Pipes Feed Preview: money-stuff & canfintech & cardsFTW & evident-ai

  1. Money Stuff: Musk’s Moonshot Merger

    Tue, 03 Feb 2026 18:50:14 -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;">SpaceXAI</h2> </td> </tr> </table> <p style="margin: 16px 0;">Here’s how it used to work, say a decade ago. Google was a website. (Still is.) You could go to the website and type in a question and Google would give you a good answer. This was useful, so Google had a lot of users. Advertisers would pay a lot to reach them, so the website made a lot of money. This had, for Google, huge economies of scale: It answered the questions and serve the ads algorithmically, so as more people came to the website and asked more questions, its revenue increased rapidly but its costs — just some servers in data centers — did not.</p> <p style="margin: 16px 0;">So Google had all of this extra money, and it spent some of that money on what were colloquially called “<a href="https://links.message.bloomberg.com/s/c/bvSSCD4pT3uj30_ZR6c31qvvRUe3XshLyfjCVBsebRS1HI2bng07uPfX3k9EkYfix6DvPQKpxTKNv84EUYmp4ESdabfAfNUGoIyeQ4bkN-6uHGy1OfZherzaxUQPEwFDaTkfieXHUcsP6eAtJGvsBIDXTVJlvNkpCjV5nQD27teeOoyE2-v5aI1oP3ZdSDCzPHPzobmThM1PF2vLCEw51oaObjvHiwL0Y3A7rAY7S9vGJwtNNM81aWA4WgIIDfkHWpg-l62TBZX0CYiauLciZs_fqkCxu8iByP9CDyq-YjO6qcYL8lX-UvexgsvPcfmGkZeMPQE972gynzebr8tUGHQD05NuoXjpQPhHKH4KpADSn-YcIZj7AYFK2A/SQzwCYpXwhXiyeK8BgtMsWsXfeedISHd/17" 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;">moonshots</a>,” risky ambitious long-term bets with uncertain payoffs, like building self-driving cars and curing death. (Some of this stuff happened in a division that Google called <a href="https://links.message.bloomberg.com/s/c/CizahyxotxastWm6tHJAID5heDiXViaSd123QfgcBlTzvQr7t0QOqqZ5yZ15p7hbL3ezEw6L7xfRUsxmPbah5NxdYDhAQr3gWIKVmBkWCkP8XiCK6ss_QEKJlfUS0kFP1r2T7Gy_j5G5_oxoWTvNR3xJhMThoA9xNvZivhmcG2k5orVKwfFrJ3F-abZaN2B1pDuM7oB-1iOzlUhXlqwaPKIiQQhsJ1AKsIL8nOINv0ZmP7O0moCiMOshKs4_kiPLJrzRvl8CbNkaZLY12iyOxV8CoXr6HUOfcFW0ii3Vj5bmijEQosUtMRHdeE3dVwpvfY_1ghs3jqdtsdBvmrpLqGJG9jIIbdMBTkNWtRBQjlqiwxBZYxc48hjR1w/FtDzces3ObfwduKPNKfbCoanTCeiIF8y/17" 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;">X</a>.) Investor enthusiasm for moonshots waxed and waned over time, but at a high level the strategy made sense. Google had some very smart people who wanted to make the world better. They built a software product that generated a lot of money with low marginal costs, and they used the extra money from that software to try to solve harder, more capital-intensive problems in the physical world. </p> <p style="margin: 16px 0;">If you had told me in 2016 “my company will build rockets and send them to Mars in order to generate free cash flow to subsidize a capital-intensive money-losing website that will use machine learning algorithms to answer people’s questions,” I would have been like: No no no, the other way. You subsidize the <em>space exploration </em>with money from the <em>website. </em>The website<em> </em>is cheap and lucrative and scalable; the space exploration<em> </em>is the expensive bit with uncertain commercial prospects.</p> <p style="margin: 16px 0;">But that was a decade ago. Now the most capital-intensive activity on Earth (in space?) is building large language models that answer people’s questions on websites and apps, and “let’s use our space rocket business to subsidize our website’s data centers” is a perfectly coherent thought to have. And <a href="https://links.message.bloomberg.com/s/c/SMmRfKLQBteFLazMPqxFcJ0Ex9C6e7KZoN5OTf6PeJ3dCLipVc1OgCzmQ6_2j3TEozQVBndpd78EwD-a_hpFmZrmEM8au5TujifwkVR3qZsdDttc5WIYs_UZLwsAleLDsWQp2cExCNvKvggZg1Mfh1IpUoA4qjewcIBN74y7_M561jzGUSJSF4esmvofsGA5lPo4l2uVDIlXEdjW7Wy55YE8kWDr1eZVTXL_DuZOgmEnTsHI38lu8QzofpVbzdxUHwIWGumgfua8mGe50hRLenb5Yrv6lOKhcYEuiYsZFJdwDKCln8DF6t5BtTb3Ctje6gPQVr9T-d5NHJCCT26p3wMWQ4Blw6FTwStyQmWfEkIh0hpQDkFOe_mTWA/nMVs5p1qpcGCAAQHQvq0N13WQYfeoJbm/17" 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;">Elon Musk is doing it</a>:</p> <blockquote> <p style="margin: 16px 0;">Elon Musk is combining SpaceX and xAI in a deal that values the enlarged entity at $1.25 trillion, as the world’s richest man looks to fuel his increasingly costly ambitions in artificial intelligence and space exploration.</p> <p style="margin: 16px 0;">The acquisition of xAI was announced in a statement on SpaceX’s website signed by Musk and confirming a Bloomberg News report earlier Monday.</p> <p style="margin: 16px 0;">The deal gives SpaceX a valuation of $1 trillion, and xAI a value of $250 billion, people familiar with the matter said. The combined company’s valuation was announced to employees in a memo on Monday, some of the people said earlier.</p> <p style="margin: 16px 0;">The company is still expecting to hold an initial public offering later this year, one of the people said. SpaceX had been planning an IPO that could raise as much as $50 billion, in what would be the biggest initial share sale to date.</p> </blockquote> <p style="margin: 16px 0;">Here is <a href="https://links.message.bloomberg.com/s/c/tw5AiG-bFoFDk3PqzNf_a7z6OsAJmdPZ3Cx2kAkbjk3Aq4Dux7wFIKyfxsL_kzOzUq0zV8FatseqUQPd2TqlkPrDYMiGBoJ3HkJDaK9wIpy5Yt8clWFyBE9wbeZ0C4Bx9QDQeKrgqWDE1qH3ZSkD8TVQx6jhO-el6ccrWMWlH_r28y3QFH7GXsL2Qlc2QypZtHYd4SGgxCdIUnhlQamGsAGM-xpudOPq8tiFdX99Qedc92tnC_zUvPhvsMWslIs-4ICN0IAfX4GRuofoWVpQPrnWQIuw3nnIzM2-l4TKIZCJxy44pn1h255A0mG93B0ONIGl-WJ_2TJ_agsM6cyVrib1V0TFydlCvnKsUbCmj0Kg6MenvT-y8QZkXg/0N1_99wkaiJMSgMwn2H7rY6MEsQeXmtD/17" 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 statement</a>: </p> <blockquote><p style="margin: 16px 0;">SpaceX has acquired xAI to form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform. This marks not just the next chapter, but the next book in SpaceX and xAI's mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!</p></blockquote> <p style="margin: 16px 0;">Sure. “Free speech platform” refers to X, the website that used to be Twitter, which Musk bought in 2022 and <a href="https://links.message.bloomberg.com/s/c/1HIfDr0xDH8tx9Scpehh_gfqNGYBaHrQwoVX0fa-k5lCnlqh0PAhgf_gY_qRCe4keofu2dmHzASTmq-ZxBAJ3oOOhcsvd4r9_R5tLayHozOflUvEyI150TlKv_hFwCfqNocMf2G-W0jlIgSHNmWjG7yqoJXc0Jn09zbjBYU5qj-XXPv_eGnUukduOeia14ZUKyw-12rIq0AdaGR74_OWQLLjoP9KuIBOqyZeWavEkRdzfzRXFVKOjd8n9RcFUdptR0_RZpVXETG2rLhm4T3PvsjlFX-SEWIQ4w6g1K5rj9E44aJ7w5MEw2mp7pRJE2MEGlkmAuWsVUh3bhPKsfPQnOngFH38lXKz7a0zSY8mljFK3MEvRI487y5UyA/5dseXQsi1Ux6WFh8-rnwWqcz5ZkfXsnU/17" 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;"> merged with xAI</a> last year. I <a href="https://links.message.bloomberg.com/s/c/8cETWjK-QMVFaxcLLX43Tiz9I46Qc__vHTvMOIXrePZaF8PAdC0et5SzBxk3jFEviTBDG9xychVIK62ZSaLCoobSHD2UxC8BE7VOQuL-KwCB_x1aUYJG6W-4a2oDd9kieBvobV-Ak8i97YhrnjX1uxTpyLhRZGuERdrCcHgvsama-cLT72QpR5CzTIFR6Plc5hIDgX3IJO5NTgF9V9qXM10fJESO3s9Ol1EEBW3mb7yBOVC8HY_KPrw2XX--hx2tVJ1-eD-T6N23x-qGafheXKggRiwJDurSImiJGWjd5n4aVmqgb3m2CZ1TW74CML8rmEC8PTNI3W8re0VsHJcmuChGA53DSnkyArEc5KiflT_3EygHf1q2z4HQyEk/kTtwxdZBZmhF2GkjiwKE_BA7XfD-ggqr/17" 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 “it would be satisfying if humanity’s ambassadors to distant galaxies turn out to be humanoid robots made by a corporate successor to Twitter,” because “actually the greatest modern human achievements are funded and motivated by selling targeted internet advertisements.” But arguably it’s the reverse: We must explore distant galaxies in order to fund a website where you can get into fights about politics. <a href="https://links.message.bloomberg.com/s/c/OqpwCuZFRFoNGXPLn9kEvfG_K96Us6j0WhiPa3_C37mbzpbs8QREiU1C2b8c-YdrLQc5eNbkWth5Ts1Pc9haFFtZRjoWnxgJwZV5NqrhD7ByTC7HjYUiqD1vTxEehS8RCO4ZzNCvTL7Ncb_vfLU1Hvdy6DLXxcPfjtFmJiEpWUMqyVKefoqj85KkAtK9AVpvhfALHA4PkZ0mBI6uqS-gtLWM785AZlq-gO0mMmF4IW5Tnzj1c3fExsJc2kC7n_A5YqELBD4uQPy-WtfotPkPVPmPVr6U1xFsbiLiIQT1wQQ27fH3FaYhfnlfGJPDjF2jongAxlECvjaMYH1_G_-p34Z6hqSWpauWlVuFfHGzkbuOEPJ-9tsuhtfrZAc/vyRvjgaOq54enR9VlZ4YdyfihuePXiFO/17" 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;">Martin Peers writes</a>:</p> <blockquote> <p style="margin: 16px 0;">Musk’s statement didn’t even attempt to explain how xAI would help SpaceX launch data centers into space. Let’s not forget, that ambition was already expected to be the focus of SpaceX’s IPO pitch. What does xAI bring to the party? ...</p> <p style="margin: 16px 0;">There’s no question this move is financially motivated. Musk may be the richest man in the world, but he is facing the same financial realities the leaders of other AI startups face: It’s very difficult to compete in AI development with deep-pocketed tech giants like Google and Meta Platforms, which own cash machines in their advertising businesses. But merging SpaceX with xAI won’t solve his problems. SpaceX doesn’t make anywhere near the money xAI will need in the next few years—it reportedly generated around $15 billion in revenue last year (Meta generated $200 billion). …</p> <p style="margin: 16px 0;">That leaves Musk to persuade investors of his vision for data centers in space, in hopes of raising enough cash in the IPO to fund xAI. </p> </blockquote> <p style="margin: 16px 0;">That is: The combination here is not so much “use SpaceX’s revenue to fund xAI’s capital needs” as it is “use SpaceX’s <em>fundraising ability </em>to fund xAI’s capital needs.” There are a lot of money-hungry AI companies these days, but only one money-hungry rocket company that also does AI. “For xAI investors, this is something of a bailout,” <a href="https://links.message.bloomberg.com/s/c/R0QCDWUuR103E7n5AOUECaTji9rfTV-yAKBFhIomN2QMSMH-m3O5ON9wQpTWXj1wih2VXDZ6lsUra8cSZGG1i6eOkwUCIsAfSoY-V4FQf-IlEc0qZ6g0ejgvhY3EadDEU67mHI5-MOHH1NvOlB-Yn5Di9O4ehvtJJ7EeXOH847WB2_5a5oLaD3vv7hzICQra5WuayMax0oghA5lk5hdY3ajHQU1QPCdmUnaiNKm0XDcxTLf9hudIrXIblBnEVAPFU2BFNwAlU2eCZnhRiL1hKuXrmp4G0oPNv9dDbOVtXmBrUX-xdLSvUW5oUI5YWQhiUgqV1wUndCojK0purRDEA1HmJJ87xioYeRskVGCd6tVABctjU7tyC6d0z2I/PvWFOkFSpbPICeoWfwuu6yNynAqwkwXb/17" 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;">writes Dan Primack</a>. And <a href="https://links.message.bloomberg.com/s/c/n9flYX1u32qUUBn1NnWfLjQpaEo4sFKSLzfVUm6IqG75oih96w4A3NFdHpjhlgzBL1v1ODwE88LOYJLNnFrWMNz26OpiJjY1khtpG0U5UGf3sXmjVK2dUBuOzhXfJQ-8TR1GGxBrCaC0GcDvClg5aARH4_jljwJhIYwVOoXqcXw5h0ihZTkCSVn-E02fdY-bLZA0IAc7-9FvpymIn8o0dlPbUml8U3r3YbZ1KbHg5O76dCXTXq6UEo47aoqRXLX9i9bKNxRRzuiiSKHmk90tDILrfUQgd42lomw7hrsIWWl0g0ZBQm6_Py-JYSEZmKVOZ2XBgeqFR9pxCFWyyhMkqiaiMLw0-ChzbVJ_V4QtZs2KjS8aa6Bxoa6nh5w/Huxt77UXMIfbV3KKzcmtNvsT2mz486n_/17" 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 Information reports</a>:</p> <blockquote> <p style="margin: 16px 0;">While the arrangement should give xAI more of a financial cushion, it complicates what would have been a fairly straightforward IPO for SpaceX as a stand-alone company. The immediate reaction from some SpaceX investors who spoke to The Information was downbeat.</p> <p style="margin: 16px 0;">Michael Sobel, co-founder and president of Scenic Management, which buys secondary stakes in private companies, said he’s gotten calls from SpaceX shareholders who believe the company’s story to investors will require more explaining with the xAI combination.</p> <p style="margin: 16px 0;">“It’s very much on investors’ minds,” Sobel said. “If it was a clean SpaceX IPO, everyone is super stoked. If it’s a multimerger combination of companies, they’re curious and eager and mostly trust [Musk], but they’re like ‘Hmmm,’” he said. </p> </blockquote> <p style="margin: 16px 0;">But it’s all relative. If you have investors who are super stoked for a trillion-dollar space rocket IPO, throwing in $250 billion of somewhat confusing AI and free speech still leaves them with <em>mostly </em>a space rocket company. It’s 80% cool rockets and 20% “hmmm,” which might be easier than funding that “hmmm” on a standalone basis.</p> <p style="margin: 16px 0;">A couple of other points. One is <a href="https://links.message.bloomberg.com/s/c/PLa7ATgOf5s-oI6dt1ynUeXJRAO7eZTyElABTsv98mJqdb8_HWN2rEpiK3suswnUIfiSi4DG5kZst2ZoFxqI20oth6SM1toqn4eASej9SFtH2F-83EXoelE_rB1oElfZ3KcoN6YFb7dHg2X34Y5jFwp4BmMhD_wGnJaA_MB9_JQne7yuh4gKN7cN6FesTjrC_RJF6Shc03_g5y-sIPeXUPAuIOVP1dXrYaHP3H2VhBb5-aMTOUv7o4Hz0WJe0zof1EONLeKHaWpobnfYjBf5-n1hh-lZpXujybtR-ArTrUID35GU5J9SO0z1-uwatP-5GT3DUGQQ4EOv10m4WiooEeLCYeaOJvay3_AoDYU-YQysOelQpIrV5_Btwgk/Iebv_lIcOYkgSugbc2pbQcMuJhbtc5fk/17" 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 valuation</a>: “The deal gives SpaceX a valuation of $1 trillion, and xAI a value of $250 billion.” Does it? Those numbers are sort of in the ballpark of recent data points — “xAI raised funds at a $230 billion valuation in January, while SpaceX was set to go ahead with a share sale in December at a valuation of about $800 billion” — but of course no cash changed hands. The valuation is just “SpaceX shareholders get 80% of the company and xAI shareholders get 20%”; obviously it is in <em>both </em>of their interests if the <em>total </em>valuation is as high as possible. If the deal gave SpaceX a valuation of $2 trillion and xAI a value of $500 billion, it would be exactly the same deal, although then the IPO might end up looking like a down round.</p> <p style="margin: 16px 0;">Also: If you are going to merge SpaceX and xAI, it’s really really important to do it <em>before </em>SpaceX goes public. After SpaceX goes public, merging it with another Elon Musk-controlled company would raise all sorts of difficulties. You’d want a special committee of independent SpaceX directors to evaluate the deal, ideally with Musk out of the room; ideally the special committee would have the power to say no and to negotiate on price. The special committee would have bankers and lawyers and get a fairness opinion. You’d have to put the merger to a shareholder vote, you’d need to make disclosures to the shareholders in connection with that vote, and the disclosures would have to be true. Anyone who wants to own public-company shares can, so someone would probably own the shares, dislike the merger, and sue.</p> <p style="margin: 16px 0;">That person would sue <a href="https://links.message.bloomberg.com/s/c/0qCts2HZtv-o8jzxY6_TXMcOKS_bV2bkv2TqFrrXKPPTJn0NbeMWzmz_P-tzZPB9RBxs3vwW3Nsa4FToUsl8on1YPKBUr_br5WOnHl2x-1W5MQ0ZXwsV3uDRh92iCmUkKRwxDLdm9z_QnaegajCofzxEKvgDKcfdaeZ1MEXGEgQyd1vRFauop49qf0HlZdHiB7lfWmLLp-I1ITR54RQF04OA2NfN-MsImcNSwOUMMqQAE_hRU3GrnmlmJDX_V42yyhsFYryf6wXXubsNQaQXkuPffbYQg8X6ViYs1675tBuP2y8FB_CnYGyHSPDWNYMEBDAvQxZjHG2fc6HBLRH2RUUux0GzPIBftCIWomrlV8wUCudekzyinDXgABU/8xhJUd24ps_k32ouKictuAjeKd4ZwTSn/17" 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 Texas</a>, where SpaceX is incorporated, and where the law on this stuff is less settled than than it is in Delaware. (<a href="https://links.message.bloomberg.com/s/c/PExCFYecScyKmHhIB3IvxQSDE0pxrHpzUzf6nRKsBprOD1Qy-l-IgBkT-5LeYnKsuqyYFsvRTmwZrBEfFxoYtnnRnfLcz8-ogeugsrjnP8fA3bCaWpLK-PWXgddiQ4Q9e_4kzT9ZzHFHfkplQcnDy5ZANBcVbyzHZU-h121x9wAM2C44Ch8lW3fN04Ng-jATmB1woF5VTKlKbbvkijHoa36hM0OX8Lr6nhbLE8CXGKu4ZSXGpSrJ_8FFxLhHRBnTBe-AvzTjQo_lp_6zBR1ltAS0VZYaz9ZscCsfZMk-JLeC27XVivcpmujn61P26hWISEZ4FMDiB6djet__zcZpWh7XyWr2JyGOeYYR6cCyX-fTvga6R1HcUHsxzSA/pxdSIsETIHymqbiAFRpIHYF3U4JsPNAF/17" 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;">Where Musk was sued</a> when he had Tesla Inc. acquire SolarCity Corp. in what also looked a bit like a rescue.) Probably Musk would win this lawsuit too. Still. You’d need to at least, like, disclose the deck that the board got in approving the deal. <em>Did </em>SpaceX’s board, or xAI’s, get presentations on the deal terms and valuation? Did they consist entirely of one slide with a <a href="https://links.message.bloomberg.com/s/c/9O7anCyrs25guhO19CCPOBjL38qhgjb0GkGQ8dg-1Q10m2CqCtE-IUFNnW8Q3es1z_B81BKD2PnAaBRJkkGrDtT0zH5Yz32YEEep___CI_TSl3ThoukZ4ksZOJcJ0gK3XVBlnl9SrvCjs-YRQifvQRTlgETcpvFuNxjI4XWrFJ-cQeYIuvaVgKQ2Yn98OkOwG6tvtlfTIwTtsk3184o5rCTNnBoYJtSO8kYcVA7oQijiW3vKezQfRiCUoCCLpBDCI8kpgyPkn0-frWvSXTubIw9AMSEQJ8CEp9E02G7I4Xc7JCq9ezLFEs1t7UMCFj_gFj0iCzZ3a4N1HK3GGOBj2tx6oSTxNn-4enn0qoZpMdJQP9n1I7eUFxmu9go/eABnBkXB8OM1rVA5is638M3SeXT9Nzw6/17" 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;">poop emoji</a> on it? </p> <p style="margin: 16px 0;">But if they’re both private, meh, who cares. Musk apparently controls the vote at both of them, so he can negotiate the deal with himself, set the relative valuations himself, sign the merger agreement, close the deal, and then tell the boards and shareholders about it. The <a href="https://links.message.bloomberg.com/s/c/3yaK-hzqgzdSx5cauSRQLP6-Eqa5dHTuFj0Xj2c1ziPPPdeoKnAerZjJtdDNM9vkJK5boXJzxJDDSRXSKG6ad9-lA0Z2VZbbSdHJCq-m9DBZxn1_CyLrZabYsDmWawKpHBEBkbdRgBj4HLVJs6FmVa638nEuYAAPkwTctjKcJOQOYcKhOaq37uM7tz2Cwjd_1_CgGGgfC-ulLrAOVBDAybne7ErzbaEvotXa0TE9KiJY0Q1OAatwqeWVMW45cnHvb1vM15K7BY4tCbP6vDU22aOVOLo8GlTbqKbmlF2ehpb4fcTERkMejliKUj0UiS9zOO7Ph8MfG6vibJtuDbEMZnT0HJ_lsSBnsIorQ69FyGBQfy0zEpQwYJ1ImNk/YzhwkLE3hQtr1Ij05Utsz7Fom29w4VPk/17" 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 reports</a>:</p> <blockquote> <p style="margin: 16px 0;">When news of formal negotiations started to leak last week, most shareholders were kept in the dark and were blindsided by the speed with which the deal closed, multiple people told the FT.</p> <p style="margin: 16px 0;">Investors were briefed on hurried calls by SpaceX financial chief Bret Johnsen and xAI’s Jared Birchall. After delays and poor audio quality, many struggled to hear the scant details about the $1.25tn tie-up.</p> </blockquote> <p style="margin: 16px 0;">Yeah but <em>they’re </em>not going to sue. The SpaceX IPO prospectus will be 25% more confusing than it would otherwise be, but that’s way better than putting all of this in a merger proxy. </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/ODKbk6alu-s-R58VlZ8WFtKqFavxwRM2GbQcTTtky0aTMG7y9vyDWKQh-fU36ke-U_w5jn_483byaLCsDS-uCygtA5-qx6o-03CtITA70Qhggq5lMxaE9phcRI6CybHzC2C1hCXJf5IA6BHpBS5pp4AbiNbHw_OruOKhFegDhjBkk56kpvDWoah5NZaA08r89OUHmL81t1VwknlUGYLLpswrXOu7WpKv9SnggoJrnafcGTrXPd4tSfjoUZ1YlNzTrW9HZiv31G82XVhOYmDdnLO7U4PEnYa5vbdyuncUrIs-9PTLx9F3VwS0WHt-5zlcKiyav0LMyBG8eoVhlxvRo4NJ5jaHhnzD8xS8XsLYaYY6YV0HiXZv5kehmKXXGI09CtA657RUcSVBwCC_XAn_Uam8R9hKRdqMNTzNzYLT9pGAARcyxj-AOPPg_LAxTXakJ-UQ-q3Rl8nPAOquTRqObb04pbdatuab41Rq67uSL0mcU6Ay_UgpRUA6HX11cxv544ZnHdfr37jkpccqREJl44Bgr6Rp4nw0rVaQAkcEw5ER7VHvam-BjnPqF3907MPwuXaUemIP8KjA7G4DyGxEcT9SKF5nrS-Qwb2S90cQl0NZIwUqDMNgrOvzS5IH_Gg4PjBL7xyVQhLwWUTWXbUxNWsFV66nT1dowuOfd_hqacGqEdJb7xu8FQlgYmQAVQ/WH9Wvwk8qpGccoX7xWdYRx1cXrpE9pFn/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=16746980&m=4c6f36cb7bc27023b5890c47a7e79821&p=02032026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" 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/zeUZYrlAMNVBRaEwp9kSLMPGopSxMjTnlDHHdZoS-gsb-e1cEa19Vec2Zlzgxh6cMUlMm2OSOyHse5BrfJOU8vkgg7XDVsAR8EV9odoxwJRIeOTberRa6k2xN6q0zZ9_m5BRe6DF497SpY2AB31qyGcnTd_rwTIDfeCf5Gg0OfTdc8xLvtm-TN4wPebDGQzuw9HSSup8Ll70Xmo1rIvhtnaqa0DGeThf5RpXKT2U-aFo89Q7xquw_u28Cp1fZyhbnLCUqQvF--BkU8vdZuHs5wbaALz00cASztju4oYF0VW_Srr3gcY9mySu1p5V6q_hWqQz0lK6CRAVkfI91O6Kukw7D0Dr2A1_caCJLl50HWoF17LaAq6_zZD4bf0lkQWs1dRnZSZBgyNtpg-e5q9tXJavxJZlL7n0PGeTm3iVFodYoOVs0a-brdePInT32UhLV2jbH5EnpX6AiT5Gh6-EssJHxZNsA819vJ4G4yGBXLzr8wWWETyfwMVfRdXzYY3F1EZ5OM4lLgR-dqxi2q0vgIEH8iZomvdVJhcK0hlTuYCjZ611XGUcBjBPSJUdYNZTQ6Svwtf7De_KgEf2quJf0eYO5byKn88Gs3hcWaJSrVDRXwHlliRifGwRqFX4M9lIW4z4DHOeN0rdoMfFulj8xJJvc-0mkkbYZICoutBzZkGJhguup_bjAFOQNZpBDA/rU-z7pobdYgcMFawDXWWvvGs9AzIzF-5/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=16746980&m=4c6f36cb7bc27023b5890c47a7e79821&p=02032026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" width="100%" border="0" style="max-width: 550px; 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;">Elsewhere in AI</h2> </td> </tr> </table> <p style="margin: 16px 0;">Meanwhile OpenAI is more of a normal tech company, in that (1) it has a website and an app, (2) it is trying to make money off that website and app and (3) sure, if there’s time and money left over, <a href="https://links.message.bloomberg.com/s/c/vlKkSYg7FelUqxkerE43mU2mgM5MB9KAh-g4bbuMgf0o-N-Y05hQilefYxlsUW4xAYaW7ZrP8JXUA4OlJQsra1MiiAZFEOfec1OSdYtuD4RmNwjFRm-Hs2CXeNuIpEXbaI2Y7LxUBfCygB9rJdNBefh5qqm2DbLF-u-iQMk8dsi5p8Uz10NhAd6uz0Hfi5WUwm7oEp6TNq-ITDlocUgUqqEdPCOLVsyVq9-jU_PB5Gh0t76UcxWHdssZnNYj7ImvGdzmfNxxWQ-0XusB3pIVXSP6_d-XIDmL8xxW_Y2GseXR_eRmsw2VaS9EwOH9d1m8Wa32JcxjflcwjA_yi6t0vHqZC8DL9NK0x-Lt-SwwK0aTJ6g8wFSPdBiNWq0/8E_PObZ8D1ZXR09Jzv0BHfy-ZTdhOer1/17" 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 it can do some moonshots</a>:</p> <blockquote> <p style="margin: 16px 0;">OpenAI is prioritising the advancement of ChatGPT over more long-term research, prompting the departure of senior staff as the $500bn company adapts to stiff competition from rivals such as Google and Anthropic.</p> <p style="margin: 16px 0;">The San Francisco-based start-up has reallocated resources for experimental work in favour of advances to the large language models that power its flagship chatbot, according to 10 current and former employees. ...</p> <p style="margin: 16px 0;">“OpenAI is trying to treat language models now as an engineering problem where they’re scaling up compute and scaling up algorithms and data, and they’re eking out really big gains from doing that,” one person familiar with its research ambitions said.</p> <p style="margin: 16px 0;">“But if you want to do original blue-sky research, it is quite tough. And if you don’t find yourself in one of the teams in the centre, it becomes increasingly political.”</p> </blockquote> <p style="margin: 16px 0;">Right, yes, traditionally the way companies work is that mostly they try to make money, not do “original blue-sky research,” and the people who make the money are valued more than the people who don’t. The modern AI business has <em>largely </em><a href="https://links.message.bloomberg.com/s/c/Ujeq5Vt4NUVUsLBodCL1eNZwhx8tiExtWpQhgInFmYopoXACmmZWqKDvmIEP3dSKn2zhgInpM2X-6tDpZay67YFgypUM9owMsU9WLeI4EdPE0mdRxoh2AtuLXpIGrSnYVNbPLEdferSvQLYoC8Y5ulOnAVZR3upoSgBtiM1HTRnDNEMBIObaKIk49Dobn-D3KoxtXmmKSZ4xDfm6Sfkea0kONOq5qkG-jEO7OnPli4_wmNZRfUcvbTV4oXgJCC24hQiDC71Tggo7FxN2ByrAbcQbbyHl0w3I7hvp4vxSpC3MkD6Xk7S3I7Xf-awjd090cORbivOrVmF3y117FJEdlkIH0qd9_gpUswwgdFe1guLJCli7n6Jl8ocrJww/IzC94Issh9y3q6qb6ZlN9YiB3rExH_0l/17" 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;">turned this model on its head</a>, but still, someone has to make money sometime.</p> <p style="margin: 16px 0;">Elsewhere, “<a href="https://links.message.bloomberg.com/s/c/CEjtSPPrKSLzzZTKjUO9HO31WlLd_cr6EIbAZtfsckPQPHWuBAfiglNQlQAzgDFZ14vh-T4HK-fsHi-M4ydruhw7WVTJRuQK-SAxh8r_YToJ2U2Tvu3vvTcYKjBh2LI-1D2yyV6SMoHecforpEIqg70YjXcDALlkwvZ-yBJQZXVFOGwIZzMhQ9H-dvdg0nR0SnMV4vbI8G04ICvvTEnqjzx-PsibcjRdsrVh6ATPhDY3sq95jTKFpCx6KxouxKeinIEImLrqK3RPbx1alI_45uy513QCQ_X79rmg37YROYmVFtd_Oe540msFygD6Xm-ZUdINZEEr_XoIonyTJCKV8vM-IyLN_Ivmz8XublCXeu_Pei6UJS50Z7wQEr8/cu0zMJpv-oidz1Pbj0a01jAd-RqzikV_/17" 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 real risk is — is software dead?</a>”</p> <blockquote> <p style="margin: 16px 0;">For years, investors have funneled hundreds of billions into software businesses, banking on steady growth and resilient, recurring revenues. But the artificial intelligence revolution is now testing that foundation. …</p> <p style="margin: 16px 0;">While various business models are threatened, software-as-a-service is particularly vulnerable. AI-native firms can often offer quicker and cheaper solutions, meaning companies that once operated in a defensible sector are now at risk of competition from new players.</p> <p style="margin: 16px 0;">Anthropic’s Claude Code and other “vibe-coding” startups are disrupting traditional SaaS by allowing users with no coding experience to build software. That’s dramatically lowering the programming skill barrier and undermining rigid, one-size-fits-all SaaS products.</p> <p style="margin: 16px 0;">“Technology private equity, in its current form, is dead,” Isaac Kim, a partner at venture capital firm Lightspeed who previously led Elliott Investment Management’s tech private equity business, said in a recent LinkedIn post.</p> </blockquote> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/s/c/k3hTeMrjAtfgIXpKtOUXfvwmYIdjnqTlmqZzFgtyham-e8OOFqfb3RP1NA5XLC2dmyKQzfAXRMoOJjC9fZ1RSSRnjw2x_x4ZwYL-5esrydGT9nJydiSiXXgpZAUUG7uG7OtpEavA35vkadHCiv4M5q8KSrkdqKONWPerqGpa_OcsJJc5Lf3pndtTU9HLJK2qcrsvek4kcF3zHWaRT4P_2FGuuQSuIGt4l_7kOrc-JJsNXxbuX4pT_ePhHaQ0-Gunq1ic5bPz8yKQ8wyF_jV0MfYnPjgKa6Wg7prbtWf8ytBXSQ3eYw2eBEjvqKgGiz6POA2NCwzmmj2OtzHQHkKgqn7Nd3BtXysVkhrrgOOFNrjcEv71GWvUj3J4T4w/iYP459INuPSaD3Ej1-38HfXsKPuUGO6R/17" 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;">And</a>:</p> <blockquote><p style="margin: 16px 0;">“We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” said Jeffrey Favuzza, who works on the equity trading desk at Jefferies. “Trading is very much ‘get me out’ style selling.”</p></blockquote> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/s/c/3aDGpyCWo36RMAuZ5LlOCblVj_492Yv5JHfcb4mSylj4JQayJD6hxADfg7TGzDkGLKAl9AauAXKdlZ4FiEtAuFwYy-FKVYQEm1d93hx9rgvk5UBG0ESzvVlNEhcQC-OJU1xysNJoRat3-HeMeGIHzZGCEla5XyLTKGT5-i1X60w1twIz4yoWyYyG_ajnRzm14GNByJfO3kWyQR9CsV1ujt3lwxwABXoIpaq8D3eRJyiewZFAZOpNPRVbAPncFjkMfQ-xiK0qZ_ktiNx5gZXIi89o7bg2JhHt110MbCBS2k202sMfLPEu7i4Cuj7oJhu76BDqr3Cn_16NoEQbAEBAsj-Br-9nC8XMaCEfG-yXnwRPqiTggrnJQdglOfA/k-XTw33CI8to8YOYEeZMQ_6fJc3af61l/17" 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;">And</a>:</p> <blockquote><p style="margin: 16px 0;">Software companies, larded up with debt after leveraged buyout firms viewed their revenue as relatively predictable, have seen their loan prices drop this week. Investors are becoming increasingly worried that advances in artificial intelligence, including the growing coding capabilities of Anthropic’s Claude, will leave many software products and services obsolete.</p></blockquote> <p style="margin: 16px 0;">I suppose there is a creative-destruction, capital-should-flow-to-its-highest-uses story here, in which the market allocated hundreds of billions of dollars of debt and equity funding to SaaS companies and maybe <em>should </em>have allocated all that money to data centers, oh well.</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;">Binaries</h2> </td> </tr> </table> <p style="margin: 16px 0;">We have talked recently about prediction markets like Kalshi and Polymarket offering contracts on things like <a href="https://links.message.bloomberg.com/s/c/51JwcrlD5-w-pwVsBcqdBu_EEl891lG22Rb8A57TuMC8KvEb2g9qWoyv4Rz1Wu7QSRRwmrjdg_bPYnRT5u65jzTV2RztBVNsXrH4Bplbu-DqMFnekYFormGDaLa3zJzc0Kh2z8qeyakLLPDkpzsH2RhwFJ3v0qGfefXhDH5eHJkcG6X4z2W-Np-Z-KMdM4Pse0bKf2MUnHXBhk8Jy275AuD1nVPI3ANstLL7J8zfPE3QD0ymPhfcXyAdGVgGP1xBiki2s4l-VxBRMhZlMr4nU5QustNThmPiCx96E2ujV48NdWNsbyUnEHRNoWcAL0r2rH6XaQBcIG-C4k4CdQ4HNZyS0vRGWspsfJqyM10J7O3ajj6DH8_aHh11DJE/xA4IRvllvXQBGLsdDIPFPDgY_iSjuToK/17" 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;"> Labubus</a> and <a href="https://links.message.bloomberg.com/s/c/XH4Rn4uhnFSMIrWWWy-7NLoA-wTkPBgexnSJtW13VD0AzDwl4MyfBzl7LWQjr62t1K39pk160AC9PVHObD6d1FVFRxOg76M0PY5CFHxbuoQ-XnKwlH_7dNbPJDrsCph6--uSEFzSOqXn4wa00UPEaoU9m9Z1HYN6rrYeHY5dTA7E9lLn7HznWQZ7BAxq7WAFwccQvMzWT4SZmKAZge9HCKCIhwKNiMlCEwrpj49ANB2Si-j-dhxWrh6QZ-srvJTP_Aa9kTd2M2ffXZiPv5_ivHD_iWSVgyy8g-LWbVoR29NAU3qy2RRESXrEr4kReOJNK3es9DhNj6pvT39PdvUqBRa78A37BHtmET9Z9ezsc4irUG8XCPAUTg2LpvQ/azKWlsBUVcwBjK_eJ0p6tZJi6AvTsqBf/17" 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;"> sneakers</a> and <a href="https://links.message.bloomberg.com/s/c/wM_6SmxapWLz1pMY-wo8bO8qwQQgMwM26csZ4AaBQ7zFMqCyPOk4W8P3OHVF_aHGQamnOSLzCD_4MbSN46x86VJ_WgGUquVJ4t-6s94-4Q8kFmhrSA6wOEtXp2cIKf_6TSt9j6NDdcRgbizSND8SB-ghR43q-kvlvrkHuf1KCX3EF2dp4L43dn2OmTcefhi3T_geG3CYcQ3nabomJhhp1zoqVYT8SWjOOYM34wtjRnQm0KnXQYkzyrVWCmRr7q6nJdBrgVGnQNz6SwrGCFOsPdGRnxpo7boTQtu3Nf1Da_XYTIcP4iSLYUE8f-yLgN7vFwJ0My2mnVDJzS9DCyCJZr2kyK9gAiHOv_kB3d_FEDcDxf_hDUGg7Fbb5lM/LOKRD3yGeBHYK07wSO_J195vWMy5l9v2/17" 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;"> single-family home prices</a>. At one level, this makes a lot of sense: Stock markets are for trading <em>securities</em>, and commodities markets are for trading <em>commodities</em>, and there is a vast array of <em>other stuff </em>that you might want to trade. Labubus and sneakers and houses are probably not securities or commodities,<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> but people might want to trade them, and prediction markets are trying to become a sort of general fallback trading market. Of course they should and do try to find new things to trade.</p> <p style="margin: 16px 0;">At another level, though, I have been annoyed by all of these contracts, because they are <em>structured wrong</em>. The contract you want — or the contract <em>I</em> want — would be along the lines of “at maturity, this contract pays the market price of this Labubu/sneaker/house,” or equivalently “I pay you $1 for every $1 that the price of this Labubu/sneaker/house goes up, and you pay me $1 for every $1 that the price goes down.” That is, I want a linear contract that reflects the price of the asset we are trading. If I am, for instance, hedging my home price, I want to sell a contract that goes down 10% when the price of my home goes down 10%; if I am investing in long-term Labubu growth, I want to buy a contract that doubles when the price of Labubus doubles. This is how stock markets and commodity markets work: Gold futures go down 10% when the price of gold goes down 10%; Tesla’s stock price doubles when the value of Tesla doubles. There are other, more esoteric bets — options with nonlinear payoffs — but the normal bet is the linear one.