg-image" alt loading="lazy" width="600" height="314" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Despite joking it&#39;s the only way I&#39;d go to Miami, I&#39;m excited to attend the first-ever Fintech NerdCon. Created by fintech nerds for fintech nerds, this is a place where &quot;I&#39;m in fintech&quot; is a given and doesn&#39;t immediately end the conversation. </p><table class="kg-card kg-button-card" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;" width="100%"><tbody><tr><td class="kg-card-spacing" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 0 0 1.5em 0;" valign="top"><table class="btn" border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; box-sizing: border-box; width: auto;" width="auto"><tbody><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; padding: 8px 20px 9px; background-color: #F9A60D; border-radius: 6px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/700d16de?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; box-sizing: border-box; color: #FFFFFF; cursor: pointer; display: inline-block; font-size: 15px; font-weight: 600; margin: 0; text-decoration: none;" target="_blank">Register for Fintech Nerdcon</a></td></tr></tbody></table></td></tr></tbody></table><h1 id="chase-changes-key-credit-cards" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Chase Changes Key Credit Cards</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">News broke just prior to publishing <a href="https://www.cardsftw.com/r/b21368f8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>CardsFTW #160</em></a> last week of Chase&#x2019;s <a href="https://www.cardsftw.com/r/e15548b0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>upcoming changes</u></a> to its flagship Chase Sapphire Reserve card. Since the brief mention in #160, I&#x2019;ve had some time to dig into the changes.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/chase-sapphire-reserve-2025.png" class="kg-image" alt="Chase Sapphire Reserve and CSR Business Cards" loading="lazy" width="589" height="297" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Now, in business flavor</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">First, a quick summary:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">The Chase Sapphire Reserve consumer credit card&#x2019;s annual fee is increasing to $795 per year, with a $195 fee for each authorized user.&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">A new Chase Sapphire Reserve for Business card is available (also for $795) with no fee for employee cards</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The $795 fee is eye-popping, but this isn&#x2019;t the most expensive card. The <a href="https://www.cardsftw.com/r/e8dddfff?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Atlas Card</u></a> is $1,000 annually; rumor has it American Express&#x2019;s <a href="https://www.cardsftw.com/r/4022fc43?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Centurion Card</u></a> is $5,000 per year, following a $10,000 initiation fee. The new annual fee is also a large increase since Chase Sapphire Reserve&#x2019;s introduction in 2016. The original fee was $450 ($602 in inflation-adjusted dollars), for a 32% increase.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">To make this fee increase more palatable, Chase is changing many of the rewards and benefits of the card.&#xA0;</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/06/CardsFTW--161-1.png" class="kg-image" alt loading="lazy" width="600" height="419" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In addition, the <a href="https://www.cardsftw.com/r/cda5fdcb?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>coupon book approach to cards</u></a> is alive and well. These &#x201C;annual benefits just for being a cardholder&#x201D; have been around for a long time (since at least 2010) and the updated CSR includes many of these:</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$300 annual travel credit (still the most flexible travel credit available)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$120 Global Entry, TSA Precheck or Nexus credit every four years</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$500 annual The Edit credit (Chase Travel&#x2019;s collection of over 1,100 hand-picked hotels and resorts)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">A new $300 annual dining credit and primetime reservations at Sapphire Reserve Exclusive Tables, available for booking on OpenTable</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$250 annual value through complimentary subscriptions to Apple TV+ and Apple Music</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$300 annual StubHub credit on concert and event tickets</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$120 annual Lyft in-app credits, up to $10 monthly, plus 5x total points on eligible Lyft rides</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$300 annually in monthly DoorDash promos and complimentary DashPass membership worth $120 annually</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">10x points on eligible Peloton equipment and accessory purchases and up to $120 in annual statement credits toward Peloton memberships</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Plus, there are even more benefits when you spend at least $75,000 per year (!):</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">IHG One Rewards Diamond Elite Status</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Southwest Airlines&#xAE; A-List Status and a $500 Southwest Airlines credit when booked through Chase Travel</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">$250 credit to The Shops at Chase</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Chase says this set of benefits is worth $2,700 per year, so, by that measure, $795 is a deal, right? Well, it all depends on what you purchase. For example, I could see myself taking advantage of:</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Annual travel credit</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Annual dining credit</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Lyft credits</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">DoorDash credits</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">These credits add up to $1,020, so I am technically &#x201C;coming out ahead.&#x201D; Your mileage may vary. I know my friends at <a href="https://www.cardsftw.com/r/1c24d841?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Kudos</u></a> are working on <a href="https://www.cardsftw.com/r/41d449c6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>trackers</u></a> around this to help&#xA0; you understand if the fee is worth it.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">However, you don&#x2019;t come to me for points-and-miles commentary, so let&#x2019;s talk about the business of this all.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">When the CSR was launched, it was a big deal for a few key reasons:</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Chase had poached a team from Amex to build a new product line to compete with the Amex Platinum, which at the time truly stood alone</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Chase spent more than $300 million launching the product, with an online and influencer focused campaign (we made something like $10MM at Bankrate from this launch) with a huge sign-up bonus (100,000 points)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">The CSR was the first card to specifically target a millennial demographic</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">At the time, millennials (the target demo) were much earlier in their careers and the discussion was &quot;Will millennials use credit cards? Will millennials catch up?&quot; I remember talking to many journalists about this topic. How many credit cards did <em>you</em> have nine years ago?</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Today, we know that the wealth of millennials has grown tremendously and the ongoing bifurcation of American income tiers (that is the hollowing out of the middle) means that there are increasingly more folks at the top end.</p><div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">For most Americans, a card of this level doesn&#x2019;t make sense. Chase offers a Sapphire Preferred card with a much lower fee and the extremely popular Chase Freedom Flex card with no annual fee. Much like American Express effectively price-segments its users across Platinum, Gold, and Green, Chase is approaching a similar strategy. There might even be too many people with CSRs: if the lounges are always full and you can&#x2019;t get access to the dining reservations then you will be dissatisfied.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">On the other hand, if you are a high-earning consumer in the prime of your adult life, then a card like this can make a lot of economic sense (not to mention the prestige factor, which is a part of the story).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I think Chase is very smart and that this card will both continue to do well and be profitable for the bank. Adding a business version is savvy and enables Chase to continue to grab market share with entrepreneurs (for whom that business card $795 will be tax deductible). (Please consult your financial advisers on this one.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">What&#x2019;s next? Well, Amex has already tipped its hand that changes are coming to Platinum. The race continues.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/06/platnum-art-cards.webp" class="kg-image" alt="Amex Platinum cards" loading="lazy" width="600" height="400" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Will Amex add new artists to their interesting card designs? I hope so (I have the top one).</span></div></div><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px;background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h1 id="stablecoin-settlement" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">Stablecoin Settlement</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Nothing is hotter in fintech than stablecoins. Well, maybe agentic payments. (I keep telling people to build an agentic stablecoin payment company and surf the hype wave.) Without getting bogged down in everything stablecoin, one piece of news caught my eye last week when Highnote <a href="https://www.cardsftw.com/r/0ea56d7a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> a partnership with BVNK to launch stablecoin funding.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Many people think of credit cards as real-time payments tools, but as we payment nerds like to point out: Visa and Mastercard are messaging networks; the actual money moves on other rails. When you swipe your Visa card at checkout, a message is sent to Visa and then to your bank to get an authorization. If that request is approved, and later a second message is sent to capture the funds, then Visa will instruct everyone to settle up. This happens via wire and ACH in the days following your transaction.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">For many modern card use cases there is a funding problem: if you run a corporate debit card program, for example, there must be funds sitting in a bank account prior to authorizing a transaction. If you were to use Highnote to run a debit card program, then you will need a settlement account at your partner bank with enough money in it at all times.&#xA0;</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfT_SBGUklGjYSLz-bWrQwgLVvQowL8NKUDP6pcucCUvyzWxgbRsENkUMOwOQ6IP8vHFiCLLQA0E1A88Xypj2gCU-0zYtOYVEq_b29EHQxlVeib3QdW0MQVXqVIlcwTroD65TxAcQ?key=q2DMs-nB7BJKmdqmIJv7QQ" class="kg-image" alt loading="lazy" width="600" height="205" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Let&#x2019;s say business grows rapidly; then you might needto have tens of millions of dollars in that account at any time. Given that funding that account via a wire or ACH can take time, and that funds don&#x2019;t move via these networks on the weekends and holidays, this can really tie up your funds. Leaving $20 million at a bank for a few extra days is worth about $6,500 at 4% APY. Compounded over the course of the year and we&#x2019;re talking about serious money ($~650,000 in this scenario).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">With stablecoin funding, you can submit a real-time payment request from your stablecoin wallet (which could be earning yield) that BVNK will transmit to your partner bank using a real-time payment push (FedNow or RTP), which allows you to keep your cards working and optimize your capital. This could be especially important when you have rapid growth periods or if you have to move money cross-border, where even a wire payment can take days (even domestic wires can take hours).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The average cardholder doesn&#x2019;t want (or need) to understand any of this, but as a payments nerd, I&#x2019;m excited to see the real-world use cases for stablecoins starting to impact capabilities.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;" width="100%"> <tbody> <tr> <td align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <a href="https://www.cardsftw.com/r/9d6964ce?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top:1px solid #e0e7eb;"></div><h1 id="lendingclub-checking" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">LendingClub Checking</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Since the Dodd-Frank Act passed and limited interchange income on large bank debit cards, we have seen the disappearance of free checking and rewards at large banks. Last week, LendingClub, which also owns a bank, <a href="https://www.cardsftw.com/r/5505ddf0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> a new checking account product with no fees, competitive rates, and rewards.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/manage-your-business.png" class="kg-image" alt="LendingClub Debit Card" loading="lazy" width="600" height="378" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">That&#39;s a lot of cubes and boxes.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The new account includes:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">1% cash back on gas, grocery, and pharmacy purchases</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">2% of LendingClub loan payments back (when paid on time)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">1.00% APY on balances of $2,500</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">No account fees or balance requirements</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">It&#x2019;s very challenging to build a competitive debit card product given slim margins, but I love this approach and the tie-in to LendingClub loans.</p><h1 id="us-bank-fiserv" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">U.S. Bank + Fiserv</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">U.S. Bank owns Elan Financial Services, which provides credit cards as an agent banking issuer for many smaller financial institutions. As more and more banks expand their credit card offerings, U.S. Bank announced a partnership with global payments giant Fiserv to integrate Elan into Fiserv&#x2019;s credit platform. Fiserv&#x2019;s Credit Choice platform is a fully managed credit card program designed to help smaller banks meet their customers&#x2019; financial needs, without exposing the bank to a lot of risk.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/06/Cards-Shadow-signature.png" class="kg-image" alt loading="lazy" width="600" height="376" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">These are just some US Bank cards to make the newsletter have more images, but wow they have a lot of design stuff going on here.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">It&#x2019;s quite interesting to see these two pair up, as I would have guessed from the outside that they are competitive with each other. As the credit card market continues to consolidate (see Capital One + Discover), smaller banks are going to need partners with increasing amounts of heft to compete.</p><div></div><h1 id="cardsftw" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;">CardsFTW</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><a href="https://www.cardsftw.com/r/e3056222?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/dc48a47f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/a2d87f7f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/826c08a7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td class="feedback-buttons-container" dir="ltr" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 32px 0 24px; border-bottom: 1px solid #e0e7eb; text-align: center; background-color: #ffffff;" valign="top" bgcolor="#ffffff"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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color: #15212A;" valign="top"> <h3 style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: 600; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; color: #15212A; font-size: 15px; font-weight: 400; text-align: right; line-height: 1.45em; vertical-align: bottom;"> <a href="https://www.cardsftw.com/#/portal/account" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"> Manage subscription</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; 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N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212a; color: rgba(0, 0, 0, 0.6); margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #15212a; color: rgba(0, 0, 0, 0.6); text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; text-align: center; padding-top: 70px; padding-bottom: 40px;" valign="top" align="center"><a href="https://ghost.org/?via=pbg-newsletter&amp;ref=cardsftw.com" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"><img src="https://static.ghost.org/v4.0.0/images/powered.png" border="0" width="142" height="30" class="gh-powered" alt="Powered by Ghost" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; width: 142px; height: 30px;"></a></td> </tr> </table> </td> </tr> </table> <!-- END CENTERED WHITE CONTAINER --> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1" height="1" alt="" src="https://email.mg.cardsftw.com/o/eJwszkFu5SAMANDTfHY_wgYDWfgwgE2SmaRIhDbq7StVXb7dE3YJHJFRhkg2hQQhGr3ycb4P4ZCooi2q0qoK5EKlKPpkdnY1rZliLqtz0cfWUhbIaEtcK_rqzMFokWxAggDB0hJDwQikhOCgrfHl7bUtNQ-523yW2i8zeD4E3__mJvt5D-zy8vZDn_vUOXUso4t2M7l8nv_fv0szedv7Pf_0xfgTAAD__7svQCs"></body> </html>
  10. Canadian Fintech: Someone Bought a Bank 🏦

    Mon, 23 Jun 2025 12:44:45 -0000

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} } @media screen and (max-width: 650px) { .post .post-footer.next-prev { height: 64px; justify-content: space-between; box-sizing: border-box; } } @media screen and (max-width: 650px) { .post-contributor-footer .post-contributor-bio-table { display: block; } .post-contributor-footer .post-contributor-bio-table-row { display: flex; flex-direction: row; } .post-contributor-footer .post-contributor-bio-userhead-cell, .post-contributor-footer .post-contributor-bio-body-cell { display: block; } .post-contributor-footer .post-contributor-bio-body-cell { flex-grow: 1; } .post-contributor-footer .post-contributor-bio-body-table { display: block; } .post-contributor-footer .post-contributor-bio-body-table-row { display: block; } .post-contributor-footer .post-contributor-bio-copy-cell, .post-contributor-footer .post-contributor-bio-controls-cell { display: block; } .post-contributor-footer .post-contributor-bio-copy-cell { margin: 0 0 16px 0; } .post-contributor-footer .post-contributor-bio-controls-cell { width: auto; } .post-contributor-footer .post-contributor-bio-controls { margin: auto; } .post-contributor-footer .post-contributor-bio-controls .button.primary { width: 100%; } .post-contributor-footer .post-contributor-bio-text { font-size: 14px; } } @media screen and (min-width: 768px) { .post-silhouette { padding: 32px 0; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-title { margin-top: 10.44225025px; height: 120px; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta { width: 75%; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta.with-byline-image { margin: 20px 0; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { padding-right: 16px; } } @media screen and (max-width: 370px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { font-size: 14px; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item.guest-author-publication, .post-meta.alternative-meta .post-meta-item.guest-author-publication { display: none; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item .post-meta-button { height: 36px !important; /* important to override in-line height style on emails */ } .post-meta .post-meta-item .post-meta-button .meta-button-label { display: none; } .post-meta .post-meta-item .post-meta-button > svg { margin-right: 0; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item { font-size: 12px; } } @media screen and (max-width: 650px) { .post .floating-subscribe-button { bottom: 20px; right: 20px; } } @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { body .markup table.image-wrapper img, body .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { body { /* Disable offset on mobile/tablet */ } body .captioned-image-container figure:has(> a.image2-align-left), body .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } body .captioned-image-container figure:has(> a.image2-align-left.thefp), body .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; } body .captioned-image-container figure:has(> a.image2-offset-left), body .captioned-image-container figure:has(> a.image2-offset-right) { margin: 1em auto; } body .captioned-image-container figure:has(> a.image2-align-left) .image2-inset, body .captioned-image-container figure:has(> a.image2-align-right) .image2-inset { display: block; justify-content: initial; } } @media (max-width: 768px) { body .markup div.sponsorship-campaign-embed { margin-top: 24px; margin-bottom: 24px; } body .markup div.sponsorship-campaign-embed:first-child { margin-top: 0px; } } @media screen and (max-width: 650px) { body .markup div.youtube-overlay, body .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { body .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { body .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe { padding: 0px 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button { padding: 10px 12px; min-width: 110px; } } @media (max-width: 650px) { body .markup .tweet { padding: 12px; } } @media (max-width: 650px) { body .markup .tweet .tweet-text { font-size: 14px; line-height: 20px; } } @media (max-width: 650px) { body .markup .tweet .tweet-photos-container.two, body .markup .tweet .tweet-photos-container.three, body .markup .tweet .tweet-photos-container.four { height: 200px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-img { max-height: 180px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-description { display: none; } } @media screen and (max-width: 650px) { body .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { body .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-text { margin: 0 0 12px 0; max-width: 100%; width: auto; text-align: center; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;--image-offset-margin: -117px;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwNjIzMTI0NDI5LjMuNjUzODk5ZTdjYmZlNDgzZEBtZy1kMS5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQxLnN1YnN0YWNrLmNvbSIsInAiOjE2NjU5MjIwMiwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3NTA2ODI2NzksImV4cCI6MTc1MzI3NDY3OSwiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.6h0MbSx01Xy95D0Uo-tnO94ImozGZDHMh0koaadf0WA" alt="" width="1" height="1" border="0" style="height:1px !important;width:1px !important;border-width:0 !important;margin-top:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-left:0 !important;padding-top:0 !important;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !important;"/><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">Fiscal.ai raises $10m. Circle K gets deeper into fintech.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; 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Circle K gets deeper into fintech.</h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: 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data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:600,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:272105,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;http://www.getcollectr.com&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/162274697?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" title="" width="550" height="275" src="https://substackcdn.com/image/fetch/$s_!8tQB!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="500" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/119e65e2-a6c1-4148-a490-8375cfaf8587?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/9a16d086-0af8-4b4f-8e0e-78c1511caa38_500x125.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:125,&quot;width&quot;:500,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:16446,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;http://www.getcollectr.com&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/163998939?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F9a16d086-0af8-4b4f-8e0e-78c1511caa38_500x125.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" title="" width="500" height="125" src="https://substackcdn.com/image/fetch/$s_!OKUp!,w_500,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F9a16d086-0af8-4b4f-8e0e-78c1511caa38_500x125.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>If you&#8217;re a </span><a href="https://substack.com/redirect/c3ed0d6f-ee9c-4bff-99d0-ac00869b04b8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">paid subscriber</a><span>, you also get access to the </span><a href="https://substack.com/redirect/22dd6043-e601-43cd-9f26-bd3ef29456fa?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech Database</a><span> - a detailed list of every fintech acquisition in Canada.</span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 12,875 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><div class="pencraft pc-reset button-wrapper" style="text-decoration: unset;list-style: none;font-size: 16px;line-height: 26px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jYW5hZGlhbmZpbnRlY2guc3Vic3RhY2suY29tL3N1YnNjcmliZT91dG1fc291cmNlPXBvc3QmdXRtX2NhbXBhaWduPWVtYWlsLWNoZWNrb3V0Jm5leHQ9aHR0cHMlM0ElMkYlMkZjYW5hZGlhbmZpbnRlY2guc3Vic3RhY2suY29tJTJGcCUyRmNhbmFkaWFuLWZpbnRlY2gtc29tZW9uZS1ib3VnaHQtYSZyPTM2bmZsNCZ0b2tlbj1leUoxYzJWeVgybGtJam94T1RJMU5qazFNVElzSW1saGRDSTZNVGMxTURZNE1qWTNPU3dpWlhod0lqb3hOelV6TWpjME5qYzVMQ0pwYzNNaU9pSndkV0l0TmpZek16VXpJaXdpYzNWaUlqb2lZMmhsWTJ0dmRYUWlmUS5LQzlOZTVUT1MzbmlYVmI2RW5TcENtanU3LUhrRDhvTjlqTzR1cWtibkRBIiwicCI6MTY2NTkyMjAyLCJzIjo2NjMzNTMsImYiOnRydWUsInUiOjE5MjU2OTUxMiwiaWF0IjoxNzUwNjgyNjc5LCJleHAiOjIwNjYyNTg2NzksImlzcyI6InB1Yi0wIiwic3ViIjoibGluay1yZWRpcmVjdCJ9.PzBgoY-PxI1rDKG_T4VKCyDNgk5oBON0BAwQmzgm5xg?&utm_medium=email&utm_source=subscribe-widget&utm_content=166592202" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: inline-block;box-sizing: border-box;cursor: pointer;border: none;border-radius: 8px;font-size: 14px;line-height: 20px;font-weight: 600;text-align: center;opacity: 1;outline: none;white-space: nowrap;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;color: #ffffff !important;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></div></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Fiscal.ai</strong><span>, a Toronto based equities research platform </span><a href="https://substack.com/redirect/8aa71a2e-3971-4c26-b330-ef2d18fc056c?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $10m led by </span><strong>Portage</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The </span><strong>Bloomberg</strong><span> competitor recently rebranded from FinChat and crossed 350k users.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Pesa</strong><span>, a Toronto based remittance platform acquired </span><strong>Authoripay Emony</strong><span>, a UK based issuer / acquirer.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">Pesa has processed over $380m in transaction volume.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Conexus</strong><span>, </span><strong>Cornerstone</strong><span>, and </span><strong>Synergy Credit Union</strong><span> finalized their </span><a href="https://substack.com/redirect/8f0a508a-761a-4c5f-98a2-7c2f1a530e62?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">merger</a><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The three Saskatchewan credit unions will have $15b in AUM, 200k members and 57 branches.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Burgundy Asset Management</strong><span>, a wealth management firm with $27b in AUM is being </span><a href="https://substack.com/redirect/15ba2e61-271b-4e9e-a3a3-fb30c7955064?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>BMO</strong><span> for $625m.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Bitcoin Treasury Corporation</strong><span> (BTCT), an Alberta based bitcoin investment and lending company is going </span><a href="https://substack.com/redirect/eac69a25-affa-424c-b84e-030b2845056e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">public</a><span> in a reverse takeover.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><span>Anthony Lacavera&#8217;s acquisition of </span><strong>Wealth One Bank</strong><span> was approved by the federal government.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Wealth One is a 10 year old schedule 1 Canadian bank, which caters to Chinese-Canadian clients. The bank is small ($516m in assets), unprofitable, and has been under regulatory </span><a href="https://substack.com/redirect/a3447b43-713a-4d26-a28f-854452aa00e2?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">scrutiny</a><span> for AML violations and alleged connections between its founders and the Chinese government.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Lacavera wants to convert it into a challenger brand, similar to what he did with his previous company</span><strong> Freedom Mobile </strong><span>(fka Wind Mobile) in the telecom market. </span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The irony here is that </span><strong>Wind Mobile</strong><span>, was also the target of regulatory scrutiny for running afoul of Canada&#8217;s ownership rules. Their largest investorwas an Egyptian billionaire.</span></p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="506" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/80a37d6d-1221-4bda-b9e8-8d1d690c61ac?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/83035720-861f-4411-b95f-b86e7a7e5e24_848x480.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:480,&quot;width&quot;:848,&quot;resizeWidth&quot;:506,&quot;bytes&quot;:563879,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/166592202?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F83035720-861f-4411-b95f-b86e7a7e5e24_848x480.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="506" height="286.41509433962267" src="https://substackcdn.com/image/fetch/$s_!SPpy!,w_506,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F83035720-861f-4411-b95f-b86e7a7e5e24_848x480.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table><figcaptionclass="image-caption" style="box-sizing: content-box;color: #777777;font-size: 14px;line-height: 20px;font-weight: 400;letter-spacing: -.15px;margin-top: 8px;width: 70%;padding-left: 15%;padding-right: 15%;text-align: center;"></figcaption></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h5 style="font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;"><strong>A MESSAGE FROM COLLECTR</strong></h5><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;"><strong>&#128184; How 4m people are making money selling collectibles</strong></h4><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="720" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/119e65e2-a6c1-4148-a490-8375cfaf8587?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/cb3bdc83-0a58-4738-a4e0-25674bb342a7_720x300.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:300,&quot;width&quot;:720,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:76447,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;http://www.getcollectr.com&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/163998939?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fcb3bdc83-0a58-4738-a4e0-25674bb342a7_720x300.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" title="" width="550" height="229.16666666666666" src="https://substackcdn.com/image/fetch/$s_!bYa_!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fcb3bdc83-0a58-4738-a4e0-25674bb342a7_720x300.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The cards you loved as a kid might pay off as an adult. Nostalgia just got valuable. </span><a href="https://substack.com/redirect/702b1d66-be6b-4fc5-8df3-e4eaaf250217?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Download Collectr</a><span> &#8212; the world&#8217;s largest collectibles app.</span></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Huumans</strong><span>, a free community group for small business owners get advice on budgeting and benchmarking launched.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The company was </span><a href="https://substack.com/redirect/b93c7b39-0bf1-4887-95b2-650f5297e6f0?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">founded</a><span> by the team behind </span><strong>Wagepoint</strong><span>, a Canadian payroll software.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>WesternUnion</strong><span> is </span><a href="https://substack.com/redirect/435e06b8-f673-40df-b521-069651ef9fcf?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">using</a><span> Montreal based </span><strong>Z&#363;m&#8239;Rails</strong><span> to let their Canadians users fund international transfers via Interac e-Transfer.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Forbes</strong><span>, the publisher, is white labelling </span><strong>Homewise</strong><span> to broker mortgages in Canada.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Homewise does the same for the Canadian free credit score apps </span><strong>Credit Karma</strong><span>, </span><strong>Borrowell</strong><span>, and </span><strong>ClearScore</strong><span>.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Circle K</strong><span>, a Canadian gas station chain, is </span><a href="https://substack.com/redirect/8b374fdf-78e6-4faa-aee6-3062a56421d7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launching</a><span> a fuel card for fleet drivers powered by </span><strong>Filip</strong><span>, a Calgary based fintech.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Last year Circle K </span><a href="https://substack.com/redirect/ff98bed4-ab25-404f-9433-a9fca92c9987?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">partnered</a><span> with </span><strong>iFinance</strong><span> to offer unsecured consumer loans.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing:border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>ZayZoon</strong><span>, a Calgary based earned-wage-access platform is expanding beyond early wage payouts by </span><a href="https://substack.com/redirect/6196ec8a-c6cb-4c45-8e2c-8374cd3b4b5d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launching</a><span> employer perks like tax support, insurance products &amp; discounts on groceries.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#9878;&#65039; Policy</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><span>The </span><strong>FCAC</strong><span>, Canada&#8217;s open banking regulator reaffirmed their commitment to launching it by 2026, but did not share an updated timeline on the rollout.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The Liberals </span><a href="https://substack.com/redirect/cf87e86d-5995-41e6-9fa2-a6e4b1dfc166?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">made</a><span> (technically remade) the commitment in the Fall Economic Statement last year. But that was prior to the federal election.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/da69ce05-92e4-4782-b263-546a2d35c84e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/689c906e-ae48-4be6-9a0c-590d6c39493f?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Want to get in front of 12,875 fintech decision makers? Reply to this email to become a sponsor.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Have a great week! See ya &#128075;</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;"><span>-</span><a href="https://substack.com/redirect/65de61b5-123b-4c4e-8cbd-6e0bf0324329?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Tal Schwartz</a></p></div></div><div class="container-border" style="margin: 32px 0 0;width: 100%;box-sizing: border-box;border-top: 1px solid #e6e6e6;font-size: 16px;line-height: 26px;"></div><div class="post-cta typography markup" style="--image-offset-margin: -117px;font-family: 'SF Pro Display', -apple-system, system-ui, BlinkMacSystemFont, 'Inter', 'Segoe UI', Roboto,Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;text-align: initial;word-break: break-word;margin-bottom: 32px;margin: 32px 0;font-size: 16px;line-height: 26px;"><p style="color: rgb(54,55,55);margin: 0 auto 20px;text-align: center;width: 90%;line-height: 26px;font-size: 16px;margin-top: 0;"><span class="pencraft pc-reset reset-IxiVJZ" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">You're currently a free subscriber to <a href="https://substack.com/redirect/3dd2d7b0-e80f-4bcc-af51-2e82703c2d5d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech</a>. 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href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9vcGVuLnN1YnN0YWNrLmNvbS9wdWIvY2FuYWRpYW5maW50ZWNoL3AvY2FuYWRpYW4tZmludGVjaC1zb21lb25lLWJvdWdodC1hP3V0bV9zb3VyY2U9c3Vic3RhY2smdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249ZW1haWwtcmVzdGFjay1jb21tZW50JmFjdGlvbj1yZXN0YWNrLWNvbW1lbnQmcj0zNm5mbDQmdG9rZW49ZXlKMWMyVnlYMmxrSWpveE9USTFOamsxTVRJc0luQnZjM1JmYVdRaU9qRTJOalU1TWpJd01pd2lhV0YwSWpveE56VXdOamd5TmpjNUxDSmxlSEFpT2pFM05UTXlOelEyTnprc0ltbHpjeUk2SW5CMVlpMDJOak16TlRNaUxDSnpkV0lpT2lKd2IzTjBMWEpsWVdOMGFXOXVJbjAuU09FRTV3TGFBSmJSVFhiVTNsdGpYRDhveTBYY3prSGVQVGZCWmV4V3lnZyIsInAiOjE2NjU5MjIwMiwicyI6NjYzMzUzLCJmIjp0cnVlLCJ1IjoxOTI1Njk1MTIsImlhdCI6MTc1MDY4MjY3OSwiZXhwIjoyMDY2MjU4Njc5LCJpc3MiOiJwdWItMCIsInN1YiI6ImxpbmstcmVkaXJlY3QifQ.Jlh4iO3KK3WREatjtELlznpUgkA8hReZOcGv4OC1zkE?&utm_source=substack&utm_medium=email" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: 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  11. CardsFTW #160: A Deep Dive on New Card Program Strategy