</p> <p style="margin: 16px 0;">But the Labubu and sneaker and house-price bets on prediction markets don’t<em> </em>work like that. Instead, they are <em>binary options</em>, yes/no contracts that pay off $1 if some “event” happens and $0 if it doesn’t. The classic heartland of prediction markets is “event contracts” on <a href="https://links.message.bloomberg.com/s/c/S7FShuLe66oaRQyTMV8owSWvMnLd5gK_y1CoQnei6fphwKxIaKILQXyWqYsZkLZqUsTeKDr45_iX-VurQB5JlpV7p-trAkUfIhKIQQOqAOV-uOP0cuWJxR3ckL3C2t1HSV6QTRDntaXmpt54kOyIMM9wRm9P63GLc4vIGGKSRqARDEqR6ohZmgj4otPzjRZXhrXoI9Ga2sgGBUWgurpAgqBm2c0-msYwVBlktNXqQ3NzolL-halAERrsMdRM5Tw8Y_YpsA_OvE1PD_wxxYmnm-sAFRB29CCNtLjGryN8nHDhIqSSXOZ06-6yEBZs0YZ-VLjhsGWPLL1birXx-K2VRtx8gI61BgdWYuAkdNSBAyz0KCaDdysGmEDwV8Y/JOHwR8MlZNtTasXZoNRfY0OM_a3YBesQ/17" 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;"> elections</a> and, let’s be real here, <a href="https://links.message.bloomberg.com/s/c/5Rdxgd9uDHpnu7QLM6PJ29IqdVYe1EHfcwebCQ2evXvXoYwKCbQLZlWbwYrgSheVPvZ5X2ozhQ8jz1p5R6tD9LbkAsgfcWcEAMVyH2LVJzrT0dkXaVfsa4D7jJHw8UYnbVia9oscWF_0xrplbySt_w3GzAR2w-bbb4BG59FSDQKo0Kqec9oiURQWV1pewTwXnurhA4BbvTSpUZ8ObhykLtJO9DMyCVuXAD4mzwwxR4Me7B8Sthf9aqHgZTJFYv9RxcwGpWFoCJMU2naEBXhvl_XATcMr5UyOIHX8xsU8RX9Uj_-vCCQVLlQQdDq9v11A_I0JqaQS4g-qJcaMP8lHIy5ZI-fQFIVGAtxyVoIORikDfWeWh-bpks2Qie4/msNvR1jw7f8HtFeCYHFd7H-lM2HzPN5b/17" 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;"> sports</a>, and elections and sports lend themselves to yes/no binary contracts. “Donald Trump will win the election” pays $1 if he does and $0 if he doesn’t; “the Seahawks will win the Super Bowl” pays $1 if they do and $0 if they don’t. </p> <p style="margin: 16px 0;">And so, when prediction markets extend to bets on houses and Labubus, they work the same way. The “event” is something like “the average sale price of houses in this area will exceed $800,000 next year,” or “the average price of this sneaker on a resale website will exceed $200 next month,” or whatever. If the price of the thing, over some measurement period, exceeds the strike price, you get $1; if it doesn’t, you get $0. The underlying fact that is of interest is a linear variable — the price<em> </em>of something — but the prediction market converts it into a binary variable, “the price will exceed $____.” (Or, rather, a list<em> </em>of binary variables: There will be separate contracts for “the price will be above $180,” “the price will be above $190,” “the price will be above $200,” etc., and you can pick which one you want to bet on.)</p> <p style="margin: 16px 0;">I have always assumed that this is, essentially, a <em>glitch. </em>The prediction markets are relatively new, they are moving fast into new territory, their regulatory environment is uncertain, and, importantly, their clearing and credit infrastructure is underdeveloped.<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> Surely they know that the sensible way to trade Labubus or houses is with linear price contracts, and they will eventually get around to building those out. And then, sure, there might also be more esoteric things, call options and put options and maybe even binary options, but those will be a minor sideshow, and the main action will be in the more sensible contracts. Real economic actors who want to hedge real exposures will want the linear contracts, because the payoffs of those contracts will offset changes in their real exposures.</p> <p style="margin: 16px 0;">But of course I could be wrong. Here is an alternative possibility: “The essential thing that prediction markets are selling is not the ability to hedge or speculate on real-world phenomena like house prices. The thing they are selling is <em>gambling</em>; it is <em>entertainment</em>. And the most normal and entertaining way to gamble is with all-or-nothing bets. We <em>could </em>make a linear bet on the Super Bowl, where I pay you $1 for each point the Seahawks score and you pay me $1 for each point the Patriots score, but empirically almost everyone prefers simpler all-or-nothing bets on who wins.<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> Similarly, when prediction markets offer contracts on real economic variables, converting those variables into binary bets isn’t a bug, it’s a feature. All-or-nothing bets on whether house prices go up are more fun and satisfying than linear bets on what house prices will be, so that’s what they offer.”</p> <p style="margin: 16px 0;">One piece of evidence for that view might be the rise of <a href="https://links.message.bloomberg.com/s/c/Koq8-pPfCDVMn1iJv45SloBE8d0RwD6zv9JcnlSQ28gBhNFvq-eR7hzp3G3W6emC5VqnDa7NDnPhZ6XBkLPcQgvNpJmaSIrqOSrT4It32Wvm9TWX6auBaD15OwcG6R26C0YH6lgS94hKsN5wFdkhJppSBHkrtsvy14MlzZATwFY76U8CMhl8lGs3PjbSVQZsadq5hy3fBY7yC6bGkkf5iaCEKkisCKHqF_O99zesc-kY0V__iz_P9cwoF04NcrOR8NNa4w0niVl73y72NYXBZz3cQsdwiP6Sot_u8ioaECZtSWjydLElQT2qe0u3jYzH7JaC7HORCe0YukPVrdMLxi9o1GBFsk0oQhCWL1dGPFektkyMSVKgphg2Tx4/s52sTPR5RWGQ-FTx0H5pOslvWapg42zI/17" 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 stock options</a>: Historically the stock market was a place to put your money so it would grow as the economy grew, but if you want a gambling product, “you double your money if the stock market is up today and lose your bet if it’s down” might be more satisfying.</p> <p style="margin: 16px 0;">And now the <a href="https://links.message.bloomberg.com/s/c/GSZrKWyNOR4dNC_ACEeZ8oTLmNYAFk1md3C67ok9gs9qbAvGfoyz2kChuGdB1XqVxMcWvnzeXuO-6TrRjLFRjNGs_t9FUj6ghP-4OHSXziaiD9o3LcskzVc0rDImgwNynZC2a-OQjmer8BE0L293w39p8QAL2QegvOhGIPQc_kPpWXiNmApOO0Npkm17LgqqHPWsv8Vjb8Q3vEfcqRJceR730JT136smq3l4RREX0FPb_9QodZCH4Jz8D5soaQy7eOm7KgQ_OMJwtoq8EXbR7b2vQfMKyQRxEtAhOmYcTt-4YpTK2dfydd4Prvq6VRpOFXR4rKimE-upomBzCHjd1Rh9I3vRg_f5Ro-Pq90-YZpvy6NdOiWZFquWPJ0/1Ax3OVBe2wXad3Wh5TWUjIoK85jtbKm3/17" 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 reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Cboe Global Markets is in discussions with retail brokerages to relaunch “all-or-nothing” options contracts for individual investors that would vie with prediction markets.</p> <p style="margin: 16px 0;">Cboe said the talks with brokerages remain at an early stage. The exchange is also discussing its plans for these new contracts—which could include revamped binary options, sometimes called fixed-return contracts—with market makers that would execute those trades. Traders use binary options to place yes-or-no wagers on a given event. </p> <p style="margin: 16px 0;">Much like prediction-market contracts, these derivatives either pay a set cash settlement or nothing at all. For example, binary call options tied to the S&amp;P 500 index closing at 7000 would pay a fixed amount to the holder if the index settles at or above that level when it expires. Likewise, the holder loses all of his initial bet if the S&amp;P 500 closes below that mark. ...</p> <p style="margin: 16px 0;">“Think of us entering the event space, using those products to offer a more simplistic event-style contract like you’re seeing on other platforms,” said Rob Hocking, Cboe’s global head of derivatives.</p> </blockquote> <p style="margin: 16px 0;">Right, I mean, I see Kalshi offering “simplistic event-style contracts” on <em>asset prices </em>and think “oh no, that’s wrong, in the long run they’re going to have to offer price-based contracts like the real exchanges do,” but in fact the trend is the other way, and the real exchanges are looking to get into the binary 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;">Deep fried</h2> </td> </tr> </table> <p style="margin: 16px 0;">Here’s a trade:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Start a company. Issue 100 million shares of stock, 90 million to yourself, 9,999,000 to your buddies and 1,000 to the general public. (The shares held by the general public are called the “float.”)</li> <li style="margin-bottom: 5px;">You and your buddies trade a bit of stock back and forth with each other and the general public, making sure that the price never falls below $50 per share. This might cost you as much as $50,000 (to buy the 1,000 shares of float at $50).</li> <li style="margin-bottom: 5px;">Now you have a $5 billion company: The $50 share price, times 100 million shares, is $5 billion.</li> <li style="margin-bottom: 5px;">Now what? How do you turn that $5 billion company into actual cash? If you just sold the 100 million shares, the price would collapse; it’s only at $50 because you’re propping it up, and you can only prop it up because very few shares trade.</li> <li style="margin-bottom: 5px;">But if the company’s market capitalization is big enough for long enough, maybe it will get added to a prominent stock <em>index</em>. Then index funds will have to buy the stock, without any price sensitivity, and who will sell it to them? You. Good trade.</li> </ol> <p style="margin: 16px 0;">That is: If you are really ambitious at pumping and dumping, the ultimate buyer of last resort — the final dumping place for your stock — is an index fund. Pump until you’re in the index, then dump to the index funds.</p> <p style="margin: 16px 0;">Everyone knows all of this and tries to stop it. Stock exchanges might not let you list your company if only a tiny fraction of the shares float publicly, regulators might scrutinize your trading with your buddies, and index providers try not to include companies that have very low floats or that are unprofitable or show signs of manipulation. But maybe you’re clever and can make it work. Maybe you issue 20 million shares to yourself and 79.9 million to your buddies, but your buddies are well-disguised and from the outside that looks like a lot of free float. The <a href="https://links.message.bloomberg.com/s/c/iEkxfF4ONkObOY-CFZ-NfXeJBXdAYIyxeykdfXkSOivkAjhTficcCJyW3Uf8fgWw_DlzfWlLzxPwYDfANXkCX3yTkD0eyL7CemHIzdhDLbKatmrh6bkAThAf_woSIS19cPFJMNNIto0a1lajv7Dylb3KsyQhRu8s7hjuLCEwCNZOkT6ZuSnzk27TqyWITC6nYu4yQUQA6v6KOHyrpJzOP_2pBvu85DQ2QUhlVnF2cAAZC_SeY8EzbA7oKhYb9w4_D0kAnj5p9UzhnoPcoJKqr64nqHVRuf9XxNBXkI2E4_tUnDPSyO7v0UKkUG4-5OrznNGQRLC3awMo0kbx5u61-FjDjXpc_vogjxxEo_J0L4Ik5TwTG_4jQINv5-M/T6WPEL-R_5zo68H36LmUrgC4zSido58e/17" 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 reports</a>:</p> <blockquote> <p style="margin: 16px 0;">The volatile swings of some Indonesian shares have earned them the nickname <em>saham gorengan</em> or “deep-fried stocks”, with their restricted floats and concentrated ownership contributing to rallies that can lift their tycoon owners into the ranks of Asia’s richest people almost overnight.</p> <p style="margin: 16px 0;">In recent days, index provider MSCI has shone a light on this practice, threatening to downgrade Indonesia to a frontier market unless it cleans up its act by May. </p> <p style="margin: 16px 0;">The announcement — citing “opacity in shareholding structures and concerns about possible co-ordinated trading behaviour that undermines proper price formation” — wiped more than $80bn off the Jakarta Composite index last week and sent financial regulators scrambling to prevent a reclassification that could trigger billions of dollars in capital outflows. …</p> <p style="margin: 16px 0;">Investors say the market is split between stocks that are widely held by international investors and covered by analysts, such as banks, and a group of closely-held tycoon-owned companies that have on paper massively outperformed them.</p> </blockquote> <p style="margin: 16px 0;">One way to get this pattern is with “co-ordinated trading behaviour,” i.e. intentional manipulation, but that is not the only way. If the effective float is low enough and retail traders are enthusiastic enough, you can get similar results without trying to manipulate the stock.</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;">Silver’s runaway rally becomes ‘<a href="https://links.message.bloomberg.com/s/c/FRSAptfpJVkUUKDOQbugRT8iwa9SVR5d2S30TMpCQfjbYwzar66Lw9Jmb63UaVHiCV6t2N9OAW-AI3Y1fQEPiEiCmVtvbpGglxfuy8h5Xr6E0aF1kfp3YqTTO5Z-NH8hzElzq-I3oGB05iE2jSNovzcZ0VamEhu50jPTXUq-fATh2d6lVQxcCxy3AhnQepxcIdqL_n7Lo6O-lhynWI6w2hZXKvpgKpmBARGSZZka-4sT_vnXSL_xsgpX6LruvcgeBggQHubwbSxvIMN84GbCRfKq_RjPPju5PV6mbrXA5Axm9WWycaqFv8PasTRTmGtNABq390XCQylXb0Akr1lQMW34_CJX13BVUq5eD0PXBhXQmUkFkf6AL5TcBZA/9V-ghzeh4vXIbJHSuRTumDT2ZuLITsM7/17" 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;">death trap</a>’ for Reddit’s retail crowd. Gold Is Behaving More Like a <a href="https://links.message.bloomberg.com/s/c/o-iYdagD7MlLamFWYbp9wYs2z5NVfQ_aqVY6SBj087USDb5BMePblsE3GPHDBgnKWwGyVmJ1EHnybgFkN-tim7CdpxfsDiXK5k6pG7HWjQ2SYH3RyHrvWVjKT4eQFFJDM2ZSAwgwtqGZGL1oEDR_cfmfWKg1DbRfcAFQzlC-YTZPKE8rrDTRKRIIWtf-qe5yyoGYGvn14Ztmqc_NwW8f22AWcxgVYX47ELicO_1rW__OS0lSR86NPK1ZEP5hIxc4ilqJdOG1gvsy8a6ItsbvnyhDiHbTdJA0irlYCLW7RyBy_8RXkJ0AZogCtLPckg574WLp9tW1qzmTXI05GyO_zjODZ8pdWddaHGhXEViCu8TRIW1B-EaRs7hAYEI/oqY5zHd5ZxI8y7NVyXWAYIrlkDKFuTbQ/17" 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;">Meme Stock</a> These Days. What <a href="https://links.message.bloomberg.com/s/c/oEBeztIbOQpbO4zyAnnyrCpowXvYi7tNsyi3zEG0Dpm-8koeyd2aeudW5dF9OHBIJLPPUoyldudhs94tmbCORBc69gEyDtj5P0xjPkiXaeo-sFq3qJEgVa10mqHJIWErypUoYKgcMIeeQooMrYksA3JejcBew_TSyrZo7laS9iCJGrX-7vwQ05Ne91VEbmr3sj9_1cLlTFFtzYKHi94zh9YyBTGEYL1RQnKO0dcpCrbq8JF8dPx4duyqTQxPBP6dNhpH4lbfN-lNu7FTpJGUXzh0S1uF-RakgqpyMipuLqI6IB8L4kaR6kTHDwYxYhvFnQBpZDJl_GRBONTlpveUhrRnplHzLClPhFEh4zWwUDJxGiKOX8VMDYwQB4Q/NV9d51TDPLekXvN53zY24ywZCx-_Pklh/17" 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;">Kevin Warsh</a> Learned Working for Stanley Druckenmiller. Builders Push ‘<a href="https://links.message.bloomberg.com/s/c/CTCzUk6EB3NYemAoom_xfgtX_1nbsQbI9OxA2JsVhm2ltA6JzbGm8K8vKM4bvwlRfI0EP7nD8Y1VkOcbLIpYQ8aUPwdj9U72bUeFk3ajrWFiFKJhS-l0ALgOdnbNd2TScERvyF_D1P8O8xDxUSaIZH26YB_1f0IxIYJBPV97duvIGuRRlqafJQx_DG9P-xLL6bkUHPhdoFOPd1f69hjsdHfydplIrCQJoAc-Vf5aMuzHt0SMXjvq2ATPlrH47p-JT_74ePSVcz3eSDNQ4hThLNI7zqfUGTOZpHigwOaoMORhdc0jE_O5jh75g8_kuwyAXSPv15w02lprGnn24z2cYev3HyoQd62BqgBRFW39cXQEo-l3zNpimebHB00/zrixGlLKUk4cSkVYFjA-vcoe2H0cCM7b/17" 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;">Trump Homes</a>’ to Win Backing for a Million Houses. Investigation Finds Credit Suisse Had Wider <a href="https://links.message.bloomberg.com/s/c/1mdPqSWDzjuay2Uk94OuvVvthqVCbyNbIgA8pVNzkqCzBethH-OcmxdJLNwcdBC4_vcYtEmhKil37BlP7u90FMsnyCKJnDfJq2vmE1JG1yXmShiY_9XVo3WEf4eemCwbpaLmtQzMmoAYnpurwc_ERojhNQHZpbYM3LuD7RS3Kt3HormoGCLBbQWPm0sSgkj44jMHS0LfkKdgtcwyMkqh3nCY_6jkZC16VShPxJUTXkVvBgKR_ZyWWoXqoQK0FepqJFWz0nj2VSXI9MTN5C1x6X92vIeoIZLJc3mcQrCjQ1OKnn_E7cOf6mhd4i9hGhzoSprcXOmYM1SpA4o6ycaYV8vjlre5m3ohiBvxFn4T0NBrvUoqK33qETKcu3E/lNZzW-G3H5g6EXUQw5-kpOVgcZKu9lxz/17" 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;">Nazi Ties</a> Than Previously Known. The Crypto-Hoarding Strategy Is <a href="https://links.message.bloomberg.com/s/c/NXa1sC5LiRrriM2aG5xHIt4iu25M0HdA3mO_eXmbAuq9AENPllTjVG0pQSFp92MWVc0Rpu2e9v2tP1ESIq3gp13eUZVBd-FMQUaaU3WulMoWYt8eNCchSqPv1w4iiU_9Ja_ld_isv208VMPBzM3EglYv24OlmGZxMQYdc3R4TsSGZts4LSQyVfjsim-dJ95m8SJMo4QwAzDDKXUm6KKwL11_cwCd1GjRNNu54rPyrZOhWluFYk8SLZ_Ixn3T_48rtg7rgj7e9tmt7moNFI4L6Oxj4xR98q0BIPOkOJHmFyNJycGm-TS2jAFGFQB4FZHzYYvZ46b8sTOR1_0b_YYb6gVqqFm9Lqe_XhiKlVajFdetn8A1Wh1kziF84U4/UNjv3WIvibsnrnqgSd_0_tk8nCwuFsl_/17" 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;">Unraveling</a>. Vanguard <a href="https://links.message.bloomberg.com/s/c/mYebijDMBdkTHjkpLyuxciRabxz4XWeovTzx3IoyyP1ZrO5uVeueAHtLLJthSX1-W6lXexr6yp9o1OsoOgGsx4Ldgly7mMCWxF9FJhI7_V0JoHJQpdNR6cP7nS-v8Rjet-j2OWJRuMB0oxtLU-MiSU7BtVl92Llx67ZtONIZNPAiCw2W13YDuI0b6ki8fJjNXxUiWEY7_eqAFhbB_1RpXHmKDpaLKq0VhP3FvYboakNoATCWK5fZq69vRG2y_SAqS8QRXh2Fv5QlQ7GOH-E82947LP86rZB8DgAU8hr57cXQtBAqKJ9e-qOFCeHxWXMsSH62IZ4kru49zK0eSk9UVPaIG7c9fYoVo6MAjxhe5f9y7WP9PFEpl653dkM/lyk7NrYnjKKGWOkM-E0IyH-qJOSybBXu/17" 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;">Slashes Fees</a> Again, This Time on a Quarter of Its Funds. Wall Street Laments Departure of the <a href="https://links.message.bloomberg.com/s/c/bnkvnQYF8UjL-UkoE9XEgDB5dhXNPVztFxuFQuvyNxALYYNfLw15Zo7D3XPrxa1Vj-bWSxvvfh2HVItjg_NXdXBaWIasczttoONof4n4NvIzEorpl5qlSM0k-xzK_L6ZH4TOTTWhbAMJTbFhZ3mOqFLoWCYuU6nl7fJfo_pQXAleKBaIA7_5HD947cwf0uvzWtjXopnhGvwqoUW9dSWlsSWsimSoWdvjtKLv80MVSy0_7I71ibF69soPUKbdA6VY0CB-hJc4s1-KgcMZjrX9cNKq7PvVfM7GpQD2B1r0k8Pbc8KjbMqBSXmgHQDbI0WpCDje8iRxK8yrp2q1Eqgk9bjBwvsgqzmSBHwNdt_dKsQLOIMtR7q39UvDSBU/npz4i0MITl6_dx41dBvc4j80Ghh_fhNY/17" 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;">‘High Priest’ of the S&P 500</a>. ‘I Lost $300,000 to My Husband’s <a href="https://links.message.bloomberg.com/s/c/TOdGftNG3_LzbIB8KrCNhs9ht7jaQSqVH8RLHV5uUP4j2K8SxrTYyYkCbbK-c5ehxKbZ5Jp2MO-LxWijznK9VgQZfEjrWyjS2OxaEtQnDdQ6vPxBJ5tKtOt0f9XcyVh7Y4jNkltUjf-riGRkFqxx9o_DtFIslBK86yP9p1JJZrWK12CoIVHKtWgmHgExlE2MGNlADE1qyCDVzET1sIygu64I5bqFLecJVaBJP2U5Sgb_GYQp3W_c5WpZvfNJaTuiifSAqt1K4jzaQ9eW_wmTWTX_RaKyvXk99GrIknjdTFrh42FR3Q_1_Z-2BxlwLfLzMAfZT7A0CD4VMY_4x90YevZmDN5MagtsUkSeyVJaWpw1siIW1ySeHOxxYkg/ZmZNX6csSfkIUyE3DfS8QGxb8gVgroVe/17" 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;">Secret Day Trading</a>.’ Man arrested on charges of impersonating FBI agent in alleged attempt to <a href="https://links.message.bloomberg.com/s/c/VxXg_dFLwe4cs1-idJFr0ht3s6WLmcjHmCSdwo3meNNoiSbwBqyjs_yMccXjU1WZs7945FTkzJlr8JwpGAsNrHizuMDz0VJPEGJ3y2kF6lT_klFLfSGSf6m8R3Vnc_-HOf5af11iFAWwo7fOAlqwkv_aFLBN5eXwQbhKzt2pgeLNKwhS7Ar_ReonV09c_67jgW1TrEnpkXoLW5IizTLxv-GTtNE8aoaJl-pWmDsSDz1qQqe0EDgPRZ3dvIJXMhAf38bKmy01Fk23aLKQVr8cUIdC1C66cVbBVwX7iPP7ajLJaPfLJNUPx5K1i4s_fC7tLuSt-xV5V2YHqi_0FrF_cWh-detbLsk9k26Fft6L5yqEBFw5C-0nlOr63l8/BwF6J683HtLMQaYgFGBBr_71etf9PN51/17" 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;">free Luigi Mangione</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/5XT4pTvht9PZy_FiWDnFcqNwzSigM88FjOYUE6JF-3SbFEwFGODCZiXEb3hOB2LiEHvp3xW3X7u_0dq2VXXzGgd8ynKfOhd4fhFNqHNaaa8E7SlVyaiXoQUHKZazup8S4WZVSFBnlBR1-9cG0eFTtHw28teDOzABsSK_jroPv3Q4iIhULwU9Q3lQz2u1HBLAclbaV6rc2IXDvvTX8uivHf_shq7E29WNjV_OEPPHdiV3N-GfvCCMRUMfmcaSFDnLomrCyN299M0FPc1dLCzuewW3otGrE-TffP5DUBgjgjHDBAXi_nbMrHoiugKFvenaE-i9Md61QKpsveF5dmQSfcN8AUNjjHw3VXXOHbY3ze9K6btzOwmbQdxf62I/RrixIbe4exqIeUaZLNxAV-Zjo1rVrbgO/17" 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>. 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Thanks!</em></span></p> <div id="footnote-1" style="font-style: italic;"> <p style="margin: 16px 0;">[1] I am being fairly colloquial here, and you could make an argument that any of them are securities or commodities or both.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Simplistically, the way to do clearing for a binary contract is that someone buys the yes *plus* the no from the market for $1, and then the market holds the $1 until the contract matures and gives it to whoever wins. You never need to ask anyone for more money. With a linear contract this doesn’t work: if someone goes *short* the price of a Labubu when the Labubu is at $100, and the Labubu goes to $1 billion, you need to call them up for more money. And so actual securities and commodities markets have a lot of infrastructure around credit and margin calls, which prediction markets can essentially avoid, for now.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Or who wins against the point spread, which is still all-or-nothing.</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/ficBHs0uid-CIQAfRRDwmcp-uF8LdqcRSNhOU5DSwHkleVB75VndIsu5ljil4x_ozoKMZXMxeezzrApng0UPNEF2waAyrIWAo9Hw4YDYZ4bwY8DexcilqhY4P1mfrrRNo0_EeHEDH3LgDtDvDoOQl2T9JlpCvVSvdgSNy8RaYXj2a2MkmHZH4BKWiJjYWuyzUKpTofuIPyd5lYk4j7xp8UuzEmJHx9HFAMNzSwoNtd0TgOIcWFi-AfHUZtjiEDFfi9lASOt4Dxw7OioDjOmhiRWVS3gH9lxUJ77eegI9csQE6BnPrpEbuJ5ZcsrJqA9eYjOfaqTl6vGpQZ1Jz3m6yyReLePuJC1GwM4TupSkQICehpd8CdOEzlLabdQ/86iMwR7JkiyJuiJ5obCR7daTihqM-P2g/17" 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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  2. Money Stuff: Musk Mars Merger, Maybe

    Mon, 02 Feb 2026 18:30:33 -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;">SpaceXAI</h2> </td> </tr> </table> <p style="margin: 16px 0;">Why would you shoot rockets into space? There are some classic answers. “To slip the <a href="https://links.message.bloomberg.com/s/c/U8jImeKZeT-NT2kkPxXhplHqCowMY9wnvQumFj2EF5AeRSfpd-zdk-WiruHF5rr5FfJoWoJmTFA55RnLHJl6IJ4C0RSmOCgnSxMP_wtk9ZbdMOgYlqyIsZ_d1aySD8uOdOtAjWqKlP6YG__ayyBbWJ8zdZhRv_qJBfLxYYlQNqM-duLa5ognrMuFiiGXM3SjPDe4I6kYVzRNOBYQq88vnogXgeH5ePFWA1UiZ5HO8RXu15gictOi67RmpWio8GLNgebgjyTTZOo_xnO2nv_G2_51LfK4T36uMl2nAp5LigN7EUSojqRSzEyZK6duKmEpX0WuHMATskxAewsQIzPI_NuBfh_3f3tnMp836RkrZgcbJIdGTt0Jfjz5jQ/1qG_n52HDslyYYyNNI4XsSkcXwIVGOAU/17" 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;">surly bonds of earth</a> and touch the face of God.” “To <a href="https://links.message.bloomberg.com/s/c/FefIKSN8A8-Y73iO1UHxdB1_rX8tYgQ0cI3x3dYk62CIoCRyhOOHoJqwYQ_UmptQMc_cWIv9iRC7AsZz04QVGKUmMIYdtoI2NWMOCjO5xjygGkKd-CWPjP6vGqqBByrW9sYdjFmPJaaZrjucAtiiqzZahhRwtPzbROlWZZjjxecVqJTuyT_Zg6aE75puqEIFlJIDA9NCaeY8rBk6ZXqMy-rauwGLRRn7QnfnNuQok6oKUmr1woBLMe608qjxsNpfxpJC3K8G-tmhf2efNrVynuPLi5A97Ns3MnOff81yScUMf1s195UAZin-77qgZrar0nJ-FH8Mal7FFqcyOlf3evnxaUDml3RabYoDNgPyzet3AR9jfKN8WxXbLA/hZu6pb9ZlIvo1sZ4ezS7JiJ6vmsfF39t/17" 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;">boldly go</a> where no man has gone before.” “Not <a href="https://links.message.bloomberg.com/s/c/JXsxjC-kAiYgRY82EbkFGMUAquIFuhHNhMDEgb8gddfW30owqfcOu9tBD-y-QyIF_8PNaN4uzCrik4HQgUzsLBsGddJRdbpz2ft4tXBVSse3wJMgJCEF-Qj79WhX--7AJS6mr_r0_ZqqLvYJ5ACZRpJ1qyYbLEFLXuqyVX6CpcUQUjqfJEUJV5H4mO29wdqmARoPKVQUL9ZsrW930ME0f53VWOUpXlM1LJguX821amG8KA_C4Y-1idMPlJF9FF9y-Y6ZzRk_-Dfw7gNac--5EX_YxAI4xxB3Yi-4RlnTvDbk62-eCwsk5LdsWNEXhmls73xx0r0DsglGAJvWcr0ayXDljgs0544bYAufihmrCbys9UyPa6nWkBSojw/H3DVNEcSqiMl-O4WHreYsr-U0a5QnCfZ/17" 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;">because it is easy</a>, but because it is hard.” “To <a href="https://links.message.bloomberg.com/s/c/oUEmK_xp4MfyiIVwJ4Fn86xzYVDeOvl6N5xfegBapDmqU8qxM5yVeroPY9WTfz4tbEDpMb0HICiJ5VPhLnN38Am0bSymSYfHBCv4VkN_I4swJDEUoRMnjJG7kRp-kEXWz3Oj-b-eeXrvYsIvCCsjxT0UqL4le_XfMNT9cs5qJbCtwaIItvXZodTOSR79ooJvnSH-i_xRmulBs0ollwxhp10QsaRZhTw6K0qUcaow99LtUuPL3Aub94odMcC6gnhSMGRb4U5rOvAoZ9ApEXgGyS3OZE6BWjGlTWc1pDTeebpyksh8piAYdEdTVBGMrdsNY8CKjNgWeDvSq2buAHLSochuqxy1ZyrIf9LX_97BNyjhHkr9GMJREHaTXg/K2RL-InwqtfMCIMDe15Zs-XprAsnj41r/17" 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;">make humans</a> a multiplanetary species.” To extract resources from Mars or <a href="https://links.message.bloomberg.com/s/c/3uolqrhHjqlB_gZZDnx8qOvqbkAdF6-4XCmhay_E8P944--uvUmzdk4bk6KBN-t7njP1i-mtBZ2eK1FqZiyPn0BuixFgAUYZsz48G69yn_xl7o5NFesWf9sVmbLnzN3-6LLliJzTv1tZgkHppPPxWC5Yi6Wdq2ET47iR3f43LrCKUV_ME-QK5ZrGmBvH6tT5IVuhn4u0HaDgxRDDMs1l9uUN-_-N_-NjzUQj70RcFQSXQYL4wzpvMqnpihTn1neMPQhSEtf5YPbTyhLH6mJ-nXZzrhK7qNL35_ou6LHrLC7B8_tYOxbtZ1YsSahtGsY0y4v8mEyaLjThmkBFG6-KXOvP2OFgwDCyA27N9l-9sYTYHL7a-meHvsba_A/bid1NhBKHW79inxysD7YwA0rHbYKrH7v/17" 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;">spice from Arrakis</a> or <a href="https://links.message.bloomberg.com/s/c/WJhfHfY5j7y0jYCuVsNvlc2mTdcCA5Wmx-1F3_WaTCVhl6yvz9zf4tDFCKurZuBuQIRXTsQoKAMdRz4Bwa5nL8ApNuXTeuAFSFlKXdgPplSenzdaFWw8b-SyJyxGUaVUC37Iv6mTDcHQnIR_z_0AhOYoD5GrP85PAmrK9KxMyrz66E2LQoh0eaqQImjLqyv94n7ddXN_zkYo3kbSJAxDpcEe52ziFaIA9zBhTmF9AF0Nw7Yv2lBL0jSVBGuPDXA3k-dFIPjqfYSq-D6A4mbjl_xbxdgiGh04NF9qVD3DJrgnxqidpe1xr0X1FqSt6RG8MV9dKz85tsoCa5TQujmI_6hGcM9vXY513PVcWoNrejvEJ_jRUwW1S9JbqTM/CIoermAz1hwebOcXKqYLWG5hO9wBfDfw/17" 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;">unobtanium from Pandora</a>. To become <a href="https://links.message.bloomberg.com/s/c/vrCRY5gzC0obbUugSV_DOibjyW15QmdiY4I0NggIBgYhmJij-crXWaS2QcpwQK-8VZlkJpf8ajKoHxN-VCnTqf_VHsgriuj5XeN98HKi9e8VNA_6i0Mhjgm2FSh3PMmgBFLXe-F9l7whORndRQ_YglT40E5ldlqMuF6fXZm_-cNSfrETKByzS_RigwRSbW-6H5_UTWiSQJ6AuWeRrf56HgK6mzJ7G4gU6lA8w9EIBu66s47cRgULvxvXY_dfrxrxN-4esWrshdJgih693zjzN_6zhl-xGE-X21kiyMcklHumwbOAD6bI20lJlTk2IE1xjBB1byt7B4gzLb8IbH1r3_IUn9y1pcNLCMSQlffPXArkPYfgPpMcYkyT-8g/wXVydpZolfIhBAXOpecW8JFQdoRShnbt/17" 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;">younger than your twin</a>.</p> <p style="margin: 16px 0;">The 21st century answer, though, is mostly “to put satellites into orbit around the Earth to add functionality to our phones and televisions and computers and navigation systems.” We have some screens, down here, and the screens work better if there are some electronics up there sending them signals. It’s about improving technology down here, not exploration and adventure up there. Space flight is a complex and capital-intensive sort of consumer internet technology.</p> <p style="margin: 16px 0;">These days the hot capital-intensive technology is artificial intelligence, particularly large language models that require enormous amounts of computing and electrical power to train and use. And so the natural answer, in 2026, to the question “why would you shoot rockets into space” is: “AI data centers.” You’ve got a screen, and you want to ask the screen “please write my essay for 10th-grade English” or “help me code up a consumer internet app,” and a vast space program will make the screen’s answers faster and better. The world is just interesting, you know? The great marvels of human civilization are weirdly prosaic up close.</p> <p style="margin: 16px 0;">Anyway one thing that Elon Musk is doing <a href="https://links.message.bloomberg.com/s/c/3Wi1s2kVlBKRY7ZNiJvtFJa4gJrCVda94SCVM3uapK7pK2VhB3Ke7bqppb4JLCFCYoyHY07F6TnPHiekefxcbnnjjogcCzoY8Nifj4mLoKVx_SWIkKcd_tEnTkvk9dOWmXqLPbj0aVsA4a13hEVfWdw-raJuDNibFc8rHFAS4tsAN4ic5AZU8sVXX-xNLPl8eTJLmzhJbMqLXxizS00PisIuvQxty6KlVG09f-LepBOruU9s6Pzqd7wMuUURrTI8XGElzU9C_DzYuNdWfHs6uIfzd23rpUP5uN1BS1LkO0ftGRlWg_PyTGydBu2tFUFo1ib5PAQrY2vwM1X2ishPdhx5TjjgmG1uaundNbdzuLHPnwf8lTOlel840Bo/s5BaPy_BO0fj6H7wBrDBFhHEb18-bFmM/17" 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 this</a> (emphasis added):</p> <blockquote> <p style="margin: 16px 0;">SpaceX is requesting permission to launch as many as 1 million satellites into the Earth’s orbit in order to pull off Elon Musk’s latest grand vision of putting data centers in space to do complex computing for artificial intelligence.</p> <p style="margin: 16px 0;">In a filing with the Federal Communications Commission made late Friday, SpaceX said it’s creating the solar-powered network in order to “accommodate the explosive growth of data demands driven by AI.”</p> <p style="margin: 16px 0;">“Launching a constellation of a million satellites that operate as orbital data centers is a first step towards becoming a <a href="https://links.message.bloomberg.com/s/c/_K2RRMMym_8BW1vDcoEFAqTBsCqsjx8DtEeBS8sYXn0ecKC8krn4fY9LKu5COgjH4avV_vdptbPCe-qQsomjXLhlj-ev7yjNsyq-C_7Xyfa2u3udpJqHoqsbQ-usCOQomogyIq9LnC09nUq2O-nan63NySc9N4R02FuGHsBCj4beUqDmYmZpZoD9wD8bTpCAV4iuFZaiM6_CbbSHmEuDZS5dZQoAzKmwPK6uTsO5lcC-PFj1dx1LZ9OFiTKwu8zQ3P6zMtnHUXw76JsqmyAtiXqncNJoaiwBfg--e_5Z5vfOmM5jtJzOgIhVfIPgdrS5PePGP8vfbhIXZ2SJag-mEbM08egEqxkcecQGRv9BuCiYLg-jko8cr0mUsSU/bhW1x_rVCD7L3oBrq4ysuJA4Pi0rGFaz/17" 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;">Kardashev II-level</a> civilization — one that can harness the Sun’s full power — while <strong>supporting AI-driven applications for billions of people today and ensuring humanity’s multi-planetary future amongst the stars</strong>,” SpaceX wrote in the filing.</p> </blockquote> <p style="margin: 16px 0;">It’s both, right? Chatbots today, intergalactic colonization tomorrow. In 3026 our nth-great-grandchildren will encounter a race of intelligent aliens in a distant galaxy, and the aliens will be like “how did you get here,” and our descendants will say “well it started with some <a href="https://links.message.bloomberg.com/s/c/k49NY7b2avvlOLV2l2-bsRHGT3iJJMGfbukmYrAdUltQrpa1PfBji6S3R9Be8q-Dfca3KFP-1Ejyy56XsHSA3XgmsPtMUPSXxkh9Jv0qfWHXIbr8xR45M6EVoE3z6oDcKVH7Tgn3b3Vn_IgmOwwUNfzIpn0nawOiKWk0v7lArhjs-DnkLCqPqrcEXxqKwQY-ztypH6-0YYzkcWCATQQnAwRIrf5Gon3CJPXAY5URNgblk7FZLAu4OBk4SuG9H3C1UETZX2U_yqLFa5hGpIBtffGP-PBhwbp4W4ztx1WuVlRhHog2ZS8TPko5kQiMn_DlD-afyWN4T_IWQ1MDwE8nzpun3rp63m9kz0AeaW2Sw2neTcAybt54PYqOCY0/fvg5eac3H2yQJGZxOST2_wwN_8b6E_SN/17" 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;">slop feeds</a>” and the aliens will be like “what.” Lots of very smart people have had high-minded ideas about intergalactic travel for centuries, but perhaps it will turn out that a critical step in getting there is building an app to generate short-form pornographic video on demand.</p> <p style="margin: 16px 0;">Another thing that Elon Musk is doing, or thinking about doing, <a href="https://links.message.bloomberg.com/s/c/1FGu5T-cV9fn-f9zgsE8Qxa2tQBS7BiwGvR3x__lnKvf9DQzsuL0TEctoak_6t2RWC_5WaRohz3C9nzxWwX1eQy3fU__--UgQ4Vl4a38c5Jspcy_CiqCeNzcm_V5J_8AdTbAJyO2IiiR4mUs1XB_86gto3OGMM1ZcNSaWLnJI_jEFHgVcYgM0vFnengsWcE_rxjuNm0mwmGusaqGdvhgRpskV_Pc_Kj4BRVO3RIEGRr3SGHZAbbgk1HKAGmfKr_xiVdKu0N6iYvqxfzNaVtX8xTQusPNWLzexewXSvces8fQnghVAL5Q0cbgl2GfrUXB6kF8P6BH5gQBfRJ4ZVs1aJARLf47XBiHIyk3ky32LceGoQmwEbJH0HIrI8Q/qNyB4lBenY410sRYkxXeoWDY21nxNAoW/17" 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 this</a>:</p> <blockquote> <p style="margin: 16px 0;">Elon Musk is in advanced talks to combine SpaceX with xAI, according to people familiar with the matter, underscoring how the billionaire’s vision for an artificial intelligence-powered world has grown too costly for any one of his entities to shoulder alone.</p> <p style="margin: 16px 0;">Musk’s rocket and satellite group and his artificial intelligence firm have informed some of their investors about the plans, the people said, asking not to be identified because the information is private. They may announce an agreement as soon as this week, some of the people said. ...</p> <p style="margin: 16px 0;">A deal would combine two of some of the largest closely held companies in the world. xAI raised funds at a $200 billion valuation in September, while SpaceX was set to go ahead with a share sale in December at about an $800 billion valuation. The central catalyst for a merger is AI’s insatiable need for capital. The rate at which xAI has been burning through cash — around $1 billion a month — has compelled Musk to further blur corporate boundaries, pool capital and rethink whether his moonshots should stay separate.