    Wed, 18 Jun 2025 16:16:12 -0000

    <!doctype html> <html> <head> <meta name="viewport" content="width=device-width"> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <!--[if mso]><xml><o:OfficeDocumentSettings><o:PixelsPerInch>96</o:PixelsPerInch><o:AllowPNG/></o:OfficeDocumentSettings></xml><![endif]--> <title>CardsFTW #160: A Deep Dive on New Card Program Strategy</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #73818c; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; 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} table.body .kg-cta-button-container { padding-top: 16px; } table.body .kg-cta-minimal .kg-cta-image-container { display: inline-block !important; width: 100% !important; padding: 0 !important; padding-bottom: 16px !important; padding-right: 0 !important; } table.body .kg-cta-minimal .kg-cta-content-inner { display: inline-block !important; width: 100% !important; padding: 0 !important; } table.body .kg-cta-minimal img.kg-cta-image { width: 52px !important; height: 52px !important; } table.body .kg-cta-minimal a.kg-cta-button { display: inline-block !important; } table.body .kg-cta-minimal table.kg-cta-button-wrapper td { padding: 4px 16px 5px; } table.body .kg-cta-immersive .kg-cta-button-wrapper { padding: 6px 18px 7px; } } @media all { .subscription-details p.hidden { display: none !important; } .ExternalClass { width: 100%; } .ExternalClass, .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td, .ExternalClass div { line-height: 100%; } .apple-link a { color: inherit !important; 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mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; 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Subscribe for free to get the latest card news in your inbox every Wednesday.</span></p> </td> </tr> <tr> <td class="kg-cta-button-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 20px;" valign="top"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin-left: auto; margin-right: auto; width: unset;"> <tbody><tr> <td class="kg-cta-button-wrapper " style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; padding: 8px 20px 9px; border-radius: 6px; text-align: center; background-color: #000000; color: #FFFFFF;" bgcolor="#000000" valign="top" align="center"> <a href="https://www.cardsftw.com/r/85faa718?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="kg-cta-button " style="overflow-wrap: anywhere; display: inline-block; width: 100%; font-size: 0.9em; font-weight: 600; font-weight: 500; text-align: center; text-decoration: none; border-radius: 6px; background-color: #000000; color: #FFFFFF;" target="_blank"> Subscribe now </a> </td> </tr> </tbody></table> </td> </tr> </tbody></table> </td> </tr> </tbody></table><h2 id="citizens-launches-a-new-suite-of-credit-cards" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px; margin-top: 1.5em;">Citizens Launches a New Suite of Credit Cards</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Citizens Bank, the 20th largest US Bank by assets (<a href="https://www.cardsftw.com/r/d358cf25?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">per FFEIC</a>, as of 12/31/2024), but the 28th largest credit card issuer by purchase volume (<a href="https://www.cardsftw.com/r/488b3e74?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">per Nilson</a>, issue 1280, February 2025), <a href="https://www.cardsftw.com/r/6d4345d5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> a full new suite of Mastercard credit cards.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeauh0ogkRpt5O53mziCzNkxZMTdcSZSTePf1t1Tq_WI6ufYY8s2uwEc-7jj-euJrxs43lOEDuxEZBIaOM2JEIYNy1ARESG9l_VcM8NilE3o4EL8E0WWXbJFhy0D7zNasZ2xtDMsQ?key=hsbg0c-bsq9UVUZC5v-N6w" class="kg-image" alt="Four Citizens Bank credit cards&#x2014;Amp, Swing, Summit, and Summit Reserve&#x2014;displayed in a staggered layout, ranging in color from bright green to dark black, each with a distinct abstract camo pattern and EMV chip." loading="lazy" width="600" height="235" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Four cards, one strategy: gradients.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The four cards are:</p><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Citizens Amp Mastercard (no annual fee, no rewards)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Citizens Spring World Mastercard (low interest rates and balance transfers)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Citizens Summit World Mastercard (no fee rewards card with 3% on food, 1.5% elsewhere)</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Citizens Summit Reserve World Elite Mastercard (annual fee, expanded rewards and benefits)</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This total revamp of the card product lineup puts Citizens on a solid competitive footing with the rest of the market and major card issuers, with credit-building, credit-seeking, and rewards options. While you can get a card with a three-word name for $0 in annual fee, that top-tier card is $295 or $49.33 per word. Citizens Quest checking customers pay $95 for the Summit Reserve, and Private Client customers pay $0. While some other banks, like Bank of America, boost rewards for cross-product membership, I don&#x2019;t see a lot of fee waivers. I like this approach.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">All cards sport the Mastercard notch for visually impaired users (love this), and the Citizens Summit Reserve is a black metal card, because, of course it is.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Other than the fee waiver and the visual notch, none of the card benefits are particularly unique. The Summit Reserve leverages Mastercard&#x2019;s platform for benefits like Peacock and Instacart discounts, plus travel rewards, etc. I don&#x2019;t recall seeing a Soho house benefit before, but OK, I guess that&#x2019;s useful.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">There doesn&#39;t seem to be any public sign-up bonuses, leading me to assume these are focused on existing customers.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I do want to shout out Citizens for the name on the card. That B. Varone is Barbara Varone, the bank&#x2019;s longest-serving employee with 54 years! <a href="https://www.cardsftw.com/r/adbc5896?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Read all about it</u></a> in The Newport Buzz!</p><div></div><h2 id="chase-updates" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Chase Updates</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Chase is the nation&#x2019;s largest credit card issuer, and it does feel like we have to write updates aboutthem each week. Well, for this week, two quick ones:</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">First, Chase announced a substantial update to its flagship Sapphire Reserve card and the introduction of a Sapphire Reserve for Business card. I write this newsletter on Mondays and this news came out on Tuesday, which isn&#39;t enough time for a deep dive. More to come in next week&#39;s edition.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/06/chase.webp" class="kg-image" alt="Two dark blue metallic credit cards labeled &#x201C;Sapphire Reserve&#x201D; and &#x201C;Sapphire Reserve Business&#x201D; with sleek, minimalist designs on a black background." loading="lazy" width="600" height="400" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Do I want an alligator skin credit card? I&#39;m not so sure.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Second, Chase now <a href="https://www.cardsftw.com/r/a03f23de?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>allows users to rebalance</u></a> their credit limits online. Most (if not all) other issuers require you to call in if, for example, you want to change to having two cards with $20,000 limits instead of one with $10,000 and one with $30,000. This is very smart, and I hope others copy it.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/a405540b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h2 id="six-questions-to-answer-before-you-launch-a-credit-card-program" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Six Questions to Answer Before You Launch a Credit Card Program</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">While my team at Totavi does more than consumer credit cards (call us about all your embedded finance needs!), we do spend a lot of time on consumer card launches. We clearly love cards (cards for the win!), but they are complex products that are hard to launch and even harder to scale. Launching a credit card can unlock powerful levers: loyalty, engagement, and incremental revenue, but it&#x2019;s not a decision to take lightly. Too many brands get enamored with the idea of having their logo on a shiny card without fully understanding the tradeoffs under the hood. Before you start fielding vendor RFPs or drafting a rewards table, you need to answer six fundamental questions. They&#x2019;ll frame your strategy, shape your economics, and prevent you from building something you regret.</p><h3 id="1-why-are-you-doing-this" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;">1. Why are you doing this?</h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This isn&#x2019;t just existential. Every credit card program needs a crisp articulation of its primary strategic goal. Are you:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em;line-height: 1.6em;">Chasing net new revenue via interchange, interest, orannual fees?</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Driving customer retention and lifetime value through rewards and engagement?</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Looking to reduce CAC via embedded issuance and spend incentives?</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Playing catch-up because your competitors already have a card?</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Being honest about your goals&#x2014;and the tradeoffs between them&#x2014;is the first checkpoint. You can&#x2019;t optimize for everything at once.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Then ask: Who is your target customer? A thin-file consumer on a builder card requires a completely different product design, economic model, and compliance framework than a high-spend commercial user. Know for whom you are building.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Take time to zoom out: How does the card tie into your broader product or ecosystem strategy? Is it an add-on or the core monetization mechanism? That clarity will guide how deeply you integrate it into your experience and how much you&#x2019;re willing to invest.</p><h3 id="2-what%E2%80%99s-your-economic-model" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;">2. What&#x2019;s your economic model?</h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Launching a card is not a one-time project. It&#x2019;s a living financial organism with upfront investment, ongoing burn, and risk-based volatility.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Start by scoping your budget across three dimensions:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Implementation: program setup, integrations, licensing, legal</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Ongoing ops: customer support, dispute management, compliance monitoring</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Risk reserves: even with a partner handling credit risk, you&#x2019;ll face economic exposure on incentives or first-loss positions (most fintech programs handle all risk).</li></ul> <!-- POST CONTENT END --> <div class="align-center" style="text-align: center;"> <hr style="background-color: transparent; position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e0e7eb;"> <h3 style="font-size: 26px; margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; text-wrap: pretty;"> Upgrade to continue reading.</h3> <p style="margin: 0 auto 1.5em auto; line-height: 1.6em; max-width: 440px; text-wrap: pretty;">Become a paid member of CardsFTW to get access to all premium content.</p> <div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" valign="top" bgcolor="#F9A60D" style="font-size: 18px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; 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font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e0e7eb; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-top: 40px; padding-bottom: 30px;"> <tr><td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center"><p dir="ltr" style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span>Totavi, LLC,&#xA0;2108&#xA0;N St., Ste. N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #73818c; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; text-align: center; padding-top: 70px; padding-bottom: 40px;" valign="top" align="center"><a href="https://ghost.org/?via=pbg-newsletter&amp;ref=cardsftw.com" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"><img src="https://static.ghost.org/v4.0.0/images/powered.png" border="0" width="142" height="30" class="gh-powered" alt="Powered by Ghost" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; width: 142px; height: 30px;"></a></td> </tr> </table> </td> </tr> </table> <!-- END CENTERED WHITE CONTAINER --> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1" height="1" alt="" src="https://email.mg.cardsftw.com/o/eJwszktuxCAMANDTDLuJjAGHWfgwBjufNikSoY16-0rVLN_uKYfsQ0rO2M8JkEKY0dkp-_HclSknNEIsFgtUkBhyxJdUt3G1sCBCyKHUUinOJiZAkl-SCy3V7YyACchnTz6FNGmJkYRmUACN6B8RznWq0vVaxj3VdrrO407-92Osuh1Xx6aPCF92X4eNYX3qTa25weX7-Hz-L93gdWvXeOuH8S8AAP__b3ZAAQ"></body> </html>
  12. Canadian Fintech: VC funding for VC funding 🔁