</p> </blockquote> <p style="margin: 16px 0;">SpaceX has also “discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing,” Bloomberg <a href="https://links.message.bloomberg.com/s/c/zpZN4JxzR8wFEVC6G8gCQTfR5I3qMMFUKMbhT4H0V72wWG2nKgirzK7xbPYOW4ODafO9DtwgteOp-FEVlkSHVbh6Uw2NpRIZqVAKoqbqLnOTxEXovZjhk_nvkmGcBKzfLh_QrWWWKZPNBGyC1mILTMg0KCfPz_P1BLPTdSkqhCakWuUph8x6J8tteto6wB3ElRyz6cZeITL39gCI5FGdZ91AzgU6ddsxvno6aiYNymBHNOLqD-b6OEOktsE3LYiwXXTaFPo2IV7EXgRpof6-7AAoqeAswjiVNmNKvGU9VOiygP6wB7_UoH0pEx5xxQUm61BulSeMM9xSYn05XnBTO_L4FI7dQP8RKyKoJ3OPUECM1p89J4apwrtdsgU/uMhITTY-0_reT9YXke6Kx9VOZox8EzAq/17" 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;"> has reported</a>: “Tesla’s ability to manufacture energy storage systems could help SpaceX use solar energy in space to run the data centers. Musk has also discussed using SpaceX’s Starship rockets to carry Tesla’s Optimus robots to the moon as well as to Mars.” Combine ’em all! It would be satisfying if humanity’s ambassadors to distant galaxies turn out to be humanoid robots made by a corporate successor to Twitter Inc. It just makes sense, not in an “actually Twitter is a distillation of human consciousness” way but in an “actually the greatest modern human achievements are funded and motivated by selling targeted internet advertisements” way. </p> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/s/c/c9hfP7wxGMk641P7yfmh-zAbwUTH352_S9e3tmj3k2HcjBKF5gbk2np6BpUQyWy_S1APw3UXf_gKRvmSb1AI502u3mZgc2lqYvLzp7DaK0AjL05CJz83jjaetBBNdwfdrppb7xJqAjvxY8VDU1KWj0GVaz1nFlHZLZ-J9TeBbJdF4qZdtZENfBuJZvKmRErIW8nBMLPx0s9GmGOvx7LB66rckU3CLwh7wzwLEkazWNyYtN9PzjgOPZfml7cXKbjPAWk0meidiXYgt3GNvNiHj0YYPAjmakfyTphvOgjQ0zu06imHKEf0VweK216792SOW9BdsCVy9AX8mK921GvQHBj00ef8A4ZmFYMSCpYqJeq8Jm6a0RNcgFxmyzE/07iYtuzswwCixrrKWKwZOtlkTOGrcQO-/17" 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;">But also</a>:</p> <blockquote> <p style="margin: 16px 0;">The M&amp;A rumination swirling around Musk’s companies suggests there’s more afoot than just clever financial engineering. It’s a sign, if not an admission, that the billionaire’s grandiose vision requires more capital than any one of his entities alone can provide in their current form. While executives at xAI have told investors that the company has the resources to continue spending aggressively, losses have swelled as the startup quickly consumes the funds it’s raised in massive recent financing rounds. …</p> <p style="margin: 16px 0;">Such outlays help explain why a historic initial public offering of SpaceX stock is now being framed not only as a bet on rockets, but as a way to fund space-based data centers that would serve as critical AI infrastructure. It also explains Musk’s increasingly global hunt for capital, from Nvidia-backed GPU financing — where investors fund special vehicles that buy Nvidia chips and lease them to AI firms, using the hardware itself as collateral — to sovereign wealth funds in the Gulf.</p> </blockquote> <p style="margin: 16px 0;">If Elon Musk’s goal is to raise as much capital as possible, what’s the best way to do it? One extreme answer, the one that he has mostly<em> </em>chosen in the past, is: Every time he has a new idea, he should start a new company and raise money for it separately. This has several advantages:</p> <ul style="list-style-type: disc; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Every new idea he has is <em>cool </em>and will attract a lot of interest. “Ooh, brain implants,” “ooh, rockets,” “ooh, artificial intelligence,” etc.,<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> people think, and give him money. A mature electric car company is old hat, and “we’re gonna do brain implants at a mature electric car company” is confusing. Launching a new company for each idea maximizes attention for the idea.</li> <li style="margin-bottom: 5px;">Conceivably there are different investor bases for different ideas. If you run an AI fund, you might not want to invest in Musk’s AI-flavored car company, but you might invest in his pure-play AI company.</li> <li style="margin-bottom: 5px;">The <em>employees </em>of each pure-play company will be compensated in that company’s stock, and will have good incentives to work hard on that company’s single-minded project. </li> <li style="margin-bottom: 5px;">There is a strange but valuable <a href="https://links.message.bloomberg.com/s/c/MKd6SytXa3y2Ova29O2Jsoy9Rm7zUl98Ngkk2SzTBdjFrHzPqhP2TokdLhZgbL5rUdOrs1QBcZsV9rdfO_KEkQucG0Urma1YvNkM7RrImQ-Y7sozvevAQMAmW0QIMRtoUEt327_CBNpzlGk_KrnyIsHPR6l3J67cWOGtZQDMGdMfjwh1fYtVFO0odUbvnY-6DCWrDCqOqL_JrJ42TkHHMlrV7IlHTWjqasXQPEdbSU95NC-Oc2TPEWXbbIPsMgnmUyrRujh1Ra-KGjEU4jH8PcPwP7Qi_IKxa30MJzTsGNmqqH44WuDtX5dHH47HaqXfwfD1TlpGaWKf-NGjbju8fDdE1xgzxU7roRt1NEP5vz8bi5oxhTsgjqEOmqQ/DCOleE_fRxS4gM79GmEbJy3HKb31MQa1/17" 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;"> competing-for-Musk’s-attention dynamic</a> among the companies and their investors, which might make it easier to raise money. If you are an investor who loves rockets and wants to invest in every SpaceX funding round, and Musk comes to you for money to buy a social media site, you might reasonably think “well, I don’t like this social media site, but if I give Musk money for this he’ll let me into the next SpaceX round.”</li> <li style="margin-bottom: 5px;">“A <a href="https://links.message.bloomberg.com/s/c/1MwS-9pTpGUKxGrGdPUJW6y2QnR5BWX_MSnWNDQU3QC2oQhTdGFeaubyfYiJJCayq0_UvkA-JaTq9PPSvtihkmf49v4BicmXVnBr2_u29Z3Dl3riS40tX8tnB5MaVARmv6PqKPIV7DmJcj7BXSD1WwzafdEWDrxZA2A0S6VQ2ZLKPD8JDq6-ci3Oq_HafmGooiphxdNrdnTXUzphBNwZ2-3nVqni9pFK91Y46LKtxvwjQ6o-MtZkcoKxARh86hV9CSE2fr_MiAPvNHZ17GEeR4iaAgOQV86h8rrIx1ZTMCa2rEnbia3MnEnc2bcUsjhQ_Ss9risc084QNtg_-b9w5DcxtyCj-JrnqoksiYLYEYP29YX9mmuKIHs_sTk/sWv_eqHzEhTrm5YE0wnsh7vad6vUgUlj/17" 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;"> basket of options</a> is worth more than an option on a basket”: If Musk starts 10 companies, and eight succeed fabulously and two fail, then he gets the fabulous success of the eight, while his downside on the other two is limited. Even a catastrophic failure at one company won’t directly affect the fortunes of the others.</li> <li style="margin-bottom: 5px;">Contrary to that last point: If one company <em>does </em>run into trouble, and Musk <em>wants </em>to bail it out using another company’s money, he <em>can</em>. He doesn’t have to, but he has a free option. If he wants to move money from one <a href="https://links.message.bloomberg.com/s/c/5myqQBsi4ONvEpT-zRi6gSobvLhXwtaE3S0KUjpfMFbd9OP10jsCJfA_3MhCz5PFa6VebSkm6o16IJNlx2janTFZOEzAIxpP2uhI2cPC1CBxSf51IIIcty1vogpGZZkV0PzkZ8-MTkp1coL4JtajbfDHpA_GxlDNTqfwBHAXtO4RPNtL7yiY6zE92oN3D-BQGNOeKAIVDh6xT7ss1-ub6czFhBJ4niBoVh8tyWAKtaO2lavvkKKzclvyKgqkAZwaNGhIOMaYmGkFxhvaz7k25MQjDxYjbM6S7piU0WRNy27_8DnY3SlBiNLSZy8_yLNuTrCqzmIrTk3LupsTXFjbs7F_zJHu2PbDie_9ogeflg_7I2n6IOrRo1AHBUw/PXlHIbDyyLQE5-kFsOKadXt6fM65TEwy/17" 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;"> company</a> to <a href="https://links.message.bloomberg.com/s/c/M-9KM17WahETN2-_5yHwsWBprmpmXW_7Iq3X_AZdMJVKC5iJyYlGD1B5lKTZZuMHLsJ-70NiHj4yLz4Qk8rYh9qrcWP0vcqBqNogR1ly98tk5bAKCG6btrcU3m0WIew_od6cDVXKU5-ZXfSSYO5mL2cJ3XhKQUQlmffDDXgz9oKGeANRrb_pZEEcntBspE-RSZRJwgJrYYpsueCI1QKpFIx0BDczu6ij0csv5GPj2X9HA3U-K0igtg492kV308K65owItbeAbUvzmCv6buTPILMuGyhuRNK1DabvtiZq3sC7LnfLcZzAUFURawXW-q_JW1DREjwMlRrX-66R1hA1di5sztuSGaJZd1VtSaVyj4nieBADUoentDzB6PU/gG1NI7RiIfo-NS3hD4IsTwjQBk3THWpY/17" 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;"> another</a>, he can go to the donor company’s board and say “hey gotta send out a few billion dollars” — or employees or <a href="https://links.message.bloomberg.com/s/c/j6IiMpdiTFiu8l0OeFkYDP4eCdGHGtwZM-96kQPdTbAAJ05du0kZqQF284X0LxAGhuPxiLajhQWeK9IWuMDQMvQeOPG7eReh4KQFhRwqtCQ3CUmnq6QNhfy_XLdAzqiputpsmLehBiq1PzHvNrGP2JPb8aIwMvUAofQxrV6lIDYnbtH0jg1Gg5XF6ob28qRgylBy6q18FZxqk7troADQ8KXVlkF_mQcW1Xrp88gcIN-LlkXkvdlBzdxQSR2fIwFGgIjhB943J6cCPhCbDxMXE7Hb1VzXrv7Fg_HUrcqfu9O8ZnAasfmZhEfwjmKjcGGWGNLqIJp_xlUi-Q8OhDfZ3dqn1Xb7B7O7BKK-oMDORJqC8SIFF9iAIv9JXrs/sZLf1FO8Y14ZnDFlIX0YiOd8-DVAcLd_/17" 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;"> computer chips</a> or whatever — and the board will be like “whatever you say boss.” Keeping the companies separate does not really hinder him from pooling their resources, because he’s Elon Musk. As <a href="https://links.message.bloomberg.com/s/c/I-O8eQFuRvMROD5HQ4l5T4nvPUYQzMyxrZrIduGu9JOFsioTIYDtRs5rSrDGAOJdzUGERlshyUSqqDcohVw4a1POvG2W7HEgCl6ulZ46qouwtEN_vEUSd8D8ESVr4QlPkut4AvMMZ3sETw-7E1PvWFrjxZwEwa5Jk4eY7_EllSYiMwFa8pXDdSWsZxSOYs2CEsGybkCxDm4KPK-Kw-ZulVcaQe-HTftdjIiGL8yZT9RXOhX2N1T7ojarKkJodJNuvVsiTpBLlhgHYqRxVSa0fp2lp0nWIeggm3FyyimQv-I-YEy_D5-KHkbOAVzWs3-me_sWjnK5JlOxOjqvyxMnZNeD_V6ON8GatWQUetIJhB9nhr8qgXgNLL_WPR8/HRNPN5slKMr1g5-22Iso-0W3piuWmzO7/17" 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;">Byrne Hobart writes</a>: “Part of Elon's model is to control a portfolio of companies, have each one take actions that expand the variance of outcomes, and then, whenever one of them faces downside from this, either use financial resources from borrowing against another one or the human resources within the companies to fix it.”<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> </li> </ul> <p style="margin: 16px 0;">The opposite extreme answer is of course “combine them all into one mega-company.” I <a href="https://links.message.bloomberg.com/s/c/lXCON42szxgTOF215g4mQ0svOKT5tiOjV4-bmXrxf9Of99ltQpJCo9L4WTu8MofdgeCwxhAA-frVhbgvv73bF0gjXjAoO8j8SZvrctzmso6xRqVE-LmX0hGQCOGXt8q2QJoIHbuDvzFD7brKLZJddcyTwk91qofp-uEtCCcdrGQETbBxFJjIkod76niaw3s3st6VJVfJIRfCxhu0nCJDm48jfbdQeHwD1GsTevCE6rbrTr3vEmoG_fZdec_qtTJuvDW2gAa2uc2OMiCZaUYpw5o3SjjuqcvMWjgQthvzORsnHUqZN_iZV10M2Ynqwr-1oi9QIy5K_p7BVJbEcvkuxvErCrpa87JIn6Ci1nQw5FkaTITqkiIIt1GN1bM/mucee6zTOVq0C3j8PFZFzCYAOuA4iLQ2/17" 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;"> sometimes</a> <a href="https://links.message.bloomberg.com/s/c/IrfT_m9z59rhWDwA0o-1VK-1L6XcjPtW59SO_tdHaHJaHEn3tGDsogRpw3uf-u2hF3ld6fbSEKAdRukZtMkDmLXJJrmvtuGNJ0-rY20xlS9dvmmMMEFBH_yKLRLMvlXfzl6zS1di05eNGljkOcSY2FeD725Rzxd1Dn35ifLk6UDqq4PTwQQAyN8ur6L8cG1RNIm0bjTtxBW4lHxrJNr2fDQ-NmtGRTCq6h-ayCOuJ8ftt47YHDhq3ekWtLr7swhyqlEz4dVN4c_XGAJN1KMNUaplB5164SxIz_HSefLUe7hKij36P2bA7p88otmQT7VCbjD34b2DyOFVwo_RLnI5iV5JbBcTvW-ibKYcTnJdBa9PnCM0cjzkaRuFAEA/igAtbEOT4nZncfiAPydrkDSjyE-cyJ6k/17" 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;"> call</a> the hypothetical mega-company the <a href="https://links.message.bloomberg.com/s/c/egrdyJoDtH7QJP9glt1D8wdMhlCktcFQWLT3ovN8JrZPUYMvRQT5tx5BR5n7NdJ8USAjMQXlrEFVWe1lpkoIxBfoq3nz8ayaLYzHrOlv4IKj2tCCBI-5v9AHagbHu9NhHEbOKhbnXxJ48NZlViEA1n7J1RJ-KjX6aqKuDZ7UsPU54J7mKjhifShKFE7tBvDMWuou0BomIwX_bvInr_dBhL-TM_4fY7nL3kN_40gwiDpG180ZVH05GegPQWkDjKOAylbkymZoVyREH1lbNLbezl53Qga4D-YxLN_ATKrmehIL7Cu2fbfHrC5VmXwrty_8QSHrXqLhArT7LYVgoSJvgpOAwQoz8QwMQLkwDCfo6NcnnMsS_h01Z9ggKAg/1757Cta3J-cI-ZeBmBQtR-vE8WZhPowT/17" 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</a> <a href="https://links.message.bloomberg.com/s/c/GFmdO0ZTQ-FidfiIxYcmf0wfRqcU_va4EZ2-LHHwH_4KBz3cxcQDadSNN4SL_YDqrxKzson4IEPjP9skZno2wB2qvUEyGPgL4tpglty2aRkBVJZYtbPv-KrbHbqJzKRggLX95jHx9BQlcqXnjo8PkVwK57UBUdH4I5CJp1eBX5JybOu46RZujI3eGUHDZ6EBbcEhbnGckz87qcnODtvvqXn4F_8jPh3lYACrZUyic2v-DpJJF-r3BVO2F-RK8RxRVgRvkYroxXRX5WWX7nCkOggIuYkv50_jOuquO5suadqQB6lppCevSBgMLbyYHksMhuJnyE2Tqw6QuR6RV4Buux1gH-cG1d3y2o8fQ0juTv6Zgr2ypAZJH-C_0RE/pEC3X7veVal2S7WuysZFazygd7JXk0EN/17" 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;"> Mars</a> <a href="https://links.message.bloomberg.com/s/c/XILFwoOxYWie7xarhwb3-DVfzLwaFTJRsVq6c0GKlNRG7bSPJwSJfFZ6HfuGxayrOGysQmKLaTN-xGrvysgrCytnzHPmbQM0IGmsheGh4hNsTWMgz6PtPXRSPdL2BcpZiQr_ZhxXqk-yD89qjUkdYpNvkq2XA33MCPrsrfkro5sJ0N4b2dVF4wV4_tn5fgk-Ru7zobKjBwU_9iMJ1BkCv01qOREWd-RN24qJPMNbkmFqdBWUz7cHUWSzGqeihKUSp8fqwDrTmtL3aiXII4nwx6oaWO1ydE_969nuMos_QUs07ESSvj8bdDX_D15xo__aQjJOFpUFL34z8BUmQYDAcE-Sfv0utKfMk6_tHJ8Hec_BqDeh_FeeBeGZNHA/dpMiYA-yGRSX5MWA8_eqjpcaJz_b9bgg/17" 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;"> Conglomerate</a>, because its notional purpose seems to be to colonize Mars.</p> <p style="margin: 16px 0;">The reason for taking <em>that </em>approach could be that there is some limit to how much money even Elon Musk can raise, and some limit to his ability to move it between his companies:</p> <ul style="list-style-type: disc; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">If he wants to raise a <em>lot </em>of money for SpaceX or xAI, it might help to cross-collateralize them with each other and/or Tesla. An option on a basket is cheaper than a basket of options.</li> <li style="margin-bottom: 5px;">If he wants to pivot all of, say, Tesla’s resources into building data centers for xAI, there will be some frictions; shareholders and directors might have complaints. Musk’s separate companies have unusual freedom to work together, but it is not infinite. Whereas if they were all merged, he could do whatever he wanted, and everyone would just think “ah yes the chief executive officer of this big company is allocating capital to its best uses.” If his skill is allocating capital, it is good to free him up to do more of that.</li> <li style="margin-bottom: 5px;">Similarly, if you are investing in any Elon Musk company, what you are buying is not so much “cars” or “rockets” or “robots” or “social media” or “brain implants,” but rather that ability to allocate capital to the next big thing. If you invest in any particular Musk company, there’s a risk that the next big thing will happen in a different one and you will be left behind. But if all of the Musk companies are combined, you can be confident you’ll get the best of him.</li> </ul> <p style="margin: 16px 0;">One way to think about what is going on here is that, for most of Elon Musk’s career, “tech” was an essentially equity-funded sort of business. Musk went around launching various cool projects using money from people who were excited about the upside of those projects. Compared to other technology entrepreneurs, Musk did much more capital-intensive projects — cars and rockets, not websites — but the investor psychology was similar. His investors were venture capitalists, or public shareholders who thought a bit like venture capitalists; they were willing to take big risks for big wins.</p> <p style="margin: 16px 0;">That model is naturally suited to launching a bunch of cool companies. Each new company is cool, so it attracts hype and investment. Each has one exciting idea, so if it works out you’ll get rich. Each is unencumbered by the other companies, a pure bet on an exciting long-shot proposition. If the brain implant company works, great; if it fails, your investment goes to zero; each investment is its own silo with its own exciting idea and its own all-or-nothing payoff.</p> <p style="margin: 16px 0;">But modern artificial intelligence turns out not to be that sort of business. I <a href="https://links.message.bloomberg.com/s/c/XRKLubxZWvC3cxyBxCHybegJgoooOvs-TY8BYVrbmGEShOu_KLKWaE30L-yBOoUIzVuhB7OuXVTChw5Fi2W6FaFYMhPMTC0VBna1o_Wyn5WUcd6vvC7sb3wO_4x-9A-7F0iTlg06Wkg9xfY41ZwGz-ohcmyD6YwiXe-rsZx__84ofAZFsKo78VzE4G1387tEHrRyiog5aI9CrS0xwLSRPBpBxiqo9lmGTAWnMX8EvZkw6gwmCei6gK2SwUyW7ILFk9bPFlSFXdaad8Dvs7rfsrPCnEvN_RXPUKV88fWOdHHzXvhuLthvCvpaJ58TY7gA0XK-nTPyNJX8hkXzPjhnJm4hC8jdndsQbIvatQtoiOiyBw0kfvJDo6gemyo/wx7-e5yqXrPfFLJeDCfk4DpHhu6UfWIv/17" 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 last year</a>, about OpenAI, that “it turns out that the supply of science-fiction-suspension-of-disbelief capital is <em>really quite large</em> but not trillions of dollars”:</p> <blockquote><p style="margin: 16px 0;">Trillions of dollars is going to tap out every source of venture capital, every investor who is willing to put in money now for an uncertain but potentially huge future return. To get trillions of dollars you will need boring debt investors, people who need their money back, people who are willing to put in money now for 9% a year and repayment in five years. Very different psychology.</p></blockquote> <p style="margin: 16px 0;">And so the financing action in AI is, yes, some multibillion-dollar equity raises at enormous valuations, but also a lot of <a href="https://links.message.bloomberg.com/s/c/_22Vr8G7i_CHh2gPHQqI_dtjAsuAx_y0Xla7KEwzWdbwj7L4XvRW3m5KBDx-f5qIXtTeoWW-CNz31h7i9KqYQWVjhkaYZhlUEXegniqbXmgdT3XfzGVXMmIDBjveYgexfK1iv6RYMTTYVdkLTpwy_DdMRATk0byukGuDQuf0O1kknxYE1y07kCzCKhUhspxRl87jtOAqiwoniOs5PShxRyjT4_OBZfco4-QEKtdDgJhAP8hlM1CbzoASdb9yCGh2UOvkNoLqpRQYUYEjfFEUJuGvbDqz50qHCEp-yOiGTqfoO19eSJCeOQMyMUCOGzUB2QjF8_zjeqnTppX3LUQehftCjgm1ZFH-Lrz8IIMGZYEKAj6ebPhoOg6fnFw/Znon0jPvKOSHzNTicDffz3xuyoWHBqfO/17" 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;"> debt securitizations for data centers</a>. At Bloomberg Markets Magazine, <a href="https://links.message.bloomberg.com/s/c/ybWCBaz0l_5aM094cLRE42c8UdcrhlW4HWGsHyvv1mdMOFZLhLV__NE9c_FZKFvBDDhseNoEsW59kn42OuSlP_yFqx98OGZkCSwO3Lf-4O5Po05Zr8OEdda1t3Zceva_jAsEf8XT03DRX7JUCV0qMT0_JU4bBTWJXSegGneMX6NsrqtihFakjPpgduag1eXE46rIBiIgrzqm462V7TfI6pYbQJ4qWCNI7_nyqD2EV9wK-grrzXyrfbHejaUHZixgO8RgG55Kg1pCQO9iCAh8muDDSEs36sfOv39-xwDLrpBWW-d7UOvY5XxTgaqAU_TvsJ08bKSUFyO7_xGOElpvcwSMFIvHodd8igetT6Ssc2VRryeZfBr3I0bn2LY/zpnjjdirRkpTuCU1e6Wce1MDd403qG_E/17" 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;"> Paula Seligson reports</a> that “last year, AI-related companies and projects tapped debt markets for at least $200 billion,” and “projections are in the hundreds of billions of dollars of issuance for 2026 alone.”</p> <p style="margin: 16px 0;"><em>That</em> model is arguably more suited to a giant diversified conglomerate. If you are going to lend Elon Musk hundreds of billions of dollars to build data centers, you will be less excited about pure all-or-nothing payoffs and more interested in things like steady cash flows (from selling cars?) and cross-collateralization. A bigger and more diversified Musk Mars Conglomerate might be less exciting for Musk’s traditional shareholder base, but more soothing for the more conservative lenders, lessors and other investors who will be needed to fund all those data centers in space. If the whole economy is becoming data center securitizations, then the Elon Musk complex might have to become a data center securitization too.</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/jza1WuiH_va4zFwqjtxgtO1gg8osifEmlQnSOPjDj9PZNPPSNeS8vVdDawRT9qM3h7s4Zwf2QjEtzhcn2qXKbMfSIREfsdRnbwXXkqtvRS2v3TOJXUdztzs8Hr9coBq-xFc3bPuGWuGrEgx4XaAn9y24XTmAXMFq2sn2EFY_wlFmMra1KjK2RIrcjmyooYinaaqFguppPKmmg34t9jNf579SCmdMU1NrWKq8Mq59BiSBFcxRfBr0Uxfeakz0dx7beT6NDk8_fMNYNa4lqPRsEAaAtgoJ5kz3jhMxeaNPhHsbH-pjxfM2rGvwqNwUN4tWRqNnvzBJeRVHJncBeFuhXRWwErv1gK5pFkUgUiIr0n0b5B2jP15TUCtAABCZ-1lC_OjEZvXBa3Z6nFGah9OJQqrc_fmkdJBIQi4tAsLbCZwtqEXnB_fSRemms20t2D5lP5Wld4YFCJRACHJEj5nRJjW648MKDNyVxNvZqFXz4AdcwXTbKlx7Pi3tOpnXbJs5kqHHzWzm1Pnp629F5sPVRO7wIr3EZN8ULqzn2TvJ7-y2w8aSGKZMMDWzVvnbEPdzJQGMq1THryvOB4t8MLWBFutLFPY0BxRxnHjyVpbsBTWfcjgkDsHnw8Ba_OQTfPeLEd9hqNzF_yzvNXOUnNekWEUQ8KhAfTNZabfBKyTvK_dW0oB3r6FWC_jXpDULWw/CmXXzTuLUYPUdmuwI8K7rY0UI38f71BW/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=16729233&m=4c6f36cb7bc27023b5890c47a7e79821&p=02022026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" 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/Iaw9l3K0jvei3UwTK3jC7Z2IRTBvkN5I5h6VkXfqj0aqiCy05Rnckt81fG0WEOBV9t0zQGXB5OVGBhf-Q8tFwc8DIfSMg6rsvfJMxAssuj14GUrkXnUIEMHzdc8n2FrdyvHjWNR-w8NMx6sMKtusIW71irGY-IKMHC-I-7FsIVYcA_bSeB6HiqDGaz52X5Lw8QCWtbbe85NQQuTdZIJB8Xy2bGFCTIH10gPjWNjWRrrHHUFhdSn-XsD1RF8h3pMvmBL3ZXnMz6YJNX2uMX8FpenBLQGxGTRsoeEQ9AyU8PXHz1Xzl5wVa7npKa_yDCOSYfCi0uvVrVQkiGHzRoutdeSRQGf3eWjaIyq_9bNOsl_zfcuxkodMPzEAL_0L0lG_ny-CQGs6v-THCEg7VA6XJ9gql2ASLjgs-ZDEcuTlcge0vFA7xLEzLpgtQQUwYHKZakVEMZcYG2I2OnV8RrKYVe7oQvmgwtEugqm9JcIXdg0ZTSx64zPFSRJ9d2VaEn4qBNev4oIncw5Gzf0cYT4xRXKsGCWE0RQCOzQt7Zur4xlQfzZ2dF2BT4wJTDIWq6zDM4T6n4KC6tZ6tXnZahUPWhd7Z1NwPqKzw7U8lzXT-nVqnRVXBgtXstNoSUf6xrSgOyR60uHT3arkLNKMx8hE6ZPaqQXzb22kpGTsrxPf2qpfY6FG289xCK4-eIUFDQ/VpaJ0KdkIlf_NmukadHXete5QPd0jO9X/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=16729233&m=4c6f36cb7bc27023b5890c47a7e79821&p=02022026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" width="100%" border="0" style="max-width: 550px; 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;">Is building autonomous war robots securities fraud?</h2> </td> </tr> </table> <p style="margin: 16px 0;">Two themes around here are:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">“<a href="https://links.message.bloomberg.com/s/c/JCyZrqEAATa-zV6MAeUISV2ZeJ1xFJeDzvhCgAyfFuhblogpLgrbCcotDTW3rjNQRVWklqWspyUj_WIJXE_EBt3jSKIlPWRWLWRm6-asFAN6ZQYewBS_qQncQbEsQSCNiNxi6KCuMvWwLy8UdslUU9TPLkBePDH2DlGYDm74H-nPe_jMtb4uELIq3LGPIaJyNxrf247QPM3I-Sph7KWLSFEWM67ytqKe3a6AMmrvzWCCJjbFvM7Ch1IEbsO-Mn35WwF323ngiWu2hUZxIZECB5vIzcc9DfXj2qkelT7s-cKHOoyLAB_aeHa5tVZUdFZMmSkOfA_XfW91upv4YCPxw3m36rUePWMZBeJDAz9XefjrK5VaSB7WLiczteo/4xqfW6gcwWl7kXz5A-DKpNnZAO7xyM81/17" 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>”: When a public company does a bad thing, it will be sued for securities fraud, because every bad thing can be recast as a fraud on shareholders.</li> <li style="margin-bottom: 5px;">“What if the thing that stops artificial intelligence from enslaving humanity is <a href="https://links.message.bloomberg.com/s/c/IComqKSDWncZE3dlOA-HZu4XLAvInPUnTiXTvYNXNNGjs44em3BbKl6UWut5WrM6eg0LgJBntEPBZJcKOnnEhnb3SZVdcYmnuGfV_UqFBT0LU3vKS-s5ekEr7Nqf7HKtacslynrlIYO4tkUEckw4BYkjJcrlAAmVhdlmi0KgPkrK9mSAZtylpTokgUId2l7zgAiEgg42ouKt4tv0hSNrH7XNfRqve7n9wjH_uYICu6nYEciXUNnML98KolirCGLdUSUtUtlQxgNWnHnN5bHidvaCv68Q6dSF8B4ijWtJPl1i-3y4yNEYVg10JUOCHJH-QLDcdpIfiNiW1hadbFXv2hN7VB3lg3sFvU9_lVUYWSusUZgY9Bn9U5wDB00/SdMdke6aPiSvRSQwNablW3fYQmTaR3M9/17" 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;"> some weird wrinkle of the legal and financial system</a>, like <a href="https://links.message.bloomberg.com/s/c/EXiX9ljqx8Evr9w05l3F5NUWIgL86tYRHun9uSjlpzB_Sn166S0LOXiNjMozBg4ZUor3E1UI8QUzcTRCe3j5k8awpFPNqZo_3PCh8QNCJSV5NPt5OeceMDers3CGMlAUrLqhbT5vZXGcy6UVGkUveihJQQn9OqXY_YPPZ9uVEPxMCUTzS3-l1vavc3eox2Pz-28JZ8nNXbCYWODHks7kvtT1ro0SEUgsF-Ba52ftDa8sJADQp3yHdO5AsT0E-2BdXd1gO12T1F3DGz_meek0DLFAC74h3hOQocGwGXV__FO6b1iCc6NeFKjD2JNe2w8wkTMC8gAMk1Yx7P8sqakRFZ9h9P3eYGvZgnv0JGhiiJC-MGV5axiEkYx9v9M/596Hl7h45gC6P-KTXv1Us1vxZfwQwzbn/17" 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;"> insurance requirements</a> or <a href="https://links.message.bloomberg.com/s/c/afTm4bfSaWPVe0yPn_lwDAua4cebAp7eDZ2Mo6Rc6-5yHuHt1Pp_zqCuI_EZFd7YjiJJFZ_T_Cen8RBn8E3ANNOcpXhNIazwWJ3SsJvewq_HNxYWNZ-UrL_rWVFbxMc-BG8vMs3P6ikQOjMd_oBYkHaPVx9Nw_AWGYKEH0Rxl7UKfKPwt5S-3ddO_oPosAciIu0CT7sAelLgwLphhenAko4QIiZMpF97_a26Wa4YqdbhyqHQ9Cv1G2eE7GwT4XDHnHAoFvy4be89ZRRV4XP6PsTcSPX2fmzIjerahs--Y0vxUVFIipSIOvD53Wll3eBO4D_UBitYDZuYJ02eqGsnh1-updNKsPBH5kGbTk4kBAGqLS_j6LVUgK9hPqg/PsEmr7_9wka2YYZZ15AdYc-Gq_mtHzTq/17" 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;"> copyright law</a> or the ban on <a href="https://links.message.bloomberg.com/s/c/grF--59aHVT5n3g5aNl5TOMeDZ4-zF8CpyFbe3bu56Qk8DhPneubdKhBPOHZKJ1feqA9nnaS4hpzGu0vk1fR2FLgTeHzdUwiSiC86nqIn9lvxkxjqlSdipNL0SGDaEbFP7WBUJktBCWjxj0FzIgmNPKp6o9gPV0muWyDwOrPCkZNC20JO7zZ94aCwVq8-OwSwoGq1VfI3mD7D5ZutJ8alk45Ec2QY-bnhGqNY6BDmxow_rB8Fr50nSkD2nHIpMawSIHNPSymbU79ReFW63AuzsIkEJvLANlPYw4rJr345ge4Ny-SFCcTH-0ivyDTxZSsFhGAVo5z-GV1Jd8yeQyVipJIEcf3C1HkBMZ9wOYBj2KGWpnWwXChfFkbHQ4/tEgTv5LoZgFhWFbq-QP3UVVJd_kuMjFB/17" 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;"> onion futures</a>?”</li> </ol> <p style="margin: 16px 0;">The obvious synthesis is: What if the thing that stops artificial intelligence from enslaving humanity is that everything is securities fraud? That is, what if AI <em>would</em> develop autonomous warfare capabilities that could wipe out humanity, but that development will be thwarted because (1) that’s bad and (2) bad things are securities fraud? The <a href="https://links.message.bloomberg.com/s/c/1JFMuxKUt5EmlFskq6CrCcbcCCm0kMLsB3dYk8HzfcI2Une3Xssg74ElTgPKwEHFgDHDnOFwFgXYN1rXdnRHT3PamquzUuaNiYD4Y253Ym--RmroAPsP3fD1xNX7PgVIVpdDi68JtubG4QNRfFrBpOIxGbR1ZOJVMKebnVAB_RFNtt5aMvoKQbBwlBo_xIVA2Zdh0w7bV5ZUBDRMqCmR8D7OplaMhKe984AFaQ69JcwDra81VwzIn4eRS27AQ-MxtGsMzSWazpwDO6ACr7MMWtJxb92VS2rRDWt5xBVvHAXjD4bO6G50e76GIJ9HhhE0KsWg7vX0gRiULlbgCpgb-QNkhOwlgc9hshPJG2-rRWhUDwZkzeRjwBg6QlM/ya-hf9FsTsaT71JYMe2ykVzmxZJkM37S/17" 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;">Washington Post reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Google breached its own policies that barred use of artificial intelligence for weapons or surveillance in 2024 by helping an Israeli military contractor analyze drone video footage, a former Google employee alleged in a confidential federal whistleblower complaint reviewed by The Washington Post. …</p> <p style="margin: 16px 0;">At the time, Google’s public “AI principles” stated that the company would not deploy AI technology in relation to weapons, or to surveillance “violating internationally accepted norms.” The whistleblower complaint alleges that the IDF contractor’s use contradicted both policies.</p> <p style="margin: 16px 0;">The complaint to the SEC alleges that Google broke securities laws because by contradicting its own publicly stated policies, which had also been included in federal filings, the company misled investors and regulators.</p> </blockquote> <p style="margin: 16px 0;">I suppose that, short of <em>Terminator</em>-style time travel, we’ll never be able to prove the counterfactual, but I tell you what: If “everything is securities fraud” really is what saves humanity from being wiped out by evil war robots, I will expect at least a share of that Nobel Peace Prize. </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;">CFTC</h2> </td> </tr> </table> <p style="margin: 16px 0;">The <a href="https://links.message.bloomberg.com/s/c/-QvXGsCOQl5gn5v_yoQDJzaYTgU2TicGRzfv8G2Dt3xYnyT5duig5NQigmOvomuX4fEyZCmbR0p-hFPdnTgfnevENUnrO5jUKWYqKpWif59nCRGUyhmySHXeijgbz6DksuSueE6G9_-Rtc8M4kejOQ8tAynga4U2QM88Pbu9bhrKPzxddoqDFpjz5w7epTtH-autS9YhvltffiVS-3DwKSO0OWtnYDQrMybypONhco6uR5muf3_rTZ68Vvf8bKYb0jm-PCZ30wKBxI_Qq8CHFh3UnmH9wqQNkXknECP2PwMfT-fGAZYDucZoCn--_e1Fsu3JhSpczE8pleRPk_6dP-LoKqmrED7UrLiH0s_LwTZiNEs_h1imdAvhc00/5MASxPgvlw27QDV1FuQciS2PzPETA1Ie/17" 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;">weird situation</a> in US <a href="https://links.message.bloomberg.com/s/c/cR5Jn-BlGxlOyqeVq16Qpao3Du0pttnF4smCvDV6XFkjuJxqSF0HLNnL8DRZdsZ6BJQeol6TqMXvSoTBhuwKN1W021mbGc2ywcFN2NRUe6GwOzTeb5F4QJ1-Bjq6PN5b5fs2rpnRKvFQ1vmYxtZyCr3hNYKi_azGL_otXpSr8R54YDuQkfIrBmTrvqCcH2hy_OtpZy3wwml8PLO91sIi9Bx3B7DP0HIVOmRi4-96Z68OXX-cA8l_cKVfQxK9jnHtKW962_lwJNz_rUNJKIbBozQRXIqBhT7LwIU4leRPagKkOI_fd1NEvKFoTg5faUe5J11fw1Zy3K5lkVuO-LuQCkS-Z2PgAbdk2AvcQmTr9lVi5PHR-YL3qjkE6IA/PKwVuR-JGnn-g9VxfF69PSrPNH_zE01r/17" 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;">sports gambling</a> is:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Some US states prohibit sports gambling, while other states allow it in heavily regulated form.</li> <li style="margin-bottom: 5px;">Kalshi, a prediction market registered with the US Commodity Futures Trading Commission, offers sports gambling in all 50 states, without complying with any state’s rules.</li> <li style="margin-bottom: 5px;">States complain, but Kalshi argues that it is regulated by the CFTC, and that CFTC regulation preempts state regulation: The states can’t interfere with the CFTC’s enforcement of CFTC sports-gambling rules with respect to CFTC-regulated sports gambling sites.</li> <li style="margin-bottom: 5px;">But the CFTC <em>doesn’t </em>regulate sports gambling. It has never explicitly said that sports contracts are legal on CFTC-regulated trading platforms, and in fact it has occasionally suggested the opposite. It does not explicitly approve the sports contracts; Kalshi “self-certifies” them. It has no specific rules related to sports gambling; no specific guidance about market manipulation or insider trading or customer suitability in the sports space. It’s just a gap.</li> <li style="margin-bottom: 5px;">Nonetheless, Kalshi’s arguments mostly work in court, and it keeps listing sports contracts. There is federally regulated online sports gambling, but it is not actually federally regulated.</li> </ol> <p style="margin: 16px 0;">Just weird! This is one of those situations where it’s tempting to be like “well that can’t last,” and then to think for a minute and conclude “actually sure it can.” The CFTC, in the Trump administration, clearly <em>likes </em>Kalshi’s sports contracts, and Donald Trump Jr. <a href="https://links.message.bloomberg.com/s/c/BOw_9UjZm-i_Cnac-xi3BXURisMYflQUTwtxlrTUW7iFv8TE4B6qE02twGg1DL7h65GCKAfAhHh8ljPn8921DHT6HE0UxGGlhIqzrt-bwokTbIdkhpTqRwoyxl21HkthnhON7FRSndkNGsmvuQcwYzkaBDZRSmLnKYRCVAJbSwUgf6vILi_c5njG7Z89oiTQijcSH9aCKlbFxwIo72hAP1Dezfj4cog_OKK07xE3GKwsv3tYBEaufAAupc_oB747Wx7oek_H5fAXyUr5khVxWuiJxFsEUv41wBS76G5P1TPoL3lO71mn_0xM1_AUVZy-4cD2Gun6s-wt7D7gVDB9QLAofbN-FGOBtHxmbLBWJaI0LHmzOKJsKTCStVI/GylZ17K1TskPoJaxGjvusEhmNdrxuAMi/17" 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 an adviser to Kalshi</a>. But it might be a little awkward for the CFTC to explicitly publish rules allowing sports gambling on Kalshi, since the <a href="https://links.message.bloomberg.com/s/c/QlFmaEfiIzWDzXBo9xHdin94X2HnTGZO_OhmhQksvqnXmXm_Cm_k54tkzi_r8DEVQfp5TV2Oo584JJGVw5V84YKQaDZKVHhoLOmBvXMm2HoICcUftDcoZJB57_As-vBf93FX5m4idvCTRh1ZPVzpjtIU4w3WH0ttEpq4ywoA5GoI9LWvvsJW7_LrHVIUQDzf93fB6TASPbcbF9VbWrOMGXfEbHaD6PRCaW7jBHdn-7-gvDJUvjM9qI2ebaHkpIh4dfJXMyncBhSqqwVHRzXV-C5cT543LgSlLaTCixW_8Lm3A3DEnjG39vrob38h-RWvvQFOMEnxQa5PvAqbTBGZQaQAcuRI6VuZ1B_A-R38mh2lH5wueoDiAjO60OE/n3Pm0y-I-MATfD1Pry4zZq1MhNCRk4WN/17" 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;">legislative history</a> around event contracts suggests that Congress never intended to allow sports gambling on commodity exchanges. Just ignoring it while Kalshi goes about its business, and seeing what happens in court, might be the simplest approach for the CFTC.</p> <p style="margin: 16px 0;">But, <a href="https://links.message.bloomberg.com/s/c/4G2DSv27svZM1RcXJczFcuY5VQVbcE18soA3HijPNZ3-aqbQ9kgFcvR6DJixBqoRDP4icQgRcYqA36RJJp_5FPYONP8ePFJYKxKE8JcSr4NWguVpFrmA6hvyi2VoNdeGed_mepXSa_BPvWuHAsxEvqwgnBo_7h2TcuYXHmuJ3beMoXqBjqUXEGAipr_Y2DV4cQ0hfd1KtHGrrTUapDh4QqkbUWam_CsAitjf7gboMXLv9jXbul5eypu7r1QI6cIcMyoz50nYeCShjy-XQRMhPqu6I5R_tAa0kU2Jw_-3C_hJ2tbER98B0tgM8wZHfXc2Bp_R6hTaoGx9gG_4_iM3zbaBIUGZdYCqXknGHkvEflecqVNOpVluDSimg3c/yLhpYBk4glOm0XAw_si3LXqTwv2HTiHg/17" 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;"> nope</a>:</p> <blockquote> <p style="margin: 16px 0;">Wall Street’s main derivatives regulator will write new rules for the multi-billion dollar prediction markets industry, the head of the Commodity Futures Trading Commission said Thursday.</p> <p style="margin: 16px 0;">“It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets,” Chairman Michael Selig said in prepared remarks. “Consistent with my commitment to fostering responsible innovation in crypto asset markets, I will continue to support the responsible development of event contract markets.”</p> </blockquote> <p style="margin: 16px 0;">It’s not clear exactly<em> </em>what that means, but if you read <a href="https://links.message.bloomberg.com/s/c/AMebhkXnxG0aTGfKZil1WkB3U-DEUMieJlf60qCkYYMcMAw4VZfITvx2PEUKfjE0Q5vwggj7VJscmmajwIhdGbTr_ztvYRf19kgpBR7bZdqMUjjybBxyLVai3Ut_obxKVhPBhfwagN0nISFRlBIvPmr7qHDNL8YSWBrpuT0DK2X89ORru4BD3YTMM5nx73_jKUqfzEQnw9ZqewOPPHZAiLPtTQwS5YYU0lTjzob-GMBSqKN9uRhNKcCYpKpfqZhkf6h1ruU2kZLFVLecQwfBrK1qeZM-DtpIc8C2yidhI2IsvlhGbG3Z2edx4Ts9HUnoCiX167VZ-cJp1oEgP4uvt4GJ2Y4iE4x6n9npNZenmQSv3ds0vqaoK-UN5jY/gJ4g7jY90nXevpRLlGp0Rg3qD90nxfIB/17" 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;">Selig’s speech</a> it seems pretty bullish for Kalshi, Polymarket and other commodity/event/sports-gambling platforms:</p> <blockquote> <p style="margin: 16px 0;">First, I have directed CFTC staff to withdraw the 2024 event contracts rule proposal that would prohibit political and sports-related event contracts and the 2025 staff advisory, which cautioned registrants about offering access to sports-related event contracts due to ongoing litigation. ...</p> <p style="margin: 16px 0;">Second, looking ahead, and in the spirit of markets that trade on expectations, I have directed CFTC staff to move forward with drafting an event contracts rulemaking. ...</p> <p style="margin: 16px 0;">Third, I have directed CFTC staff to reassess the Commission’s participation in matters currently pending before the federal district and circuit courts. Where jurisdictional questions are at issue, the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives.</p> </blockquote> <p style="margin: 16px 0;">That is: First, the CFTC <em>has </em>tried to prohibit sports gambling in the past, and will now explicitly reverse that position. Second, the CFTC will make new rules about, one assumes, sports gambling. Third, it will get involved in those state court cases “to defend its exclusive jurisdiction over commodity derivatives,” that is, to tell the states that they’re not allowed to interfere with online sports gambling when it’s <em>federal </em>online sports gambling.</p> <p style="margin: 16px 0;">This remains a weird situation just because it does not seem to me that Congress intended, or that anyone really wants, the US federal commodity derivatives regulator to get into the sports gambling business. But it’s <em>less</em> weird than the status quo. If we’re going to have federally regulated sports gambling, at least it will actually be federally regulated.</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;">Art history</h2> </td> </tr> </table> <p style="margin: 16px 0;">Just to close a loop: I <a href="https://links.message.bloomberg.com/s/c/ZGhe2m4LJnp6dZrB3OFpyjxZmWr3LA-vj73rT7QOOEz2TR-oc_SbHNfdoy3rAqvM7p7W_a8wBDgyB5yFdje9uA1dqvlEN9VI75HNdMiAXUBiEbnipYiCFCcI8THdgZKYH1_QnrlJFRSzjB-b5v_hk88IJdt_tNOEWgB79OxBrjBGCBIaunfRO93O7BiMlt60IAt9EFsN-CGGRj1tLTpGTQdhBCfX4tQ3GdcxfLw8vESBkn71xQPp9JEVomC3jG5lYcj-G2zm5JDr9JslhNxlqkBlMudLXnyVBPY95tCPx7276wKbNQxcmW8ZUu3SvLNdKUTmTRiayugrkF8enjjx8bgOFwYlWlaYsRe8QEIkhMTKi5pkBYefJYpuodw/-OszvCS6MpeQNlVuHqnMlksI9DjygCbu/17" 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 on Thursday</a> that “I once heard that the Harvard major whose students were most likely to be rich 20 years after graduation was art history. I have no idea if this is true and can find no evidence for it, but doesn’t it sound like it should be true?” <a href="https://links.message.bloomberg.com/s/c/c-y3fcDlgLMqRNuk_sWOgVawOKObeqpDjaw-gQGvZmHbhkaA16y-syXgr0APgbJm0AZDttlb10NZp3WRT39Yh0nPyrGTpHseAepQYbdjLalvljWpLBCTN9ql7BJscY2IkoqbYoQ41nDgdVYkQxn8EPZMVdVaJ_PBc8jBE02WZVSwdg0TvA9TAu-OcUf6y_hhYMITx6E1Pi2Q4qUhk1SYZZ6ovzy0pCqW_V7L7lnxo-wew3By7FzyHAhG-or48dDYVCKRWk7KOeNOr9GKSgU36K9_i6dS43T01mgHaKQVPQ7J5oX6vBY4EgJ6uCWvMmXv3-5m-8pTMqZrpChpjrqPw53Nc6YNsqPzhDvAdopHOITM8xeq0mnpvlGt8B8/q5lUhQxjyiTyhDXYXifRMI1xfwLM2OMq/17" 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;">Felix Salmon</a> points out that it probably came, in some indirect way, from <a href="https://links.message.bloomberg.com/s/c/yWWmuVjmySOhwYVJpl6QCzuZAIMZQ0qRIdgLtEzF9R2gh6UwxXiKXw5fIrjgzlGPJyzH243DndyQpXUNLILr-w91CIMbrTIFCRIsr4nXxryMJBvTrUlikus-LCNscKDYYJlbz6zPPVd0o17fS-z3Yu8hyIhC0Fa2sPzKng_GewZH8MaPstvw26ImAUBNiwNyJ_BQNM4J8JlhhtkF4GxlBoVAnJTd9m-TFzVfpEr__Qu5azYrEbl1_WKHys8NeMbX5RBR0cN-z_A9qihYiaMUh9fJpHj3ortbyr5GeNe3QvBRTPUIrQRsKkgarb_aLmyreX3U8LB-gSEpHWHXju6QbuXBVBd-hVcUNHc5ZzSbC1EmibY-meeQh1dUyCw/oAbjCoPGI7iTplzhaYFq5dmL8Cietm3E/17" 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;">this 2012 report</a> about “What the Top 1% of Earners Majored In.” As Virginia Postrel <a href="https://links.message.bloomberg.com/s/c/PmuzQQC2JvlOSgrBiKoO3tVhrqOjIc7DRkRT5jW-OUZoAEQ1v0JX9c3QsLHvWd0JmcjIMaN89QfAJfJDDMVfNCznbAI0cg8xC1h9Hpjjx2fjUfTMrPEoGFje7B42DH-Cntn5KnEEEj4k5ZnsmtM-VYkG1kzfYkNN-UVim5v2FpWanLejW5eqJiQSw4Fg2otNWpPE6uvEv3cBtSTumlsUhIqKCg8ZC86PiJ_8RVKwP9_chFH4ZXsfzDXHUa7M58EjqXbIh7KLTKs64rRFFRuTumTpAy0tYGKxTxqoClmcBfCplWmCmMJvtkg7NX5vYtpJ4UmICKEk6rBGxwJbrP_3H-4oMbO5q_Y9y42k5z5vK2BToYQubgBMKkygN5I/F8dKiPjh4D9ih9-NswcnFdRTf-Kemqtv/17" 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 here at Bloomberg Opinion in 2014</a>:</p> <blockquote><p style="margin: 16px 0;">[Art history is] stereotypically a field for prep school graduates, especially women, with plenty of family wealth to fall back on. In fact, a New York Times analysis of Census data shows that art history majors are wildly overrepresented among those in the top 1 percent of incomes. Perhaps the causality runs from art history to high incomes, but I doubt it.</p></blockquote> <p style="margin: 16px 0;">Right. What I wrote on Thursday was that “people who treated college as a luxury consumption good were in certain ways more appealing to investment banks”; being a prep school graduate with lots of family wealth to fall back on makes you <a href="https://links.message.bloomberg.com/s/c/epflCffUUzTfAsEB-NkDxvpaJ8XGcA__uJViQKO_aD4yM5u1ZyeBmzAcbMVTkY0at6Fy2vRFuqauXVTykFzCmIXsbPyfkZr1biVmvdypwKfBm7a2CfgNM8_Z87gvpB4ZAt_VuKAIgHg-XwP2IUG0NG6VLJALxSc2va8aSEFiA_B3ePWRiovsSIOBwV9iTyE4IhMlsQf3I0FjoSPNc0QT8sCRezTTm1vcpqJ3M_j2dlA4zld0f4N4YKlWcXVR5ZPuAhwxK33nTQ9WLcyzEJyTNIqFktjB4IfGUkZGLUnxYfX_sOz90S8anKDGv8xHva_8kJuOk1_xKc1mnNwB19D44SmYRWbkduZaV6w5Qrst8U490aX4Gv8UFBApBC4/VvMSiruGN48CnNzSQUuL0FtkgEN9cfX9/17" 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 some ways</a> an appealing investment banking candidate. (In other ways, not, and a lot of banks like to hire “<a href="https://links.message.bloomberg.com/s/c/EiYg2aKHJVNaJuTveTWcMJ947ozpnHMx82AKgSwnoTD9PFUty6LkyHnQfpDu2cJvqZg0bGCPm0vLj68EFCFUbHh8v-1PlUrrnv1-9siRo7agP3NzS-OeRxKkS0b-TRS8vArDwZ8Fyp6m07H1viV7vnpsMsWqvoI_1Is7HoKVCNJbYWGTv9xMaiAtvPAmHwFy81Bz_aPxT8ohj6owfsxR1vUSdPb3mw0-5gB6d94kSIen2DRawnQspGC-bM5U0slAIQIm9TmmxUZt7eAUPYjMYyWAScH9tUJZdw-_XZeVAz1NgvMfDIEnOBNrWM8dRcHPi-BIhgTiYTLwxfBYexCscCCEw6tpKz2XIQtPvX8uud9xd042avkFVN25FXQ/JPPjlHfHXYchGniWPeV2sK9UJ2KrSBWJ/17" 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;">P.S.D.’s</a>, as in Poor, Smart, with a deep Desire to become rich.”) Investment banks might want the art historians, but the art historians don’t really need the job.</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;">Astrology-based investing</h2> </td> </tr> </table> <p style="margin: 16px 0;">To close another loop, we have <a href="https://links.message.bloomberg.com/s/c/hQ6Ef_zhj44k9Q0fT_alnvrKh3jwlgrmRLQLcJRRtP52NvJwNtlEPziEQe5cFOvuXL1Zx4FxYoLHSg1_9p5UMIEAPBb5rqpQMMw_U-OnhZViSZXf6CokexrZ2OddYeuKCmNlyjln4fyNqcsCGbfcunoHFTVJug6qHt1lVjye7XBHnpCcWFRXxLmx53xEPrmHFn33-1EcB8qZvXh3QMxWTMLtI0SKk1zBiAk1uwgiqhhkD1A0q5vxGGCbiZhLmRkMMvRKZzcV3Ad3YD0r7SU3Z2WSOyg7nc43AcHC5knL6oC2t9deImj1o74g0_rJ1GL4P3TNf91A20IvDRSb23j_Plw2jBF3Zk5BVqUYSLRImy5xNaKuSwC4M8_Gjz0/kjPhGWZr25kMo683zdd9NfWdyBoNOCTv/17" 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 recently about astrological investing</a>, and here’s the <a href="https://links.message.bloomberg.com/s/c/OPp51WgWve1CW5i3p_b56h88JmH_cgIQrws3DlOUdspUx3Yr9iq1-W6cHWB1-a39Fz8i_4sTy3z9RdMOElf2lCVQAq3xyiduwSUGOqbsYyd5isZl9ymRfdLU2gyp9ipSGr_YcCIEkXo0eXLMzZzTYVzD-GiOU2tj0-7I41hpv9iinEC3MC-cYDUgZQ41BcSjxpVlNiA295WrD6361GUs-NCy08OP7rzUTsoexeHszdsOJNcjbFBLi-upnOiMChFYORd-ZrjeK40WPG0dSbbRk1DjNiZJbszIpOQAoELUuJe9NDuFBbFbj7wcE4Z4c4ccTAhOysxSc--pH15uGD-Rei6r0s6P3q-vZ7tJsolY4J2TEzG0CBy7e5JaWAk/USLhxcIb1MfnNoro2flpTfBXZXvr-tR2/17" 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;">CLSA Feng Shui Index</a> for last year, the Year of the Wood Snake. “<a href="https://links.message.bloomberg.com/s/c/8_ZrcdxxrscUVbe5rALo8I7fOtjqUVAO3NOHacP-Ir74zWogKEHULSGvbk8H3bEKeivU8ZDLwUmhLzSrlydGUsH1iGKvR3oZnlby40V7fjoFrWNTgHXBBm_68Zry4-pI777UKYIKmFGs_oDoWn-Mc1w9c23zwMvLXfx4ezADT69o0Vbsshwsy5zKFYK3bgawBJugpOMN3PoVAWh1h9_26QE1Trn_kHWmeaudSdrKvaRUTgV3htKQv8dGV9f3jdKsiq8DQrrsJG8Tn2NYzju6GUels3AMzylNsNdbWZMBe15CyAK2YzTCq2SyLYGCSNnYoAw2LH_SmEC5mdZ_72OH26bVGnJgY_7bbmkEXdIgNCPtugritwlCmbkpE2E/-7EdEnpBclffrcxlv84tjo_TWbhmzCei/17" 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;">Secret hissings</a> point towards good rises in the market through the spring and winter, a long period of summerish lassitude, and small falls throughout the year,” etc.</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;">Penny treasury strategy</h2> </td> </tr> </table> <p style="margin: 16px 0;">One more loop. We <a href="https://links.message.bloomberg.com/s/c/caaDpKQpUFYKS25pNhjqduvQji8R38DaOJ0D8aagcJU15c59Ye1-3rDAqhHCC3Y23UUEVO2oKh4Fu8EMXFGDUPoM2t5x_5nJcJfBfRGirhIUej-qyJy1embolgXT0Z7yQJmXW0M7xOHaBAKbcbKXVBRekBhT0JC5BCs1jVfYO90Po_x01jsEFzNj97eBnP2_Z8H18xfSaaz9pq3XOejxVO_WGLBAaejn_wY-yfZxnqO0RqqUc7nvtCyMTKwPQ3sU0jGxPunIMVYs_rogvg8hUd1e6c3EtUQWc0ItLkGYMIaP02WRk_XD6EOyBK4q0rVQKSQgRNqwwOqu-vvrWQ3nop7Sd2WnvtvoSucfWZeRCGdlPqd5B63cDnNmHhA/qcZ2Quw61bhjnhUtvYHs2P1fuu9OMSZj/17" 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 last month</a> about a guy who launched a crypto token backed by US pennies in “a vault you can visit,” possibly his closet? The token was <a href="https://links.message.bloomberg.com/s/c/6p_ybqYfxrHGf5TcSZyYLoUt_YMB3s8Q2lo-G_Y3MWdaYAehIfshshr34UsXU3ttYt7YchxZGc10VNZFC-eg-F1PCIAGC5YOFYR5WkWTP07KYU2pDeTu3a-oms7SkZGfT07gqUXyMR3qxzqwxX_3LGI5-BeQS5QYpWvjT03CQ0C4zexAAxVvxS3VY0gYwESozX-5wpeCKsNh_hFJ37tbnfK5oPRLm_XVZTBIAXJFUYs9lnQ6iOmlrqAgnpgU049Toh00kcPlIN9DePDXEH6tup8MEFW8vY9PxAB2Shi8Lzy-vTY5IE3GT0ZPz7EX5QhgTCHcpOFtrZDbUWlUAzZ_OPwAh2l5UCg2aNJpMtJhNdCz07oQRlxtEOV4lic/Zxdm4C37WmLxfRRntMJScSe9mhv1S_iG/17" 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;">trading at about 19 cents</a> as of noon today. That is a much better <a href="https://links.message.bloomberg.com/s/c/YqP94FDRHGwVve7SRCcU-UtuY4Frt9YfPs0BXydCGb16hRCZGgYf3Qn__IaDD8bIwTtOTyLY8K5Rv1H0NX7z-g7_asZMqkZTtOfAVn7Yri9dspY88or1-vsys_tcF_fTFBwREzMnAuQyqRsjNgdgcsF-386oHr86_FlnxCdGt3P5DCJgP_uCz-9BE6Gns39H3DLaJZR8JwBD4cnR-XKfRWTW8bQy5DDDUrbJu6tS_0t5sEtOrSt_bSt9aHSPyfCgVDG61BbhvDmyJivX5tOOsZp5YooLMsptNQXkS1HLOFVsQUjgDIiZ9zAnvTQoqUrHiGMjSXuT7gXVu4yMxk0Ov3AfYdSd_vod0o2WkpYbcbDCWVBdRG1n1iE7hVw/RLh_sP5CKZOMvCgLqv8d9ncgI_6go1-k/17" 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;">mNAV</a> than Strategy Inc. has managed, though obviously in smaller size. The lesson is perhaps “the premium to net asset value of a digital asset treasury company<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> is partly driven by a flywheel of <a href="https://links.message.bloomberg.com/s/c/ZD6iydsuJ5OmobXWpcAreeld8OH-nkEXjQ2RKaojAEE74A8sJ_fr7oNaoc7LZP1p1jbt0ck94rLOUl_XK1cQTXlAoX_SVQ391myGzcNEFGWO8DLjSYAv_emSJq-jvQytST9zEPRIp79FlRfXvDO4gsAo_CkYNz7R3g-Tgokepasd1qgLyyvTLZplHUrQUoaZcQKq4Lk7bZqStSn0MGIH2GmS5KYj_YH2MNDG4RiGq02C2IQ4hM82XBi9fDClBnXWNIazGCWMMCJHuZIotNY7uLbdyKk_n1BchUTiRFV9m329brtx6qzMj9K9zjPBwLGiu_hSnK9cJKANuMQXJElLWcJWTXXEeNf9RpGql2vUy9O_Whfp5tK5NmN6Gk8/VvsRqVOHTLhwlTGzN1z4NJOEmLP2YE9J/17" 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;"> accretive dilution</a> but is mostly driven by comedy,” which we kind of already knew.</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;">How Chinese Speculators Set the Stage for <a href="https://links.message.bloomberg.com/s/c/58zczbDWrdnV-e4VC6dXJmeuZUk2OcsSCHOZhkn9yoNBcAgfKRIIn5aBEW8d_C_qrSlVF0KYmTdkC6NimCu_Uww7JImPAA3ZY_oqFvQXHygX-P8m1G1Fo2KBuMmQ0H8lF2l8yw57VJnoYdunFNDSLcYIbUE8IQi4RBcmXKF4NzKcwmri--ankd4UAk60G_6aRBPO3vJDhN_GwJUodo0OtTapbcBE9IyrlpsF1H6K4QXuYibHIXYTh8xGIBOu_tyc3nhak-ET1L4LtbB3kvjvBqK5BGkJHnc0NF6Q7tdUWpPzGg1K0STTOj6nIssHI3c5So8RU9jngaXzlwWprPPYej-PGjhAlRDwBZrr_O_TJku_1XUbD6btuB5Tqo0/XCRbOlmjp8pLt-Kqvpo0IacpZ1c4BVU-/17" 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;">Gold and Silver Crash</a>. China’s ‘gold fever’ sparks US$1 billion scandal as <a href="https://links.message.bloomberg.com/s/c/gPZlf2vfi7jTL1ixklzxswsh8vb04HzrKIlmgEjgYnxTDr_eK3G-v2kLgyGx8fO5_cV0umTdhN02X8u1PvIwzjd5GLqJuascgdtK8BiJebvWNFBgNH3oQwx8fmxvTHT63fTYXBl0avQwelLlVpEOrAD0N3Ec_aqQ1m2p8nafBegIu0fNYS-L2PityW0mPespXae4pQGcdNwgxhlT-ClxrlhW3TrjVt6Y63Nzn1Yg5foulEIeoPsX6gcd4U6G3il-cGkLb2vqlTvSn2HTboPYYcizZXrl0qKiJiKx1CB_8VxpAhmvSZRrF8ys882O-_HtLb66i4vPLoGt5U55eMpa9QxPdF7MU8aWBsgTNfu86IgdhaRp2ip6aWnzcJY/axK4feojwHeMYEFrRCbFDBzXShYbREav/17" 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;">trading platform collapses</a>. Metals Traders Lose at Least $144 Million as <a href="https://links.message.bloomberg.com/s/c/uY_158yc_GIFZ2V5_SjFnJantIGLGQCNz1HtemsHDo1k_xsmuZKowINm7khn28AtjZKPJeuPMzE_zHc2wjmP4LvKWsM80WdHENAe8xzo16NWiHYgSvLGCt8k1I42SsniHPZKC0UPEo_aqNK1Af3IgUqSs8F4Ir4mqAfMEBKsf2_MDEqX-A_iYvroBT5iFFSkgd4Qw5qoj5K0p8pym1gaLZFLVm5Cf7zcIqEaRJrml30J95CRSMUYnom1yNIftA85_L-tCrG6XggCwLcIsDAmVJvSn1WwMB8nzfM2jDzh70hj01Evq2Twjws8dUbKTiYMHj8VEppyjguaBGBtRgElN7T73zKr0N3Oz9DR6lLEOdLXfdy9ueCNqWbxBeY/6oShjFHeAcY7V8I-CARFwbAvxqKRbUdz/17" 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;"> ‘Hat’ Flees China</a>. <a href="https://links.message.bloomberg.com/s/c/eSPw3DM80b24TP6DzNKxradeMsfSNcpctj3QzUAErqPAJgaPRDTaEPt3dgjmF-G9nxbJZhhyXSeb9JfkmRLcIl0rAu7xQGpWGKsjnc5aRfPVSkqPEcPt5MWK6Cpqk1CfcI8gdgDoXjDXsfEWkNmj8PboN7xl9OfuWyhZmmOvADaBwB79oZCvU4FLNvwqV0rNwRDtOxrYAfFZdxcGqbrSPB9tLUnVKELzpJ2WuVS7fGQflVpehpFHFg9uedWanWANm-RuDBrXuUiu48ddt3PAAS_0ZX27J_PU4_Wv9J7XngLpl5WzeS-8Lx8uclnT6-fuKrVqOJEgwIuP2jrH9UmVm0niUDquqIcA_n5UDql_QS66dpG7XBtU-jdlYow/yFQrXAi85up0EtKxiOSb4A5ZCuFoBXTT/17" 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;">Carvana’s</a> Red-Hot Growth Runs on a Cycle of Borrowed Money. The $100 Billion Megadeal Between <a href="https://links.message.bloomberg.com/s/c/rBLTJQBIEY9dShBn52SvIJiia6TVA14myJjQBwwKvLyXpY4kaM6f-9pkEXdoVXOj38PWUFu2Ep4Ci27ULBq0KdxkqgXlp-m2C-LaqGQaMz2OEE2lCFwDKI1niP8I88yktokf5w_ObeACFba42mpJi_p-O6F5KAwVkFJYqKzgyGr_352XpE6Q0qXGvUiqNY92H28pafdrkk_iLxIpQc6tSQ2u0cwsfz7vo-DQN7vwNZGc1oJ8aAfHY8eR9wQRxF0L_P41CpCGC5t1k0LvEwiZldKnkwP8FXSlcF_li4RMcgOIo3HkgyvJi4t4JUglWkhQemZksFTO7Cl0LCpJZW-BmYLd1vVvv0atzDHYCqv-CLjED-7PBoA7tNy_PwA/ain0UBQk-Ytd1P2JuH-AtMFa-mMroKcZ/17" 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;">OpenAI and Nvidia</a> Is on Ice. ‘Spy Sheikh’ Bought <a href="https://links.message.bloomberg.com/s/c/iTYipv2Z9LS2opO5V4-SlzrjoL9FWFxBjEJM9eud1VW-ZHNTD-MfzfKwkDa7gTg9PzcgWBgvXWipy_EZelLeVuJzf1SCtDsgzy7ZwbMsOFLjek9ZWtecKExq8XYwdEJ8vqdjrGDuDiH9zneCZwp-Zw6vR-7CHHPdkjEk5Gr9yUDNpUyNBCFsU9Fx2UNPlzSLlUSU9GBjHv0zvgK46r6Hmb7-6OVG6iS8pm-WpVyQhelm4f7bda1p0GkY9iEZnbNypKuXxUFRttMUnOmppZsgNGm8Vm3ZLKjZwcvahnPe1ICdrSxnxGrabkbmSkOElDIRFf7D_3dwGUqlTjd4cmOysmWw694tdgCLdkap9XyAzktLOSemdQ5A9lu7Hac/JujKpD0u3I1klsC5nsltB8Aze0tdUEY7/17" 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;">Secret Stake in Trump Company</a>. Rare <a href="https://links.message.bloomberg.com/s/c/wtdjADi56Akjk_g8WvCugZVREIt-WJdW6SFTdwt14QwxzVpdNeNw2rp9339MHmE024Oz7nL-ncimLe_Sg7B7ljzzBLl-YocqAN9WXmslFSKc3iH4xF45qJ1WCRXdSIpzvYIvF1icmB60zxeUM981YvSf3eErciAG8xAL0EFM4hTc-qjeg0z9ap_PeOJq-36HBKkkX1bE6omFK_c8wx1_FE69AGiaECRmtuqQb8tc798NT7N_V5ZQqEQ1m0PxCKqCTZmKwmpn9b6ea5xDKq0QuTzMstoACRX1Ynd0Caxzs5bC8MJFDfEKOst28NJkf8NaISAHwGVI7I3Qcn1Yb1s1JeANejH6LsjaftL8jSJuKOz1WYj9TdNbxXlN8VE/nRns7vRZXDvTqVQnY3LgmU_pMfU2omvB/17" 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;"> SpaceX Bet</a> Turns $1.1 Billion Fund Into a Retail Magnet. <a href="https://links.message.bloomberg.com/s/c/LDLAjKOHXIKsKSxtHhr58-nT3VXQxXo5aCueqzmK_ByDdUJFrq8sOnOtGZH6suaB_ZnPk1586Xz0eWXf9luP9VkVO9R2iQqVLj6_zT_mffr219MtZCV4kim5Oe9BrrPOaS5dvkoj5Kjl8aTDvQBBjEIQdnEtdQtGEHrvPyPSLI_NAkPG5csL2FNYfumWVfHA1ycIYjkWmKU07QbqXD5AXctiH63SpVGjdQVFq-8xAcVZvaeNTfhH4aWCwJ8YQFNMJxqvbwBRC2PiAhv7bT07E1oTkZBwaqu_U2gYU_aH-2YL8BnEND68bpIJvpa8cpvr6_WhG9PqpqUn5y8PpkxKS-if9oK7lr5WXbsSVjgMdYXYwYYgpWcTQC5byc0/mT_BPBDmvGfgcTdJZNFWD8Se0aipZMlm/17" 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;"> Oracle</a> to Raise Up to $50 Billion in 2026 for Cloud Buildup. AI Boom Is Triggering a <a href="https://links.message.bloomberg.com/s/c/pYAezszoTLpC4jNJBlNuHqn_ss5MoBv49SgE6SJ3pPbce23ZxLtlglCqgv6npmocUCwmvwjDazmgrswdW-KGvYrQOHZC9_CbWfis-J6NboxTpvHTeJt35c7bHUH2KIoY7kauAJoaYYiNPlPMNOj7GXzrH80bm9f8RtnG2UoqX0nyiDUCEcpoIRqflFJjsGWVzgJ0-GOM0NgWagjfSEwLp-Gy07Ie2xvQy1fsGSQ49atAwqOJaacO-wsamq3Tje5-_vRD_YBtwAjhrbNVSRT7yiMYWXozlpEsex8oF40He4ENCUrkxNpw62P-VNJad9ynPm6msIx-oPL5pJzBveitgfgoHUyTRfOQ3MxVJKDY4JsB-eoG9QyENOgF8zQ/tRUYdYPrsi9TvLQYliyK6hkDPoQI7Wo1/17" 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;"> Loan Meltdown</a> for Software Companies. How HSBC fashioned a $600bn <a href="https://links.message.bloomberg.com/s/c/trjwhZbnyjDlCJ_3r-eoFhvOwgLi0lIkwhHufEK2PYb28HQpJkN_uDaVzK3YlZPDQU1VCG38DAxoXnU7dqj5abAO-tfP3AlRMhkxQAHVl_y9qd6gCzdH6fyCUN2Y37vpfRvp1MIwDLQrrE0fXSR0MtJVmveBR9C8p5oAYjHQ8MuQXnvcSlFMMfXqiJPifYq81PvU7R_mXpu5jJlfyx07yGGNo7YKUCk8JtocrUq15YNG-AbwCCJFoz4zD4LLzmzS5OrK7hS-cEhO76TDM1MYUBO3_YXQjwBcI-oCy_BjVTglYS0I8sh9wExHqdV_1NYAufVEtQEdtGfVRE3qN1BFWTI7bHNrO4rA7XUxOz5_eBN3G4KYv4Rl2P3Abd8/HP_HLgl8tFfFfVoQNBTh4hAeMhbgGNAr/17" 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;">debt machine</a>. The Wild Markets Behind Polymarket’s ‘<a href="https://links.message.bloomberg.com/s/c/I58GcbDayugagDiC9ErCEHgSLi_MhTj7jDODbLtabFZlYw_kSmsS-PeXjpLOv7GLQa-MvOzPzLWULhiWl3gliInz1JfMe0b5OUVzOvDQrFfuorzl-zVU1t-pixH0JZfirfS_X0i71U8e9YpdUTvrDfGPNrSXTvFYuvvrcfHxKX4xwfjqNuvKHaPQgBoE5CwLiZTjHZaA7X3Bl-zzO_tZmGWUz35aihqkCO63Z3VUgibIyP4VfqoAuy1MyKfuXQor92fCAOWOghcWZCXIDqHMxXBAGPN-JkTxAECACehTGXC_mTbhZCKIkjcnPPrX0trT8bJOV_JM_T9jvn8R30RbdFql5H-JoAFDsXI_TTleWb7VcjeSVSUFlujg_TM/oC-Izia8TmjKmV8C2LHB47lBiF_T0reJ/17" 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;">Truth Machine</a>.’ How a Silicon Valley Startup Became a <a href="https://links.message.bloomberg.com/s/c/OP9bNLZT2QJYoAsDfHljjoNDR0Sk30OpXhG0aCL8lLOiDITgnn2G-P5jOoBoc842gyXWGgLHKhQtm_0Z2r3SSJv4XomWaMIKA7UkHFF9TGbV73tc9GUGu_IgwF7IBwjXJEr9ZzuXeB-iaENjjkJ6PwvzzYgaxLY6G2nQAfJoU5scS31dPuV-mLC0uSi3koTY74Spt4qxIPEqT6KYRZs7r1CgBABsvoRgEmbzqr4eSpKUl5doQw3xdLJsSiM1X_0liJSlPwyeOu_TKZRIpwyvxuvvrVOEEzMgcxKOow0WjscYAOW40xZyUOPbxLBxtU6MNiy3dkVo478SkchhP7KcjkDmpJtUTHNdJCY08ty18K7PTaWC_FdEMgqlOAY/kcnkhM52elS4e3HJ1HfzjZpZqIEu1Auq/17" 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 Lifeline for Venezuela</a>. When the Last Local Bank in Town Turns to a Global <a href="https://links.message.bloomberg.com/s/c/wgtVq9fPDDYhLt8tWb1-MJ8bCTQSOCfzciDTgZD44l8lF8XkyF0hoZYmp2S9fdgY65YHLpkpbkTMHruhJXT4RfvEK2aYlxWphyDuVC5jR_3OmOQEBXO3tDalMc2LqoRNvN7b_JChd7MBqImbI80W6Miyyf3_0jqnsJZwddrBWPhCgAR6DA2WMt0f2a4b_QcuxuhPSmYXtn9hfG6HWHwxZUgSBJUTH_oxWCvF3QK3NnLIzY6s8wHzmRH9jVfN8o60VC5ttcNo7A4wCYTXv8a1Wozmz-D_SQeCLPn5DqZulP3gQJWGER_oFPSyOAYQthH8huSSl_zfnm0rAXkIBycruRLZPJ0bp6SK9ESEKspS_fH_0HFdeUy-6_fcXU0/e3KrfHDC-icsDW-0uCzFqxTn8ttg6JdR/17" 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;">Salad Company</a> for Help. <a href="https://links.message.bloomberg.com/s/c/C7W9zrQUgfoqjhg2MQtsa-nHitb5XhvFNxMj2qCC3aRg1SeNJUsijD9DeKDfVDcbnoR3FrEmPAzeNiNeL-lELRT48eQPwSfTtxpwGNee8-QZzfE1e-5jl4zsXPdslcmWvP-qDeMXAGd1bOUNfzKMunJy0i0zZWln0Owfvr9nKgw8tv7Rj-BqvNTclZn5a1fTewkUWD0BszyIn_GezTGtFDesf3cP6-eoWgBSqU3UfbLxIx8rclhwmxu7hkn2hfPsaJeskYAjF3jtTsNM7ePC4mcB0y0rwie2dqFLzwXAPgCCglBirZrrEYAtISyfDkY3MqRn226yReb1Z7LbumlhVbQiz9gLd4T35dOGw5dwqP1uHX1adLSFaf5kp1I/puk4J9Ti3iXuqiwS9F9xHQQvNSW4CHjF/17" 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;">Disney</a> Is Close to Picking Parks Chief D’Amaro as Next CEO. Wealthy and Powerful in Spotlight After <a href="https://links.message.bloomberg.com/s/c/Uw20ehrUEGYaVc46pM1ZvYZXZDfyZYim_NN8lf2ophl408RbPS3KqXp4_Iwy1RwKJtQRGRIwaeWJarJbGyrVPi8MbyTiIJmD4S6v_eDvc8HY_QV_U1QjTasiGGQmKqpDZ3fg2LZcaCNAX4MqamJH8X1dtbS1XmhDZLu46Tg93O9jF6Do3UroYFdYcqFezl4yFSlMP2qDlo72UVJYS-EIhimwbS4c3CXcGFrmLBiFOXGPeT9o9PlvZO1Xrg4VC5xlglOhpXiNYE7gEl-DOQh6Lu3AhouyKTd2fffDZW0fBlaRTORp_XdrbTe5eazAoL3uhc9mQ10xZ6iGBF6IcGhEQp1uelpBmbGHoZjdfUxGlGiaaHPvpU99fEDwR_I/0tanhoXSwAugsLHPIkmG0PkiM7OPIrDT/17" 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;"> Latest Epstein Release</a>. Trump <a href="https://links.message.bloomberg.com/s/c/QLHG4bka4ahGmXiWzuW6acBxt3dGwaNa-0vys_jPz4KkKzWiBTzs1ZuziGNZOfB8uCmsAp5gugcwD84mqYnNmZwmw04gz2PgLozp43ZvKO_pUwY3fAUiulOhNyBxpJcNzJYMsZoCA9cOynQA5O_vvn-V50Wn9rYVzEFiT85_RvxqEJgtHteh249oyhp-RdCfvEoS_dsknogz3hks1DzzKV4R2L5TBL7e6tK1nV3JZlAPxVBBxiFlxHXAF_fDMs9UiLB7zqGiydMwSN6FqCiyrkJshxh39IwCqkh2POampqredtDRjuPr2lVJvsLpSI-760UYXwtZTWW9wLnSmSQjwDLe0-kqD8DPZjEVQ5kkonF0dxPchcrpUW0uXEM/DOSQj2Odb6UuRqVvd6_PJIar_Q8nBkt2/17" 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;">Lawsuit Against IRS</a> Puts Him on Both Sides of the Same Case. Minnesota Businesses <a href="https://links.message.bloomberg.com/s/c/lqjgN7-ZmpjFDc7dQVf4p-57koIPcH0kVappdyEYHxTc4A4PZOanpWQT887X75IRoB6fCOta1ZR5TKG_WILBM2GsOimWoReuiFQ6JUq1CxYx8-p--yn4zGwUcKPME1d0M7gCp7_y6rgM9MDpdwCbXepsJcR-HBsEYjRvMhVNwV6KonqPO3GqsLqBs2GLpe1s520VzlboXn7PTX6qprdjmOoHPo9Bt2_4GgFPc5FYHT7wjgjcm8kYXIsSG_mj75KDuuA_48Y4wfMmImzVxFyNS3xI-Qqw4dcpB0tsA_CRVC_WTw3TrCLgxDXt71anGquHR_baCAcm8Ks9TZRY6e_498ebFuOrAZnsAfhMjkrmHiXfcuUayRKE3DhQUBI/276tgqqq3lygBchSjrr6OQvT-SaEUG_Y/17" 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;">Resisted ICE</a>, and Now Face DHS Audits. “A corporate officer’s sexual harassment of employees will not constitute a <a href="https://links.message.bloomberg.com/s/c/v7zaQj9koRPCxjcEq2xEhZVQbXexV-2kncHJJGXGGhk6QMbFVbzGOnHLkrRlxT5CfnkSgvkCtc__ZklBGWBWOrc_m68y4jjXPSk1QkCXv687u723E1l4hFyxExgc1jHEa5EvvTHizNQtsU_QZSOMTuYHeOQG3fq4CQaPL_flnwj1xu-TKlnxV7GYGziNujNe6n2pqXrLFsoTQ3B-qdXJfIMMRDSKX8GBPrwFtF0KcbFLN_Zgd8114EqAjkNnhx_7UnFDz0KfoUuftBk6eZ6FOFIzZoohVu1mcNuDKZ4Gv8DlEJts48mym3PoMjGDQyfDNj-H_rxz62VkJjpAK1vYd9pCd7AVhWG9a_S6Uohz9JtGzuANsMrn2Lq32qI/toXq8L-WAdbvwUjBt8ZQuQchVSzWANt3/17" 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;">breach of fiduciary duties</a> except under limited circumstances.” Young girl topples <a href="https://links.message.bloomberg.com/s/c/ELSMCc3Nc_ShkfiJ6l0WKoN63OfbWsZxK6Y2LFnVabn_uh7Ilo6ONKujwDzwbeJrqPNEHVKiMyBewDjjDTBIlzQkrDX1jbvLmKR48GAF3_mS_cRsIl3b5tMjekBuGs5iq2xvs4Tr4GvUt02HyZEox50APJWK12S3fc1O9iLlP5UstwcJnFZCiKIK0PdsQe2cl528CtMfmLBOiv3ZJG63pFGgnNoRQvHwdv3Pf8VgH5PyyTam20l8xM04SQjPQifW6ILGaqy6F2djKsmv8NZjHL1i6EekyBVFQUlTRC13UFvZb1Tczum-Hy27CFr4m4XQR_ENFCBIbsaK34izKkEE4kJPq7rfH07XB6u9lPKzIcnpJpDWwr5vTuxM0qU/VEh0auAs-ouLfN_vh-LEBPNpMCHuL6mx/17" 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;">tower made from 63,000 beer coasters</a> created by artist in a bid to break Guinness World Record. Between the sheets at the <a href="https://links.message.bloomberg.com/s/c/KaK9HttcF0vlhOcRKwukvSdsq4VR2B9ShTh7JL5jnUynid3x2yOnHzRgi86r-Hb8TMKg1etiwpIcc01tF16Xg-mMUqI9fxeEUY0aqTIghuEl-UimbhlbxdcvdRv7apaK-Pf_QwhzXjrps2Ea3FFz4kV1lYZL0i8IAthKHxfmmXP50wsDC2OcbI2NX7oXjzYmzCcwqOu1OCdLyF2s3x-xxVsk1FJBnq02k16C43FMHMGH25okgm9C_uWT3xaqs8nIW3iP7E0IKxtm4jd4v3X7MhRWWJGdDgJhlCueUEI44dcZqU8ox3w1Yar3wSC8wSU1j5wz09fZQShUDaCYYeAH_5kOudWz0m-cXmGz2MK8JwgzSfZCXDabLIifMlU/pAbzV303KXaip63Co0JYgdQlgkp1mtt2/17" 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;">college Excel championships</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/DhJSIyHAhp0HIMY8vg-HnoXx43E40vr5-XRDhYDfmf7E-V55rPSPlxTIxhzeQO2Xkk88I_pLjhAEpGqdU46OvQP6rDpGxmJ1d2GXRQAUhivAiPujiHIuWy38-0eFxhv0vUWbGZ4wzfJZkacXXDLjgq4YwFSyAGJpEFLhOXTVRCG4jnNblIehwnbRciPkItBdUkLMoy06jGgCFwAcX0FsitLL31ZTC_0EDSHw2Jl5SPE8ksvPKLwhYzXsFycinpIGpvFG0TrS8Qlj82S_LQ95TEvdd6LBvjwEeeGoLfnyEPl3kNQdd75Atw135SWUx-vJuW8RPUzZKixk2bRhp5TaZd4oblm6d8pA3YN9rgiJIGo12fNJoH2kd9a4B4s/jFqeuEg0O2tRGS4GEotGqudxcrs1ymwS/17" 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/3ugkp2QnJkVUP1URIWBZR9Fyjr2Kc1TtIAneRY79_SWDA8bjVyTD_mfiadKCcBjdkUGsPa-iUuuE4n2FA9yJwMa1RmKXJgLKI1glGiEmtdxOhTdmRT8-9XUAokb2Ow3pP6xOE5QuA7rcID42npslpByWjdpeidh7AZ5FpZ7LFdzLy1rZqPeVF6yNxOqg9SwfppR6h_J81s7FRcSKluuratDSaUtrh8TzurENnCUDqYOHDPoAL5nIhhcbLk5zJz4Kk9CIxEgALPbv8Ncj21FIhAcjE07DZYsORXHmZIcwQR4IkBvT6gX9W_OLvYBhJXCtaUWzvscYzfcw8GQhSc57fls1a-c2wdDWZGgBSCf52QaTYOGACqvwzM4oYNA/wJMqUJ27B7UlIt7GPtdnkAsJCCg2mli9/17" 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] Not the Boring Co., obviously, which is boring. “Ooh, traffic.”</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Which is good for shareholders of the companies he helps. <a href="https://links.message.bloomberg.com/s/c/ZAMSRcK65_IvhWxP03KclWFBrMylcZ5oUf43HrhivPXssf5xGUjgK_PRwkaMS_p_9LCuKBt6BoSbXIfk-6UG5zc7CYY45Lw1ObVB0ifPLztdprlMRgFLYhKTfxKszqSc7LIx8DhM4OY8weuk6TZVbR4h3-6g4srCOydBKGzAjsjQz3g944EbLq7Ve0Gw7GB-N1QJVtLNzNOsZqMFiU7NDR35qXPs8uh2WFRrOyK0miQvYLaO_ddMKWjOJye7ovWX2XCYcYWgAfDKALX5N9XeFgEG8MbrwQ-y5HuF_5TSbDGHWAgK_V30KxHuJYdRGswMcM5o8kpfGyCqpD4HiTeXQ4l_8wwkgyTsw7QnuMlnmmAE0og--T5LwtvoOTA/8vwa98eB6JS96VsvhABktt-mOW2N9sGW/17" 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;">Katie Roof notes</a> that “Musk likes to reward people who are loyal to him, and he doesn’t want them to lose money. Investors including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners collectively poured billions into Musk’s leveraged buyout of Twitter at a $44 billion valuation. For a while, as Twitter’s ad revenue tanked, some large investors (and Musk himself) slashed the paper valuation of the company. But investors were made whole, at least on paper, when they received xAI shares at a valuation on par with X’s take-private price of $44 billion.”</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] I realize that this is sort of the opposite of a digital asset treasury company: It’s not a stock representing a stash of crypto, but rather a crypto token representing a stash of physical pennies. But who cares.</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/inTyPRkirorjOpFGMF9hsB3U0_4BXaVFYhfLY-R4YjV9ZZgV5T0K058R1CEJtCmMjRwfqffG2trQMopksSZxtNYFTANbKa-tgPNEhz5OIibw2p2rPdQXI20W96NEEibOI3Lt9UsnQVRgW7Ld8bB-1u9PqxScrAQh4k2JGCZJXdE9GekT79-Xgc28-GbOk1QBvXtQSp-_A6U5RCWhUuvlEXLRUrZkZD_9SpEEQqGQy2sXeeDiuHnEO1_bseP6WOr_4wRGIaiUeqLF-LEpeo3yp9mG_c-dSqYeyeEHQZWzymIiGMj4KfT1Ri8TocLOLEmtrCZbO8ET8_f54DNe1XuRnOOC-mM9RJ7B7HsXCqG1Ae2Wv5395TJUiTz9d0Q/bISANyLiQksgW9NOh2k_lm5IPu1XIsdX/17" 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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  3. Money Stuff: The Podcast: Elevated Shepherd’s Pie

    Fri, 30 Jan 2026 17:02:19 -0000