    Mon, 16 Jun 2025 12:33:18 -0000

    <html style="scrollbar-width: thin;scrollbar-color: rgb(219,219,219)rgb(255,255,255);"><head><meta charset="utf-8"><title>Canadian Fintech: VC funding for VC funding &#128257;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { .typography, .typography.editor { /* Disable offset on mobile/tablet */ } .typography .captioned-image-container figure:has(> a.image2-align-left), .typography.editor .captioned-image-container figure:has(> a.image2-align-left), .typography .captioned-image-container figure:has(> a.image2-align-right), .typography.editor .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } .typography .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography .captioned-image-container figure:has(> a.image2-align-right.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; 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} } @media screen and (max-width: 650px) { .post .post-footer.next-prev { height: 64px; justify-content: space-between; box-sizing: border-box; } } @media screen and (max-width: 650px) { .post-contributor-footer .post-contributor-bio-table { display: block; } .post-contributor-footer .post-contributor-bio-table-row { display: flex; flex-direction: row; } .post-contributor-footer .post-contributor-bio-userhead-cell, .post-contributor-footer .post-contributor-bio-body-cell { display: block; } .post-contributor-footer .post-contributor-bio-body-cell { flex-grow: 1; } .post-contributor-footer .post-contributor-bio-body-table { display: block; } .post-contributor-footer .post-contributor-bio-body-table-row { display: block; } .post-contributor-footer .post-contributor-bio-copy-cell, .post-contributor-footer .post-contributor-bio-controls-cell { display: block; } .post-contributor-footer .post-contributor-bio-copy-cell { margin: 0 0 16px 0; } .post-contributor-footer .post-contributor-bio-controls-cell { width: auto; } .post-contributor-footer .post-contributor-bio-controls { margin: auto; } .post-contributor-footer .post-contributor-bio-controls .button.primary { width: 100%; } .post-contributor-footer .post-contributor-bio-text { font-size: 14px; } } @media screen and (min-width: 768px) { .post-silhouette { padding: 32px 0; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-title { margin-top: 10.44225025px; height: 120px; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta { width: 75%; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta.with-byline-image { margin: 20px 0; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { padding-right: 16px; } } @media screen and (max-width: 370px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { font-size: 14px; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item.guest-author-publication, .post-meta.alternative-meta .post-meta-item.guest-author-publication { display: none; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item .post-meta-button { height: 36px !important; /* important to override in-line height style on emails */ } .post-meta .post-meta-item .post-meta-button .meta-button-label { display: none; } .post-meta .post-meta-item .post-meta-button > svg { margin-right: 0; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item { font-size: 12px; } } @media screen and (max-width: 650px) { .post .floating-subscribe-button { bottom: 20px; right: 20px; } } @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { body .markup table.image-wrapper img, body .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { body { /* Disable offset on mobile/tablet */ } body .captioned-image-container figure:has(> a.image2-align-left), body .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } body .captioned-image-container figure:has(> a.image2-align-left.thefp), body .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; } body .captioned-image-container figure:has(> a.image2-offset-left), body .captioned-image-container figure:has(> a.image2-offset-right) { margin: 1em auto; } body .captioned-image-container figure:has(> a.image2-align-left) .image2-inset, body .captioned-image-container figure:has(> a.image2-align-right) .image2-inset { display: block; justify-content: initial; } } @media (max-width: 768px) { body .markup div.sponsorship-campaign-embed { margin-top: 24px; margin-bottom: 24px; } body .markup div.sponsorship-campaign-embed:first-child { margin-top: 0px; } } @media screen and (max-width: 650px) { body .markup div.youtube-overlay, body .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { body .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { body .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe { padding: 0px 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button { padding: 10px 12px; min-width: 110px; } } @media (max-width: 650px) { body .markup .tweet { padding: 12px; } } @media (max-width: 650px) { body .markup .tweet .tweet-text { font-size: 14px; line-height: 20px; } } @media (max-width: 650px) { body .markup .tweet .tweet-photos-container.two, body .markup .tweet .tweet-photos-container.three, body .markup .tweet .tweet-photos-container.four { height: 200px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-img { max-height: 180px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-description { display: none; } } @media screen and (max-width: 650px) { body .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { body .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-text { margin: 0 0 12px 0; max-width: 100%; width: auto; text-align: center; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;--image-offset-margin: -117px;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwNjE2MTIzMTMwLjMuYmQ2NDEyNzFlZTMzM2FiOUBtZy1kMS5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQxLnN1YnN0YWNrLmNvbSIsInAiOjE2NjA2MTQ1OCwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3NTAwNzcxODcsImV4cCI6MTc1MjY2OTE4NywiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.JtFpFDeyMEs4Ehqro4lCWQ9TG--Lr08oxQzqklBA7jM" alt="" width="1" height="1" border="0" style="height:1px !important;width:1px !important;border-width:0 !important;margin-top:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-left:0 !important;padding-top:0 !important;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !important;"/><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">Harvest solves AR collections. Terenet gets back in conveyance. Wealthsimple beefs up banking.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; 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Terenet gets back in conveyance. Wealthsimple beefs up banking.</h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;"><a class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;color: rgb(54,55,55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-secondary-ls1g8s line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;font-size: 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data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:600,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:272105,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://www.linkedin.com/in/talbschwartz/&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/162274697?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" title="" width="550" height="275" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>If you&#8217;re a </span><a href="https://substack.com/redirect/e7b12abe-7c10-48f4-b730-cdbd112c784a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">paid subscriber</a><span>, you also get access to:</span></p><ol style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The </span><a href="https://substack.com/redirect/0ef33f1a-c777-457f-b2fc-fb82e8b97be8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech Database</a><span> - a detailed list of every fintech acquisition in Canada.</span></p></li><li style="margin: 8px 0 0 32px;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Discounts to largest </span><a href="https://substack.com/redirect/d3105f41-dcab-4253-82b9-887b1d88786b?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">fintech conferences</a><span> in Canada.</span></p></li></ol><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 12,870 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><div class="pencraft pc-reset button-wrapper" style="text-decoration: unset;list-style: none;font-size: 16px;line-height: 26px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.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.PYBNFaNMTLPyjgTwL_l3Z85n6hu3V8a5Ely8V5wPNYQ?&utm_medium=email&utm_source=subscribe-widget&utm_content=166061458" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: inline-block;box-sizing: border-box;cursor: pointer;border: none;border-radius: 8px;font-size: 14px;line-height: 20px;font-weight: 600;text-align: center;opacity: 1;outline: none;white-space: nowrap;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;color: #ffffff !important;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></div></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;">Software to help VC&#8217;s manage their investors suddenly became hot:</p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Vessel</strong><span>, a Montreal based fundraising software for VC funds </span><a href="https://substack.com/redirect/825e514c-81a8-48c6-b923-16daadea8422?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $10m from </span><strong>Inovia</strong><span> and </span><strong>Afore</strong><span> </span><strong>Capital</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Brio</strong><span>, another Montreal based LP onboarding platform spunout of </span><strong>Brightspark Ventures</strong><span> and </span><a href="https://substack.com/redirect/4ac494e0-8a73-4e1c-9972-115f79aa0c45?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $3m this year.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Bloks</strong><span>, a CRM integrated note-taking tool for VC firms, </span><a href="https://substack.com/redirect/7d3018f6-2218-439b-b15c-388cd9b1ad7d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $2m last year.</span></p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/6400f1e9-4392-425d-930f-7d60cf6381da?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/cf14a808-fcf1-49e7-a4ec-ddafe0b8a4bd_1461x817.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:814,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:935925,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" title="" width="550" height="307.4862637362637" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fcf14a808-fcf1-49e7-a4ec-ddafe0b8a4bd_1461x817.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table><figcaption class="image-caption" style="box-sizing: content-box;color: #777777;font-size: 14px;line-height: 20px;font-weight: 400;letter-spacing: -.15px;margin-top: 8px;width: 70%;padding-left: 15%;padding-right: 15%;text-align: center;">Bringing this meme back</figcaption></figure></div><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Harvest</strong><span>, an accounts receivable collections platform for SMBs raised $1m from </span><strong>Simple Ventures</strong><span>, the venture studio from </span><strong>Wealthsimple</strong><span> co-founder Mike Katchen.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Finofo</strong><span>, a Calgary based business payments and bankingplatform, </span><a href="https://substack.com/redirect/13d156a8-e1fd-49fa-9272-23a29e6a24b0?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $3.3m from </span><strong>WaterTower</strong><span>, </span><strong>SaaS Ventures</strong><span> and </span><strong>Motivate</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Hiive</strong><span>, a marketplace for private companies to sell pre-IPO shares, is looking to </span><a href="https://substack.com/redirect/adf4e83c-7c9d-430b-80cb-a27bf8f6944b?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raise</a><span> $100m. They handled nearly $1b in transactions last year.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Terenet</strong><span>, a land registry business, acquired a majority stake in </span><strong>GoVeyance</strong><span>, a BC based conveyance software.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">Conveyance is the legal transfer of property ownership and involves managing legal docs, handling payments, and registering the new ownership with the land registry. Since Terenet IS the land registry, it makes sense for them to offer an endto end solution.</p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>This is Terenet's second successful swing at conveyance: In 2008 they acquired a small conveyance vendor called </span><strong>DoProcess</strong><span>. In 2020 they sold it to </span><strong>Dye &amp; Durham</strong><span> for an eye watering $530m (24x earnings).</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>LottoLend</strong><span>, a prize-linked consumer lender that launched late last year in the Prairies, was acquired by </span><strong>Blue Copper Capital</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">Borrowers are entered into a weekly lottery when loans are paid back on time.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>E-xact Transactions</strong><span>, a Vancouver based payment processor that does over $3.5b in volume was </span><a href="https://substack.com/redirect/b618c6ab-9845-415c-8f5e-58dcc92e0fb7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>Paynt</strong><span>, a European POS and gateway.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Assent</strong><span>, an Ottawa based compliance software for the supply chain industry was </span><a href="https://substack.com/redirect/4c346b70-4054-4f79-bea7-1788bf525131?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> for $1.3b by </span><strong>Vista Equity Partners</strong><span> and </span><strong>Blackstone</strong><span>.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: oklch(from var(--color-bg-accent-themed) l c h / 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Wealthsimple</strong><span> launched a credit card and a bunch of chequing account features like mobile cheque deposit, wires and bank drafts.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;">Canadian lenders are growing:</p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>True North Mortgage</strong><span> crossed $6.6b in mortgages under administration.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Pine</strong><span> crossed $1b in mortgages.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Goeasy</strong><span> passed $5b in consumer loans.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Shopify</strong><span> will </span><a href="https://substack.com/redirect/e3e57267-1c33-4ea4-994e-07f8380fde35?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">allow</a><span> shoppers to pay their merchants in stablecoins.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Clearco</strong><span> </span><a href="https://substack.com/redirect/3746e065-c6d3-479f-876a-c3c193f93d51?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span> an early repayment option. The company </span><a href="https://substack.com/redirect/6f69b122-c25d-4783-a52f-1692bd67cb98?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">pivoted</a><span> into exclusively offering invoice funding two years ago.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The federal government&#8217;s payroll system is switching from </span><strong>IBM</strong><span> to </span><strong>Dayforce</strong><span>, a Toronto based HR platform.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Sezzle</strong><span>, a US based BNPL is </span><a href="https://substack.com/redirect/d881c072-ec8d-47e3-8fac-f857c76e83b5?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">suing</a><span> </span><strong>Shopify</strong><span>, claiming it unfairly prioritizes its own BNPL service over competitors. Shopify </span><a href="https://substack.com/redirect/0e00f6c7-ac56-46cc-a7f3-55198623e3d1?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">works</a><span> with </span><strong>Affirm</strong><span> to offer BNPL.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/23dbc5aa-7298-4748-8218-d68ad3849018?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/3ed9f539-72d3-4e3d-a535-1b150cbdcf6d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Want to get in front of 12,870 fintech decision makers? Reply to this email to become a sponsor.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;">Have a great week! 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  13. CardsFTW #159: Buy Now, Pay Later, and Credit Cards Keep Colliding

    Wed, 11 Jun 2025 16:15:43 -0000