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font-family: Helvetica, Arial, sans-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 Morgan’s Pub, SpaceX/xAI merger talks, a $1.5 trilli </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/_7KQ-z9GmDsA0qu-N1-PJ3SqqW6eBtR9rZvJK2Mx-QZBbDL3sK9_jKoahZpaelsgtzamowq5GCuXWlQ003t5PUDaz6zWqKptDSjoTumj8oGPadpnbJMAw0ePwi8dJPfjNUklGqfL53J55uU7diQsLSiMVXSOlbvNisdBO-uHynDOxf6OnSxO6YWmIWY872RnJMLnqW3_ZMzOwgOF-SZaFzlOYBN3g_dQq2snjncxDA4mL0DO7bOP6TE7pMul438tONAe8W_xMslFU3gUFLVUuS5yoceHRBrXGRSsz3SEbs3QWZt2o6QzxMBpUQwLrB_jx4vD_G73FQxNefgH-wnhH71YtnoX1hWYguJrAeudVJXS2Oef-pSrqESShw/sTqz5ayqib3kDzXtnfUu2UjO4NOaD3OY/17"><!--[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;" width="530"><!--[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"> <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;">Podcast</h2> </td> </tr> </table><p style="margin: 16px 0;">This week’s episode of the Money Stuff podcast is out now, in which Katie and I discuss Morgan’s Pub, SpaceX/xAI merger talks, a $1.5 trillion valuation for Twitter, astrology, numerology, the Year of the Horse, Tether’s mountain lair, gold vault tourism, how to make a few more billion dollars, LMEs, law-firm conflicts and investment banking pep talks. You can listen to this week’s episode <a href="https://links.message.bloomberg.com/s/c/2MmEWR48f-pS3gnZpdkTWS2Gsde1TGr0jVKK4AoTpsb945igrp_ZcWtYaTtfw7YyMiyhyiyc2w_iWftedOM9s-W_JRnUSTK6yZKW21_bpZO0ltDQZORheQDobvoPHMZ_6VUiwpzh3rHhkQN6EdpSPEQnSrDF-R13X72m7y6yK-fevUdy-3lg_wYFqVJ1mS3RVgi1Z8oG1aYJf6vYzgmV1yNZDJvU8C1acpJ11XzVYX4gNDrrlD8f-v9u0s_a7pyN9xzPFij6YOPMEnt4TIXeShv6e6Inld0roFXUS8ZU4Ropdw1kUtuEJWcJqzNfoNiEg8pfFhOHbr1ELAyiZQs8YNhDHy7CnOjTX93zc99385kfpGqH8LwkkJll1g/16ENdED7TEdVvHkOSDgK7qyPY84d-1K2/17" 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>:</p><div class="body-image" style="margin: 20px 0px;"> <a href="https://links.message.bloomberg.com/s/c/loezhjNbHOafmCf29HaCIkl_l-BLVoR2Og_OBiTy25jwB28XeBp-dvsn4u2x3vqJ6lD6NnmSFH0ERlvt-M7XCkbC9k_yVArA1mTU5Azc0HZv986PRZWmt8bGheTHiD7ofyPyYxMyaT_7PNrUxmq9sY6ZkBUydL18n5OVSBZobBlW7ql_wkZHciZOUwSCxsjjbGMcLwC1drRLuyR8PNHsprjM5CAnw4KIu1MJRo3sBOFzR6TyZ5-TRRwfTkZ6e_2iBlsu9YDamZ2gAViUgznXBCa9qSJt0E1o2HTuILgSmfkBkS-ReOTYccAdBptE1CLX8wX8Qt5IkPxRPe29QeOGFx2FYWJ6vai04avIT8qYo39aoivYmK5zqXEU8w/t-3kPe-Mm_5OWed9fOVHbVOuphgBN1zx/17" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"><!--[if mso]><table width="550"><tr><td><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iDKuFJWep8vk/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img alt src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iDKuFJWep8vk/v0/-1x-1.png" style="max-width: 550px; display: block; width: 530px; margin-top: 20px;" width="530"><!--[if mso]></div><![endif]--></a> </div><p style="margin: 16px 0;">You can get <a href="https://links.message.bloomberg.com/s/c/yzsuoHxlQVlT0dlDyPZqftR3w4Fj41uw-3LOizkyQUHfpVt08gNGRpRrUsTNaUErKqnUjtrK_0zrJPCjlrKy5ABkuJsOhhOOoc4Gw5-HkDXgX4otFtBry31uSVfCCd5wc4sV3pALBwoDaF0spLAqZuFW1yISGyGI2TZgjmIuUpKiF4GigLPmbKsCmUZF_keSYRU9IJe7zvK8fWV_C51de2x_dhfjoPPipRDC5eBYvlqnM2-3gKVx4VrxV46R0FSZcignFP-RkiLhtsQFK-q50tQ2t6uoXdIQjwz0V999X_MOMBX6O23ymQ8oNAx0mDVUqeGvB_awFCV_lpdoSlnDHGHn66gO5C4QGwhE4lq3dDBaiTE1u5DSFzgO7w/dJW1YTX3c88Vr0v2Toea5O1rcPBbCSd7/17" 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;">Money Stuff: The Podcast</a> at Apple, Spotify or wherever you get your podcasts. We’d love your feedback. 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  4. Money Stuff: First Brands Did Some Round Trips

    Thu, 29 Jan 2026 18:57:16 -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/tZt8vDUQP5CY7eFT08Y6i2DEXjvayD62KwQQ7hINFr_l8GRatPuRCfSTo-6ybZ0hD2aneVeXZBq8huzyri8J7VotsWUFM72xfRC_cq2gVjyUxrRivNv97S2Aa-cs5jmz2Fc_8_2UpTeSp05dxff-RC36aXoEzmoeyxx1RFdJm3BTKqQhmvUiQSKhbG4Swyd7aV1Ic_-urdYBTxLkeKfjUNoWuVLbZ0rqHa8yLD7FfsTwrHs4stAC5y9tLY7-2P-IIg8ZzJbR0EXnRd0fF5qfPnJIr4Ma8qM57E6EgbdsQ_v7kowZWMWCpSuP05WUj09K5bUiK29Sz9p81VOBq4_HD-g85ejUmPKlo7hRv3w47Nbwb0-K3blUb8j25Rvbk61U0P5-puA1ZwN_ne8WDCHjHbA5Mr6q2HdEAcQ2HcjpB364BsFKw4sFvZRBwuUuhERC-ltf24FLRQhsKSKIo3VSiHhCeNAtBsmgKnIlqtX1sW-AnHmzjASdmTP04BdPaLDKXXW0aeozHUa-f-p5dLy1BELV0MYkYIdy6T1euH_ZPxxc0LdhK56DHVSx03XXqDywjv4VVGYyEX3fGHHL_zNfjzSY_PKzY5roY5w6LisOuGdg6hV9UJk-A6ScXCbK_g0we0DoIUxm-cuST2QL7nqO2lrYdoR_hvJgIKB8H7IfpVko-IQtbcQBhfPvXXOl4SI/5nCQ0hBxqR6V4fkEprySkdkA0CrKlcj6/17" rel="nofollow" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=1149004&li=16682019&m=4c6f36cb7bc27023b5890c47a7e79821&p=01292026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d&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;">First Brands</h2> </td> </tr> </table> <p style="margin: 16px 0;">Modern trade finance comes in two basic flavors, accounts receivable financing and accounts payable financing. Accounts receivable financing — “factoring” — is the traditional form:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Company sells product to customers.</li> <li style="margin-bottom: 5px;">Customers buy on credit; they get the products, the company sends them invoices, and they have, say, 60 days to pay.</li> <li style="margin-bottom: 5px;">The company would like the money sooner.</li> <li style="margin-bottom: 5px;">A lender lends the company, say, 98% of the money, collateralized by the invoices.</li> <li style="margin-bottom: 5px;">When the customers pay the invoices, the money goes to the lender.</li> </ol> <p style="margin: 16px 0;">That is, the company is borrowing money against its accounts receivable, and paying it back within 60 days. Sometimes this form of financing leads to fraud. The two main forms of fraud are:</p> <ul style="list-style-type: disc; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Double-pledging: The company borrows more than once against the same invoice, from multiple different lenders; and</li> <li style="margin-bottom: 5px;">Just making up invoices: An “invoice” is at most a PDF document, and often just an entry on a spreadsheet, so you can kind of type whatever you want and see if someone will lend you money against it.</li> </ul> <p style="margin: 16px 0;">These frauds are not necessarily a great idea: You are getting <em>loans</em>, generally <em>short-term </em>loans, that you have to pay back when you get money from customers. If you are faking invoices, you’re not getting any customer money in 60 days, which means that in 60 days you will have to roll over the loans using even more fake invoices, etc., until you land in prison.</p> <p style="margin: 16px 0;">Accounts payable financing — “reverse factoring” or “<a href="https://links.message.bloomberg.com/s/c/R4sPkbj6FmhVJ-JSh7dPauFXbDK6O5M1efNihT-ZHHDE_fMThrtyO9amorYeEFTM2Vr7KouZ-o3wQT2Ph3YWzpn45HQsFtgJd-lUY5WzjW-iRA_4-POwmmfzeYbEUPE8RYBNQ6ENF4Fmu5K-cd-zUdP8XzB6Z0td_ebvGufPmw9u0eYhVTP4z2FDgRj7fcTcpHAtiXZAgzyqNd0vQj_yAyTT-RrmhctWhrlDsJKxem8n0auX6aWwFhFSIANI6_V0TJyHOdjwkyqk-Ogicl-wAAZc37PXfdD-GYqRMMyASCMJj3421nLKmQkcNrLICFP5wDuVKeRIrwL6q2LOEO03dfcV5zNepn_A2zr-MVuYw3ED0QRbFu4Xg7gcPQ/TgLg1HOhoBjHxLIYFU3crHgP7q8LkkJi/17" 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;">supply chain finance</a>” — is another kind of trade finance:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Company <em>buys </em>products from suppliers.</li> <li style="margin-bottom: 5px;">Company buys on credit; it gets the products, the suppliers send it invoices, and it has, say, 60 days to pay.</li> <li style="margin-bottom: 5px;">The suppliers would like to get the money sooner.</li> <li style="margin-bottom: 5px;">A lender provides a financing program <em>for the company</em>, under which the lender pays the company’s suppliers, say, 98% of the money immediately. </li> <li style="margin-bottom: 5px;">When the company pays the invoices, the money goes to the lender.</li> </ol> <p style="margin: 16px 0;">That is, the company is sort of borrowing money against its accounts payable. Its suppliers get paid immediately (which they like), the company has a few months to pay (which it likes), and a lender stands in between to make it work and collect a spread. It is less intuitive than standard factoring — the accounts payable are a liability, for the company, not an asset, and it seems strange to borrow against a liability — but it all basically works.</p> <p style="margin: 16px 0;">How could <em>this </em>lead to fraud? Well, it seems hard for the suppliers to do fraud: In this sort of program, the lender’s customer is the <em>buyer</em>, the company, not the suppliers, so it’s hard for the suppliers to make up invoices and get them paid. The person hitting the button that says “Pay This Invoice” is at the company, and that person is not going to pay a fake invoice.</p> <p style="margin: 16px 0;">Of course, the company itself could make up a fake invoice, but that doesn’t necessarily help. You make a fake invoice, you send it to your lender, you say “pay this invoice” — but then the lender <em>pays your supplier</em>. It’s not an invoice <em>owed to you</em>; it’s an invoice <em>that you owe</em>. It’s not an asset; it’s a liability. The money just goes to your supplier, who is like … “huh weird random windfall”? “Huh I got paid for a fake invoice, better send that back”?</p> <p style="margin: 16px 0;">The way to do fraud, I guess, is to <em>collude </em>with your supplier. You call up your supplier and say “hey, for reasons, I need $10,000. I’m going to submit a fake invoice for $12,000 to our reverse factoring lender, which will send you $11,500. Then you send me $10,000 and we’re both ahead.” I guess? And then you owe the reverse factoring lender $12,000 in 60 days? Seems like a lot of friction.</p> <p style="margin: 16px 0;">Also: Is it even fraud? If you borrow against fake accounts <em>receivable</em>, your lender is deceived about something essential: You are pledging assets that don’t exist. But accounts <em>payable </em>financing is essentially unsecured lending — you are not <em>pledging </em>any invoices; you are borrowing against your own credit to <em>pay </em>your invoices — so should the lenders even care if the invoices are fake? Accounts receivable financing is “someone owes me $10,000, so lend me the money until they pay”; if the debt is fake that’s a problem. Accounts payable financing is “I owe someone $10,000, so lend me the money until I want to pay it.” Does it matter if the debt is real?</p> <p style="margin: 16px 0;">We have <a href="https://links.message.bloomberg.com/s/c/93uUO-4HFRWMNIVJWIxLqrzBxp9lfbMRRM0NKD9daZqP8HjT3MaMsaNelkGy-v17L3GCf_GOln38vmEitcS6-Y22A3c_QIkjlcbg5i17z71kKtSSXFFZ-8rx3qJcQnj5ox7ZjbyfmFVTKJnaH4zmffZgDUwOM-lTV0UtucCXIcseYcWElSMYpIjoWoXRsRMaxEDOV6ucJ92h8AgSS7FpOxnjxjWC_F4E4cx7Lxmku4IlQZ_I6tc4h2iYeHI9m1uYhnqVIj6n1ptNC7ksMR2nqw16WcRbIB4-s8xWPKemOaJXjVOVad1vkDT02sfufi6s6dolni0acGEf8zYyUTyb5DZS8FbmJiLcCV8REnwSudh15c1Jox5wSvXi1A/kIq5gJ3-hlEH_HySgKpaQ-K2A_RRJ3xk/17" 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/i7IleC17aA4Ptda5rh9niIrfvl4gWaKgRnqntDL-xUgrl9fmPEZwWF3i0cJL9cQLK5g8i9NSfwqQ98tOCyILVAFsJGCBR6taB_ebkmthoBNd7LvG1Wn6qPyardeecbXCaqp45zzYDabKznOQBFXIo5kGihr-S7kasoZ7hG7tlEuzNUyD2HD9x9CiY6mLig5mbq5sdoLqE8SlBkyKcxaqjY9RtbaQe0TxFl9KZwuyFjtyl0w0hAt8Odsl3Ge3K8SSs7JK-ZD-1zBcUaf6mhwWDnlRuRKsn8Vd-opyNM5tqmuWSOue1nZ2bxv_X0P9bzHoED6OcPEwF13huDBNudCAc9IbzkUcr0fgg7_f9WChFfom3vVa8wWnswWd5Q/QSu64-SEjBSwPo87DndoJPE11ByAvcX6/17" 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/RILWgFUbwnT0Y6TlVUx8fH96QyEW3jl5KW3RLoaA1TRQM_ailcMFKp8iNrxyLPzj6bFPvX61P6u-KRf8T7VeH6CdnFW17zWEnd1MeP7I98i53EUVhX1ZHUZ0I33OGvnezFuFSTT7zLcCYiZuh4Vk_h14soSvgiY5VdNLX_ZoA52IDo-J7EAojtgBm3mUo3hjIaEdfptF1xPMw82BCe67j2uD82u6-D2aGG6Hcgt6C3X8rG5vry9oU5E4b7B9BKPniIgxaj8qpgBg0lPucm4i9moeDJjyPNZdmNM0oO4LUDKzxJx4kP2ZAqifa3Qqocbk7T_OmIHN-Hc1hmmVf4S1nMeQfQsofI-bCoZ9Ti8NOhPKPysa1AGPQ6OmLA/g_ExmWbu-ZfQdcIf8tNOfMQrdytNeiit/17" 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 First Brands Group, a car-parts company that went bankrupt in September 2025. First Brand’s lenders have sued Patrick James, the company’s founder, accusing him of doing all sorts of malfeasance, much of it relating to <a href="https://links.message.bloomberg.com/s/c/9ybU9zu8XBVtDwJ6cS28qH5h6CSzMBAkWAMbZQZM6IFg9xl9pwiheWxD7d69ix6TZAMCcz1AJfMyV5AbxvXIKop2cDgOYt3bd9X2fWBFjRfvXw4ChKeoVWJsTbzW58EB_3GMTp_Rlf2oWeO17KfUGZgja3hCvR2fuQQ5AstdMmfgMJQ8AKv5-oplHS3vGWLoUkWsaDL9NR4Jx8kwG1BPzciQIYyUqgnCLqWpLujsrPdvji3BcWoMWWhH0b5pRedwZuSJdy0SN2rHdDdJxHLyi7Vbv9seXoeLyyJa781_JmHHBSnMVF3Q_2HeaDOHbU5xN89ibN0SXUImpnPGAHdPa-yF_ZMJjC0k0ZnF5nqCw3nOXfIYYT56KzftEA/OburW5-lnvP_Evp9P6GXma7N9tLbnCod/17" 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;">double-pledging</a> of invoices and inventories. Today James and his brother Edward were <a href="https://links.message.bloomberg.com/s/c/BieU3OJ-HwdCmCNf8wLpD9PmYaZhTQW2wFCHM1iVu1_jP7hsOJ6dX6Co8GrtQFoBMvXckrDBQs0eDEPinTF94-NDFkZmfuQuQ0Yci6ms9MHTiEsPObH6CIAmdOb8pVlooj3YtiDocSpUp4oeMpn8mu5xdL5mNvLDfDlAXbhFMiLbiN9BU0g8DoQg6myYPCLvVX3ulegP9OuucJzeu6WMokFeCvyAIgNkL7klkw_8SWZn-RsD86Hm-YsPVzscbPbjJj59zTxhdxAZAv5rV-zsTHsbgF4Sl0Z1xGUZ9vOopnriHxiOEXsLxL9O1l7ovA1o_n8HXAbEDPC90jCkSdPmGPyZ-vMbcVSCDJHXrLaaK0zU2o2ShzhUF_RfIXY/rKLTQXvtB-anzf4LHM5LpPGhQrl9_Qfq/17" 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;">indicted by federal prosecutors</a> for alleged bank and wire fraud. Here is <a href="https://links.message.bloomberg.com/s/c/Ax75AhoVnGRymq6LuechyBQUPHnz_FiGBBRRXC6O0U-z0qejKYxJmTCO3-y43pru-mg3EnrbUk6LEuBsxY3fLYFsvq00iVEigo5sakusIzkhBgBlAH7pVx7_ER1n8TRuLDlNDAPAqRgTXb1dkPxYH8R4Th4K6E4Hp9Pa_9r5vJ5nPVLLW3k57BqfuOgzv841HhtAG5NiJDupkqAGVR5Me0_M7_n7ZJrNVuCGPWuUwgFLRozFDpZ1A_kGvXXwNeKiK4ZvDFbotrMDWDfFb_zxUM9sLFWBFO6RRyb9VUyL6qgZOAl0nEJqsU3wU0njnKBsBTzzU7YfPvGc4trFkJu6LA4eEAfZ-s7BDIwclQcT-KtSLwmJ14T8oAxnp8Y/YJoL1sekFwJ7NpOaNjrWLLu-t8vKK7hj/17" 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 indictment</a>, which alleges various schemes, many of which overlap with the lenders’ claims: “First Brands employees routinely submitted fake invoices, fraudulently inflated invoices, and double-pledged invoices for the purpose of selling and pledging them to factoring counterparties,” “the defendants defrauded First Brands’ senior lenders by concealing the nature and scale of the off-balance-sheet financing,” “the James Entities pledged inventory that PATRICK JAMES and EDWARD JAMES, the defendants, purported to be unencumbered but in fact was already subject to liens,” etc.</p> <p style="margin: 16px 0;">This one was new to me, though:</p> <blockquote> <p style="margin: 16px 0;">First Brands also used third-party financing to pay its suppliers through accounts-payable factoring (also called supply-chain financing). Under these arrangements, financial institutions advanced funds against invoices First Brands owed to its suppliers. In some instances, the financer paid suppliers directly at a discount and First Brands repaid the financer on a later, fixed due date. In other instances, the financer paid First Brands, which then paid the supplier, with repayment due later to the financer. …</p> <p style="margin: 16px 0;">First Brands also defrauded its accounts payable factoring partners. … At First Brands’ direction, certain financers sent funds to a third-party bill-processing intermediary based on fabricated invoices manufactured by First Brands. Contrary to the understanding of the financers, those funds were not used by the bill processor to pay First Brands’ suppliers. Instead, those funds were routed to First Brands itself. At First Brands, these self-payments were referred to as “round trips” or, euphemistically, as “corporate initiatives.” Their purpose was to inject additional cash into First Brands at moments when the company was unable to meet its payment obligations with legitimate cash on hand.</p> </blockquote> <p style="margin: 16px 0;">I am a little bit of a <a href="https://links.message.bloomberg.com/s/c/EOW4m2FVKIZpYOsquPbmrt2nG0L7zGTn17JMO3FVAfqXK-X70fG6JMg9gBFlfKM2K8Wde2Hji_mV8h5H74opcd2J8Smyf9QoAhDD7Iq1JwipP6aqxZxkYTJoHhqHSZDFq9NAgF36QHy6dodlS3YzMNm4lYT7eDnElOKNvfSTObr_a5pLXTMC1KceJWO1LanISeXvdxD_bMHXpJwdpr8XuiRXHEbiVoWtK7EXj4fHG6I11iCYewLyNYR0UCb-ilpVBn6wdQ5KzI9xYB-GFNgUNoG_35EkQD8r5z3VNFYHHmhrEaBWtkYbl-3GV1LvbMgWmQCk2F3Qo82Vv71Qc2k-Dhl9j4GBImkkPxmXDLUXYBX5zIHz-C33EkEBHEI/MGOaH0Gk3j4gob1eDNbcOK5gOGs2t8Wq/17" 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;">connoisseur of criminal euphemisms</a> around here, and I have to say, “corporate initiatives” is really really good. Not legal advice, I mean, just that it’s funny.</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/IJYHD4pbMKk3J9dv8cMTXEDJMkK1md2aLcmrWCEaan9TE7kXkIjFGI5HyST_raPef8l1vBPOwW3TleJ9YEojWVYjlcIyzO-wkQgNm9PcOnxf23vq7KAjpP4tEWDaZeLrUFTpwEvve4aCJrn2N4M37eM5yw-v_W-1atELiWHsJ-8tqyYYmT3ELNwzEiaeBjrT3VmkgRSlcaTyncSPxvETtYhQkZZ7I8gs0OvYXT-PjLr2AiPF_IFFMk6juF6VGHw7tn3MgMk36htsfhqZTWZOSYgqs4bfMbAy2Ltf8f5ZhKcKQGYtS2viCXBMaN57s6Sj8bCHSccUNiaRY3hSyZrATFntkxrkSYfwGNNQnSosNxn1v4aPr7Lq92Me4_KZXyCG3fZVqMnwigD7AMqaT7dy6Dpv-g4LNSejNDQVx8w8MRmje14AeV3pkTG0aoHrDeU1dBJb-C7Z8JTNYna3N6MX42WkHRTF8ufPorjsSDg0OnHRQokBvTyJYksCI0OLspcAf0Mknb030PFc0PMgvS407mTS7LAX_IwL8hNiHWn3olbNOpmgRqsnOoLSkd4ZieQzKl2-4qavyejYOn7cpLXpm0Td4az7vpo7_QTEO4PlSskrdQO2djWpYmH6Xh_tjzp07ecPBHrC7MwDAxthupOeTB5C_knWVdxiL9gA6qahk87Y-Pgrtm1k6GbWG75rvw/HVcUDet_NsqlBKl0Ul9Vo_QRmRecwdjd/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=16682019&m=4c6f36cb7bc27023b5890c47a7e79821&p=01292026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" 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/dDDoWqdHpjQpvI5k8DgptCYOp-SWgeCc-L9WsYwWYxR-AMX1GtA5j8mA0QUFh13GXhxdIzexl4ShH7jcmZ_bUUWL5BXm7KuNey_Y5yw8CrX7TF1tRn9UY6ht2AuKT8jN07ydwybKjZc27hpNlnkNHpFCP9xUwqaVpzFNC9VszSK2-dq_pH9ucsjROdP67rzKKBPsX_h793cgdH_sVMfridQrh_EwqlKLnRvTgr9veQ__jr-MRphzFtEUNou8Ho8M2QpzcQFt2SgKlSbzFhsmj1BvjLnroWp8-8rRQloDUTbAfnH-3cD7MIyl-8GyvJZN0eoq5Dx4JI_wDnKDrUWP87FfwR4sCyoTNwKj1Hil0imUNhvLuDTHNzgbKpbgB9fi4zY5MfhLVlRTCAi3238loyGFcDTGo3Acqzkj5xrKMgLtU3Fyut1tCVEAPg_Cpjg5yHHM4IqqXkmoDPCGHXPlwH7GHj7tGGn7fWEyJKczWOAgPJBrb4EhlTJH60uk3sDPIlLqu8ezcFHw_IFhpWtujlzjBWGNB5Nm9k_DSzNZhRd_DB3IKer7U5kbZJ8JUn78KNedBJKRi__D3s-FeU7UlXjQZBBp-c3Uue2yATnkTClwctiDRsMolEOnLlY6MTSCnSanC4EeAuGbfPko08bT5L2n8HCTWTtQS8OEpotWyIOEG6FEseh_qhc0Ml4sqA/ZbuOJyl3olCbkU9Jgp4wkTK-4zpVXJRu/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=16682019&m=4c6f36cb7bc27023b5890c47a7e79821&p=01292026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" width="100%" border="0" style="max-width: 550px; 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;">AI cat bonds</h2> </td> </tr> </table> <p style="margin: 16px 0;">One theory, the standard theory, is that an asset that performs poorly in bad times should have to pay a high return to compensate for that bad timing. “The required risk premium for any asset … reflects its covariation with bad times,” as <a href="https://links.message.bloomberg.com/s/c/9PEA8Kp63ulWsHpgkWZnV8Pnp9YRIAF9v3XWdmsLhjE2UtQKSyvZCAccTPnFv0KMb9t5URrmcD58bzerRxC3Ch_nPkxeqJeyU0wWKEAjPByQaR6bO7WrNJSnCqDkB_GQASmv9DBxys3eW9urYdzvJQ63MGhILh4aXZHSRIBUJTjIFqGKGD_kLeqe-iBbUoU_KQZUu6DQfrtaCjzVp13U9P1Dlv7AIGMAFLrRPahq6ejRuD6WEhznDEyTjTZMqcAPOXPa0cY8xpHfaNPPqeOW2C2g_w4Pjk2NY-_NW82DTFhh1pGS_YLyptjnwvdOfYNBITHXcgmt7eR8pcQCAbP4CIKyzrg2f5lJGZ3NcLvmGUxbkr8vTSkvP4bvjhw/B_FGkvSO2YoK8R6SEpfRhqk0OQkt4SAI/17" itemprop="StoryLink" itemscope="itemscope" target="_blank" title="page 69" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Antti Ilmanen puts it</a>. <a href="https://links.message.bloomberg.com/s/c/0gaEsttgzlVstrgCkHZo-AZXytSEed6NuDf01Ru3zLAkXU6vEyDvJ9AVuEAxOOvUQW9pfN6PFNkzrj7jmaBqmnJkpJIHup4ohLbF0w0Q8ceMmfwcpJ1sZbxp3ynNaRf32uv1IVGSbR-nisAmBjQrh14c3zOgQJC3IDv5JUSumcnep2_gz8HHjgItjiWUu6vl6ukExgIwTES8i-esVvvIjQgHsyEdTUclFsnw6y7hvZ4kf5iqueD6K0yBuTjWgWIN9QLSRSDz7gJUH-NOFRFuqAXN0MpjL9eMosj_Y-sc_1t7bT0hVKhllD76ENuKRo6RcH-j3iDk4y7CrbUmP6YLhCxMgMOgxNFiU_0ayTkXbLfIAOGkFVHH6OqnSJA/B8_u_DC3ji6XBBMpjJVkg102uC0vieKt/17" 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;">Coval et al.</a> write: “Securities that fail to deliver their promised payments in the ‘worst’ economic states will have low values, because these are precisely the states where a dollar is most valuable. ” A bond that has a 5% probability of defaulting, but whose defaults will only come if the stock market crashes, should pay a higher interest rate than a bond with a 5% probability of defaulting that is <a href="https://links.message.bloomberg.com/s/c/a7mASdeKv8mY4V6_LIrEBQjuiN-esVnP76JZF41uofr-QxIw1LkxDEndPvh53ewfG8JiuL6y55ZANnuP6IWN3aYlhAnZrrmNQqirqRahA3426nnIO5b6y--f_ze3j4oLptauEXGpsmkfVb6aCIjp25qkBVD2_yCaXY3dB0TkuZ4hNhMKhTWhsybYUGNC6hGoGmTT7Zk2XBS3YzGXF3fHMP33d9_N8jrclwxzBFN-FgUZODFVyY0atQ5QiOrrbLDcHYhWohgiSZ952g1kn1SLcMmZmFE_BCcY3pxrLMHeeSflKwFFE2YSQyV8HJYaDQQe4TmXgsJtl3jx6tDcDsQ2gKODV89Ge1d6V1NkuvzKNrMMV_6Iu1i1FvD_ebA/sppk01FmsyRanGoz_6jiXb4uC61sOGGB/17" 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;"> uncorrelated</a> to the <a href="https://links.message.bloomberg.com/s/c/hJ5pISVMhW9pLF52bslzDZr2xXXUEYq4NRsyr43iNirIony8dAlI3zQBA1VAl2BWP6RJnibUARv_QvIHItQLaSBa2MxzSHratp-h5JCpe5VbDENK5CXxZ6PJydgISoSivRcbOflaZJNVaqN1nsXm3OzXHwD6IgFx6C6qnkk9nlhbeiCBJ-pzhd1Y4b1iNNB0gr_-FggosO5TRUlyr7XHZhHqsgsnJu8lfeYY1yZG4HdYnIkQZkiSHABByRq31FGXgfSdo2xP_Qv5iQXADGHAEaabI4c3msVjLAAW_G_eLnYkZFLOyIFXrcZ3EpMYgRJTfGKFobiNMjLi-oCPJX52oIti4bxj_8QkD9zeA8S8yqGCw3NND6uWtjRlMgA/yrWmu4wMnxFz2M8PcwXBZ5G7VvCO8qYm/17" 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;"> broad market</a>. Performing badly at bad times is much worse than performing badly at random times, and should have a higher risk premium.</p> <p style="margin: 16px 0;">Another theory, of considerable folk importance, is that an asset that performs badly in <em>really </em>bad times <em>doesn’t </em>need to compensate investors for that bad timing, because if the times are bad enough the investors will have bigger things to worry about. A bond that pays back principal and interest in every imaginable scenario <em>except </em>global nuclear war, but defaults in case of global nuclear war, should not really pay much of a premium over an entirely risk-free bond. The global nuclear war will be a <em>bad time</em>, sure, and the <em>market </em>will probably be down, but <em>that bond’s default </em>won’t appreciably add to anyone’s problems. The worst states are precisely the states where a dollar is <em>least</em> valuable.</p> <p style="margin: 16px 0;">We have <a href="https://links.message.bloomberg.com/s/c/KmgNmWCikfWJIwlfiXjzWaGPnC-Z7SmT2rqWKHvwC0WToFOPsl1UCBMogrrDDGlNIeJ5yxRjalnU4i86JxCg9X5TrJ86nh34DfJHL2xVzE6azeCK1x3SuEu9rNIOzP_BHfpYkH2t6zYcC3wDsTg7UG8f0OovjeD11ie6vywObIzlE9PLKdggRZmBYIhl_5alX25GiETVaqmiZ2yBmYiJKDFQAKHjQOtMTuu2rtPpsUw6dMYBNXIhMc_96kweDj7xho7dEfuss_D7v1mpFXF622lDNYdbNzxCgu4Du37VJHsh5m0IkxalvIqMR2vrJn_IklTdzHo2ZLY8Kx97KhmikDHcUUyuu1Bp8hZGhPAe9e5Fq4OFdJfn8Zp6e0Q/cdoTN6UsZujrkzEOviMxmLDcS9dbbEeU/17" 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> the cost of buying insurance against an artificial intelligence apocalypse, and it raises similar issues. On the one hand, an AI apocalypse would be very bad and cause a lot of damage, and would be correlated with a collapse in the extremely-AI-heavy equity and debt markets, so in some sense it should be expensive to insure against it. On the other hand, if the robots kill or enslave humanity, the insurance payout is really the least of the insurance company’s chief executive officer’s worries. At that point, she’s in a tank being turned into a slurry to feed the AI; she’s not, like, stressing about her capital ratios. In states of the world where the insurance pays out, the insurance paying out will be a source of rueful amusement for her, not a problem. AI extinction is the state where a dollar is least valuable. “It may be difficult to know what role money will play in a post-[artificial general intelligence] world,” <a href="https://links.message.bloomberg.com/s/c/lKyYVMMtKd8DFyT4NQex_2wN6vPsKWnW24ZuJme1FKrbfLsYInTHRs9GwLXmyGeMqgPuoehR8hwQuX0LGam2KunIc_YjroxVku9Teof4mI10Bl_NBv5fy1op4IO2R_ACMobmmX1R9Q030ONLd4ciXbtTmNMOIrfK3NiPHr0fDz0DOnEkbPniOAHqwlc_X8Eqdjw1a6i5tFmaoSAuU8D7yv-yfKomS0BUUi2qiWXS8m8lGkb8qepJh70iihQj9GNqBLWk8bUweHML_sAb2BIpSViiQ6KNbpZ0vVE4-NqLpTbo2zcmx3zAhKgvPSuK8zUiA5cmIlK7AcyCrypnp9c6e2Jgy9dAhxO_NpgTvCXG1DWaljKYmCZkIn8IZ_0/Vz-ElKpjK6dJ1NjEdATXC2fzpVo60lrG/17" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">threatens OpenAI</a>. So, whatever, she’ll sell you the insurance for cheap. As I <a href="https://links.message.bloomberg.com/s/c/HmsGv3cd6yc3dTsn2OEMsc7lYyCDmqX-DryBdo6ZLT9T1WwArQ6tDWBC5u1zEJDc5kfNlAtyp5lBh_UJwgrppjBI3LLbSMioVTGPr8IfAtO8meGYq6XVKRqyf1OZvqQWBavHhB1tKoe1obEI7UUtXk_AVC7tg-lK958VZiE9TlxN1wsYDHiwQrjTciYfvVH1pS4ZgexxiWfGC8g6ppj13N14zzHIcTxn4C2G97Y5Mw0BMA3yxTHzNWuqE4JNeC0ApC6arlTWlwRKmTCOviSCP8Za4vcFl2fTQ35GvA7Xdxa69VxL7YC9JvV8puzoplxmXpdaDswZ-ZWNxX51zpX9GtzgqfpiteGiQL8dI2btqpwpJgblLPSNgt0Prp4/qbPhqrdQSmQUWxi6-wbSo05oyN1hDArx/17" 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;"> put it</a>, “I’d happily sell OpenAI insurance against the complete extinction of humanity for a million bucks. I’m not sure what insurance regulators would say about this.”</p> <p style="margin: 16px 0;">The solution to that last problem — insurance regulation — is catastrophe bonds. Instead of buying AI extinction insurance from insurance companies, which might not be able to sell it to you with a straight face, you buy it from the bond market, which would. You issue bonds that pay an interest rate of X basis points over Treasuries, but that don’t pay back their principal if AI enslaves or destroys humanity. What is X? On the traditional theory, it is high. On the folk theory, it is zero. </p> <p style="margin: 16px 0;">I am mostly kidding, and no one is really trying to buy or sell AI extinction insurance. But people do think a lot about, like, sub-extinction-level AI insurance, insurance against smaller and more realistic bad effects of AI. Here are Daniel Reti and Gabriel Weil on <a href="https://links.message.bloomberg.com/s/c/nFTq6xgtOzmp2zrgswFmA52OaIBIcPisl2aJXVxp43Hy9SO4qlMqnQE2lXYcIGmQ1X2fP7DkOgNGsg16jcaHkz_604GYjadM2-67br_RkNAt19z-soyg6X7CvW6eeVlrOmSbAdUAUQ7znywujH_0UWXyTLYckmwSQTpUUgP5Ok5VmBqLd_ZcEGiLsEM8KcAqhsWJV3hfWMp0iG3YvrSmqIVHYyUbQ6y5teP9YXrJM7-uILsDmB0JkMWs6es4JKY5T8Ovr0S2wYySfbbci-19KLg6nHgvPT2ku6q6O0IKwQLhC0N8iQ9X0I9pnrYkMOWFFZpfVtlebnOcbgcz1ZBRSAZzLA-aFXey_xtxDbpzy-RXFqEs0Np7CMev9uk/jdo-x8qwxpWbRHutA4gZfxXWMfCB4piN/17" 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 cat bonds</a>:</p> <blockquote> <p style="margin: 16px 0;">The market currently cannot provide liability insurance for extreme AI catastrophes. This is for two reasons. First, the process of underwriting, which involves assessing risk and setting insurance prices, requires a stable historical record of damages, which does not exist for a fast-moving, novel technology like AI. Second, the potential scale of harm caused in an AI catastrophe could exceed the capital of any single carrier and strain even the reinsurance sector....</p> <p style="margin: 16px 0;">Catastrophe bonds can fill the gap left by conventional insurance. As an alternative market-driven solution to liability insurance, we propose AI catastrophe bonds: a method of insurance tailored to cover a specific set of large-scale AI disasters, inspired by how the market insures against natural disasters. As well as offering coverage, our proposal would be structured to encourage higher safety standards, reducing the likelihood of all AI disasters. …</p> <p style="margin: 16px 0;">In technical terms, an AI developer would issue a cat bond through a type of legal entity called a special purpose vehicle (SPV). When investors purchase the bond, their funds are held as collateral inside the SPV (typically in safe, liquid assets). In normal times, the developer pays investors a “coupon,” which is economically analogous to an insurance premium. If a defined AI “catastrophe” trigger occurs (more on that below), some or all of the collateral is released to fund payouts, and investors absorb the loss.</p> <p style="margin: 16px 0;">Investors could buy AI cat bonds as part of a hedged strategy. It is worth noting one important difference between AI risks and the types of risks traditionally covered with cat bonds: correlation with market performance. Natural disasters are largely uncorrelated with the financial markets, making the cat bonds covering them more appealing to investors. On the other hand, an AI-related event severe enough to trigger a payout would probably prompt a sharp repricing of AI equities.</p> <p style="margin: 16px 0;">This effect means any losses would likely occur at a particularly bad time for investors, which might reduce appetite for AI cat bonds specifically. Yet it also opens the door to hedged strategies, such as earning interest from AI cat bonds while betting against tech stocks. In this sense, AI cat bonds would make the tail risk of AI tradeable for the first time.</p> </blockquote> <p style="margin: 16px 0;">Well, not the tail of the tail risk, but you know what they mean.</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;">Retail SpaceX</h2> </td> </tr> </table> <p style="margin: 16px 0;">It is approximately true that:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Institutional investors <a href="https://links.message.bloomberg.com/s/c/cep0bS1Gu6985oANT_ZemRTosgHziAsu2a2dnFmo1b9uZaimYGQ-2qKpz2bBDUA9DV7Yav0cX6PLeC-Exxu8FA7VHCKpW2va_ilGTwE3KW_pwjahgreu6MTW3kkAUS6u4ri9ASTzwLi2Olrz6s8JEejjJ-3Q8VrXJKUcYSAgm69cwsgmBsKTRuUB6HaMBm80ILiUHazvvAXE4jLfHLrkjsPs02YoxTmMkKgGtLswQy7sVUi44pOwtfRWEdurG6Gqw7qhsQ46Dz5tqRAFso8IB3NIgL-QMRvXV_a4XjEglCnT2ENodo6ehjvDeT56rV2tmbTBqFPw7M2m9jZAlFdlgUvghPu1rAKegNG5U9SoZlJ2mrEmNDauaZstJes/yHx1Qlc3j91B_Jv-nhEIQHvNb53_V6mw/17" 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;"> value SpaceX</a> at about $800 billion;</li> <li style="margin-bottom: 5px;">SpaceX would like to go public at a <a href="https://links.message.bloomberg.com/s/c/lwaRmdiL0d-1F4c3_8ZHyyYE4nrkpUYNryACMQhQTQpxEuNQ41nPSeRnz-lxaofCKhNZ17UZeEaDQi_Ppkzt8Ix644oWklfPw_sZWYXgxZtznTaQg7mQjX7uqMEGg3C7moSWWSwmLmZ1dfUOtzGaNnYjEHluSURGrTI-tSFHCjnHOaX9x3r1tV9LIvy4sFSv5dfaO4-3v7DTJFBrdO5tpVB8mtpYcuyjQKc6qIMWFJI6u9Cn0wwa4ujm464CnSZMmaGia1-ax38gTEPE8pKUGAS1fZXyT5tmx-dEtQ9OorDHbFL9jBRgVGXJWxP_pEoVwl9YliHw3YMSj69tqPosMii8cYoOvSDkpWzzytJlYNSpCI9gPOXsEsVL-lk/RBq-s1UUdZyDVSRQJGAZ2yolGw08zxJD/17" 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;">$1.5 trillion valuation</a> in a few months; and</li> <li style="margin-bottom: 5px;">Retail investors seem to want to buy SpaceX shares at roughly a 100% premium to what institutions pay.</li> </ol> <p style="margin: 16px 0;">That last point is not particularly rigorous. To a first approximation, retail investors <em>can’t </em>buy SpaceX shares; SpaceX is not a public company, only “accredited investors” can buy its shares, and even they don’t get offered SpaceX shares that much. But there are various ways to buy exposure to SpaceX shares — <a href="https://links.message.bloomberg.com/s/c/e3NxdvLCwbqANiTAyyFfDSefFQyaieby2kJdU9pzrHIBUXS6mIi7HRdNjLTM-BHBjx6zF15kCM2NJxIOnoJ1_Llu2WmO1kh-tK41Mn0CEBakxyASd6kNozoqj67a5_fbATGDWa-Yj-8q-APJVRvEbvKKwzKY6aAf5H5MVZ5NklJI0vMHueJuEujyyVCmnyDyXuyDGSYKHjZgfkFeku8ENI7PJJ-QUbpAw3v4m3SKF8N-0vnWkxDxvgjMcU0xHD1Y_rv6RyKCPUUFWPS9hRGQwUTFytyVDM-o9Z4JVOizPY-FBzY-AGx3jKgeOwSa143dDpC5O_WH05yOQkBZk2uuIsi_6IsfZW2AXb-wjd8W5_Fzb7gA9eRcOqd24Xg/kz_-tF0-IEx4rUdsBQxqhayPbmpB57nR/17" 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;">forwards</a>, <a href="https://links.message.bloomberg.com/s/c/LL_RLto565rV-Ang-l_EHiVw-oXHhDLMLlkwrgHz_GTlwa8rC4OEp5NTmX7GNulV-mDIKynPAJIbo9KcEsA3JngfudK2ws--RDMLIbG45sPJsJYtPG59qPhUySnbFk0CNjs32ZoW-FsbTJq0LH06C0FYjV_A5R5RANAAtY4W5dYgwLpOaDFwTzIIrp-oQkfUH-Q7kJj67iPljorD-COXsZ-oTHeZ316x24z7ZQb0shuIsOj-Iv2cT9IoxHTC8zob5myTBfbNL8NjE3LpK7BOyWaKmaWBM31X0kotDfDqSh8Socok9TTtCzErtrm3UvekdQ_lDpBgezEJTa4ACWyCj5CBBJMZ0AMaf0vfrbCr1oaEgGNjmClGtjRb77I/GNs9D0fZsb09bgWUcyP8ox6RBSOZB7fc/17" 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;"> tokens</a>, <a href="https://links.message.bloomberg.com/s/c/diaMSLdM6FJnsOlwTxbAOVQuMLhd9bU-e9N-z-2Z6cZ47fbKjgpCljgAF4ePSgtkUPDWkOi7a8rNVRZkbmTKoHPgbC-OoOxGQrm2pWn29h6Tn4WbGda7HOwZ0800-C1ikCH_AhuwVWSsVvJzLdTEMm8w3uBAdMl-HoAMb9HrZ7UynrRkhz7_C4oFxM4MMf1eZukW3jl73AJQgX8mg92UU8_t-krTpkkLknv9pYkTJQD29DgnlQE47lRHJfpKgVJfpGmvikAXLzFEzfSIeZnwAl-LZBPPXd5WfY0thgOI1HicCM3yhDqqAwtHZv_60H-H3ANGDRoXXfDX9X1cSikD8pjb3az7rciRCuH1YPtkiz4cSHTHXW8-zywJMQc/NMj5Xd2N-_lPWZw2C1lD9aDuOP9A-_dM/17" 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;"> special-purpose vehicles</a>, <a href="https://links.message.bloomberg.com/s/c/_OhTYucckfo3BeH8bWAWBrdYSIkdvkqeCnImhcSQtbul2QxIKLlrzTImh9r44_72-I2W9KT3b35CDBLb8V4hgYVePD1qWJ4tFkDf0JEjJD8qoCVHZ0GUPGITXVfnpCgNSY9Azdokae01AWoo_Pq9kZmzLsrNjasocIdmaAjgvKlnfjzlMKfzHH9Tb8rRAKXxxnrUc0HiOYyn0LjHOzPFs3pu0wlgGO-cMwrv7flV03Vty8gGad6xoQiqJdKASMfTkJpxXYGphipHvDeiniibLmY3Y3mc-8BYFAgBqTnbR-YEAadOAMThWCN-kin3A8UY2m9oaphpO4CHkX04AvkbK_ACddGrs8u0-GL_051nI_gcUxA_rhSFRtshFiE/ZbmUaHxABIp_AC8IQK-EacWIJ-ARWz6h/17" 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;"> funds that own SpaceX</a>, etc. — and we have discussed several of them that charge high fees and/or trade at huge premiums. Certainly <em>some </em>individual investors are buying some form of SpaceX exposure at twice the institutional price.</p> <p style="margin: 16px 0;">Probably the right way to explain this premium is as a <a href="https://links.message.bloomberg.com/s/c/AyKqsQ4eXbBUM6-CsOrrsre1zmxWifKZg-70j_7rxvAV-FjoGGPM8eTNi4m0ZvHOdtUUoi5TQLCzZ5OvIofqG0KkgBKKZ4qD5KpvKnPd8bxFqV_GggbVUht5UYmu1w14YSWtTJxcNcMlek7l8-BBCHwXf5KI8YiwOkCmp4jZBC523tq-CxVf8p-LfIQh_3odAFz2A-vgXaojMve5reoDBa0W-lpGeJQqT-IlhCHRLTk5JfjZeYE6Cz4WVB3MM1igZTLknA1qqvjPqiYjpMApZy_hvASoNqi9fuq99Rqoa2348fsx22rqBypeP6-DZURNqW8-ignx1d9owfx6FhfM1hVZiLXAysHCyOOGIeZKQzuKWnsJ2H7-K2tVI40/RClW63WDJgSLtvFpgZEJ8NHaQLJp9eBv/17" 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;"> matter</a> of <a href="https://links.message.bloomberg.com/s/c/LiB_2HD-MQJ9kRu1GyJWWTTbQ0Eb2YBDwpV-F3yAkXv9SilVbWLzMKoB7FNHZSCS11hP5GNzQVv02nWjWGAUCAV7Bf-UWDWX7FQoWnRuKYLeBXQPnq8DvJ5nzmNqVWyApFV4GsRCWqQZjitoBoORDM3k_PU9C20aBBOsS8_aLasHLTTgJFt6hcHCHmDjieOX6ZIwqOm-7svIEsncll6CFxJijVB-tyl0IFuf3nKKPwmifDe6uaozd7GkfsTnWnEoiEDtB6F6_KtXylXOBf_y9RwJNGaDJSiDg10UQeTT1z-xufXdQgZpGfqa9_WQUBaZ8ZUemjQMRhdSSTBZptXyPBpKyVm4wvPqN3wRkT3DNAwRrie6arNyVNBArI8/5Gkn6mE0skSWWS9Trlhl4vX87eGlsevT/17" 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;"> scarcity</a>: Institutional investors get <a href="https://links.message.bloomberg.com/s/c/4EXTeoQVS-INX8Un8rGSEZeOvsUvfoAnGHaQCYTopseA8zO_aXmYwmDP__HysnKcd8mVZ1b1UER4uqSL5l9Plorl11cK5y7tQUnUfcY_wbv68UmVRS2tUSxR5QlK8TekuOGly7NYHofyII8XynJfKUQNNYP0_xfsCFsF3ETxzzqBnkQxmTjIl2_Wfi2An75oh-H3-WIHEdfnk24HlUPxt8ks2KMEf9Alru1smEYj__yLebxYTaBbPWwqOTgIOUKpxIrfTwM54WJJneqnXxW2M542SK3yfSak50zXKDa4VlowhGzS7jXzqQM6MnDa3_DKcxOQ_JJTgImby58mBvNsIx6J3hAw_HU12tyou5aPsnCxyJfKgstz9ailDZw/uwVPEBwn51J33jtqDx4jRmW3FpzWIpdr/17" 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;">regular opportunities</a> to buy billions of dollars’ worth of SpaceX stock, while individuals mostly don’t, so the few individuals who do pay up for the privilege. If individuals could buy as much stock as they wanted, alongside institutions, in SpaceX’s occasional secondary share sales, probably the premium would go down.</p> <p style="margin: 16px 0;">Still it is at least <em>possible </em>that some of the explanation is about differing desires. Perhaps SpaceX’s institutional investors think “ah yes this is a great company whose future cash flows are worth about $800 billion,” while a giant mass of individual investors think “ooh Elon Musk is dreamy and I’d pay $1.6 trillion for that.” Tesla Inc., Musk’s public company, has a lot of enthusiastic retail shareholders, a history of selling stock <a href="https://links.message.bloomberg.com/s/c/FRlku2oXl3NLv-Gio-tKFNdeLDakKPBXvrnyC9nkWjHvd2nfk-kUbeY6kUokvZLXyB7IZaYNw8KFe6u4uUDxduunuvS1U2NJ_WWTDBWibih6nunsXr8lbhoZYZQObc-WOG3TzeDGqbFWSdpziK7IdPXnaY-HNtDGjDr9UjL3K_lmy1rrXrY7aOuwZWXY0yu7ef1H_6lOFydNffqyzNodo0EmJxi1ts1Y6VEDp6-WSrzmgAGf4uS7eyLqfoqrQsc5lDKCn6wLXWH4ChPt1PXMy_nRWQxbETMrSiAxxkbJCN1D_OyCLr1_gYyUIa57VeylSd1rWV5y2XeTcvqbxju3FgYH39L3DbmqliphvxuHErUrJx2zc_AOx0D4eQU/sVBILzwEJAxEI5tZDp2kUNcpNZLtu3gX/17" 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;"> directly to retail</a>, a $1.6 trillion valuation and, uh, some <a href="https://links.message.bloomberg.com/s/c/_-pImniT4s4IGZUV_IBMH0kTC80oR251nrsv0TNk28R_UjM5XIwfpjjqIfJLDnXVFNGWDGEHDIdwneKVIEqQOCFjpiefAHfzzz29rlSqt1Ly7wyEpyl1sUcWQ2qiZpdqiip6dvM1a6QpfgOuQOgT3oLmErwIw4GMpzT3VfLtYARi9yba2yX1-AGfaqF3m3kHFz7GBk9u8bQpZneH9WMm91XNFzabMUeuCyvZoNmGzWK_DdpiB7LIS5oXUpjFS236yHV3t3vq8xRlLqsZN7Qem0m5aG7oDmGG6y-wl0tSBNXzUVw9LUS6yFnCkm0CIQUMGakAMQ-NXWMxgkuSRsKBbPTmeedXtppGayExCMPlgt1hecZiDYG4rNNu6SI/0huxmMIz9Uh11PiCgUF4pVRHzsLAnoPF/17" 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;">meme</a>-<a href="https://links.message.bloomberg.com/s/c/JIsRNBasiDIDo2bH6vdI3mw7tEJugQQaoovs0gEQHMxjmWI7OXbko5jFYSZrt42wqp1uy2V9CVLrKjnXqWX8Zc7NTDtKDgj3eh7Ac9lYiE9QZWJPN-Qg8WKgcvTPfULj5B3DF2LBB2yjtXfDQXv7Fp8mNdPpK9qDoLO0RDKBOwGOTzXdm2N-tkP4lag44Y2QfDOQ7_eapXoRyt9V1TUB7ap6yc8Vao6erEDfN0cVsM8054RDRBHRd6a5byC11ocG1ArH0_W8Y9EQD4tix2l7bhotRoaVIPGidntcYDZ0Zk8MvJcWCjPJYW61swOOFNZ9oD5RQEbMcztB5-1KH8rXlQSDV8yEK6RWdaHnWRUGZhV0pc7lMBupQZf68X0/3CgU8dTfPF4DGaRB3xK_q8wiZKtZ9kee/17" 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;">adjacent</a> <a href="https://links.message.bloomberg.com/s/c/VrrtTv3Nc2h3lA-ijAuCWWhePlnH3zGeoSKj0umxYitHO9BTwG6twXFearMh4CR3ceAjf2Av6ycn606Olc5UWFat5nr09_7QAjZzZx7nMbEwMUwfCkXW3uHreIxKUU8n6I9TWeLe0MHOs_B5WB3vKWR6UsOYTJ-8WHqAxN8A5HsQBR5Ab1wEqIVhyLPfLqLCL2M-UGNqXv_EGbZgkBcKyaipAB3WktGGlSDX2SCIrIBec-hvGwCOFYWP2n06TeDIKL2JZ0Un2iiZfLeDoruxNPA3nOQxTvwgdeX4R3bwWdY8qhWwyPy3m_viQoG_6t9O_JBSB97AS5C763k9gWQx_4Ilg4WzjWEX_tUgz9mrgLI_QQovN1XZSkKBgXk/CJz8APpIJjsSvUxwrOJ4Rk8oT7XAHNTc/17" 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;"> vibes</a>. It’s <em>possible </em>that, if individuals could buy as much stock as they wanted in SpaceX’s occasional secondary shares, the clearing price of those sales would go up. </p> <p style="margin: 16px 0;">Crudely speaking, the traditional way to do an initial public offering is:</p> <ul style="list-style-type: disc; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">You sell stock to institutional investors at the price that clears the market for selling stock to institutional investors. (This is called the “IPO price.”)</li> <li style="margin-bottom: 5px;">The next day, the stock opens for trading, and some of those institutional investors turn around and sell stock to individual investors at the price that clears the market for selling stock to individual investors. This price is often <em>higher </em>than the IPO price, and the difference is called the “IPO pop.”</li> </ul> <p style="margin: 16px 0;">Again, this difference is <em>mostly </em>a <a href="https://links.message.bloomberg.com/s/c/4DSIW0nZdsxehdL9OMxDzfBRYyoCSEoSgi807RQs9YkuA1KQg5Y3AI0Hwv3qSCV0skRck47R0PFbCNIu9HUKrKDtNQBpM3kKb-3xZbZVsCmfaGBWsHBiFL7vmCPBX-R0QQpBAtnomz1uphzDo9oSiSkhFXIvk97brMsMqcHxrQvW_Mipx2fimxuyzCFdhtnWY-B1-msc9G0rXefW9eCm-EFN9i6oxfQrm2cSL6yFvSccrL-99wCMRqxYvYq2LypF6-AxYrylouSIZWQVcZKCygQVNAOxGD6VUt7XfbT3qF9ZtqksBTLhyypbA0xSWVIEhUNPtPA4uM1fu8z3d-SArNytvn9_-SXe_6x6ysDq8jT82cswy2G7EzBH0sk/wr0ukkoYRnkaP63yS6sRsM2ae08duUWl/17" 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;"> matter of scarcity</a>, but there are probably some cases where it’s a matter of differentiated investor interest. Some companies are more appealing to retail than to institutions. If those companies sell their stock to institutions at $420 per share, the institutions are going to turn around and sell it to retail at $840. So the companies might as well sell to retail themselves. </p> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/s/c/46XmEoNlWjqOkoVk15M4IURwyGLZ6lPB7G12oVb7nI1S0GS526Mq3Va8VjdTxz1p1OsUhTTAwdqLEmaYcgcugaoCQOOJeL4vC8T1jS4vKyJNgnSWcRyt-WPL5vTIiuKmJpZAHBn-Oh8LRAAXDZ4kZJfV_zBPHr_VD63RxzAn8ofxY3LRTyQDTF0zuwDi9YNrcenRyaTyxNKeooeo4sPXrLuMzDgTTGQpioEoFmhhrE4LAP5g7TpF4-rd4_cQdoNcpBqxpZIfR7UPj1aRMQEElQAF349qWV3l6V1EPOxI3YmHb7oGM9_Mi7iwKYP_fkGjIdceXv0jKzOGSYaU_3pHUMXvMmFBDuwpwx5PHGQbb_zoFatvU99K6tS1j_I/IM-VnsTT1WoJLzSqosVuHu9FJIcsnB3Z/17" 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;">Anyway</a>:</p> <blockquote> <p style="margin: 16px 0;">Robinhood Markets Inc., the upstart broker credited with getting young people hooked on trading, is vying for a key role in SpaceX’s blockbuster initial public offering, according to people familiar with the matter.</p> <p style="margin: 16px 0;">Robinhood is jockeying with several Wall Street banks to secure a big slug of coveted SpaceX stock to sell directly to its retail investors, said the people, who asked to not be identified because the details aren’t public. The company would likely offer the shares through its IPO Access platform, which lets users buy stock at the IPO price, before they trade on the open market.</p> <p style="margin: 16px 0;">Elon Musk’s rocket and satellite company is considering earmarking a significant portion of the shares for retail investors, the people said.</p> </blockquote> <p style="margin: 16px 0;">It would be weird not to.</p> <p style="margin: 16px 0;">Incidentally. I write sometimes that the meme stock numbers are 69 and 420. Recently, when I write that, <a href="https://links.message.bloomberg.com/s/c/TL6ChNJfkU5fCfkvBQ0jWpxWSj5Scec995NRKImNAINE80ReHZ8IPM6VLWA_IcjEWb5tgQolbO-2afBVudBz5bcO9cYqFBNfh3eNG3jF9RDoVDte3Kr2A0NaREp49w0F51cLuXZ6F6pWLRjQ9Zboz2-FDRl2Muee6Fg2h8z4b6nyfR78Ggb0mqG-MZ3GS9q3edJxSKudcFojx_KouetPy2Uk45vBat-yXIOj9yKND5UZUQS_HU_ubXEwfiaoG9EVYI8rC6jed_JW0fHvCFV8yQYza2MssoRsY96lNw-QARE749Tw6cX3uBNtetxoJ2ZMsjAgvFyPKcA-ms9XymRtKYbmBoXQwTKIs5LbiSKZ-7s5F-qiAdGmsxoiqDA/ctXkygnHI227dQRL6lZSXXN4BxBG2IFE/17" 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 get emails saying</a> “no it’s 6 7.” As a father of young children, I am keenly aware that “6 7” is the most important meme number for young children.<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> (Though also: 41.) Is it the most important meme number for adults trading stocks on their phones? I am not sure yet. Yesterday we <a href="https://links.message.bloomberg.com/s/c/v8d2CKKFe-K4LpLFWU3EbBaPttF26JpkrmcmPdjPRdVMRv5Nmv3Eoxa6zMTy1OxluCnsxnXmd2tCEjnXospjR1HSoJ73geLwIDjLo476UaJRvUrU-htdE6G9_7meQtfG80mmwbAwAwS4XKnXwJkxaFMfRIFPs9Lt7dMfswyEu_SRa-QxXVRyebFHsghL9chC8piaCJcOrzK84y3I_NjoWndbZRUnWVBk0-Pb4ZrleWdlDvl3n9NUf6b4OsamcgGrCj0_tLMHkkvXHnhuSeflZMtiXt5M4SupSTW-XDj8D3hUn6MWYI68emx8TJ0eCky2m3fbIRaMmoW1TNMYPAaAS7vbc01ksKFxaQYyWz4TrKx3fHkpm6Awh5WzyBw/rg4b5VaKo5RGXRmwEdSEnx0Jg7PPCcN2/17" 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 reports</a> that SpaceX might try to do its IPO on June 8 or 9, because Jupiter and Venus will be aligned with each other on those days. Or, I submit to you, because June 9 is 6/9. If you’re trying to maximize retail interest, doing the IPO on 6/9 couldn’t hurt. June 7 is 6/7, though. We could see a real regime shift in meme finance if SpaceX goes public on 6/7. I guess we won’t because this year it’s a Sunday, oh well. Still, if you are investing based on meme numerology, you might have to start putting 6 7 in your models.</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;">Finance clubs</h2> </td> </tr> </table> <p style="margin: 16px 0;">I was a classics major in college, focused on reading Greek and Latin poetry. Somewhat later, I became an investment banker. That was a thing that people used to do. You treated college as a sort of luxury consumption good, you read some poetry, you had some fun, you lazed about on the quad, you graduated, you were like “ugh job I guess,” and you got a job. Some kinds of jobs (doctor) were only available to people who spent long years studying the relevant subject matter. Most kinds of jobs, though, were open to bright hard-working young people with good general educations and a willingness to learn on the job. Investment banking, in my day, was a job like that. “How hard could it be to learn how to build Excel models,” people reasonably asked. In fact, people who treated college as a luxury consumption good were in certain ways <em>more</em> appealing to investment banks. I once heard that the Harvard major whose students were most likely to be rich 20 years after graduation was art history. I have no idea if this is true and can find no evidence for it, but doesn’t it sound like it <em>should </em>be true?</p> <p style="margin: 16px 0;">This all shaped my view that finance is an essentially humanistic profession, that the study of the financial markets is the study of human behavior, that the essential quality of a derivative structure or tax strategy is its <em>aesthetic beauty</em>, that finance is a proper subject for art criticism. I think that view is … right … and that many of the people who do best in the financial industry have broad curiosity and a certain sense of whimsy, not just really good Excel skills. But perhaps this is a bias resulting from my personal history. Perhaps, in fact, the best way to populate the financial industry is to take the 16-year-olds who show the most aptitude for Excel and put them through a rigorous single-minded eight-year training program that makes them really, really, really, really, really good at Excel. Perhaps more specialization is always good.</p> <p style="margin: 16px 0;">At the Financial Times, Sujeet Indap, who is about my age, <a href="https://links.message.bloomberg.com/s/c/hharCq9cTzceqJ3OGALMWixAQZyz2mdvYFtY90-sqVffHfc2QxVG_1gWOS6V9frFb5oZe8ZHpjBNSoWzi7V7sRvrCLdDpdxPOyUDa3drOKzc8-TlHUH6VGFvvHEOssBehSkLyRvD7j0uSqFFTs8SwCNKVVGYPNN9y9RgoQGbJx5xPFviYypHj8jCxT8TTwLHNJkx2r4YCrn836Shrx5_Oj7LHyvvYV8uF7OzUDIOWOO68FiKCDclYczYT1g4ysWHQXcixxmcjSOXt9qgNfvFCUq9laOtnG4ys83pyg4ojEf_l6sIY4Jnmla40pnSEa-jFCUfuillzUJgUt-yAViGDhIp5nP3Qj2oKal9hCrwxqlemDM5S_vSUERpxaw/sKWFtu7aLdL33PoVk11ntVAnfO4C4Xk0/17" 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;">writes about college finance clubs</a>, and the increasingly strict and early process for finance recruitment:</p> <blockquote> <p style="margin: 16px 0;">The finance rat race used to be less frenzied. More than 25 years ago, when I was a college student, I recall music majors stumbling upon the career centre during their senior year and landing at McKinsey. When I decided to go into investment banking, I did not need to do much until late into my third year of college. My dad took me to buy a cheap suit for a handful of summer internship interviews, none of which proved successful. But I had no trouble securing an offer when most students got their entry-level job: senior year with graduation just a few months away.</p> <p style="margin: 16px 0;">The timing has now shifted far earlier. Wall Street banks typically fill summer internship slots during students’ second year of college, more than a year before they take place. Those interns will account for nearly all the full-time trainees starting two years later.</p> <p style="margin: 16px 0;">The system forces nervous students to get their ducks in a row essentially from the moment they set foot on campus.</p> <p style="margin: 16px 0;">With this in mind, virtually all big public and private universities now offer professionally focused finance clubs that help students prepare for careers on Wall Street. First years often seek places in these clubs within weeks of moving into their dormitory rooms.</p> <p style="margin: 16px 0;">The funnelling begins with the club selection, a process largely supervised by the students themselves. George, the Wharton student who did not want to use his full name in case it put him at a disadvantage with potential employers, says those throwing their weight around on campus are increasingly not athletes or star scholars but second and third-year students who have secured prestige internships.</p> </blockquote> <p style="margin: 16px 0;">Honestly I want to watch a <em>Pitch Perfect</em>-style movie about college finance clubs? I sometimes think that this all tends to <em>lower </em>the prestige of financial employers. I <a href="https://links.message.bloomberg.com/s/c/epNIbZRu8zlo8_QpSfK1_uSU87Fe-mAE6hLFSz6lfqJh_9Mtkss4Anb6t_8XLeS7Fio69pVptZdU93YouAY74mdR-a9x4HjK1ucBWCRvaL-oMP6akmEYtHcPH2IgnZUUgTlt5eVZiN3W0x-t_zHEGtmP-UMo586xUeRsEa6rniPw1Y-9K55C0vJjKiqvfMKESRPHnd7v4WG1BziZ-1U7NpGNG0rWoZv7ht9b_0peKnQILH8gHUAMDoJnfTcAdWnUhJs6MlGUqYCAzzU0vaoH9zEMAORygsRRAfgb4FsJCsL8FDTTYNi8e-Bivf6DXTzJi3ZCMrt-WbY6YPbFey2TNYFzsbIPQSdCstURO96J9V4iO8jiAjMzQeEG7Ak/zotBG3or86UcrR_BCNnPPhzXglN5KZ3P/17" 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 in 2018</a>:</p> <blockquote><p style="margin: 16px 0;">If you run a major investment bank, you want that bank to be the first choice of smart people everywhere, to beat out Google for engineers and NASA for physicists and law school for poets. It is nice to be around a group of smart people with diverse interests, but it is also validating. If you can pick from the best of everyone, that means that you are the best of everything. You are an institution, a part of elite culture, a training ground for powerful people. If you’re just hiring investment bankers, you’re just an investment bank. It’s just a job.</p></blockquote> <p style="margin: 16px 0;">If the only people who work in finance are people who have pursued that goal single-mindedly since they were 16, the pool will be less diverse, and maybe less fun.</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;">Wall Street’s Stamp of Legitimacy Fuels Suspected <a href="https://links.message.bloomberg.com/s/c/xgPeqE3jgoj1bAp-o9bfyodntkuU3uK7n2_Pv047XOH-eqTkHHW0RT39BxDUGmgVsCujqZtnEQThaw2UbxZvFPmxdlo5NThSHJUBSQvjWak9K_gSxdF-V9-wVaBRwonRk4rSQs2QPh697BCUiOKKZuLCb79NfMCG08SOC2LWbPeDRBKzZE6t-9bVi4cHFieZ3CBoXFJBMIb0laelw3hHyvK3e19cywcPvJouNmniiwTvCsMra5YnB7U-paQvTh0AVEIdvcH4EPkE4Er8cu0TW64BsXMlWRBip5kIKFWZKmbtHBGR4nJeJ82h3aBqAiz0_YemBg-Z5FxaHEgI4Jk8r2U_j0C0MaJOhIvvrc_-RiYkQOto2TtcF10ANfw/xDH_VvxiXudC1nSjMbUmcsL29isqw0LE/17" 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;"> Pump-and-Dump Schemes</a>. TikTok Star <a href="https://links.message.bloomberg.com/s/c/nedI3rC4VA1ebOuXL1xPmxOjJvXNGzPi-lHUJzdpA602APqrBc2e5ragv0AfNlK1UsQ5w5WlL9FxvAcwjNuAgWHHXE_cjbtFL1yOw6KHQVOXSQQ5VeLzc8MnNk0fmdDQ83IEVRC6ngP9ES0kp-UVwtbQGHcIvCXPPReUq0HR_ScoZi2SMwWlbShQDqZAG7RX4R4eYOjRtRrOFqcRADTP3uFS7x3XZ0C8KQIdSSsVFSV5jURDHp1IGQs2_BjPJCxmKw38QD5oPw8qlLcZpZp__bowuyftSmni0fhtBvPf51Z3Isd0XqP0IMFYoFk_P0j2VA64F87EDrgyLPiWUC9Jbj97Arb-COlVOr6f62bVeSjbQkwd5M8bic-gyvo/AodAXSpsAzM1DAELtXgm3TnKq8axCk7B/17" 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;"> Khaby Lame Signs $975 Million Deal</a> to Monetize Global Fan Base. Zuckerberg, Musk <a href="https://links.message.bloomberg.com/s/c/GFpb4pRxUzEHTKF8cVaaaFk4n483zQG7y-hAMC3B7kqEr9jnpmrfXlONKP3t2fGUb8a8jouHJCt3SoRygeqG7bn9xxgQgbYylM4_tEiU99JgYfDUCBFl1ZXgfxTBWi8a2qZS3Mh0NbXO0kts43psq6H98bhBCyI0ABqVf-s5VccUeE0_Ays3_12LyY6KR7Qcht_PQfz0iGuvaNORJQ1Rh2RaopjmfVNxIsBW77UM8gDc51DNkFDmCxvcHivMZz5vCvszNpwY-nlrCQLVvrYZYt87VH7EA-sdWzzYS2hz-c00cTBTqJglIS1a3YcLpa3ATdqJ-hpF-prjySjUg1dhoconoArkelUoSD7VoJYpAWwRxuQKlbfufS8htxM/zHiiysYjHblaDcdcQc1aV1ECu5cl9-3b/17" 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;"> Vie for AI Supremacy</a> With $155 Billion Splurge. Meta Overshadows Microsoft by Showing <a href="https://links.message.bloomberg.com/s/c/11Rb-OX7QqbGZhaRj6IbG5DliEQuFM4mX9pCvbTn-vm_bsZD82wCZI3goxKwopfBZk51gfCUzohbmiDsS47ayGBSDOcMThdbqLyhkX83fCRiRvqwiRejEbFnucClFk4sevTwr1wh__En2cWAZGfKmASsr7iQKWf8rWD0fh16CfrVGzhutF9eiNru_G8TPq_KUrTSnQOMXGhTgyFCfbA2JIDL7yevvsC1_3MX0bccMGuOPSxoeYP_36ZpXAtFyYVC4F5uZ5vM8clvZxBBQ2Ms-1iEnzzP02d3wziJ96mu0YExudM3KVpRo2MFTsbkfwuTUpdJWjXRrxu68hpvlXtfGVsZtXbj8NQObJ61l2S6q5fEDdPkdgwHOgXoTSg/e_IQbqQ2dNSO4hJPwpBbE3TKJZjyf52D/17" 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 Payoff in Ad Business</a>. Blackstone lines up ‘one of largest <a href="https://links.message.bloomberg.com/s/c/wwY4DtIzdJ9OpN6etwFmeYi29DUK6vosqhjdEHuN04Dc-GF-AU0iK61soxHHiycOdII_cnwCJCJqK42AbU-j6puX7q4ddhQvoYqwxgzBy05-1gvT0ByMy3Sk5WA0hPMwaaVp5_2atDH89Gom9w5o9LwfuWiNViOanCSYCo5PzqvLr_rplZ5SXjblB1SOGvLB2HdrKOeRoQMWXWTEQ2P8yN1oxQDMmoaAXHU2CDJ4BQ_mnmThs37rwQPTpF3_pLBn67n5LvZMfWs2XD1y7WQYsF_XaGx1NtZBXdWFF6JQbSZfF6IxpCqx5Xsa0Jz9g6cWzPeCrbRo8gW_j8LyEtN0gDHTMdaJLpI9lTF5sspIFieytnlU0YlRlsIZdhM/oYiLYS0gpKyeqZF6Ai7jfvDL_FXusTiE/17" 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;">IPO pipelines</a> in history.’ Barry Diller Told Warner Discovery He Is Interested in <a href="https://links.message.bloomberg.com/s/c/Xt_wHXZqVaLs1acn_sPuUCWGXyfTGgtDnWz0jkinYRHrnjuQtGrC0MwHGgU6tj7pKBfj8mxdQL5NYwxhGHZp2Va1H3QF6pBs59-yCkH7dEdRPONmK3tpFzxD41xdLWs318Kq6tsLOXqLdW7otTzHfo0wG2GhWWVTL_uy6Sp9wN6LOg83wIw9f-TN5f9cZfeTsTZ8Gej9ChPDFx_yOB2H5nq9pzEiWTL-lw4Yv3vfVSV62QUrikf6nZ-KR5M9XySPkyrEX63ImOJNHJcxZXd_orJUR-aM-soO-pjDWTr2A8jb4pEVqIoxjzwg1X8pmyjc6mblFyxIZzteHRTPE37xHVg4ZKPOqxdvKZpMyU98YO1b58pCxbVn-n0dfFc/y5BrT5CYiXucb8IVi8bIA42eyxv2_gQF/17" 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;">Buying CNN</a>. Brent Crude Hits $70 a Barrel as Trump <a href="https://links.message.bloomberg.com/s/c/ftdi2xOBP0i6PSDNzI-vTgoZMVb5VodlmntdFz1-8eWma1qfN5cwBtBHCcE1UnqMFtZkkQhKcpkq-QYc4XsRCBT3oBsoGWrn832vpq2wbbAIbtViaBkAx27CSGynQWUAz_m6m4Yg6PZGUyUFMU6_0Q0QLEStfIMEOpb6SWEhFfqOwxS-hoZKVAh08PF489A264hezd9eOIUFzkFNKLdfNHHuzaI5E0MkxIIbf9ekFRJOlEOC1kv0TLqohVBXJ_sNhhPFzyKF0FMF7THan3k--jLSHi9cueh4-ZLOhRwMhLVV3MJHEi6-ozX8-l7F_RuAGl02MTOwCqlooTwG5dycRPj7KT-GsYRNWqph5YaPShUIvhr0XKCQUdpuLHg/wRNS7p0LpN8Z4xRSNQ_dM3R7tBsOpvV0/17" 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;"> Ramps Up Iran Threats</a>. <a href="https://links.message.bloomberg.com/s/c/9V_Ikoett7zbq-TvolnnskY8U0nlVrTMkzr1GVDhh0I8Yfl__i4-0iCtPsGDegCBDrT2HhMgsdy2hAA5ZFj2AL6K8-D6L-5f7v_hYdSNr5rpnQjmueHIUkFDR3edRyM94mRTSqgEnCk7hV_bfsp8LZQVxPOyTI8ncsQC2_s31-Y1MApdOfr7r0YBxCIh3Fplv8HZuEywwOp_smt17MDenI4GBwps4PmimzhK1yaWkFPZX_YmbgPN49YxIKAK15qj0YeEDp-SPihw0LVa6n_endVgNX7hyWOWiCJsCb9eEl1gkr3KWrXZavJeC-94qgPxT1-ZadDdWQG23dEVG6l1NZWMMAVL7clunlGllUKf0ZptxJTNmIxciu-PSPs/4_hb7kWHisPCtwt00Hnj7uOJ2lMscTYw/17" 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;">AMC</a> Agrees on Amendment With Creditors to Clear Refinancing Path. How the Son of Iran’s Supreme Leader Built a <a href="https://links.message.bloomberg.com/s/c/HZaCjz7alQY3BGdOgAAsStcDf3fOENMAT_oCh8BvV27YxORmr_Dv92FiO16qyJKc7zPP1kY1ZzNQO1-1Hw8Z2cJ1FQlffTn14nYspGco8UHwioYl6GQKOJZ3k3FUkxtLZdSo785ExSrWi4UH2KYHAsBTVAy_U43ED0zCmq0WEg8hMs3rchyxJV6NxY7vcmiH1PBMj70oB3NqvM9vhYAWTjVlB5UWC3s9HzAQU7Vw7meWaRuc1TtJs4jU2-udRGnARATzfvOgyrE8CPvUIeEcBVpPH9P24anxHQaiP-vh9Kz9eS6N-jD08wZXQhGm2GC_m2vAQKxzSbw9bQAj4-d4n9LsUP3EkBTXKXVZFkZ7zUL_2fO4tBu7C_w5dMU/ifYRo-AOWeha94f0d6Yh7cECeQrfOqx_/17" 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;"> Global Property Empire</a>. Lululemon <a href="https://links.message.bloomberg.com/s/c/br7TIC0HOnvZvZgBympIuYaV0N3_tZU-A9_h6EI4udM5l9GEZ93_nE5dxR-WN_ZIf-h1l559xGOQYC8AoZY-6nRaC-LZWAn3fO0OrpfgVnu57elfE9ygaNf-mga8Cx6BvS87nB2Zf-utZwA0vPlENj5NDbhDerreC-p-MeWPYAk3xJDCO2HNpawWt8kTDUAqTbTJmrK7_PDM2dglXnzxlKsmzHqdAOUL3EPkTMPaq5mYrXbdTK9p2WztWqN958vJ8xyBOf6O6In7hu5yFOSpIjWNMp3LRauEOMZgMWLQ99M9-eIFQ4CDrpa_Zc0DpESaePbm0WDRs0M4vIwN7ldoCmITf82D5Br5jkgiTfuvR0koFUa3weV8_HrJrME/gCt-sOlrFCj1S0yiFEujgIFyTANpgRJd/17" 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;"> Blames Customers Again</a> After See-Through Tights Fiasco. First Brands Lenders Weigh Scrapping Firm After a <a href="https://links.message.bloomberg.com/s/c/sU1Mixtj8noqR0tqeus9LUfyFwENSqOhHEDgItRvOcYQFnlAw7zmTI1booZDCpV1TImqwh51nkIG7K9COQ3S5FZlfYq_0AUKs5EOByVNneKUZyUceM9svaKie5_PPo5tCUBpznWIyIQfkvRChl1Egnem7wXv3IFFq7zWQIPJ1o46CcwZWNn0IQGqMSPK1sLusXz2LGb8-Q-NpKnaPwCLz5WghQWEcPCpe0YwisbofkL_dQ0gv0PdINhguIG3GKlBGIHl-Atw8SE4I464CEhRm8mPcjcFnbbRzpNYhaLXuQDAzQpSXxoaBLSgarHVZ-ZQbO9m_MjB6nYK9zWJ43ovop9DmBEq_i1d5NMf08ALW7nBZiuqg4to9N4B0SM/d81CvFImBGsFI_WK28W7ETDYExuZLfWr/17" 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;"> Cleveland Trip</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/DYluzwOM_oL-k5b16tjeDGSMRr4koz1YX_d8NI8KMzy6ccAOutFFx1p5QhkfDmfj34oe_Dg8dBK-YHviCxpZpJlqXmw2apB6lQ-CfextgYaMfczfHFjNUn31swG2FO7TNYjKfwpAhIlc92IUf6ojvuxfyhJSqSjz-Z7LAEs4cljsUeWB8xm1pwVJqzY2K1GW2aIGXN2UGgA3Out-PeJH5fHbJWXZYkWOK3CFmyezgtTx1eul-1O0Qm7SEX71uMOEDt0LBaOiMsxadxsKzYXKhCVG6RiwuYcQU0unY-SCXo1RdQjrQal1oRNLa9fG-ZIusKAOtJinyP3oRKFdMtlcGueu7cBY1P4WLviigE5n-VmfHj5qxmfkJVEFqZQ/awtM-Ok5qDLdwyN3w_fQEUg9C2dhk-Ix/17" 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/gLUtK1U7kjzNmSm36I8c9YmfCBBPMTgOpSLGPjVoUN1VnBjZxVyE7MLMiB8uRm8iPpZLuIJAz1QZGQVRnTpYhXUxgGh9BbMiPYiSUiYruRgCqcoqMAYP4ifc5vdc-OdJ336M99kx6yvlHhfLalkdMiXLDWlscyNL4ZIGfxgFp9V8elIQUglE3ah5N0oszzLOKklaMLJ1WeGzOVEWjimqGB8S9G0Tq6cwuOoIeDf1B0Ylx-1tkoP7mpdE6HiSsz24wjtawg1e3_jdjy4hA3YyEtCjC6IuEu622ySUmT201r_ZMBrvc1EQoXfiajCPWVeT_eGggxyXQK0oTaSYw5DPshnJSlvww7s_1H5b03cFL55uYj28w2tT7xtsCug/d_r1UKZhsgWHH16cuiaAGkf8kppo-QaO/17" 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] One of my kids plays in an elementary school recreational basketball league with a team called the 67ers, which I think is pretty good?</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/UPvTOtZPBxxKicxoFkDRva3L-J1cw9j7LE-_emn7EBt4RZ4Y2iGqpeX6gKFhoYbp3zSbZlckZkCGWIzilY-ZdjzIymwxigYan3tjyUnZGNkSGFL-oz1a81T-S3TNfWXEHEvwrsHugRgUiYFD3PV8Hb4wy44nn6pK24XxTaHyuiBiVXJG-Raim1mdWKveGlT4Id8NbwCGxw-xgvqgOljGCC4p8rSqPO1EkUvhAuLV8TnxzK5UfOqvfvx4dqpLMn3tZ42bLVShZLqisFuEph1qUbdlejfln5_cfFjVXTrRfsjwPYfDhvY9iFWHe5I5RgkgKPlUUbjRgtoltB0ijQ_5qiXInZ476OF9XRVH3PYlvZ701tD9Xt1xn6TPq8o/a4PHRs1URRQ0pfF8K95MiX2ynDTBsx2z/17" 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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  5. Banking Brief: Bye, bye OpenAI

    Thu, 29 Jan 2026 18:44:41 -0000