    <!doctype html> <html> <head> <meta name="viewport" content="width=device-width"> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <!--[if mso]><xml><o:OfficeDocumentSettings><o:PixelsPerInch>96</o:PixelsPerInch><o:AllowPNG/></o:OfficeDocumentSettings></xml><![endif]--> <title>CardsFTW #159: Buy Now, Pay Later, and Credit Cards Keep Colliding</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #73818c; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; 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} table.body .kg-cta-button-container { padding-top: 16px; } table.body .kg-cta-minimal .kg-cta-image-container { display: inline-block !important; width: 100% !important; padding: 0 !important; padding-bottom: 16px !important; padding-right: 0 !important; } table.body .kg-cta-minimal .kg-cta-content-inner { display: inline-block !important; width: 100% !important; padding: 0 !important; } table.body .kg-cta-minimal img.kg-cta-image { width: 52px !important; height: 52px !important; } table.body .kg-cta-minimal a.kg-cta-button { display: inline-block !important; } table.body .kg-cta-minimal table.kg-cta-button-wrapper td { padding: 4px 16px 5px; } table.body .kg-cta-immersive .kg-cta-button-wrapper { padding: 6px 18px 7px; } } @media all { .subscription-details p.hidden { display: none !important; } .ExternalClass { width: 100%; } .ExternalClass, .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td, .ExternalClass div { line-height: 100%; } .apple-link a { color: inherit !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; line-height: inherit !important; text-decoration: none !important; } #MessageViewBody a { color: inherit; text-decoration: none; font-size: inherit; font-family: inherit; font-weight: inherit; line-height: inherit; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, So. Much. News.</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/4c28cf17?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/46daca20?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #159: Buy Now, Pay Later, and Credit Cards Keep Colliding</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By Matthew Goldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">11 Jun 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/bafdafe8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> <tr class="post-meta post-meta-center view-online-mobile" style="color: #73818c; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/13b0181f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e0e7eb; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <table class="kg-card kg-cta-card kg-cta-bg-grey kg-cta-minimal kg-cta-no-label " border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; margin: 0 0 1.5em 0; padding: 0 24px; border-radius: 8px; background: #f1f2f4;"> <tbody><tr> <td class="kg-cta-content" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <table border="0" cellpadding="0" cellspacing="0" width="100%" class="kg-cta-content-wrapper" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding: 24px 0 26px;"> <tbody><tr> <td class="kg-cta-content-inner" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial,sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <table border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tbody><tr> <td class="kg-cta-text" style="vertical-align: top; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 17px;" valign="top"> <p style="margin: 0 0 1.5em 0; line-height: 1.4em; margin-bottom: 0;"><span style="white-space: pre-wrap;">Did someone forward this to you? You can get your own subscription for free.</span></p> </td> </tr> <tr> <td class="kg-cta-button-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 20px;" valign="top"> <table border="0" cellpadding="0" cellspacing="0" class="kg-cta-button-wrapper" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: unset;"> <tbody><tr> <td class style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; padding: 6px 18px 8px; border-radius: 6px; background-color: #000000; color: #ffffff;" bgcolor="#000000" valign="top"> <a href="https://www.cardsftw.com/r/21470f92?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="kg-cta-button " style="overflow-wrap: anywhere; display: inline-block; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 0.85em; font-weight: 600; font-weight: 500; text-decoration: none; background-color: #000000; color: #ffffff;" target="_blank"> Subscribe now </a> </td> </tr> </tbody></table> </td> </tr> </tbody></table> </td> </tr> </tbody></table> </td> </tr> </tbody></table><p style="margin: 0 0 1.5em 0; line-height: 1.6em; margin-top: 1.5em;">Welcome to another edition of CardsFTW, where we break down what&#x2019;s happening at the intersection of cards, payments, and fintech. This week was packed with announcements, product launches, and regulatory noise. Let&#x2019;s dive into a quick-hits edition, a card-cuterie board, if you will.</p><h1 id="me-elsewhere-i%E2%80%99m-speaking-at-fintech-devcon" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Me, Elsewhere: I&#x2019;m Speaking at FinTech DevCon</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I&#x2019;m excited to announce I&#x2019;ll be giving a talk at FinTech DevCon in Denver. <strong style="font-weight: 700;">&#x201C;Learn From My Mistakes: Designing Rewards, Algorithms, and Ledgers in Payment Cards&#x201D;</strong> will be a deep dive into everything I&#x2019;ve learned building rewards ledgers repeatedly over the years. The conference runs from August 4&#x2013;6, and my talk is on Wednesday morning. You can register at <a href="https://www.cardsftw.com/r/d1732ba0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>fintechdevcon.io</u></a> and use code <strong style="font-weight: 700;">spkr25</strong> to save $150 on your registration.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/7a87e51b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Register Here</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="buy-now-pay-later-keeps-looking-like-credit-cards" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Buy Now, Pay Later Keeps Looking Like Credit Cards</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This is a recurring theme in CardsFTW: the convergence of BNPL and credit cards. The lines are fuzzier than ever. <a href="https://www.cardsftw.com/r/bfcd2c42?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Klarna recently joined</u></a> Affirm in offering flexible-credential-style cards that support both Pay-in-Four and other transactions with Visa Flex cards. These offerings are beginning to look indistinguishable from traditional card products like Chase or Amex revolvers with fixed payments.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/06/download_url-Klarna-card.png" class="kg-image" alt="A woman&#39;s hand with bright blue finger nails and very large rings holds two credit cards, one black and one pick with large black lettering, for the company Klarna." loading="lazy" width="600" height="338" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Horizontal AND vertical options. Pretty specific demographic they&#39;re targeting with this. </span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">PayPal, which already supports Pay-in-Four and is dominant in online payments, just announced a <a href="https://www.cardsftw.com/r/e626cda9?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>new physical credit card</u></a> (issued by Synchrony, their longtime partner and also the issuer of the Venmo card). This PayPal credit card includes a limited-time travel promo: six months of 0% APR on travel purchases with no minimum spend. A BNPL-style incentive wrapped in a credit card.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/PayPalCreditCard_3x2.jpg" class="kg-image" alt="Woman with long white nails holding a light blue credit cad with the PayPal logo horizontally over the top of the card." loading="lazy" width="600" height="400" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Today&#39;s card hand models all have very long nails.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">There&#x2019;s also a <a href="https://www.cardsftw.com/r/c6f912b5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>new PayPal + Mastercard One announcement</u></a>, which I think is for PayPal to launch a Mastercard One Credential card (which is a similar product to Klarna&#39;s Visa Flex above). PayPal now has a growing family of cards: personal debit, business debit, business credit, Venmo credit, and now a personal credit card. I&#39;m still waiting on that Braintree card. Too many brands, too many credentials? (Oh, one more PayPal note: <a href="https://www.cardsftw.com/r/6c3d4631?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Venmo also refreshed its debit card benefits and design</u></a>.)</p><h1 id="walmart-synchrony-onepay" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Walmart + Synchrony = OnePay</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Walmart used to have Synchrony (n&#xE9;e GE Money) issue their credit cards. Then they broke up and went to Capital One. That went terribly, as I mentioned in <a href="https://www.cardsftw.com/r/f7f81b31?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>CardsFTW #55</u></em></a> and <a href="https://www.cardsftw.com/r/534f1011?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>CardsFTW #100</u></em></a>.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">At that point, I imagine there was a meeting where someone at Walmart said, &#x201C;We can do this ourselves.&#x201D; Working with Ribbit Capital, they formed a joint-venture (OnePay) to build fintech products, potentially to replace the constellation of third-party powered products like their credit card or the Walmart Prepaid Visa (powered by Green Dot).&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/onepay.png" class="kg-image" alt="Light blue credit card, with OnePay logo on the top lift, Mastercard logo in the bottom left, and EMV chip." loading="lazy" width="600" height="495" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">It&#39;s not you, the chip is on the &quot;wrong&quot; side here. Just feels weird.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">You can&#x2019;t bring everything in-house, though. You still need a bank to issue a card in the U.S. and no one has cheap capital like a bank has cheap capital. So, Walmart is <a href="https://www.cardsftw.com/r/9696dfdc?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>returning</u></a> to Synchrony to issue their upcoming credit card that will have its experience managed by OnePay. I don&#x2019;t think this new set of cards (both open loop network branded and private label) will have the same experience and look at feel that the traditional cards from Capital One or Synchrony 10 years ago did. Should be interesting to watch.</p><div></div><h1 id="regulatory-crosshairs-on-interchange" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Regulatory Crosshairs on Interchange</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Meanwhile, on the regulatory front, Senator Dick Durbin <a href="https://www.cardsftw.com/r/3cb7fb0b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>continues his campaign</u></a> to limit interchange on credit cards, somehow intermingling it with <a href="https://www.cardsftw.com/r/610bd44c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>stablecoins</u></a>. Illinois had passed a law banning certain credit card fees on top of taxes, which was scheduled to start July 1, but legislators have now <a href="https://www.cardsftw.com/r/362936f7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>delayed it by a year</u></a>. Why? The required technology to comply doesn&#x2019;t exist yet.</p><h1 id="gen-z-habits-and-the-ongoing-tab-problem" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Gen Z Habits and the Ongoing Tab Problem</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">More interestingly, <a href="https://www.cardsftw.com/r/4efa9068?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>The New York Times highlighted how Gen Z avoids bar tabs</u></a>. They prefer to close out immediately, and this reflects a broader pain point in card usage: the physical credential still needs to be handed over, especially in bars and restaurants. Despite the proliferation of mobile wallets, it&#x2019;s rare to see universal support for tap-to-pay. Nobody likes waiting to pay at the end of the night. <a href="https://www.cardsftw.com/r/ba45a7cd?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Union</u></a> has been playing this game for a long time; I hope my bar starts using it. It&#x2019;s hard to get people to move on from comfortable ways of paying, like handing over a card.</p><h1 id="checks-are-still-a-thing" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Checks Are Still a Thing?</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Speaking of old ways to pay for things, the <a href="https://www.cardsftw.com/r/8334d9f4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Federal Reserve Bank of Atlanta</u></a> reports that checks are still hanging on. In 2024, about 6% of consumers paid bills by check, and 7% used check bill pay. That&#x2019;s wild. Most of the folks who read this newsletter probably assumed they&#x2019;re extinct, but the paper lives on.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/chart-02-of-02--line-chart--shares-of-bill-payments-by-numbers.png" class="kg-image" alt="A chart of how people pay bill payments between 2017 and 2024, showing that electronic payments are up, but paper checks are still used." loading="lazy" width="387" height="289" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Checks: Down, but not out.</span></div></div><h1 id="wells-fargo-is-almost-back" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Wells Fargo Is (Almost) Back</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Also on the regulatory front, and with some potentially big implications: <a href="https://www.cardsftw.com/r/9e7d0a85?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Wells Fargo got the green light from regulators</u></a> to lift its cap on deposit growth. This consent order had constrained the bank since its scandals years ago. Now they&#x2019;re ready to grow again, and plans to add capacity with new co-branded credit cards. That could stir things up.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/b942b7d0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h1 id="post-merger-bad-news" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Post-Merger Bad News</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Capital One: Yay, we bought Discover! Everything will be great!<br>Also, Capital One: Your VentureX card is getting worse.&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/venturex-clean-1.png" class="kg-image" alt="Blue credit card with the Capital One logo in the top right corner, a silver EMV chip, and the brand VENTURE X." loading="lazy" width="600" height="378" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">If you venture to the airport lounge, you better venture alone, or pay up.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Starting February 1, 2026, additional cardholders will lose complimentary lounge access unless the primary cardholder pays $125 annually per person. That includes access to Capital One Lounges, Landings, and Priority Pass. That&#x2019;s a significant shift for a premium travel card that initially made family access a key perk.</p><h1 id="foreign-exchange-arbitrage" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Foreign Exchange Arbitrage</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">In geopolitics meets payments, <a href="https://www.cardsftw.com/r/069a82fe?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Visa, Mastercard, and dollar-based rails are reportedly being used to bypass sanctions and fund militias in Iran</u></a>. This is a reminder that card networks are not just tech infrastructure&#x2014;they&#x2019;re geopolitical levers.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Phew! Thanks for reading! If you&#x2019;re enjoying CardsFTW, consider sharing it or forwarding to a friend in fintech.</p><h1 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">CardsFTW</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/76018103?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/75a90aab?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit<a href="https://www.cardsftw.com/r/fd2a7ca7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/cc77d791?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; 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font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; color: #15212A; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e0e7eb; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-top: 40px; padding-bottom: 30px;"> <tr><td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center"><p dir="ltr" style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span>Totavi, LLC,&#xA0;2108&#xA0;N St., Ste. N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #73818c; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; text-align: center; padding-top: 70px; padding-bottom: 40px;" valign="top" align="center"><a href="https://ghost.org/?via=pbg-newsletter&amp;ref=cardsftw.com" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"><img src="https://static.ghost.org/v4.0.0/images/powered.png" border="0" width="142" height="30" class="gh-powered" alt="Powered by Ghost" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; width: 142px; height: 30px;"></a></td> </tr> </table> </td> </tr> </table> <!-- END CENTERED WHITE CONTAINER --> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1" height="1" alt="" src="https://email.mg.cardsftw.com/o/eJwszktuxCAMANDTDLuJDMZ8FhzGBk-SNikSoY16-0rVLN_utYLJIpHRYqPPgRJ5NHryfjz3VkLymSWjqBeowB6TtxnRbCW9BCs2iJJQUTgzqABBJKkpkpi9OHAEwVobLDm7YPLZQSCqzMQ5Pjyc61J5tOs176X204wyb7K_H3Nt23EN19vDw5fe16Fz6lhGb9rNLPJ9fD7_l2aWdevXfOunuL8AAAD__yKwP10"></body> </html>
  14. Canadian Fintech: Vancouver Bank Infra 💸

    Mon, 09 Jun 2025 12:39:22 -0000

    <html style="scrollbar-width: thin;scrollbar-color: #dbdbdbrgb(255,255,255);"><head><meta charset="utf-8"><title>Canadian Fintech: Vancouver Bank Infra &#128184;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { .typography .captioned-image-container figure:has(> a.image2-align-left), .typography.editor .captioned-image-container figure:has(> a.image2-align-left), .typography .captioned-image-container figure:has(> a.image2-align-right), .typography.editor .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } .typography .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-left.thefp), .typography .captioned-image-container figure:has(> a.image2-align-right.thefp), .typography.editor .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; 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} } @media screen and (max-width: 370px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { font-size: 14px; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item.guest-author-publication, .post-meta.alternative-meta .post-meta-item.guest-author-publication { display: none; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item .post-meta-button { height: 36px !important; /* important to override in-line height style on emails */ } .post-meta .post-meta-item .post-meta-button .meta-button-label { display: none; } .post-meta .post-meta-item .post-meta-button > svg { margin-right: 0; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item { font-size: 12px; } } @media screen and (max-width: 650px) { .post .floating-subscribe-button { bottom: 20px; right: 20px; } } @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { body .markup table.image-wrapper img, body .markup table.kindle-wrapper img { max-width: 550px; } } @media (max-width: 1024px) { body .captioned-image-container figure:has(> a.image2-align-left), body .captioned-image-container figure:has(> a.image2-align-right) { float: none; margin: 1em auto; max-width: 100%; width: auto; padding: 0; } body .captioned-image-container figure:has(> a.image2-align-left.thefp), body .captioned-image-container figure:has(> a.image2-align-right.thefp) { margin: 1em auto; } body .captioned-image-container figure:has(> a.image2-align-left) .image2-inset, body .captioned-image-container figure:has(> a.image2-align-right) .image2-inset { display: block; justify-content: initial; } } @media (max-width: 768px) { body .markup div.sponsorship-campaign-embed { margin-top: 24px; margin-bottom: 24px; } body .markup div.sponsorship-campaign-embed:first-child { margin-top: 0px; } } @media screen and (max-width: 650px) { body .markup div.youtube-overlay, body .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { body .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { body .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe { padding: 0px 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button { padding: 10px 12px; min-width: 110px; } } @media (max-width: 650px) { body .markup .tweet { padding: 12px; } } @media (max-width: 650px) { body .markup .tweet .tweet-text { font-size: 14px; line-height: 20px; } } @media (max-width: 650px) { body .markup .tweet .tweet-photos-container.two, body .markup .tweet .tweet-photos-container.three, body .markup .tweet .tweet-photos-container.four { height: 200px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-img { max-height: 180px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-description { display: none; } } @media screen and (max-width: 650px) { body .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { body .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-text { margin: 0 0 12px 0; max-width: 100%; width: auto; text-align: center; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwNjA5MTIzOTA1LjMuN2U4YjA3NWQ0N2QxMTI0MUBtZzIuc3Vic3RhY2suY29tPiIsInUiOjE5MjU2OTUxMiwiciI6IjA3NGRsNWt1ZmZ2MzA0b3VAbmV3c2xldHRlci5yb2RlbyIsImQiOiJtZzIuc3Vic3RhY2suY29tIiwicCI6MTY1NTM5NDc3LCJ0IjoibmV3c2xldHRlciIsImEiOiJldmVyeW9uZSIsInMiOjY2MzM1MywiYyI6InBvc3QiLCJmIjp0cnVlLCJwb3NpdGlvbiI6InRvcCIsImlhdCI6MTc0OTQ3Mjc1NSwiZXhwIjoxNzUyMDY0NzU1LCJpc3MiOiJwdWItMCIsInN1YiI6ImVvIn0.l4-o20U1elA-5DPNTIzrqAtUN7UpHITdU4niplge82U" alt="" width="1" height="1" border="0" style="height:1px !important;width:1px !important;border-width:0!important;margin-top:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-left:0 !important;padding-top:0 !important;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !important;"/><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">Portless raises. Xpera acquired. TD hikes fees.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; 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Xpera acquired. TD hikes fees.</h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;"><a class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;color: rgb(54,55,55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-secondary-ls1g8s line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;font-size: 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data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:600,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:272105,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://dc-payments.ca/&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/162274697?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}" alt="" title="" width="550" height="275" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8aec0ade-a586-40b6-85da-800353c95c95_1200x600.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="600" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/3d4d1332-e3c6-4887-8dce-736617e6ab38_600x150.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:150,&quot;width&quot;:600,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:21662,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://dc-payments.ca/&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/164948989?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d4d1332-e3c6-4887-8dce-736617e6ab38_600x150.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}" alt="" title="" width="550" height="137.5" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d4d1332-e3c6-4887-8dce-736617e6ab38_600x150.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>If you&#8217;re a </span><a href="https://substack.com/redirect/f7cc1b29-6f89-4611-a421-3b4456889d82?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">paid subscriber</a><span>, you also get access to the </span><a href="https://substack.com/redirect/16b482bd-599c-4d08-b5b3-98dbd4072b89?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech Database</a><span> - a detailed list of every fintech acquisition in Canada.</span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 12,843 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><div class="pencraft pc-reset button-wrapper" style="text-decoration: unset;list-style: none;font-size: 16px;line-height: 26px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.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.RXM_ofDFAtzgC_u2_1-C4yLKkpyHSZ6NJJdTfpIxYFU?&utm_medium=email&utm_source=subscribe-widget&utm_content=165539477" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: inline-block;box-sizing: border-box;cursor: pointer;border: none;border-radius: 8px;font-size: 14px;line-height: 20px;font-weight: 600;text-align: center;opacity: 1;outline: none;white-space: nowrap;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;color: #ffffff !important;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></div></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>FISPAN</strong><span>, a Vancouver based embedded banking infrastructure, </span><a href="https://substack.com/redirect/fd51303a-892d-45da-89cd-9011ff083fee?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> USD $30m led by </span><strong>Canapi Ventures</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">FISPAN allows ERPs (NetSuite, Oracle, etc) to offer banking features like vendor payments, employee reimbursements, and view bank balances.</p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The fintech is profitable and doing $25m in ARR.</p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The company&#8217;s founder Lisa Shields, previously founded and sold </span><strong>Hyperwallet</strong><span> to </span><strong>PayPal</strong><span> for USD $400m in 2018.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Portless</strong><span>, a Toronto based supply chain logistics firm </span><a href="https://substack.com/redirect/1ed5e34f-f10e-4b9b-bf6f-1b0036ecff50?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> USD $18m led by </span><strong>Commerce</strong><span> </span><strong>Ventures</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The company operates a warehouse in China and ships individual small items directly to consumers. This model was popularized by Shein and Temu.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Rails</strong><span>, a Canadian founded crypto exchange that allows for self custody, </span><a href="https://substack.com/redirect/00b3167f-6db6-4e01-b3da-38e6ecadb763?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> USD $14m led by </span><strong>Slow Ventures</strong><span>.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h5 style="font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;"><strong>A message from Digital Commerce Group</strong></h5><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;"><strong>&#128179; A one stop shop for all of your fintech &amp; payments needs</strong></h4><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" width="100%" border="0" cellspacing="0" cellpadding="0" data-component-name="Image2ToDOMStatic" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/d63592ac-38f8-42d3-9d75-beb492af77e8_2000x1429.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1040,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:299950,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://dc-payments.ca/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://canadianfintech.substack.com/i/164948989?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd63592ac-38f8-42d3-9d75-beb492af77e8_2000x1429.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null}" alt="" title="" width="550" height="392.85714285714283" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd63592ac-38f8-42d3-9d75-beb492af77e8_2000x1429.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Digital Commerce Group</strong><span> provides access to all major Canadian payment rails through a </span><a href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">suite of APIs</a><span> built on top of its </span><a href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Canadian bank license</a><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><a href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Banking-as-a-service</a><span>? We&#8217;ve got you covered.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><a href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Card issuing</a><span> and processing? Look no further.</span></p></li></ul><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><a href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Get in touch</a><span> today to get access to our sandbox.</span></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://dc-payments.ca/&quot;,&quot;text&quot;:&quot;Learn More Here&quot;,&quot;action&quot;:null,&quot;class&quot;:&quot;button-wrapper&quot;}" data-component-name="ButtonCreateButton" style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button primary button-wrapper" href="https://substack.com/redirect/bc2278d0-b783-4b5e-a659-1d932740e1fe?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: inline-block;box-sizing: border-box;border: none;font-size: 14px;line-height: 20px;font-weight: 600;margin: 0;opacity: 1;outline: none;white-space: nowrap;color: #ffffff !important;text-decoration: none !important;text-align: center;cursor: pointer;border-radius: 4px;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Learn More Here</span></a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>SCM</strong><span>, an Edmonton based investigator of insurance claims, sold off </span><strong>Xpera</strong><span>, an investigator of employee misconduct to </span><strong>Weathervane</strong><span>, a private equity firm.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>AppDirect</strong><span>, a Canadian founded white-label tool for launching marketplaces and referral programs </span><a href="https://substack.com/redirect/5dfced65-cf33-46e0-b7a5-5a0cfc97a9b1?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> </span><strong>BOX</strong><span>, a platform for retail energy brokers for USD $85m.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">This allows AppDirect to offer energy procurement to its marketplace amid a boom in AI driven data consumption.</p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Nesto</strong><span> </span><a href="https://substack.com/redirect/d66bea0e-ed9c-4cc7-b14a-1e7f0ef1f180?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span> commercial mortgages in Quebec via </span><strong>CMLS</strong><span>, a company it </span><a href="https://substack.com/redirect/01a57ab3-2cd6-43fa-b865-cfdf357989d1?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> last year</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Gigamatic</strong><span>, a dashboard for gig workers to view their payroll, banking and insurance </span><a href="https://substack.com/redirect/1f56bd54-cfdd-45a4-aec0-2268eadbe8de?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>TD</strong><span> is </span><a href="https://substack.com/redirect/79f58151-6a7c-4ca5-b76a-95b7631db510?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">doubling</a><span> their &#8220;transfer out&#8221; fees for registered accounts from $75 to $150, putting them in line with several other banks.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/6fad9373-fa55-4f54-af49-1609cde9dba6?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/cd5656cf-778f-4323-9d3e-a9614daeff5b?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Want to get in front of 12,843 fintech decision makers? 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See ya &#128075;</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;"><span>-</span><a href="https://substack.com/redirect/0cbe3630-4d5a-49e6-98de-517386e00f8b?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Tal Schwartz</a></p></div></div><div class="container-border" style="margin: 32px 0 0;width: 100%;box-sizing: border-box;border-top: 1px solid #e6e6e6;font-size: 16px;line-height: 26px;"></div><div class="post-cta typography markup" style="font-family: 'SF Pro Display', -apple-system, system-ui, BlinkMacSystemFont, 'Inter', 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;text-align: initial;word-break: break-word;margin-bottom: 32px;margin: 32px 0;font-size: 16px;line-height: 26px;"><p class="referrals-cta-text" style="color: rgb(54,55,55);text-align: center;width: 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  15. CardsFTW #158: CNP Fraud Isn’t Following Expected Patterns