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padding:0 !important; font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word"> <div id="preview_text" style="display:none;font-size:1px;color:#FFFFFF;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;" lang="en">Data-driven insights on how banks are adopting AI ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ &nbsp; 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color:#222a43; word-break:break-word; text-align:center; padding:10px 20px 0px; font-size:0px"> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg3hKBlW7Y8-PT6lZ3kLW1WtfX29b6s35W1yx1Wp5rBjfmW6dSG1V2DQjgHW41kQvH7XpRYyN1GDXRhVGDszW8NWYW332k1wFW2Hw_zN347CYXW1Lg25h1R9g2-W5p5Wb967Z-vkW8VzdPF7ymQZ_W51xsHl7lrKF_N14gZVB38_LBW7BNFZ_9ljtH6W5dP4hm4PPJ8fW7J9R3M7vr_phN4yy0DQ6ZsXQW6fTNhb2nxRsQW1QVtvm5h6bV9W13lx369d6XTFVJ1gPg8q4JppW5QzdJt4C1RMrW3JJblx5ZfrN9W5XsmNS8xBTh5N79pC_zVjxBSW5F2vbp2x9rmNW8lHr7z7yC-3-f21r3Cx04" target="_blank" style="color:#00a4bd" data-hs-link-id="0" data-hs-link-id-v2="OjWyeBGS"> <img alt="hsheader1_290126" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/hsheader1_290126.png?width=1120&amp;upscale=true&amp;name=hsheader1_290126.png" style="outline:none; text-decoration:none; border:none; max-width:100%; font-size:16px; border-radius:1%" width="560" align="middle"> </a> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:3px 20px 16px"><div id="hs_cos_wrapper_module-3-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-3-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:12px; line-height:115%">Source: Adobe Firefly<br><br></p> <h3 style="margin:0; font-size:15px; line-height:115%"><span style="font-family: Helvetica, Arial, sans-serif; color: #000000; font-size: 18px;">TODAY'S BRIEF</span></h3> <div style="line-height:150%" aria-label="Leave comment"> <div style="line-height:150%"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="content-module" data-onboarding="content-module"> <div style="line-height:150%" data-test-id="element-mouse-events-handler"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="module-module-3-0-1" data-module-wrapper="true"> <div style="line-height:150%" data-test="overlayHtml"> <div style="line-height:150%"> <div style="line-height:150%" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;">January 29, 2026<br><br></span><span style="color: #000000; font-family: Georgia, serif;"><em>Hi Roger,</em></span></p> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="font-size: 18px; font-family: Georgia, serif; color: #000000;"><em>Welcome back to the Banking Brief! This week: OpenAI is beginning the year on the back foot. A payments company cracks the general purpose agent. And our last big ideas column explores why AI legends are betting on "world models." Plus, bonus season has brought promotions and shakeups to AI teams across the banking sector. </em></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="font-size: 18px; font-family: Georgia, serif; color: #000000;"><em>People mentioned in this edition: </em><strong><em>Dario Amodei,</em></strong><strong><em> Sarah Friar, Dhanji R. Prasanna, Fei-Fei Li, Demis Hassabis, Yann LeCun, Faraz Shafiq, Saul Van Beurden, Charles Holive, Peter P. Petrianni, Francesco Maria Delle Fave, Iain Long, Ethan Mollick</em></strong><em> and </em><strong><em>Richard Fairbank.</em></strong></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;"><em>This edition is<span style="font-weight: bold;"> 1,620</span></em><em><span style="color: #000000;"><span style="font-weight: bold;">&nbsp;words</span>, a <span style="font-weight: bold;">5&nbsp;minute read</span>.</span> <span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg3hKBlW7Y8-PT6lZ3ktW4L6c4Y5wy56mMprm17WXPL_N9jh9Z5M3fQHN3cMvD_Pq6JjVTzqsm6LBdqLW39C6n41gfBkqW69lDJ14NXP-zN4m-9BhCr1W4MQs8sP2H7WRN3Q-SHGxMfxFW8rrl7D2RcNbpW7PYrdY8Yfb3gW870lbk6TX-lSW3xbBB57VgB0GW1m05j_3Qh0QlW2CqZ_P7fRwNRW86xhsZ7tlF0dW81cQ0N8kj8ctW8jZq615hS-_mW8BtX2639m90CW3gK9NS8NTZdlW2x0MjH6FDqMMVh3Fdl7xl-L2W7WBJWp2J5kvLV1hnVV7x7VQ4W4gyK747Z2_R_f3fhMgn04" rel="noopener" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="ptnMrUlz" target="_blank"><em>Check it out online</em></a></span>. <span style="color: #000000;">If you were forwarded the Brief, </span></em><span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-3hKBlW7lCdLW6lZ3kHW3MR8np30ptqVW4xZCnh1nZFjzVdZhj726tTcvW7BqkNq6gVr9pW4m0vXH77CHbYN6QSkL0kP5bzW7b0Zlj97-jJ1W5DP9s36jv4rTVthzQv7DXzD9W8Tn9vf29Kr01W96kfnw4qRMtJN3DS5x4kfXF0V754S12sytjfW93KsMl33Yw8_W7wQxdQ4jfZTDW1jvLVw4wL4gyN3VrpvR9K7-YVVQyty3FT6KGW6RCpbW4jx-wKW8l0qx24kQl94W58r80r6w8d8MW6lzY806FY_bhVYRFdZ5qSP5zW4GxX_y2lvl--f2ktBqs04" style="color:#f4854f; font-style:normal" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="j0yx1Vi3" target="_blank"><em>you can subscribe here</em></a></span><em><span style="color: #000000;">. We always want to hear from you at</span> <a href="mailto:thebrief@evidentinsights.com" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="tJjfnY3u" target="_blank"><em>thebrief@evidentinsights.com</em></a>.</em></span></p> <p style="text-align:right; font-weight:normal; line-height:150%; font-size:18px" align="right"><span style="font-family: Georgia, serif;"><em><span style="color: #1f2a44;"><br>– Alexandra Mousavizadeh &amp; Annabel Ayles</span></em></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17678606542433" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17617492146231" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="trend-lines" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/trend-lines.png?width=120&amp;upscale=true&amp;name=trend-lines.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 0px"><div id="hs_cos_wrapper_module-4-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-4-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>TREND LINES</strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>SAM GETS SQUEEZED</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="color: #000000;">Since the Gen AI boom started some three years ago, banks have been the bellwether for AI adoption by business. The way they’re acting now could spell more bad news for <span style="font-weight: bold;">OpenAI</span> in 2026.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">A year and a half ago, the ChatGPT-maker built the technology of choice for roughly half of the use cases that included vendor information announced by the 50 banks we track in the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-3hKBlW7lCdLW6lZ3pvW2TVqSy1tlk2yVX7Bt57PcYjXTRFBk3QVb5sW6776WZ5tpGVlW3KSb1n66YSQGW7_MjLB4F0yPFW7znS3g6Y-yPHW75w3__3W8bvDW894RXl4PZ2YWN2kHLKTfn1MgW6flBf-57fzV2W8YpDYK4xv6BfW2_LJg352FJ4yW8v0nLG2KVCVhN4-Z-3cktCwGW218hCP22KxZKW3bYCNY3GP3yTW8vRWWb7BQ0_BW9b8dYX63XTJMW85WYwN5n5ZslW8DwbTS3g_T6sW75tf3B3wnk4lW1HG-dR3zsqGwN3SW-nrvDdxmf736CW004" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="FGyyCIjT" target="_blank">Evident AI Index</a><span style="color: #000000;">. By the end of 2025, that dropped to just one-third, according to the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-3hKBlW7lCdLW6lZ3mfN8Fhl62NhRWqW6_0K8C4HYD5zW1TccZ923ND_zW41lNPd2PNh62W6546vb1Sk4djW38cSXZ1sWb1-W4_vH9B1_wZHMW2_tjN-4sBycnW7NB-PB4rKYZJW53LKw87TpmpvW8PXSk89lgzKbVgr4FK5Ffm1jVYmnLZ5Mq8M_W60RSQR1rN0jPN3FFZxqW5-29W3HGppb8ysK22W8ZJyr22rqhk4W2ydgVp2-bQm5W1bWzcB7FtWrzW5yWvGD5m_TrrW41nd7X8QSzVFVXjtkP6Hc7d1N89Zs41cQJZGW3XYnX87WpZqJf4pCYYx04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="wKYlFrjN" target="_blank">Evident Use Case Tracker</a>.</p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">OpenAI would have you believe this is the byproduct of the sector’s push for model agnosticism. But bankers we’ve spoken to in recent months tell a different story: OpenAI isn’t the only lab building what enterprises actually need right now, and competitors like <span style="font-weight: bold;">Anthropic</span> and <span style="font-weight: bold;">Google</span> are quickly gaining market share.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="font-size:15px; line-height:125%; font-weight:normal"><span style="color: #000000;"><strong>GPTEETHING ISSUES</strong></span></p> <p style="font-size:15px; line-height:125%; font-weight:normal"><span style="color: #000000;">Of bank use cases that included vendor information, the share featuring OpenAI dropped from more than half to one-third in 18 months.</span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17690792541101" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:0px 20px; font-size:0px"> <img alt="usecaseshare_290126" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/usecaseshare_290126.png?width=1120&amp;upscale=true&amp;name=usecaseshare_290126.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 20px 10px"><div id="hs_cos_wrapper_module_17696766291882" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17696766291882_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><div style="line-height:150%; font-size:18px"> <p style="font-size:12px; line-height:150%"><em><span style="color: #000000;">Source: Evident Use Case Tracker | </span></em><em><span style="color: #000000;">Note: Includes only AI use cases at the 50 banks we track that reference specific vendors</span></em></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">Start with coding, arguably banking’s first “killer use case,” and one of the only areas where more than half of the tools in our Use Case Tracker demonstrate tangible ROI. On code generation and review,</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jT3qn9qW95jsWP6lZ3n4W29zwjc6vsRPkW63jjYn3tvq_SN3h_g1hlb8yBW5y_SwP87mNK4W3blNng68Vmd9W3JX2Nt1F2pjhW1RXQG92Wyp0SW5kJPDb6fVWFKW1PhjHC7cS4xRW541_7l7nPdt_W81kl9Q46p4hHW8r-xRv7pvM3BW6jVDtm8R7qS_W3ZH6hc6NB9V9W5yw58F5gw3mjW29ZJD63nxtP8V4lmBL7Q2N5TW8mH3_g7wwMHgW4Xtpjs8V-m8pW6tRxhd1NL5NdW1YcHCT7QLLQMW84qF2L1m1NVQW29J3_272JDp3W4KH83P5s_jdyW5vyQyy6-TLfQW3YWjj36xSHKzW7txGL14Jl5Q9W7hnYN65WHsGCW8ZB1d89hLLWVVrcwxt1x7-H8f2GN8Kn04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="fvOLNaV3" target="_blank">experts say</a> <span style="color: #000000;">Anthropic is at the top of the class. The</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h45nXHCW5BWr2F6lZ3msW7KwTy47VNnlsVQ47NG1WxHKCW6r9tvj6nYCd5W4N3mK71ptBVbN5F-j1DrZXf3W3MRXnZ22qtg8W8dRR124bt7rdW1SQRCX1p5ZJ_W17kTW41CCT-LW5bbpBw3gPm7wW6W_GgQ6CXsKkN3VcwGmHv3vgW9bB8jW1Pyck6W4Gx4PN17CVVdW7DqMHK973ZXXW1y_6mn87jbljW7zBvB91wNNFTW1LPz6b7WjNJKW4m160B1ZxLsHW2Bl8_g2kSgHDV2TmYd6rDwZjW422vnt8jTz9wW5knfNJ3K4FcfW3N8HhB84y---W2PWMNk5Yrj91W1k1pht2sHkKKW4sgykk1y1DdDW7J1Pw73g03PVN7Fdg6wdq8D5W5bZCW84McclwW1_hfnX55BJGfW15bCbl43c4vcW7yHkmT3qmf81W9cpqFl7J2qDQf7rsRXP04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="xVmvMuJP" target="_blank">fanfare around Claude Code</a> <span style="color: #000000;">in recent months suggests the public agrees. Google, meanwhile, is using its preexisting cloud relationships to give banks access to tools that can then get integrated into their systems more easily, as <strong>BNY </strong>demonstrated last month by bringing Gemini Enterprise together with its AI platform, Eliza.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">You’re seeing defections from OpenAI beyond banking. Last month, <strong>Menlo Ventures</strong> (which has a financial stake in Anthropic) </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0gP5nXHCW50kH_H6lZ3lqW9jlqtk667fs9N95yyVjHWXgDW7flKS-3JP_tMW2g35Qg8SpwJNW3n5hfZ8W1GglVT3Rc22pRq90W7Z89-B1z597tW132L6-76vhgSN23C0Y3MqTlxW4JTCnZ2KH1kHW2VfSVg5pkndyW1g8rlF2g2kp4W1fZLL38hl1nCW6qM0Rd8pQ0fHW54HYqz4cyrBcW6z36k25zFK8FW4RNxQR6M79_dW5PzKT744FWzlW6JwjtT8yDd9sW9j58YN92Gt9dW4czks64v_JMlN2KHDFlh43qTW5bjLW-5Sz6GHW2DSNkV8wrqcfVhBQ0K7p42SkW19ClGM4KCzL1VfNzq43wc24mW1Sjrsz3sCgBXW6frZ4M85lFJmW1fc3Y86S1PvrVkrjwz8gbdnnW2_4Xq348z1Fff2zF2zn04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="9/StrRgS" target="_blank">published data</a> <span style="color: #000000;">showing that 40% of enterprise workloads were now going to Anthropic models, compared to 27% for OpenAI and 21% for Google. A year ago, OpenAI<strong> </strong>still had the market share lead, the venture firm’s data shows. Rivals' growth with the corporates is paying off: At Davos last week, Anthropic CEO <strong>Dario Amodei</strong> said his company</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jT3qn9qW95jsWP6lZ3nnW3JDx-h2SPJ45W6nwnyJ8q_vYYW2pK1Xs21ZNpCN3r7ll_cZR2_W1nK8xh3C7kCYW3f2-wJ57JWmyW8ntZVL5jbMsYW5B5yg34YhmJwW3S94G9408GP0W1CG4tj84_QnqVSgZ-T8tP43DW5d4hx119DGr9VYQlS_5xhvdxW2Cbcql1yXTxyW937mfF3q6NysN5dFSjX79thSW3ygVWx4JnVz3W1VsMwL8Bq94QW7J1bPJ7SrzGBW37xCTC3t0Xv0W7H64yv6KcPfbW98h8nw8PQG4rW2qM6vh3QDg00W2215kb5YcBK8W57VDDm8C2TX3W4n7rMG5HSFP3VkYcL92WBcqfW4RGJYd5zwcmQW1jZlBD56GkVyN3x3MWGjTlB7f8ZH2vR04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="+cyTg4vu" target="_blank">now gets</a> <span style="color: #000000;">80% of its business from enterprise customers, compared to OpenAI’s 40%. OpenAI did not respond to a request for comment.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">“Growth does not move in a perfectly smooth line,” OpenAI’s CFO </span><strong><span style="color: #000000;">Sarah Friar</span></strong><span style="color: #000000;"> </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0gP5nXHCW50kH_H6lZ3kXW3NTy6g3HHcDtVkGzJz5h8Yb3W8xFXtw95wf5zW7QcxT02nm2J5W1tcCxK8zGb_kW6DWWKw8-HDvfW1098lw6H2v3XN55CZCM-WJ5HVRp-wv9l_s8FN9hKp9htr7G9W59cddl3hrGk3W34yxrw3NxNpkW8DdfqR8GN4wSW4pXlT34txtxSW7wRgMk1bD1_3W5RMd8R2FNjLTW52NG-66P-ZqRW3ss_Bn3_R-2dW7NbF5B66MDWcW93C3l27r6NwMN3-mLB9nMX-6W6W_tRg3V0xGTW1WTjyw8gTTdYW1wZ-y48yqGJcW6ZpQ504dQS-vW5DM1hx3cGP_vW544XqW6Q_BzZW8sFJX55lmJDyW6q7ypt9jZhjpW2L7vHW2PZrtvW1V-svw7Mjr4BW8qQJ9j5jcJG7f7849lW04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="d1r2H1wi" target="_blank">said recently</a><span style="color: #000000;">. With how much competition there is now,&nbsp; she’s right. But if OpenAI continues losing ground, keeping that line pointing in the right direction will depend on the lab proving how much value its tech can create with each bank it works with.</span></span></p> </div></div></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1749644496936" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#F0F8FF; padding-bottom:15px; padding-top:15px" bgcolor="#F0F8FF"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#F0F8FF"> <tr style="background-color:#F0F8FF;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:15px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1749644496936_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_17690725323883" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; 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font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17696768628773_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>COMING SOON: EVIDENT AI INDEX | PAYMENTS</strong></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">On 25 February, we will be launching the Evident AI Index for Payments - an unrivalled benchmark of AI maturity across leading payment networks and processors in North America and Europe.</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">Built on 60+ indicators across Talent, Innovation, Leadership, and Transparency, the Index provides an independent, data-driven view of how providers are adopting AI across their organizations.</span></p></div></div></td></tr></tbody></table> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17696769236024" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="border-collapse:separate!important"> <tbody><tr> <td align="center" valign="middle" bgcolor="#f4854f" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; border-radius:25px; cursor:auto; background-color:#f4854f; mso-padding-alt:12px 18px"> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-3hKBlW7lCdLW6lZ3n8N71LPN0pPqBXW28jznP75jLH_N1gmPKP36HLdW4kyqtS1qc1ZPW2LkVM948CQ6rW1-wKJ63wGnZcW8Xk6W55WPzrxW7L2MC83wTVzdW6mPm3Q61QFXNW4djxyj3qRjVcW27PRQw5_KtglW7h5T1g2N-sS9W5J2xRM1xc0MvW80QrdM7QjY_VW7p4vYG8x7XF9W3_4Bvv4vDtwQW7Y7P7z90xGSBW9ccjPy8bb2smW9bB2l67jJWpvV8fGHw1Qq2pyW386k652-J8FDW8Ptf5k585Js1W2Dwh4T3wKDLvW7yHbFz3qLXJFf8JQ6_F04" target="_blank" style="color:#00a4bd; font-size:18px; font-family:Arial, sans-serif; Margin:0; text-transform:none; text-decoration:none; padding:12px 18px; display:block" data-hs-link-id="0" data-hs-link-id-v2="u+iNY9Ok"> <strong style="color:#ffffff;font-weight:normal;text-decoration:none;font-style:normal;">Find out more</strong> </a> </td> </tr> </tbody></table></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1756987234667" class="hse-section hse-section-last" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#ffffff; padding-bottom:10px; padding-top:15px" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:10px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1756987234667_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_176606165121434" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="misc-usecases" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/misc-usecases.png?width=120&amp;upscale=true&amp;name=misc-usecases.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 20px"><div id="hs_cos_wrapper_module_176606165238835" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176606165238835_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%; text-align:left" align="left"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>USE CASE CORNER</strong></span></h2> <p style="font-size:28px; line-height:125%; text-align:left" align="left"><span style="color: #000000;"><strong>TALK TO ME, GOOSE</strong></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;"><span style="color: #000000;">Two weeks ago, we called general enterprise agents one of 2026’s “Big Ideas” because figuring out how to get agents to move beyond the engineering team is how financial services companies can start to unlock the tech’s full value (see: </span><em><span style="color: #000000;">“</span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jz3hKBlW8wLKSR6lZ3ldW24MM501h0TqvW7NVsWP8QWdFHW6CGM7X8C_kl9VjSQxr7Yfy1BVkV6cW6Dkq4VW8qnYrk3K9fQNW5KpsQ020j2K0W1WHh1Z7h9khlW7wxtbs6ggKPtW1H1XBP4chTDnW7_88p41vCLlBW3Dl3MS6FmHJTW7hTPm59hXRp9W7BCy944fsC0dW2mkNwq69Bl-JW2QT1m41dBJJjW7D7GVt2F2DRBW6RX8BP53HZ6WN3sRS0T5v_dGW8lzMlw9bSkLbW16Bp_N8yFn5GW7qHlHL216v9LW42yw8n3CckkMW5h2TyQ3QWRz3W6KZLH71bFzlhW8V56034jlCx0W18Tj5x6-JwNPW6RBlkt69M8MGf5k2Tlx04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="C13MUyWU" target="_blank"><em>Talk to my agent</em></a><em><span style="color: #000000;">,” The Brief, Jan. 15</span></em><span style="color: #000000;">). In this week’s “Corner” we look at how payments company </span><strong><span style="color: #000000;">Block</span></strong><span style="color: #000000;"> built an agent called Goose (yes, named for Top Gun) that’s already acting as a time-saving wingman for various teams across the firm.</span><span style="color: #000000;"><br></span></span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;"><span style="font-weight: bold;">Use Case: </span><span style="font-weight: normal;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0gP5nXHCW50kH_H6lZ3pKN78QTRGV95_nV5NSWd7yN23GW1hr4_X6YGBkpVZSYLL2Bdd5BW5_NQHd6wYh76MjZt9RRhqBKW5gl1hS2-sRvHW6Y2dQ2995PD6W2NygMB985R6fN9cgXXbZpJsFN2Q-SNWl0dpxVf5tN565J-0LW16_rzh8lGgrsW5qGTvp1ZWJ86N2cgFXFf__QQN3D1JX8FjVpGW3mz-CW18tCwyW4H-BZw3Szn2_W3Fqyxf3l_FHDW7N6DQm2pmxVLN2LrJ08C9dn0W3RfG2Q5Dpg4DW8XPlTQ3m8nW9W1cCzpW8-R72tW8zZbsZ1QLxLkVRhfQb1Z8xj6W7FtN8M69lvGcN538TrcjQTK6W73_jY88H31NcW8pG2Px8sqzwsW6w-pMf7NZcl1W6GyrJ71xN467f7Hc-HW04" style="color:#f4854f; font-weight:normal" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="raK6ZeMt" target="_blank">Goose</a></span></span></span></p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;"><span style="font-weight: bold;">Vendor:</span> <span style="font-weight: normal;">N/a</span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal"><span style="color: #000000;"><span style="font-weight: bold;">Firm: </span>Block</span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:normal"><span style="color: #000000;"><span style="font-weight: bold;">Why it’s interesting:</span> Goose is an open-source AI agent that Block employees use to help with coding, research and everyday work tasks within a single interface. Its secret sauce is the autonomy the firm built into it, allowing it to determine how to handle more complex questions and tasks and take action on its own, said CTO <span style="font-weight: bold;">Dhanji R. Prasanna</span>. “All of these LLMs are sitting idle overnight and on weekends while humans aren’t there,” he added. “They should be trying to build in anticipation of what we want.”</span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;"><span style="font-size: 18px;">How it works: <span style="font-weight: normal;">“Think of it as a desktop tool or a program that you can download and install on your computer and then it has a UI,” said Prasanna. Employees can write to it like a chatbot and Goose determines which models to tap, which enterprise apps it needs to access and handles requests in the background. If asked to create a marketing report, it will “connect to Snowflake and Tableau and Looker, so it’ll write SQL to pull out data from there, it’ll do some analysis and a CSV so it can write Python code on your desktop to do all that,” said Prasanna. “It will generate some graphs using some JavaScript charting library that it knows about. And then finally, it’ll put this all into a PDF or Google Doc or whatever and it can even email it for you or upload it somewhere.”</span></span></span></p> <p style="font-size:18px; line-height:150%; font-weight:bold">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;"><span style="font-size: 18px;"><span style="font-weight: normal;"><span style="color: #000000; font-weight: normal;"><spanstyle="font-weight: bold;">By the numbers: </span>Teams using Goose are saving “about eight to 10 hours per week,” Prasanna said. That spans support teams, legal teams and risk teams, Prasanna said.</span></span></span></span></p> <p style="font-size:18px; line-height:150%; font-weight:bold">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;"><span style="font-size: 18px;"><span style="color: #000000; font-weight: normal;"><span style="font-weight: bold;">Bigger picture: </span><span style="font-size: 18px;"><span style="color: #000000;">What Block is doing with Goose is showing up inside banks, too. </span><span style="color: #000000; font-weight: bold;">CommBank</span><span style="color: #000000;">’s </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hH5nXHCW6N1X8z6lZ3kvW3h9_BX1GDrh9W3HVQSv36WZl4W1fdQfy4n_x6_W3xLDW44r8GJdW18zck93vHgNCW1vkyj-5KGW3SW72XY795CQV89W3jn-hf55YQp6W6hRvhd4yZVlJW7TkYHG6m5BdpW3tsjC77KjGtNW6wsSw_3958CfW71SK123v2D2LW5-w3cG11tWCVW60-45r4f5GQ4W6mjNKm3HjPBHN1LCPqJbRb31W8nN1q66Gb2vNV64sn04-wzYVW6zTlZg6zFsg4W2hYffs3vqwK9W2yQnQY2YK7QTW1F8wd81GtnpYW7-2rnB44QJfbW8-PrJN4XLgSJW1qWVBv4fR4yhW1Ygkr01XqHjVW7hPKmy86DX8qW1QYfP55qJZMNVKyyz-90VkkFW6yNPtJ4Gl4GwW95WRyH4P4vK2W8v_08R208P3KW3hrRL76P2rv5W51jWmG3CB2z9VDxJbh4hDmYGN17JJqjqyft9W3hs3lh1ZqJvvf7tJ1Vb04" style="color:#f4854f; font-weight:normal" data-hs-link-id="0" data-hs-link-id-v2="WxhYvHTS" target="_blank">Project Coral</a><span style="color: #000000;"> is a useful parallel: an internal, model-agnostic agentic framework that automates engineering work, from diagnosing issues to proposing code fixes, with humans in the loop. </span></span></span></span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176968045782216" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176484676200811" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="notably-quotable" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/notably-quotable.png?width=120&amp;upscale=true&amp;name=notably-quotable.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176243037280124" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176243037280124_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">NOTABLY QUOTABLE</span></p> <p style="font-size:18px; line-height:125%; font-weight:bold">&nbsp;</p> <p style="font-size:22px; line-height:150%"><span style="color: #767e96;"><em>“Enterprises often have a choice between ‘cost savings’ (doing the same thing with fewer people) and ‘innovation’ (doing more with the same number of people). The market will inevitably produce both eventually, and any competitive AI company will have to serve some of both, but there may be some room to steer companies towards innovation when possible, and it may buy us some time.”</em></span></p> <p style="text-align:right; font-size:18px; line-height:150%" align="right">&nbsp;</p> <p style="text-align:right; font-size:18px; line-height:150%" align="right"><span style="color: #000000;"><em>–&nbsp;</em></span><span style="color: #000000;">Dario Amodei, CEO at Anthropic, in his essay </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0gP5nXHCW50kH_H6lZ3kYVTZ6kd244_BMW3nmK1y813VXbW1g66hM1m_fCjW8hcm8f7Rr2mWW7vyMbk6pxXKGN94tNzHqgJDNW3r0d162h23GJW6t3WTy4FYVkbVTJJKR5hS4xsW6S5j901Ryr0zW52-y1n1lxJWhW90RPb57-769tW5Z97_C4pd8HZW6BHMBH4YJLlFW8kXhV44fn95wW5gjT1M2VGzZsW69h92Y8tfVP7VWfNvq2lkJ-mW1ws7kJ21G72GVPjRk84XKLWKW8zSRMK2CDzS-W57-bjZ1DGrw6W53-FDr7BBQ-SW8tQFzn7Qbrm4N6KpG68ty_HpW5VyrZf3Cm3n9VyKPPK4fT1TDW6hcqVf7RPb9ZW8Y-bD-4MC6-SW9hZ9n97-zpfMW3hNz_G6xZxdvW6wkv4n6xHt5Hf3XNqcg04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="bi8xa34q" target="_blank">“The Adolescence of Technology,”</a><span style="color: #000000;"> Jan. 26</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176484789143714" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17690715453351" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="top-of-the-news (2)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/top-of-the-news%20(2).png?width=120&amp;upscale=true&amp;name=top-of-the-news%20(2).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 0px"><div id="hs_cos_wrapper_module_17690715475192" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17690715475192_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">EARNINGS SEASON</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>AI-R TIME</strong></span></p> <p style="line-height:150%; font-size:16px">&nbsp;</p> <p style="line-height:125%; font-size:15px; font-weight:bold"><span style="color: #000000;">DULCET TONES</span></p> <p style="line-height:125%; font-size:15px; font-weight:normal"><span style="color: #000000;"><span style="color: #000000;">The share of time during banks’ earnings calls dedicated to AI this quarter grew 40% compared to last quarter.</span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17696764591881" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:0px 20px 10px; font-size:0px"> <img alt="earningsshare_290126" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/earningsshare_290126.png?width=1120&amp;upscale=true&amp;name=earningsshare_290126.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 20px 10px"><div id="hs_cos_wrapper_module_17690792704132" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17690792704132_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:12px; line-height:150%"><span style="color: #000000;"><em>Source: Quartr, Evident analysis | </em></span><span style="color: #000000;"><em>Note: Includes 20 banks reporting Q4 earnings through Jan. 28&nbsp;</em></span></p> <p style="font-size:12px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:normal"><span style="color: #000000;">Not even the prospect of a credit card interest-rate cap could knock the technology off the investor docket this month, our analysis of 20 call transcripts shows. In our first edition of the year, <span style="font-weight: bold;">TD Cowen</span>&nbsp;analyst <span style="font-weight: bold;">Steven Alexopoulos</span> told us CEOs may shy away from AI talk as they worked out how to address the labor force (see: <span style="font-style: italic;">“</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jz3hKBlW8wLKSR6lZ3lmN4cjXZFnMJTCW2Zff425P8fVMN60T8VG5qrZ_W4W3pN320RV43W58DWN-9lDRsHW1T5SBn8KyjHvW3pkgpx5z7GMjW6bJQbj4L3T-sW2qF4fm7gLzgKW4f_GZr64cYlRW1YH8-k6nkdG8W24sNMd2yCNQLW54hCwZ4M2kf1W8Q_-Mn8XWcqnW5sWQqT3stkVyN2V7258shQtYW3_h5qh2WS7d1W25SZwv6CV30BW6h7qBf8ysqJGN6rmykLnllWlW6zFDF14DS9clW4mpXmr8f5cznW46kcMc4XvMBMN2F2PGhrMlHHN91r901yh_mCN2hTf3fhSz0MW4z3B9-7dcm8HW24SMy96mpBSTf9bsvBg04" style="color:#f4854f; font-style:italic" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="MfnhiXqR" target="_blank">Earnings preview</a><span style="font-style: italic;">,”</span><em> The Brief, Jan. 8</em>). He and fellow analysts made sure that didn’t happen: Roughly two-thirds of the AI conversation in this quarter’s calls so far has come from the Q&amp;A portion rather than the prepared remarks.</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176786301161015" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17684860697389" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="in-the-news" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/in-the-news.png?width=120&amp;upscale=true&amp;name=in-the-news.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 15px"><div id="hs_cos_wrapper_module_17678619795908" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17678619795908_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">IN THE NEWS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>STRONG BUY</strong></span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;"><span style="font-size: 18px;"><strong><span style="color: #000000;">Capital One</span></strong><span style="color: #000000;"> </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hn5nXHCW69t95C6lZ3pSW5hqCnP3zpcKWW1XfLQH8MmVwjW1XfDzc2P_2p5W7HCH882JmLkFW31_NDn208tjWW6ytgJ58RMx09W23yx3j1HFt4yW4HFbJt4xwvPZW84m4tH8C7CryW28V2Zl7_Y_4-N4tPw_x-34c5W5M_DmJ5rjRXYVvLvSM4YCRtxW87vQQy3VPN-pVWXYsz946khFW7KpbBz8z75XxW32x-hv84y-NhW2j71h91tWN4cW6gb0366c7yRYW7DgnY141H3g8W66fVkz6CqScmW2CWzRl338dWWN4-yKhknd10CW155wn14XtVnmW3VR_bB3V3FtTW7b-8265vzcZQW2X969G44XvBJW8Z_T2M5HfVL1V71r9t8Dh-khW38BF-h73xGcHW57PHzg8K6fjDN3FXvq7gs2R_W2rdZj58r1-nyW5GbYfj1PCjpgW39_Lrz4bGy-vW4kgy4y80QpQ4f5Hdz-j04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="MB1pvN8+" target="_blank">is buying</a><span style="color: #000000;"> </span><strong><span style="color: #000000;">Brex</span></strong><span style="color: #000000;">, a fintech that issues corporate cards and sells expense-management software, for $5.15 billion – less than half of its peak valuation in 2022. It’s an enterprise yin to the consumer-centric yang of last year’s </span><strong><span style="color: #000000;">Discover</span></strong><span style="color: #000000;"> acquisition. And it has an AI upside: The company “built and deployed their own in-house AI agents for expense management and audit and are on the way to procurement, payments and accounting agents,”</span><strong><span style="color: #000000;"> Capital One</span></strong><span style="color: #000000;"> CEO</span><strong><span style="color: #000000;"> Richard Fairbank</span></strong><span style="color: #000000;"> </span>said<span style="color: #000000;"> during earnings last week.</span></span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;"><span style="font-size: 18px;"><span style="color: #000000;"><span style="font-weight: bold;">Lloyds</span> generated £50 million of value from Gen AI in 2025 from 50 use cases in production, the bank <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hH5nXHCW6N1X8z6lZ3m5W6Y84sq8kBtRtW4dH5WV11l9_mW8n0zm25d6PC2W6vXMTt8g6lPXW7cGcSW4MGbj7W3-ldbk5_R1VgW24Tqtm5byjHqW214KHy8vpjdwW2klqSl94ZsRcW6NJdFP3QCNnFW8VKq1Y8hc5J8W7cXqYJ6bYML5W2KGYYT6QyWkBW4g9Vc42cbghRW3g9z_75ZCSQ_W2QyjBM6d4H1_W4h1yv36CGHF3W8lHbkj15N1KYMTg6h6D36ktN2VQKfWysXyQW7YCVk32fYkQJW1mM5Yv28lg2zW7HWk-V1H7zT_MtPl9D7_k1HN6J0BnmSgl64W2p1hn04F8hDQW1D8k4t69PhB_N2CXlnZY6mypW3S1ZPm77_d4lW9g0dc73P7bwVW1T9Bhh1vwrCCW22p62v1HJPYKN12fp8XSLFJTW2LffHX6kYqvgW1pvkjd6fd8n1W4b_MFh7TMGL3W222Dft1F9K1lW8dVp6C6tzBvsf3H86XY04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="hN0AP056" target="_blank">announced</a> during earnings Thursday morning. In 2026, it expects that number to rise to £100 million.