    Wed, 04 Jun 2025 16:15:29 -0000

    <!doctype html> <html> <head> <meta name="viewport" content="width=device-width"> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <!--[if mso]><xml><o:OfficeDocumentSettings><o:PixelsPerInch>96</o:PixelsPerInch><o:AllowPNG/></o:OfficeDocumentSettings></xml><![endif]--> <title>CardsFTW #158: CNP Fraud Isn&#x2019;t Following Expected Patterns</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #73818c; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; 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} table.body .kg-cta-button-container { padding-top: 16px; } table.body .kg-cta-minimal .kg-cta-image-container { display: inline-block !important; width: 100% !important; padding: 0 !important; padding-bottom: 16px !important; padding-right: 0 !important; } table.body .kg-cta-minimal .kg-cta-content-inner { display: inline-block !important; width: 100% !important; padding: 0 !important; } table.body .kg-cta-minimal img.kg-cta-image { width: 52px !important; height: 52px !important; } table.body .kg-cta-minimal a.kg-cta-button { display: inline-block !important; } table.body .kg-cta-minimal table.kg-cta-button-wrapper td { padding: 4px 16px 5px; } table.body .kg-cta-immersive .kg-cta-button-wrapper { padding: 6px 18px 7px; } } @media all { .subscription-details p.hidden { display: none !important; } .ExternalClass { width: 100%; } .ExternalClass, .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td, .ExternalClass div { line-height: 100%; } .apple-link a { color: inherit !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; line-height: inherit !important; text-decoration: none !important; } #MessageViewBody a { color: inherit; text-decoration: none; font-size: inherit; font-family: inherit; font-weight: inherit; line-height: inherit; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, my Southwest Airlines luggage theory</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/10de2ef4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/ba25cc81?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #158: CNP Fraud Isn&#x2019;t Following Expected Patterns</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By Matthew Goldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">4 Jun 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/b9334bca?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> <tr class="post-meta post-meta-center view-online-mobile" style="color: #73818c; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/8120e8a1?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e0e7eb; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <div class="kg-card kg-callout-card kg-callout-card-green" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E8F8EA;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F4B3;</div><div class="kg-callout-text">Sponsored by: Burgopak.<br>The world&#39;s most innovative card packaging company.<br><a href="https://www.cardsftw.com/r/a00c4165?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;">www.burgopak.com</a></div></div><h1 id="we-expected-a-surge-in-cnp-fraud" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">We Expected a Surge in CNP Fraud</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It&#x2019;s not that I&#x2019;m disappointed that CNP fraud didn&#x2019;t surge with the EMV chip rollout, but it certainly wasn&#x2019;t what I expected. My favorite research at the Kansas City Fed (who here can introduce me to Fumiko Hayashi?) published another paper of great interest on the&#xA0; Curious Case of U.S. Card-Not-Present Fraud (not it&#x2019;s actual title, which instead is &#x201C;<a href="https://www.cardsftw.com/r/fabdd718?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Card-Not-Present Fraud Rates in the United States After the Migration to Chip Cards</u></a>,&#x201D; which is very thoughtful but not as fun).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">By way of background for anyone new to the industry, the U.S. was late to the game in rolling out the requirement for EMV chip support at retail terminals in 2015. So, we had a lot of data from other countries to indicate what would probably happen: when it got harder to conduct fraud at the point-of-sale in person, the fraudsters would shift online.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Fraudsters are clever and know how to hustle, so fraud has shifted, but not in the way we expected.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you&#x2019;ve ever tried to explain why a magstripe still works on a U.S. card in 2025, you already know: America&#x2019;s EMV migration was long, patchy, and full of loopholes you could drive a fleet of skimmers through. While Europe, Australia, and Canada saw sharp CNP fraud spikes post-EMV, the U.S. story was very slow on the take because fraudsters follow the path of least resistance.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/cards-evolution.png" class="kg-image" alt="A humorous 2D illustration titled &#x2018;CARDS EVOLUTION&#x2019; shows the progression of payment card technology using four anthropomorphic cards walking left to right in a style inspired by the &#x2018;evolution of man&#x2019; meme. The first card has embossed numbers (representing early credit cards), the second features a black magnetic stripe, the third displays an EMV chip, and the fourth has both an EMV chip and contactless NFC symbol. All cards have arms and legs, walking in sync across a beige background" loading="lazy" width="600" height="400" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><a href="https://www.cardsftw.com/r/3dbddeee?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: none;" target="_blank"><span style="text-align: center; white-space: pre-wrap;">March of (Credit Card Authorization Technology) Progress</span></a></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">According to the Kansas City Fed, CNP transaction fraud rates rose modestly between 2013 and 2015. Dual-message networks (Visa, Mastercard, Discover) saw rates creep up from 14.3 to 16.9 basis points. Single-message networks (your STAR, NYCE, and PULSE types) jumped from 2.1 to 8.5 basis points, but then&#x2026; didn&#x2019;t keep climbing.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">That&#x2019;s weird. In payments, weird usually means &#x201C;there&#x2019;s nuance.&#x201D; So let&#x2019;s get into it.</p><h2 id="why-didn%E2%80%99t-fraud-explode-here-like-it-did-elsewhere" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Why Didn&#x2019;t Fraud Explode Here Like It Did Elsewhere?</h2><ol style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: decimal; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Card-present fraud isn&#x2019;t low: </strong>&#xA0;EMV helped, sure, but the lack of PIN requirements at the point of sale in the U.S. left just enough softness in the system that fraudsters didn&#x2019;t <em>have</em> to migrate online immediately. </li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">We already had digital defenses: </strong>We weren&#x2019;t starting from zero on CNP fraud tools when the chip cards finally showed up. Tokenization, real-time machine-learning risk engines, behavioral biometrics, etc.; if it&#x2019;s got a buzzword, we already use it. Thanks, Stripe and friends.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">We learned from everyone else&#x2019;s experiences: </strong>&#xA0;Being late to the chip card party meant we could look at the UK&#x2019;s 2008 or Australia&#x2019;s 2014 spike and say, &#x201C;Maybe we shouldn&#x2019;t make the same mistakes.&#x201D; Credit where it is due: merchants, networks, and issuers <em>did</em> respond more proactively here.</li></ol><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><h2 id="sponsored-by-burgopak-packaging" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;"><strong style="font-weight: 800;">Sponsored by Burgopak Packaging</strong></h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Packaging For Better.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/BURGOPAK_2024_LOGO_RGB.jpg" class="kg-image" alt loading="lazy" width="600" height="115" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The physical card has become not just a bank card, but a membership card. In the absence of a handshake, the way it is presented through packaging fundamentally defines the first &#x201C;hello and welcome to the club.&quot; Unboxing your product for the first time marks the beginning of an important relationship and it should be the moment you reward people for making the right choice: <em>for choosing you</em>.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Burgopak is offering CardsFTW readers a free packaging consultation. Just mention CardsFTW in the contact form on their website - <a href="https://www.cardsftw.com/r/4dceafd6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">burgopak.com</a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/dfe7394b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Learn More</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><h2 id="meanwhile-cnp-volume-exploded" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Meanwhile, CNP Volume Exploded</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">While the fraud rate growth was modest, the <em>volume</em> of CNP transactions skyrocketed. Dual-message networks saw CNP debit volume balloon from $360B in 2011 to $1.8T by 2021&#x2014;yes, <em>trillion</em> with a T. Single-message networks grew more slowly, from $26B to $85B over the same period, but that&#x2019;s still a 3x increase.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you&#x2019;re looking for the fraudster&#x2019;s side hustle playbook, just follow the money.</p><h2 id="who-eats-the-fraud-cost" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Who Eats the Fraud Cost?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The real fun is the breakdown of who gets left holding the bag when a CNP transaction goes sideways.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/spiderman-cards.png" class="kg-image" alt="A comic-style illustration parodying the Spider-Man pointing meme, featuring three humanoid payment cards with EMV chips and contactless symbols. Each card is labeled: &#x2018;ISSUERS&#x2019;, &#x2018;MERCHANTS&#x2019;, and &#x2018;CARDHOLDERS&#x2019;. They stand in a triangular formation, each pointing at the others in confusion or blame, against a red brick wall and gray pavement." loading="lazy" width="600" height="400" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">That cardholder card is looking suspicious.</span></div></div><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Issuers</strong>:&#xA0;For dual-message networks, issuer losses have stayed almost suspiciously consistent, around four basis points, for the past decade. They&#x2019;ve gotten good at chargebacks, fraud detection, and passing the cost downstream.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Merchants</strong>: Here&#x2019;s where the pain lives. Losses jumped from 10 bps in 2011 to 15 bps in 2019, before settling back to 13.4 bps in 2021. You&#39;re the fraudster&#39;s favorite customer if you&#x2019;re not using 3D Secure, address verification, and device fingerprinting by now.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Cardholders</strong>: The good news is that consumers don&#x2019;t pay much of the cost. The bad news is that &#x201C;not much&#x201D; is rising, from 0.4 bps in 2011 to 1.8 bps in 2019. The implication? Either people are getting better at missing the fine print, or issuers are quietly cost-shifting.</li></ul><div></div><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/bc781a1f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h2 id="what%E2%80%99s-next" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">What&#x2019;s Next?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The CNP fraud problem isn&#x2019;t going away. It&#x2019;s just evolving. The steady rise in volume means even small percentage losses stack up fast, and fraudsters are nothing if not adaptable. We&#x2019;ve seen them turn return fraud into a Shopify playbook. Imagine what they&#x2019;ll do when they get bored of BIN attacks and move on to faster LLM-driven synthetic identities.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Here&#x2019;s where the industry should be focusing next:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Raise the bar on merchant auth: </strong>&#xA0;If your checkout still runs without 3DS2, device intelligence, or risk-based step-up, you&#x2019;re just daring a botnet to test your defenses.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Continue reducing friction for good actors: </strong>&#xA0;The trick isn&#x2019;t just stopping fraud, it&#x2019;s doing it without torching conversion rates. Real-time decisioning is table stakes. If you&#x2019;re still batch processing, you&#x2019;re toast.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Monitor cardholder behavior changes: </strong>Higher cardholder loss rates could mean people are falling for more scams or disputing fewer charges. Either way, the root cause matters, especially if you&#x2019;re an issuer trying to minimize downstream service costs.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><strong style="font-weight: 700;">Consider liability reform: </strong>&#xA0;This data could preview the next round of policy fights. As fraud costs shift and certain actors eat more than their share, expect more public-private tension over who pays, when, and why.</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Fraud doesn&#x2019;t disappear, it just migrates. EMV may have locked the front door, but CNP fraud snuck in through the window and brought cookies. The good news? The U.S. didn&#x2019;t get slammed as hard as it could have. The bad news? A new wave of AI-powered fraud is already showing up at every entrance. Batten down the hatches!</p><h1 id="southwest-bags-fees-just-a-credit-card-play" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Southwest Bags Fees: Just a Credit Card Play?</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I&#x2019;m not usually one for reposting my social media (which, to be clear, is only LinkedIn) on my newsletter, but this recent post got a lot of attention:</p><div> <!--[if !mso !vml]--> <div class="kg-card kg-bookmark-card " style="margin: 0 0 1.5em; padding: 0; width: 100%; background: #ffffff;"> <a class="kg-bookmark-container" href="https://www.cardsftw.com/r/7631e744?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="display: flex; min-height: 148px; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; border-radius: 3px; border: 1px solid #e0e7eb; overflow-wrap: anywhere; color: #F9A60D; text-decoration: none;" target="_blank"> <div class="kg-bookmark-content" style="display: inline-block; width: 100%; padding: 20px;"> <div class="kg-bookmark-title" style="color: #15212A; font-size: 15px; line-height: 1.5em; font-weight: 600;">#creditcards #rewards #southwest #tanstaafl | Matthew Goldman | 13 comments</div> <div class="kg-bookmark-description" style="display: -webkit-box; overflow-y: hidden; margin-top: 12px; max-height: 40px; color: #73818c; font-size: 13px; line-height: 1.5em; font-weight: 400; -webkit-line-clamp: 2; -webkit-box-orient: vertical;">My new theory is that Southwest Airlines created a checked bag fee not for the direct rev<span class="desktop-only">enue of $35 per bag, but to en</span>&#x2026;</div> <div class="kg-bookmark-metadata" style="display: flex; flex-wrap: wrap; align-items: center; margin-top: 14px; color: #15212A; font-size: 13px; font-weight: 400;"> <img class="kg-bookmark-icon" src="https://www.cardsftw.com/content/images/icon/al2o9zrvru7aqj8e1x2rzsrca-1" alt style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; margin-right: 8px; width: 22px; height: 22px;" width="22" height="22"> <span class="kg-bookmark-author" src="LinkedIn" style="line-height: 1.5em;">LinkedIn</span> <span class="kg-bookmark-publisher" src="Matthew Goldman" style="overflow: hidden; max-width: 240px; line-height: 1.5em; text-overflow: ellipsis; white-space: nowrap;"><span style="margin: 0 6px;">&#x2022;</span>Matthew Goldman</span> </div> </div> <div class="kg-bookmark-thumbnail" style="min-width: 140px; max-width: 180px; background-repeat: no-repeat; background-size: cover; background-position: center; border-radius: 0 2px 2px 0; background-image: url(&#39;https://www.cardsftw.com/content/images/thumbnail/1748618933491-1&#39;);"> <img src="https://www.cardsftw.com/content/images/thumbnail/1748618933491-1" alt onerror="this.style.display=&#39;none&#39;" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: none;"></div> </a> </div> <!--[endif]--> <!--[if vml]> <table class="kg-card kg-bookmark-card--outlook" style="margin: 0; padding: 0; width: 100%; border: 1px solid #e5eff5; background: #ffffff; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif; border-collapse: collapse; border-spacing: 0;" width="100%"> <tr> <td width="100%" style="padding: 20px;"> <table style="margin: 0; padding: 0; border-collapse: collapse; border-spacing: 0;"> <tr> <td class="kg-bookmark-title--outlook"> <a href="https://www.linkedin.com/posts/matthewgoldman_creditcards-rewards-southwest-activity-7334239392766509057-OSHb?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJPzOQBQiY1DC_R1xAQ3lEfYdQAUSM1jzk" style="text-decoration: none; color: #15212A; font-size: 15px; line-height: 1.5em; font-weight: 600;"> #creditcards #rewards #southwest #tanstaafl | Matthew Goldman | 13 comments </a> </td> </tr> <tr> <td> <div class="kg-bookmark-description--outlook"> <a href="https://www.linkedin.com/posts/matthewgoldman_creditcards-rewards-southwest-activity-7334239392766509057-OSHb?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJPzOQBQiY1DC_R1xAQ3lEfYdQAUSM1jzk" style="text-decoration: none; margin-top: 12px; color: #738a94; font-size: 13px; line-height: 1.5em; font-weight: 400;"> My new theory is that Southwest Airlines created a checked bag fee not for the direct rev<span class="desktop-only">enue of $35 per bag, but to en</span>… </a> </div> </td> </tr> <tr> <td class="kg-bookmark-metadata--outlook" style="padding-top: 14px; color: #15212A; font-size: 13px; font-weight: 400; line-height: 1.5em;"> <table style="margin: 0; padding: 0; border-collapse: collapse; border-spacing: 0;"> <tr> <td valign="middle" class="kg-bookmark-icon--outlook" style="padding-right: 8px; font-size: 0; line-height: 1.5em;"> <a href="https://www.linkedin.com/posts/matthewgoldman_creditcards-rewards-southwest-activity-7334239392766509057-OSHb?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJPzOQBQiY1DC_R1xAQ3lEfYdQAUSM1jzk" style="text-decoration: none; color: #15212A;"> <img src="https://www.cardsftw.com/content/images/icon/al2o9zrvru7aqj8e1x2rzsrca-1" width="22" height="22" alt=" "> </a> </td> <td valign="middle" class="kg-bookmark-byline--outlook"> <a href="https://www.linkedin.com/posts/matthewgoldman_creditcards-rewards-southwest-activity-7334239392766509057-OSHb?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJPzOQBQiY1DC_R1xAQ3lEfYdQAUSM1jzk" style="text-decoration: none; color: #15212A;"> LinkedIn &nbsp;&#x2022;&nbsp; Matthew Goldman </a> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> <div class="kg-bookmark-spacer--outlook" style="height: 1.5em;">&nbsp;</div> <![endif]--></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">My new theory is that Southwest Airlines created a checked bag fee not for the direct revenue of $35 per bag, but to entice people to sign-up for a JPMorganChase Southwest Airlines Visa card that includes a free checked bag.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I have no idea what&#x2019;s going on with Southwest Airlines, which used to be my favorite. I think I&#x2019;ve flown Southwest more than 300 times. I have always loved the no-assigned seats and limited fees. I never check bags, so that part wasn&#x2019;t important to me, but I think the airline is making a massive mistake in becoming just like its competitors.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/06/SWA-CREDIT_CARD_PRI_PREM_PLUS.png" class="kg-image" alt="Three Southwest Visa Credit Cards" loading="lazy" width="370" height="265" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Putting your CEO&#39;s name on the card is a choice.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Along those lines, they have introduced a $35 per bag checked baggage fee and, just like their competitors, enabled free checked bags as a perk on their credit card. Savvy fliers know that airline cards are for more than just earning points, and that cards bring other perks, from earlier boarding to free bags.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Like I said above, I think this might just be a play to drive credit card revenue with Chase. It&#39;s not a bad move, but I think Southwest is going to struggle mightily post-change and will turn into something that looks a lot like American or United, but with a very weak international footprint and nary a lounge in sight.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">CardsFTW</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/72dfc82a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noopener noreferrer nofollow" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW</a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/4eefd3fa?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noopener noreferrer nofollow" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Totavi</a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/c6115cb5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noopener noreferrer nofollow" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">www.totavi.com</a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e0e7eb;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" width="30%"> <a href="https://www.cardsftw.com/r/d1361e3a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; vertical-align: middle;"> <p class="feedback-button-text" style="display: inline-block; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; color: #15212A; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e0e7eb; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-top: 40px; padding-bottom: 30px;"> <tr><td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center"><p dir="ltr" style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span>Totavi, LLC,&#xA0;2108&#xA0;N St., Ste. N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #73818c; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; text-align: center; padding-top: 70px; padding-bottom: 40px;" valign="top" align="center"><a href="https://ghost.org/?via=pbg-newsletter&amp;ref=cardsftw.com" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"><img src="https://static.ghost.org/v4.0.0/images/powered.png" border="0" width="142" height="30" class="gh-powered" alt="Powered by Ghost" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; width: 142px; height: 30px;"></a></td> </tr> </table> </td> </tr> </table> <!-- END CENTERED WHITE CONTAINER --> </div> </td> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1" height="1" alt="" src="https://email.mg.cardsftw.com/o/eJwszktu7SAMANDVXGY3MsaGMPBi-Jgk7yVFIrRRd1-p6vDMThW3WsdsVGygCOwCRqNXOs73UcWvBMHakJUyFEjkVoLsktnFe3DYiLTV3BSwJO8glxxRE7sYzCEIyOCBrLeMvFCNbbWATpki-PYiuLalpFHvNp-l9MsMmQ_b739zq_t5D-z1RfChz33qnDqW0at2MyV_nv_fv0szZdv7Pf_0JfgTAAD__xANP1A"></body> </html>
  16. CardsFTW #157: Bye, Bye Bluebird

    Wed, 28 May 2025 16:15:40 -0000

    <!doctype html> <html> <head> <meta name="viewport" content="width=device-width"> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"> <!--[if mso]><xml><o:OfficeDocumentSettings><o:PixelsPerInch>96</o:PixelsPerInch><o:AllowPNG/></o:OfficeDocumentSettings></xml><![endif]--> <title>CardsFTW #157: Bye, Bye Bluebird</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #73818c; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 15px; 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text-align: left !important; } table.body .post-meta.view-online-mobile { display: table-row !important; } table.body .post-meta-left.view-online-mobile, table.body .post-meta-left.view-online-mobile .view-online { text-align: left !important; } table.body .post-meta.view-online.desktop { display: none !important; } table.body .view-online { text-decoration: underline; } table.body .footer p, table.body .footer p span { font-size: 13px !important; } table.body .view-online-link, table.body .footer, table.body .footer a { font-size: 13px !important; } table.body .post-title a { font-size: 26px !important; line-height: 1.1em !important; } table.feedback-buttons { display: table !important; width: 100% !important; max-width: 390px; } table.feedback-buttons img { display: inherit !important; } table.body .feedback-button-text { display: none!important; } table.body .latest-posts-header { font-size: 12px !important; } table.body .latest-post-title { padding-right: 8px !important; } table.body .latest-post h4, table.body .latest-post h4 span { padding: 4px 0 6px !important; 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} table.body .kg-cta-button-container { padding-top: 16px; } table.body .kg-cta-minimal .kg-cta-image-container { display: inline-block !important; width: 100% !important; padding: 0 !important; padding-bottom: 16px !important; padding-right: 0 !important; } table.body .kg-cta-minimal .kg-cta-content-inner { display: inline-block !important; width: 100% !important; padding: 0 !important; } table.body .kg-cta-minimal img.kg-cta-image { width: 52px !important; height: 52px !important; } table.body .kg-cta-minimal a.kg-cta-button { display: inline-block !important; } table.body .kg-cta-minimal table.kg-cta-button-wrapper td { padding: 4px 16px 5px; } table.body .kg-cta-immersive .kg-cta-button-wrapper { padding: 6px 18px 7px; } } @media all { .subscription-details p.hidden { display: none !important; } .ExternalClass { width: 100%; } .ExternalClass, .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td, .ExternalClass div { line-height: 100%; } .apple-link a { color: inherit !important; font-family: inherit !important; font-size: inherit !important; font-weight: inherit !important; line-height: inherit !important; text-decoration: none !important; } #MessageViewBody a { color: inherit; text-decoration: none; font-size: inherit; font-family: inherit; font-weight: inherit; line-height: inherit; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, New Layers to the Citi Strata Cards</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/65b0e446?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/aa97bd07?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #157: Bye, Bye Bluebird</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By Matthew Goldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">28 May 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/ba317342?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> <tr class="post-meta post-meta-center view-online-mobile" style="color: #73818c; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #73818c; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/e6faf6bf?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #73818c; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e0e7eb; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <div class="kg-card kg-callout-card kg-callout-card-green" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E8F8EA;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F4B3;</div><div class="kg-callout-text">Sponsored by: Burgopak.<br>The world&#39;s most innovative card packaging company.<br><a href="https://www.cardsftw.com/r/bc7812a5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;">www.burgopak.com</a></div></div><h1 id="citi-adds-a-new-strata-layer" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Citi Adds a New Strata Layer</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Citibank has been phasing out its legacy ThankYou and Rewards+ brands (see <a href="https://www.cardsftw.com/r/6220c07b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>CardsFTW #106: New Card Season</em></a>). Last week, Citi announced it would be migrating users of Citi Rewards+ (which closed to new applicants last month).&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/citi-strata.webp" class="kg-image" alt="Image of Citi Strata card art." loading="lazy" width="600" height="360" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><a href="https://www.cardsftw.com/r/e5217b83?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: none;" target="_blank"><span style="text-align: center; white-space: pre-wrap;">William Smith</span></a></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The new Citi Strata card earns:</p><ul style="margin: 0 0 1.5em 0; line-height: 1.6em; padding-left: 1.3em; padding-right: 1.5em; list-style: disc; max-width: 100%;"><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">5x ThankYou points on hotels, car rentals, and attractions booked on cititravel.com.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">3x ThankYou points at supermarkets,&#xA0; select transit and gas/EV stations, and an&#xA0; eligible self-select category of your choice, including fitness clubs, select streaming services, live entertainment, cosmetic stores/barbershops/hair salons, or pet supply stores</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">2x ThankYou points at restaurants</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">1x ThankYou points on all other purchases.</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This is a lot of detail, but it&#39;s way better than the old Rewards+ card, which was just 2 points at supermarkets and gas stations (with a $6000 limit).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">One odd thing is that this no-fee card can only transfer points to <em>some</em> of Citi&#x2019;s partners (Choice Privileges, JetBlue, and Wyndham Rewards), but you need a card with a fee (the Citi Strata Premier&#x2120; Card or the Citi Prestige&#xAE; Card) to access them.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h1 id="bluebird-has-flown-the-rise-and-fall-of-amex%E2%80%99s-prepaid-experiment" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Bluebird Has Flown: The Rise and Fall of Amex&#x2019;s Prepaid Experiment</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">American Express has officially ended its Bluebird and Serve prepaid card programs. In a notice to customers, Amex announced that all Bluebird and Serve accounts will be <a href="https://www.cardsftw.com/r/20efd48b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>closed by June 2026</u></a>. This marks the end of a decade-long experiment in offering banking services to the &#x201C;unbanked&#x201D; and &#x201C;underbanked&#x201D; through prepaid cards.&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/bluebird.png" class="kg-image" alt="Image of Amex Bluebird Card card art." loading="lazy" width="355" height="242" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><a href="https://www.cardsftw.com/r/83165f47?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: none;" target="_blank"><span style="text-align: center; white-space: pre-wrap;">William Swainson</span></a></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I was just wrapping up my time at Green Dot when Amex jumped into prepaid. I didn&#x2019;t understand it at the time; the premium Amex brand and the reality of the low-to-middle income prepaid users didn&#x2019;t seem to mix. Amex spent a lot of money on this effort over a long period to get to this end point.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/serve.png" class="kg-image" alt="Image of Amex Serve Card card art." loading="lazy" width="400" height="260" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">This is the serve card I remember. I would have gone with Arthur Ashe.</span></div></div><h2 id="amex%E2%80%99s-prepaid-journey" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Amex&#x2019;s Prepaid Journey</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Amex&#x2019;s first step into the prepaid arena was in 2009, with the purchase of <a href="https://www.cardsftw.com/r/343ae78f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Revolution Money</u></a>, a digital payments startup founded by AOL founder Steve Case. This gave Amex a platform for online peer-to-peer payments and stored-value cards. The first product built on <a href="https://www.cardsftw.com/r/06ff2787?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>this technology was Serve</u></a>, a &#x201C;next-generation digital wallet.&#x201D; Serve accounts could be loaded via bank account, payment cards, or even Facebook, and every account came with a reloadable prepaid Amex card for in-store and ATM use. This product was targeted at cash and debit users, aiming to bring P2P payments and mobile money to the masses. This was followed shortly by a general-purpose Amex Prepaid Debit Card (wow, what a clever name!), built to compete with Green Dot and NetSpend by offering no activation or reload fees and no charge for online or retail purchases. (There&#x2019;s only a $2 ATM fee after one free monthly withdrawal, a far cry from the notorious fees on cards like the old <a href="https://www.cardsftw.com/r/72d15af7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Kardashian Kard</u></a>.)&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/bluebird.jpg" class="kg-image" alt="A blue and green credit card with the American Express and Bluebird logos next to a larger box with the same logos. The box is labeled Account Set Up Kit." loading="lazy" width="600" height="399" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Jay Bleu. The checkbook must be inside the box.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">In 2014, Amex rolled out Bluebird in partnership with Walmart, a reloadable prepaid account billed as a &#x201C;checking &amp; debit alternative&#x201D; for Americans fed up with <a href="https://www.cardsftw.com/r/921ef9df?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>bank fees</u></a>. Amex and Walmart positioned Bluebird as a tool for the &#x201C;unhappily banked,&#x201D; folks who may have a bank account but want a simpler, <a href="https://www.cardsftw.com/r/822bcec6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>fee-free experience</u></a>. Features included smartphone check deposit and online bill pay, with no minimum balance and no monthly, annual, or overdraft fees. Notably, Bluebird also supported paper check-writing; Amex even offered a Bluebird checkbook. The card was sold in Walmart stores (for about $5) and one could reload it for free at any Walmart register.</p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><h2 id="sponsored-by-burgopak-packaging" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;"><strong style="font-weight: 800;">Sponsored by Burgopak Packaging</strong></h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Packaging For Better.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/05/BURGOPAK_2024_LOGO_RGB.jpg" class="kg-image" alt loading="lazy" width="600" height="115" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The physical card has become not just a bank card, but a membership card. In the absence of a handshake, the way it is presented through packaging fundamentally defines the first &#x201C;hello and welcome to the club.&quot; Unboxing your product for the first time marks the beginning of an important relationship and it should be the moment you reward people for making the right choice: <em>for choosing you</em>.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Burgopak is offering CardsFTW readers a free packaging consultation. Just mention CardsFTW in the contact form on their website - <a href="https://www.cardsftw.com/r/8fb2cb23?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">burgopak.com</a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/cd38228e?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Learn More</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Walmart was already offering the Walmart Prepaid Visa card (issued by Green Dot) and I didn&#x2019;t understand why they would offer both products. While a high-spending clientele may want the benefits of Amex, I don&#x2019;t think the LMI crowd did; they preferred the usability of Visa.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">A few years later, Amex launched the Serve Cash Back card, touted as the first prepaid debit with 1% cash back on purchases. It had a $5.95 monthly fee (waived in a few states), essentially letting users &#x201C;buy&#x201D; a cashback perk. This was an unusual move (rewards are rare in prepaid land) and signaled Amex&#39;s attempt to differentiate Serve in a <a href="https://www.cardsftw.com/r/3cb501c8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>crowded market</u></a>. In a strategic shift, in 2016, American Express <a href="https://www.cardsftw.com/r/716fce85?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>sold the Serve technology platform</u></a> and U.S. prepaid card operations to InComm, a major prepaid program manager. InComm took over program management and customer servicing for Bluebird, Serve, and Amex&#x2019;s general prepaid products; Amex stayed on as the issuer and kept its name on the cards.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Industry observers noted that Amex was outsourcing the nitty-gritty of its prepaid business, much like Visa and Mastercard issuers, to gain efficiency. This move also underscored how Amex&#x2019;s upscale brand fit awkwardly in a market largely serving moderate-income customers. (Fun fact: Dan Schulman, the Amex executive who spearheaded Serve, had left by then, and became CEO of PayPal.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Following the InComm deal, Serve accounts started transitioning from the American Express network to Visa-branded Serve cards issued by InComm&#x2019;s bank partners. In effect, Serve became a Visa prepaid card program, while Bluebird remained on Amex&#x2019;s network. Amex&#x2019;s direct role in prepaid was further diminished, though the Bluebird brand soldiered on (still in partnership with Walmart, but managed by InComm behind the scenes).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Following all of this? What a complicated story.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">In a blow to Bluebird&#x2019;s core value proposition, a new $3.74 fee was implemented for loading Bluebird with cash at Walmart, effective July 1, 2023. For years, free Walmart reloads were Bluebird&#x2019;s killer feature (a favorite of travel-hacking enthusiasts who would load gift cards and pay bills). With Walmart now charging $3.74 per load, Bluebird lost a major advantage over other cards. Unsurprisingly, even the hardcore fans saw the <a href="https://www.cardsftw.com/r/53db50a0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>writing on the wall after this change</u></a>. Then other features started disappearing. In September 2024, Bluebird users were notified that sub-accounts, savings Goals, Amex Offers, and even the old check-writing capability would be <a href="https://www.cardsftw.com/r/f1506ea7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>discontinued</u></a>.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">And now, the end. Accounts will remain open through early June 2026 to give customers time to transition, but no new accounts are being issued. By June 3, 2026, any remaining funds will be returned to users by check, and the chapter will officially close on Amex&#x2019;s<a href="https://www.cardsftw.com/r/e9c2461d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> prepaid experiment</u></a>.&#xA0;</p><h2 id="why-did-amex-and-other-big-banks-fail-at-prepaid" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Why Did Amex (and other big banks) Fail at Prepaid?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">In the early 2010s, general-purpose prepaid cards were the hot new thing in finance (I mean, to the extent finance has a &#x201C;hot new thing.&#x201D;) Companies like Green Dot and NetSpend had spent a decade building this market, selling prepaid Visa and Mastercards on grocery store racks to millions of Americans without bank accounts. By loading paychecks or cash onto these cards, consumers could swipe and pay bills electronically like bank debit card users. Green Dot and NetSpend <em>were</em> the de facto &#x201C;neobanks&#x201D; of their era, albeit with a very different business model (one dependent on fees for card purchases, monthly maintenance, ATM usage, etc.).&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">American Express saw this trend and wanted in, but as a bank (and a high-end brand), Amex approached prepaid with a different mindset. Bluebird and Serve were remarkably low-fee compared to many private-label prepaid cards. That consumer-friendly approach won Bluebird/Serve a loyal niche (especially among cost-conscious users and points hobbyists), but it also meant thin margins. Legacy prepaid providers made money precisely because their customers often paid $5 here and $3 there in fees. (I would note that, in our research at Green Dot, our users preferred to pay a $5 monthly fee and never have an overdraft fee, rather than the punitive fees on so-called free checking accounts.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Amex hoped to profit mostly from interchange fees (the cut of transactions merchants pay) and from cross-selling other services, which required volume and engagement, not just fees, to make prepaid pay off.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It didn&#x2019;t help that Amex&#x2019;s network had acceptance limitations. Bluebird and Serve were on the American Express network (until Serve&#x2019;s late switch to Visa), meaning they weren&#x2019;t accepted at quite as many merchants as Visa/Mastercard-based cards. While Amex&#x2019;s acceptance grew over time (it&#x2019;s now 99% of Visa), in Bluebird&#x2019;s early years, this was a slight disadvantage versus Green Dot or NetSpend cards that worked everywhere. Amex tried to compensate by layering on features. These made Bluebird feel more like a &#x201C;bank account alternative&#x201D; as advertised, but they also probably added cost and complexity.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><a href="https://www.cardsftw.com/r/2ae8bb9c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><img src="https://www.cardsftw.com/content/images/2025/05/serve.jpg" class="kg-image" alt="Blue credit card with the Serve logo in the top left and the Debit Visa logo in the bottom right." loading="lazy" width="500" height="350" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></a><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Another good option: John Isner</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">During the years Amex was tweaking Bluebird/Serve, the prepaid card market was transforming. Players Green Dot and NetSpend continued to grow. NetSpend was acquired for <a href="https://www.cardsftw.com/r/42415df7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>$1.4 billion in 2013</u></a>, and Green Dot pivoted to offering its checking accounts and banking-as-a-service. Those firms thrived by focusing on their core market: people without traditional bank accounts who were willing to pay fees for convenience and access to the prepaid cards provided. They also evolved with the times &#x2013; Green Dot even launched its own online checking account (GoBank) and later a modern fintech-y banking app (GO2bank) in an attempt to stay relevant. In short, the &#x201C;old guard&#x201D; prepaid companies proved resilient by doubling down and innovating within the prepaid model.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Amex, by contrast, was always straddling a line: trying to attract the underbanked without tarnishing its upscale brand or cannibalizing its main products. In retrospect, Bluebird and Serve always felt a bit like side projects within Amex&#x2019;s empire. When Amex handed over the backend to InComm, it was a sign that Amex was stepping back from any grand prepaid ambitions.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">At the same time, a new wave of mobile-first &#x201C;neobanks&#x201D; emerged, like Chime (founded in 2013, by a former Green Dot colleague of mine, Chris Britt) and Current (2015), targeting the same consumer needs with slick apps and no-fee banking. Even big banks dipped their toes: JPMorgan Chase launched a digital banking app called Finnin 2018 to court millennials, and others like Wells Fargo and Capital One experimented with online checking offshoots.&#xA0;</p><div></div><h2 id="enter-the-neobank" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Enter the Neobank</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Just as Amex&#x2019;s prepaid momentum was stalling, a new generation of digital-only banks was rising. Chime launched in 2014 with a simple pitch: no fees, get your paycheck two days early, and manage everything from a mobile app. By the late 2010s, Chime was signing up customers at a blistering pace, reaching an estimated 12 million users by 2021 and over <a href="https://www.cardsftw.com/r/cae00864?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">22 <u>million by 2024</u></a>. Unlike prepaid cards that you buy at a store, Chime accounts are marketed as a tech-savvy lifestyle upgrade. Chime makes money purely from interchange on its debit card, not from monthly service fees or account fees.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Alongside Chime came others: Square&#x2019;s Cash App added a Visa debit card in 2017, turning a peer-to-peer payment app into a spending account for millions. By 2024, Cash App had <em>57 </em>million active users, and 24 million had ordered Cash App Cards for <a href="https://www.cardsftw.com/r/cd1014ac?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>in-store spending</u></a>. Current began by targeting teens with a debit card, then pivoted to a full app-based checking account that reached around 4 million users by mid-decade. These fintech players proved adept at viral marketing, intuitive design, and offering features like instantly buying Bitcoin or stocks (in Cash App&#x2019;s case) or no-fee overdrafts up to $200 (in Chime&#x2019;s case) that appealed to younger consumers. They essentially outflanked what prepaid cards had been doing by offering a more modern, full-service banking feel, while still catering to the unhappily banked or unbanked.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Crucially, the tech-first neobanks and the legacy prepaid providers both succeeded in their own ways because they focused on one model and executed it well. Green Dot didn&#x2019;t suddenly try to become a fancy credit card company; it doubled down on prepaid and later offered its infrastructure to power other brands&#x2019; banking products (Apple Cash, Uber&#x2019;s debit, and so on). Chime didn&#x2019;t try to launch a travel card or a mortgage business; it stuck to the basics of checking/saving and a slick app. Each knew their audience and delivered what was missing from the big banks&#x2019; offerings.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/6cfdc544?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h2 id="why-big-banks-couldn%E2%80%99t-crack-the-code" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Why Big Banks Couldn&#x2019;t Crack the Code</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Given this backdrop, it&#x2019;stelling that large banks like American Express and JPMorgan Chase couldn&#x2019;t make their retail prepaid or digital banking experiments stick. Chase&#x2019;s &#x201C;Finn&#x201D;, launched in 2018 as a millennial-focused mobile bank account, was shut down after only a year or so. Critics said Chase failed to differentiate it from the bank&#x2019;s standard accounts; it was basically a repackaged checking account with a new UI, aiming at an audience that already had plenty of <a href="https://www.cardsftw.com/r/cf6a368b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>alternatives</u></a>. There was also internal tension: a digital offshoot like Finn could cannibalize the mother ship, and it reportedly didn&#x2019;t get full support within the <a href="https://www.cardsftw.com/r/371c859c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>organization</u></a>. Big banks historically rely on their branch networks and established brand; launching a sub-brand to appeal to a niche (and presumably lower-profit) segment often ends up half-hearted.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2025/05/finncard.png" class="kg-image" alt="Image of Finn card art." loading="lazy" width="600" height="399" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #73818c; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Eero Saarinen</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">For American Express, Bluebird and Serve never meshed with the company&#x2019;s core identity. Amex is known for charging premium annual fees for platinum cards, wooing affluent customers with points and perks, and maintaining an aura of exclusivity. Bluebird/Serve was the complete opposite play: no fees, target the masses, distribute in Walmart aisles. To Amex&#x2019;s credit, the company put genuine effort into these products (they clearly tried innovative features and partnerships). But ultimately, the prepaid business&#x2019;s economics and customer profile wereout of step with where Amex makes its real money. The fact that Amex kept Bluebird and Serve around for over a decade suggests they weren&#x2019;t a flop outright, yet they never came close to dominating their market. Green Dot and NetSpend each had millions of active cards and profitable operations, while Bluebird and Serve were, at best, minor contributors to Amex&#x2019;s gigantic revenue pool (American Express doesn&#x2019;t even break them out in earnings reports).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Another factor is the technology and user experience. Neobanks like Chime and Cash App built their platforms from scratch in the smartphone era, allowing for faster development of new features (like instant notifications, in-app card controls, etc.). Bluebird and Serve, being tied to Amex&#x2019;s infrastructure (and later InComm&#x2019;s), may have been slower to evolve. By the time mobile banking was the norm, Bluebird&#x2019;s app was just one icon among many, not particularly unique. The fintech apps also benefited from network effects and social sharing &#x2013; for example, Cash App grew partly because it&#x2019;s fun and viral to send money with a Cashtag. A prepaid card used mainly as a checkbook replacement doesn&#x2019;t have that same buzz.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Finally, consider business incentives. Prepaid card firms and fintech startups live or die by the success of their one product, so they iterate constantly on making it better and acquiring more users. Big banks have the luxury (and curse) of many other profit streams. If Bluebird&#x2019;s growth was underwhelming, Amex could shrug and focus on its booming Platinum card business instead. In essence, Bluebird and Serve never got the all-or-nothing attention that a startup would give its flagship app. As a result, they gradually fell behind the more focused competitors.</p><h2 id="what%E2%80%99s-next" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">What&#x2019;s Next?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">As Bluebird flies off into the sunset (or rather, gets boxed up and shelved in 2026), the baton is firmly in the hands of those who specialize in this arena. Green Dot, NetSpend, Chime, Cash App, and Current all, in their ways, succeeded where Bluebird and Serve did not: by understanding their target users and playing a different ballgame than traditional banks. Amex&#x2019;s prepaid venture taught the industry a valuable lesson: you can&#x2019;t just slap a bank logo on a tech product and expect magic. Prepaid cards and neobanks might aim to give people alternatives to bank accounts, but the companies behind them operate on different wavelengths.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Ultimately, American Express&#x2019;s effort to serve the underbanked was a noble bird that didn&#x2019;t quite fly (sorry, couldn&#x2019;t help myself).</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/208ba409?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb;"></div><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">CardsFTW</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/d4d56946?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/84cb5f1e?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/956b1247?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/04fa6433?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW</u></em></a>.</p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e0e7eb;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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  17. More than a penny for your thoughts on co-brand cards

    Wed, 21 May 2025 23:33:43 -0000

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