</span></span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">It was a big week for Chinese AI firms aiming to preempt the </span><span style="font-size: 18px;">expected release</span><span style="color: #000000;"> of </span><strong><span style="color: #000000;">DeepSeek</span></strong><span style="color: #000000;">’s new model: </span><strong><span style="color: #000000;">Alibaba </span></strong><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jz3qn9qW8wLKSR6lZ3lrV5ND-29dMDghW2Hg29b4fQ4_dW4XJ1jM2ZxMxyW4B5pmf3dPw0-W7RqdDw2kRVqCW197mkY5MSy_XW8gZhNj4t6GQlW1v2W1h59cgTXW2BVtkl3GX0K_W8TnQrQ4XTZjSW3xHHyy4RZYvDW1xM-0H5RJkVWVR_prf6GMm99W3pQc-C47HzR5W5BZ-xt8B2Qv5W5BcN063rFZf-W7RpzqN7y0-WhW7vjY_W12c45LW8V5N4F2bJBXKVbP6sP8S17TPVpJphf4xpyP4W4pCw4M2ggSKSW5h8ryT7f5-Q9W2_1gMz1JqHwyVSsjcb6z7vMSN5lT1_zFNjBYW32ngfQ7vPW1QW8y_9FJ83HKgHf13RS8d04" style="color:#f4854f; font-size:11px" data-hs-link-id="0" data-hs-link-id-v2="CHWqtXWR" target="_blank"><span style="font-size: 18px;">rolled out</span></a><span style="color: #000000;"> Qwen3-Max-Thinking, the latest update to its reasoning model, which “thinks” similarly to how </span><strong><span style="color: #000000;">OpenAI</span></strong><span style="color: #000000;">’s GPT-5-Pro or Gemini Deep Think do – without being locked behind a hefty paywall. And </span><strong><span style="color: #000000;">Moonshot AI</span></strong><span style="color: #000000;"> </span><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hn5nXHCW69t95C6lZ3pwW7L-nVd64G6KnN3hDtWysf9t6W2CMXPN3QhjScV_y8yF3Wr_ysW9dP5jW80Qg1-W1XnJZ28F5tKjN5wBK76J1Z30W7qyvvY5Y_L0kVj76MQ7MMYV6W2YfX236_0ZsFW2D_wL41xm6m7W2CnDPR1q_YF2W4CgsjP5cW4SMW6THVlp3m2jcLW5B-skY4dkXXvW5VzXbh17CvdvVdVC1z32HXy6W9c4sF-4nXtmlW7bTRrz6GXTwfW1S0tZl6PCh3HW2xbn_r4CydD8W3NDqW676p8mnW5qS42Q85sWznW6Jpx3d32cm5mW2PQrl-3KjplNW596-py4nzkvgW59RHtQ4bFqPMW2LJQKH7PqsrKW3qHkhc8YjpcpW5vr8FP2nqP3WW72Vnxd1vT1NWW4x5ygv1kJWJ1W7G2QX-31blMbW7HVdnm2nv13CW51SZMs1fS7bQW1mMcfj7vLsjYf6bW5N604" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="ZwZjLiWB" target="_blank">launched</a></span><span style="color: #000000;"> Kimi K2.5, a model it says spins up “agent swarms” – the in-vogue terminology for teams of agents that work together to tackle complex tasks. These kinds of multi-agent swarms are critical as AI gets trusted to handle bigger and longer-running tasks, but </span><strong><span style="color: #000000;">Ethan Mollick </span></strong><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hH5bYhvW6N1X8z6lZ3l9W44fH586knx91W5Br0rL77c2thW4cZD4J7jsG60W78NmGH2qCL5ZW5ZWCJB1G9CJDW82ngbV22cm8hVjLFcp2ttX75VJ6b-J3Vr9TZW3lPQzT6R-BDZW77QfLY2wYTghW6kf3CS1pFnTJN2sW8kk7YhrbW92m2y06Qc1yXW85y4hh3mbqM0W93bwMv5jBDkvN7Rh_8V6HMxSN87p8Ryv4NVrW5xDnL71_DpLYW2KvHQG8ZzmV2W4g0C4c3N1pqFV6LmxD8brYc6VZLxSM3y06F8W6wvCTW6KDwD-VH6d3M57nzVCW6J9vnj5NbWJQN8Zj6xMkw_wmN1GHfkvbw1XlV9M7kT6yH08RW8mWsrV2nnhyQW4sH7nh8W_lbnW2D16XX4K2kT6N26KTyPjPyQyW1G6ldl209g_KN2z7ML-kRTwpW4BnFjP1kMb9PW5KjPrd4LnYDJW4QrhX_25DkVPW6p1nSs1VjSj8f6JjBl804" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="dwxUrm5V" target="_blank">has one note</a>:</span><span style="color: #000000;"> ditch the “terrifying” name.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;"><span style="color: #000000;">Neobank </span><strong><span style="color: #000000;">Revolut </span></strong><span style="color: #f4854f;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg3qn9qW7Y8-PT6lZ3nsW4H9N8t7_mJHPW7CNlZc8bLyf5W2hvK3h1kMmNwW8lRnLP1B9R4WW6ZZxtx2b3DcqVt0PNf7m6cmcF4lvmQL_GFpW7xqWMr1bQM0sW34XkJn85v043W6D34MQ31kLT1W3QtLk1618rYhN6jltWM7b5bxV5lMxl2myzJ1W3-DfxC6fzCsgW3QzRcD49GqsVW72PVsv6nkvyVW5-Sv6f4Z70YPW7xXCLr1cjN0BW7HP8pD7WTGyNW6r-4f66TjJcqW1M2bkw3Sr86nW2j4LJ656D4STW4hD5Hx6CfmNDW4dzDb-8n5v59W8tZWzn3dYtkgW5wBVPb8n__PBf1smJP804" style="color:#f4854f" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="yV0P0/e9" target="_blank"><span style="font-weight: normal;">partnered with</span></a></span><span style="color: #000000;">&nbsp;</span><strong><span style="color: #000000;">Eleven Labs</span></strong><span style="color: #000000;"> to use the startup’s voice AI tools in customer support across 30 different languages. In the pilot, the firms reported cutting the time to resolution by a factor of eight. It comes in the same week that Revolut </span><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hn5nXHCW69t95C6lZ3kDW8KqJ659kbc_rVPQF1c993nFnW1GTB569b8y1HVBLs7X3rkj44W74nmSs2d-BF3W7fGtvm610l3KW51J7SV4jJZlBW1JFyDc4dbS_pVpLMpG7Djkp1W39-p2S8MSzzpW5QtBjF5Y0dyfW1DR9682NJf8yW1ZfKpD84LNBZVk_7_h4lkl66W5ZQ1Xd8CHzGcW7Rzbtz1RHVBzV-Fpf31bx7jwW36XyD49lnzxnW2dkbBD8V4nS2N7LM56BByRjYW2PBp7G1ygj-HW7vHRlw1FsN--W4D2pzb4-zxl0W1s2xd93j8pShW5vcvYS165MkrW9dPLR-6-RR9qW3_Pgkm4wfhzfW43lJg646V4zrW7xnbJ85vcsbgVxpjN55fjhvDW3v6Yv36b_Jp8W4gd6pD3fjF5YW72fY297G7424W5vg9qt2ljy2MVDGQkn2rKjPhW3w3vrq1sRtwwdg4dDv04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="VNXm3J+o" target="_blank">launched in Mexico</a></span><span style="color: #000000;">, its first expansion beyond Europe.</span></span></span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176967914083914" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:15px 20px; font-size:0px"> <a href="mailto:%20partnerships@evidentinsights.com" target="_blank" style="color:#00a4bd" data-hs-link-id="0" data-hs-link-id-v2="/neIQTnl"> <img alt="logo3" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/logo3.png?width=1120&amp;upscale=true&amp;name=logo3.png" style="outline:none; text-decoration:none; border:none; max-width:100%; font-size:16px" width="560" align="middle"> </a> </td> </tr> </tbody> </table></div> <div id="hs_cos_wrapper_module_17678618473054" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:15px 20px 10px; font-size:0px"> <img alt="big-ideas" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/big-ideas.png?width=120&amp;upscale=true&amp;name=big-ideas.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17696781404186" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17696781404186_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">BIG IDEAS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>I CAN SHOW YOU THE WORLD</strong></span></p> <p style="line-height:150%; font-size:16px">&nbsp;</p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="color: #000000;"><em>In this last installment of our series on the big ideas shaping AI in 2026, we’re looking beyond banking to the hottest topic in the wide world of AI: world models.</em></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">LLM-based agents – the kind banks are just starting to wrap their heads around – have captured the market’s attention. But a growing cohort of the very people that invented the tech that powers them now say they’re a dead-end for AI’s next phase.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">For as good as LLMs have gotten at writing, they’ll never be able to “actually understand the physics of the real world,” <strong>Google</strong>’s <strong>Demis Hassabis</strong></span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hn5nXHCW69t95C6lZ3kTW63nZ153hxBbsW5XNFqY14b4LSW8VFXpQ47BlgHW3DrZ694q41ZPW6rtYkT2GwQNHW7rxFRM8sFF1FW8XZZ0r5d6F6zW4xj5tQ6CBSxqW1YSPgc1fMmpwVtX-xV8tSTY3W8B5CDp9hk-w1VXJdlW1PKd-gW2QN05k8qgr2tW6BVxH12lX9y9VqJK4B1N9rP3W18zs7R5SYhxwW1sVmxX5f9kHXW5Z1qDr14PHrvVH_X3b3v2PX1VvM9Bk4333B7W7RP4py1p9s80W1SH2bQ4plxwKN6S0t4_Q0NR7W7lt5fZ2Zt2D4W8Rv8RZ5RFWQMW53_VgG8NKzPdW7zygL-3wLfqLW1nD6zv1wVh3KW83LQrb610-ZlW19GyJ08rbfdHW2mZ9mN3jzgS3MpVb7m6x1PcW3S4_ct6_FYmqW39-ZWJ2jKbqVW7HRtcH8_LZBXW5cQcJT2v2xFyf42TV3l04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="W/0yyKXe" target="_blank">said on a podcast</a> <span style="color: #000000;">this month. In other words, they can’t <em>really </em>anticipate what they need to do next. For that, AI visionaries like <strong>Fei-Fei Li </strong>and </span><strong><span style="color: #000000;">Yann LeCun</span> </strong><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hH5nXHCW6N1X8z6lZ3lwN6vKwNH7jMjPN4nyPsJ9s12jW6C85nl6RtHW5W2vkg554sx3fJW1k2tD77V3Zp9W3rwqtG8w0jqHW8kpDKx2Kn9hzN79HQQByJbbmW1jRwpx5pZlg-W4gnCVQ4Tt8kMW84Z3cN4pLpK0W5ST9z_2B2xxjW293c-S8w7QtGW24jpNR3RkLZHVd1YPF9bq_4nW7NlDBC3PWqndW8JlDjt52ks4dW5552dd6Fvpf4W1mHFvP3B5yVvW3F1pVh5FYh25N5ltg3VxKNX5VFYb936P0cqPW4jQFGw8lzmXbW244f5B8KrBhcW4tw1ZT4sW0wsW6kXsz64Kr4bKW7v880p62Rm1nN1bXy2lZNj4rW8Rcgz03RPfnXN3ZM22lTTm9wW6qM3-X96b-j6W7YtCTg6hLzN0W1ss2-d88Lh91W6xhyTH19d6NKW8hLYYP7065S_W4yRwYM1Cbb8fN82FwyvRwTfCW45rCs677MZK0dbcVD604" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="3SKBM4qE" target="_blank">are betting</a>&nbsp;<span style="color: #000000;">on an alternative called “world models.”&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">So, what arethey? Think of it like a model that understands cause and effect the way our brains do. World models predict how the world will react when you do something, like taking a left vs. a right in a car. An LLM can suss out a pattern in text, but world models can link patterns to what’s happening in the real world. Imagine, for example, chess players: an LLM has read all the books and memorised the openings, but Li and LeCun are after an AI which understands the rules and figures out new moves for itself.<br><br></span></p> <p style="font-size:15px; line-height:150%; font-weight:bold"><span style="color: #000000;">ENTER THE MATRIX</span></p> <p style="font-size:15px; line-height:150%; font-weight:normal"><span style="color: #000000;">Wayve’s GAIA-3 world model can simulate the same scenario in different lighting conditions to test the response of their self-driving car.</span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176406909497618" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:0px 20px; font-size:0px"> <img alt="Wavye driving simulation" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Convert%20to%20GIF%20project%20(3).gif?width=1120&amp;upscale=true&amp;name=Convert%20to%20GIF%20project%20(3).gif" style="outline:none; text-decoration:none; max-width:100%; font-size:16px; border-radius:1%" width="560" align="middle" class="stretch-on-mobile"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 20px"><div id="hs_cos_wrapper_module_176967901109012" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176967901109012_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:12px; line-height:150%"><span style="color: #000000;"><em>Source: Wayve</em></span></p> <p style="font-size:12px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">That kind of understanding of consequences is critical in making things that need to react to the unpredictability of the world, like self-driving cars. World models let researchers test hypotheticals, like: <em>What happens if I turn the wheel left right now? What if it starts raining?</em> That lets startups like <strong>Wayve</strong> (see above) expose their cars to any number of simulations of different scenarios they might encounter on the road to understand how the agents making the decisions behind the wheel would respond. Because they can run in parallel there’s less of a need for risky real-world testing.</span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Bottom line:</strong> While LLMs mastered language, they still struggle to understand the physical world. We’re still in the early days of world models, but if they succeed, we won’t just have chatbots that can write poetry; we’ll have agents that can navigate, plan and act in the real world.&nbsp;<br><br></span></p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><em>Catch up on the the rest of our Big Ideas series:&nbsp;</em></span></p> <ul style="line-height:150%; font-size:18px"> <li style="line-height: 150%;" aria-level="1"><span style="color: #000000;">Tabular foundation models (</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jz3hKBlW8wLKSR6lZ3pGW5P_d6p9hJsjPW2sZhlL1jzyfNN8Wptdz8B7ncVM1jTQ7pKsLpVXTdx42JV3B8W25v0Wz5LQPYqW2Pqvl46ZlG2GW54vtxt1GSfflW7v1fJt35nbnYW5s_0-W4q26sWN1_gCK6P4ZmKW33lZ582l_ySCW1j2NGV3vP1gyW8ls4ph7w5Nl0W6Hysc84hH0PrN5Yp7fr_n1vsMJt9yfD8VXBV5wmBP2c60HMW2yZcpy4tlFv2W1K0Z6g2vhvW7Mwv15jMfTBzW2tjswZ1T_qPWW7nDX8h4j06KCW6tkmYY6t4Lc3N8TffpJwWRtzW8HD9K23j0L7lW4hPcDF857JmbW80ZG4T7syx-0f7xwG6M04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="i35fNLgS" target="_blank">Jan. 8</a><span style="color: #000000;">)</span></li> <li style="line-height: 150%;" aria-level="1"><span style="color: #000000;">General enterprise agents (</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jz3hKBlW8wLKSR6lZ3kBN6WwrF2JbXt7VmMwTG5Cn1lRW4q7WW676jdZZW3_k3w339VyXcW2cbDp133NqS2W3Wxfqn5gf2-1W3pVRyz2hrrcmW4DmvSd1NTJBNW58K9YW7FDHJQW6-DQ5p3tZm1TW3l-wDv5RZ3DQW8bt6HC9j0Kj6N2XL0rHdGPQTVQldVM8tgfj6W4-BxXT6WcxpcW8w7GVm6KGjV1V3j9y415b5QxW3Gzjyc4Q6Q8gW1LHz3H5HJlTrV65y6c351yCBW1wxXcB1Nc_Q3W4XLy6n3Q_v6vW1BRvyB8mw65ZW4_63Gj2-thS0N8nyYJNGwbY2W3N6Rmp5PzctvN3B3vc5bqbJjVHb4ld3P7rvSf4mh_bs04" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="zKToiCDQ" target="_blank">Jan. 15</a><span style="color: #000000;">)</span></li> <li style="line-height: 150%;" aria-level="1"><span style="color: #000000;">Continual learning (</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jT3hKBlW95jsWP6lZ3ngW1sS0J41XD6XTN93kyY4xd_YgW7Hq4991fKL69W4PWVqy7pSVfpN48MRP35bjtDW8WbxFH6Qc3rRW1Qm3gP6pTyD9V-9w-Z60D0L5W3skdq14Mft88W4r0pxZ8kG1wyN363wR4Vg43BW6BrzWt4ntBFnW5nlTNx5ZDFvKW6-j1vQ4fhMjDW34Zf8R5Vl6pMN4hywxhq9GP_W84dJcL4kfD7FW9gLtD38FTJxWW2gkQTx2g7ffGW5N-XP44l_5p4W8Kj-s88MLw4xW6d6LNr8RGYghW9j9zHg2HhSNbW5Fg9-W6CsBrHW52SDyS6Jsqb8W6gW0PQ1mBZGKN28ZgByH2CfNW1bXHhC8TvTXnW77HhRs8VdLv0W2pVy4v3lXNPTf7vg-DP04" style="color:#f4854f; font-size:11px" data-hs-link-id="0" data-hs-link-id-v2="uLUYewq0" target="_blank"><span style="font-size: 18px;">Jan. 22</span></a><span style="color: #000000;">)</span></li> </ul></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684845048001" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176176966277723" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="stat-of-the-week (1)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/stat-of-the-week%20(1).png?width=120&amp;upscale=true&amp;name=stat-of-the-week%20(1).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17648494286741" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17648494286741_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">STAT OF THE WEEK</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176967893566510" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:0px 20px; font-size:0px"> <img alt="Stat of the week 13" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Stat%20of%20the%20week%2013.png?width=704&amp;upscale=true&amp;name=Stat%20of%20the%20week%2013.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px; border-radius:1%" width="352" align="middle" class="stretch-on-mobile"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 10px 10px"><div id="hs_cos_wrapper_module_176484767944413" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176484767944413_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><pre style="white-space:pre-wrap"></pre> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Arial, sans-serif;"><span style="color: #000000; font-family: Arial, sans-serif;">The growth in the number of software engineers – a profession often seen as being squarely in AI’s firing line – in the U.S. <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-50YQFW7lCGcx6lZ3l_W4VZS-x1R6dfBW6DfspL6qFF1kW5PgKvw1KmWZPVgJzCM8GqCn6W31k_G12kbPbrW7D86w-7x07mDW2WqLZV7401KYW6lhG6B6P_b-RW88vR3349X3pQW6mMb9f47XcmdW5Zm0fL8dTlggVJtV874pH45HN8NnFCrxlf2GV6qbqr326QXSW3k-kHh1F4DzrW329lmc6MSVL8W6WGSrV5Zmsl1N35tpV-V6D-7Vfd63M2nPkVZW4RhBM82bkzLlW98ypQg3W_5nMW1qhnxg97870MW8kSDbK1XgkhFW5q9sXV2ZTBCwW8Nvwvt99NZBlW8y_5Dg19vD62W5vBPVS4K_G-BVmbXV0911XKhW8ffg9Q4DNkpjW25gcZz5mcrbCVF9hcY7DYsMrMxK3TkRkVzSM_KQvWNtjjTW37ghnx4pnQxpW7GZbXF7MrvW3W81mKCg3GKqvwW1c2Z-r2_qLmtW8spyBC2DKFk2MJgM_w7dGfcW4Sjn8x578PJNf82f6hK04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="a7EbSSTL" target="_blank">compared to three years ago</a>,</span><span style="color: #000000; font-family: Arial, sans-serif;">&nbsp;according to the Bureau of Labor Statistics. Bank CEOs have continued to sound the alarm on the labor force impacts of the technology, but </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jT3qn9qW95jsWP6lZ3lTW2mfSLD8mwjpkW3DxDcH6rxxmXN50nyNHjdX2rW70fj6Q2wYWZdW1Wkm931KsMRfW6mLmn06tN6PwW7hCSPM43NSB9W7fJP6W1VhjBLW2bTqc_55rBz5W1jSq5R7xVVKqW3HY9lv5zspnZN7jb8jyW2j3KN8yZZRpKly4mW2gRhrm4CYxJ-VF5Xzx2NrgqCW8Wggf-57tHsJN4JlpZyyDwH2VWylX83nQFrgW36-qGs5-3F7NW3BMWG64Krvz8W1BtYpz35xBDxW2CD6yW61B5sdN6pnY2VLs7H2W7hWpFP4Vlx8VN2S8kxwjdv8-W8fTqn33b-SSGW4JCRx046HKWnW8nxy6_5S4VmQW2tv_XP77c_18W6r-0yk6pmfD0f1Qzjln04" style="color:#f4854f; font-size:11px" data-hs-link-id="0" data-hs-link-id-v2="66tEb1qx" target="_blank"><span style="font-size: 18px;">a new study from the Economic Innovation Group</span></a><span style="color: #000000; font-family: Arial, sans-serif;"> out this week shows that AI may just be a scapegoat. The labor market </span><em><span style="color: #000000; font-family: Arial, sans-serif;">is</span></em><span style="color: #000000; font-family: Arial, sans-serif;"> shifting, the researchers argue, but it started before ChatGPT was launched and is more likely a reflection of monetary policy and interest rates than the technology.</span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17696783393007" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176786237098810" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="talent-matters" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/talent-matters.png?width=120&amp;upscale=true&amp;name=talent-matters.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406232479610" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406232479610_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">TALENT MATTERS</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">NEW LEADS</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%; font-size:18px"><strong><span style="color: #000000;">Faraz Shafiq</span> </strong><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-5nXHCW7lCGcx6lZ3kTW5fYd2l2pg9PKM9hG0WJGF6lW6z8f3w7XF7vyW2L2Nsy7JsBT5N6N92HDG3XZxW3xMj5S88zY04W56pt008Knb2yMQnZs9zZKJPW3kT4X17ptD4sN165cDNSMHlRW2sPQYj1NH0d_N7Cl63LKYDm5W4r5xst2gY4DYW2hSQRS95JnkqVwCPP_1H9ZlYW8gXyF56glcRdW7z5M7t6_MMQvW8NY5X937b5LdW3sP3hN8CBFVjW2mMsWf6mzyqQN4DxlyDWw_0WW4dvGBc6Dxzk8W7pryvd6Xn5Q5W7fJyK_6RYRlwW3d0D5c2VsBVqVYXsYD446rt1W1Fyzgy7yWXbZVdJLC04ndzn1W4GtQFm7B5vXLW43WHqX6cRYRPN4ZDhs_mP2t-W7H4H8Y74Zx7LW79nTB46wNV4-W5pL1sx7XjQ1hW3qZzd31103PqW3DNCBz2P8ntrN6FWLcXCxYp4W60Js_h3FnhDYVFFfY36KQwDtW6mgsJK7sGd4Mf83kNyq04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="AKi3S7nV" target="_blank">is joining</a> <span style="color: #000000;"><strong>Wells Fargo</strong> as head of AI products and solutions, reporting to <strong>Saul Van Beurden</strong>. Shafiq was previously a field CTO for Gen AI and agentic AI at <strong>AWS</strong>.</span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="font-size:18px; line-height:150%"><strong><span style="color: #000000;">BNP Paribas</span> </strong><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0hH5nXHCW6N1X8z6lZ3kqW4r_1dv4xp5lLW3TffDw1Ht8VgW3mkVS-832d8YW4MsDNK3sdxGrW3dW69C4p5DpJW1zjvSZ1yHdp1W4CbbZH6DjBhxW2fc_4V6kGcfnW4LfMNG3tY8YDW7z8mHz5HgQcmN83CHTyrXC7HW1-tDWw7MC2fWW5CDQ7_4Mb1w6W3cJ_Ns1QTTJ_W1pf7Kv4tSVJfW1QfQ2p6R5N3VVg2fkK7qZ-JVVnnQ0X7LDKCSW8frCh97nRSKmW6j33nG6R_p2BW8KQ7nV46hlchW5GK9T03XWYw4W2-V-Ps7q7tWhTwC6v6k5SpqW2LS4z72lZJNMN4PRBlw5vm8SMkLGWwkt4YJW7DkPQ-7XtQMqW4HQlxB5hhnHzN9jGwbkWlN3gW3tX8qx6YgSk3W4-95tL3qNmbrMBvtjlMRsvRW1HXp5x7tdsPzW624j448mL3PzW2J0pp346CML0W23wVZZ82x5fcW47CLy3210dZLf2sX76M04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="6dYHsCfA" target="_blank">hired</a> <span style="color: #000000;"><strong>Charles Holive</strong> as chief AI officer for the corporate and institutional banking arm. Holive joins from <span style="font-weight: bold;">PepsiCo</span>; before that he held multiple AI roles at <strong>JPMorganChase</strong>.</span></p> <p style="line-height:150%; font-size:18px"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>&nbsp;</strong></span></p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Two Sigma</strong></span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg5bYhvW7Y9pgv6lZ3mQW2fnk893C9nC5W6yfF9V223LhPW5JmZHC1QQh8mW8fscNC6rKd9NW5Xr8W04zj9k0W77wPZ44qbvv0W881nyy8gxZrtW4Y12kW3BgSqVW8-pjMp9hl272W3sDTvz3bkVYgW8hfHqp54q31_V2CnvX6nm9nVVJnWZJ4B2-NdW6lmKY39c6StJW6fYnhq7PtYLgW5r-HkR3MfttnW6dl9SJ7PfRV4N7bc0F3WJ1T_W6Nr8TN4B2whYV-0wld2KLlL2W6_-zxR3TWYwnW4_wsxY18C_h_MgDYt_h0sffW8X6nCJ3D3gmQW6MJqhJ6mNsX5W5pfh344V7CwdW26V3pL3nlQTLV2cgFl7PPKJkW37_9zv6mTNKRW1tyVsh167G9XW2X1vL_7xpVqQW6LGhXW64DyfgW2yqGZ85n27NcW3sbksc1clmshW7plBzh3QYCGtW1DZ-SP8FsVrjVjn-f99lQ8zbW4rwg-j4_-5KxW6m4FmM12lxbtW7Rh2Ks9k636nN2HDSzxP1Jj7W2xpRZ56_C6_Df7DNdwq04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="V1A3fPfm" target="_blank">hired</a> <span style="color: #000000;"><strong>Francesco Maria Delle Fave</strong> to be SVP of AI and ML engineering. He was previously the team lead for EMEA applied AI at <strong>Goldman Sachs</strong>.</span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Peter P. Petrianni</strong></span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg5bYhvW7Y9pgv6lZ3krW8qX1BN5VV-CBW953gBZ5zL2-nW5phKHG2X5CxBN6dhnFzsljZcVYt70x8Jkl04VF4jQ-2X744vW2Y-HNq7BP4lvW51Njl533Zs8sW1Dkz5P242gsHN2FFhC-R70TvW6nxjR92DhFY5N94jBFQtVZLjN33cMzz1ly5cW2w2vQJ6sZ4QZV-RfPP5llwnPW6F6kRk3VWghzW8GtsPq9lhr7DW1ZP7Tc7wcNvrW5ST_XC7SpZ3_W99-FxZ5RdlNkW2lg_q51RY-HQW8NbyzH63xFl-VY5MNP5yGPZ1W5cTkgr2-D1ZjMWTrV5hbPpkW1Z4VXF6Z0skrW3QVP9t8Cl3H3N16TvcDbYJB8W5_mFbq5M7yS5W4zbT2Z4GMBtyVX5st62YJ0g4W7xXTZh22S5T3N4ztKRssxxQpN82ddlxsGmzZW51RcR33ShWq-N6yF94mzV-5VW7bvm1j1q1FyfW2ZX3f84lJj1lVC04nZ7jf-g5W3r6kn34tjYlsW5w9xlj68p06QW4F3JXb86l52gf7JH8MC04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="wLkJ1MiM" target="_blank"> joined</a> <span style="color: #000000;"><strong>Capital One </strong>as chief of staff for AI/ML product engineering. He was previously acting chief of staff for the cybersecurity division of the U.S. Cybersecurity and Infrastructure Agency (CISA).</span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Iain Long</strong></span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0h-5bYhvW7lCGcx6lZ3lfVmpgss89rt5HW29vjNt6CK29CW37J3Tg6_3YWlW3T6cW24Lw3JBW42FGxl63dWylW61yXHG85PQ2bW3-tCSJ6hp2kLW2KpVYf5H4nBnMx5GTmzzTv6N1Hxv-3dYwfBW98fVj69l0T-BW89wj0g4D-lqcW20W1zL8dpFX9W8BVnq01Sbq1FVsJ-3D8wp1RnW4jFq351QjfpcW3WsHXZ7Yz-hsW1tVs9G3DLHbrVlnfY26VYGQbW4_sySl13nFz-W1T7NQG1wcMmLV3CNY044pr9wW4DNY488p33mXW54wp9G6fnZ98W6vz-Kg8NK_XJW2qRv2p4SnC_FN2Q9ypMcTvvNN938cdvPtXXrW6DZkf95JcQKjW5Lhw1b43NNkcVNywYt8tvtpDW2k3gdW2TS72wW7ZQFxW3WpvfJW5ZgkQt83G-hbW4tflMl8H2rf3MCTDF8DQ7qXW8LmVy810tRtZW98KhXK1bvQw8W2Nrv834yVj31W1N1qjx8SPtpBf3143WH04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="XGCVQgGt" target="_blank">was promoted</a> <span style="color: #000000;">to executive manager of AI strategy and partnerships at <strong>CommBank</strong>. Long joined the bank from <strong>EY</strong> in 2024.<strong>&nbsp;</strong></span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17696783444518" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406271000612" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406271000612_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">WHAT’S ON</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Weds 18 - Thurs 19 Feb</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg3qn9qW7Y8-PT6lZ3mpW2cm6nF8xkqGhW113-9C96l5ltW7Xqdzp9bcYg4N6DGy8lmMBT1W1Cm0-K5vjY_mW27Ngny8fdfHTN45rHtq-cLC6W3cG7yn3T82qgW6M33x66W00XRW9gMGcZ4y4-xxMQm3WsS9vjHW5yxV2b1hfM4CW5lwr6_6NtscSVRvGZd8gZhbnW5wv9ZP4Gv6bLW7svlZM7W17jMW2m4Fmj2SCQ1zN9kr5-lFgrFgN5QtxHdqjdpjW7C6hqq1mKvpGW7W7czP5HxFtSW7RJCJ829LVgSW74ch9B4yRDYgN2G2zVK38SddW7Wlwtm8B3mj-M1x26yJrxymf5zq-Jl04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="+D+EN+3G" target="_blank">CDAO Financial Services</a><span style="color: #000000;">, New York, NY</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Tues 24 - Thurs 26 Feb</span></strong></span></p> <p style="font-size:18px; line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VVTN9D6PZf2wW5N7ZGw6QBWtWW5wYw0_5JVSjRN5bb0jg3qn9qW7Y8-PT6lZ3mDW7tt6mh52K1vSW7L0-tW72s0PNW3D9XX_5xcr8vVt4NJh8C8lGDN69HdyfgXD4fW6yy9S67x4JdPW4NWwZg6Jz52GW37jbmz7s6tMxW49hTHm7l8l1xW1X9Mmp7l-3GKW2BF39M6MXMCcW5BmmmL5ztbZmW8y3nBz6syHkrW2ZCNBB4qgtQ2W4nb5s38FWpt0W2Hm3Qm5KkvJKW6GW2Yp3zNCFkW8G_5gh9fXZdnN3yk7gkHY-bxW55Y8Lf3_Kgq4W2Z0Lzw12XnJnW3RzRdS1zXFvKW2Dkl156y6ffvN8zXQK_mmjyxW3VLGQ51MLlRqVmKrMN3jF6N9d8TMY404" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="qRxww+JK" target="_blank">International Association for Safe &amp; Ethical AI</a><span style="color: #000000;">, Paris</span></span></p></div></div></td></tr></tbody></table> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:20px"><div id="hs_cos_wrapper_module_174004384022316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_174004384022316_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:125%; font-size:18px; font-weight:bold"><span style="color: #000000;">THE BRIEF TEAM</span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Alexandra Mousavizadeh&nbsp;| Co-founder &amp; CEO |&nbsp;</span><span style="color: #ff7129;">alexandra.mousavizadeh@evidentinsights.com</span><br><span style="color: #000000;">Annabel Ayles | Co-founder &amp; co-CEO |&nbsp;</span><span style="color: #ff7129;">annabel.ayles@evidentinsights.com<br><span style="color: #000000;">Colin Gilbert&nbsp;| VP, Intelligence | </span></span><span style="color: #ff7129;"><span style="color: #f4854f;">colin@evidentinsights.com</span><br></span><span style="color: #000000;">Matthew Kaminski | Senior Advisor | </span><span style="color: #f4854f;">matt@evidentinsights.com</span><br><span style="color: #000000;">Kevin McAllister&nbsp;| Senior Editor |</span>&nbsp;<span style="color: #f4854f;">kevin@evidentinsights.com<br><span style="color: #000000;">Daniel Shackleford Capel | MD, Banking | <span style="color: #f4854f;">daniel@evidentinsights.com</span></span><br></span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="font-style: italic; color: #000000;">Contributors:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Maryam Akram | Senior Research Manager</span><br><span style="color: #000000;">Andrew Haynes | VP, Innovation</span><br><span style="color: #000000;">Zachary Groz | Reporter</span><br><span style="color: #000000;">Alex Inch | Data Scientist </span><br><span style="color: #000000;">Sam Meeson | AI Research Analyst</span><br><span style="color: #000000;">Gabriel Perez Jaen | Research Manager</span></p> <p style="line-height:125%; font-size:13px"><br><span style="font-style: italic; color: #000000;">Design:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Jay Prynne | Head of Design</span></p> <p style="line-height:125%"><span style="color: #000000; font-size: 13px;">Marcus Gurtler | Junior Designer</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17400439881576" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="presentation" class="hse-footer hse-secondary" width="100%" cellpadding="0" cellspacing="0" style="font-family:Arial, sans-serif; font-size:12px; line-height:135%; color:#23496d; margin-bottom:0; padding:0"> <tbody> <tr> <td align="center" valign="top" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; text-align:center; margin-bottom:0; line-height:135%; padding:10px 20px"> <p style="font-family:Arial, sans-serif;font-size:10px;font-weight:normal;text-decoration:none;font-style:normal;color:#b5b9c4"> Evident Insights, 9th Floor, 107 Cheapside, London, United Kingdom EC2V 6DN </p> <p> <a data-unsubscribe="true" href="https://hs-26807565.s.hubspotemail-eu1.net/hs/preferences-center/en/page?data=W2nVjwf3Y2x9GW1L94gv3bgv5xW2Tvl6t1ZgvbMW2KWS_44hF8q6W2zWq7F3SNy51W22XdKF1N5Bl4W4kmjHq38kdFzW34wb7r2qMTYdW2WFTzS1XwhjVW25kS9X32J2CQW2nQHDZ2Ry3P7W1S5bP03f-L5qW1L9w-B3ZLjgGW3C8-b64tf5h3W4mlfZj1V8L0JW2PDr9p4r9CmBW2YKYt71V9CMsW3Xy5X121jbynW4pl45Y3NXrQyW4k8sGD3Fd7F8W1_lsXw2KTKxKW1Qnpn73K4ZvGW34zzRH1VswQRW1Nt_nw30b7RxW3CcYHx2WLSLGW4fz68X1Z96SwW20WcV31_57cfW3jl6mg41JdHlW1LBBGj3ZM5R8W4kfWMZ49TK_1W43pyyS4mKGWMW3gw4hk41S86bW2xHy042KzZjfW3GV5BR1LyWKqW3LZkM43C6q4rW2p9bYg3D-hXVW4kCGZY3H7N1XW3QRdCc2YwbD5W2HrDnC49yKBdW1VhNvT3XFZ4SW4hmBsm41q90VW2FS6xs3LY1GYW4pJcvM34H0GCW2nHYXG2MTzJtW3BVC1n4rm3d6W2WszcK2RKJ4pW3Hc67v2vQW0FW4fMvyp4hg3ShW3SSlgz1X1TJvW2zFL_x45VDnpW3SPmVh2t1FZ2W1NCFbv20Wd6xW3VQV3z4kvN0SW1Ly8pw36GnCzW1V0T-V41CGVHW2PMVTZ45HRmjW3z2VwZ36GjbCW3P75CL1NsKn50&amp;utm_campaign=83923185-Brief&amp;utm_source=hs_email&amp;utm_medium=email&amp;utm_content=127270461&amp;_hsenc=p2ANqtz-_ywiYvFINsX8bYjDhORjQqCDIenPzqkieqazKBWYm198i2FNykKxO3ILeToHA0zVWlnrfevkOqpCrdO16uSXFQ02RUqqm4iukqauyWJECrE2kY38s&amp;_hsmi=127270461" style="font-family:Helvetica,Arial,sans-serif; 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  6. Money Stuff: The Stars Are Aligned for SpaceX

    Wed, 28 Jan 2026 18:09:02 -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" 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> <!--[if (mso)|(mso 16)]><style type="text/css">a{text-decoration:none}</style><![endif]--> <style>body{width:100%;-webkit-font-smoothing:antialiased;font-family:Helvetica,Arial,sans-serif;font-size:16px;line-height:150%;margin:0;padding:0}img{max-width:550px}.body-component a:visited{color:#000;text-decoration:none!important;border-bottom:1px solid #000;background-color:#ccc}.body-component h1 a:visited{text-decoration:none;color:#000}@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: Helvetica, Arial, sans-serif; font-size: 16px; line-height: 150%; 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/yyCtNxcGrzB7zDmsWHu5fA~~/AARGbBA~/aHoZBJ9xburXWSuyesqSo5uVOuxmV_Ko3UZ_s9Ve1OgCPg8xni0sqOxecgNnZ_lrevNoBDJCjHxe3jSjPHRukif6iHp6XrU6YpNqwlRB9jk~" 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/2BmuzieKL150OhH_dPfwlZGLG-r1gCN0oyrZCYoX4tFog9GXynpByqcLyGL9Rw2PFipBYmLtYffaErLjHxOQ1bz5UIOu9qO4ShBOewCFRhCaJc1a2bFOSzTDVByJU7_cQEJF6393LsJ9fhGYI9f13GDnWepQ_9ZY-dh0LI05qArUB46H-P9JwF_Y9df48mg0A361mh3l49hQlN_vihlZTfBvEJ6ugCrK6U26/2pTxZNuL7Y0a9oSet2127hS5i29Geph5/17" 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: Helvetica, Arial, sans-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;"> Astrology, ADM, M&amp;A, AI. </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;"> <a href="https://links.message.bloomberg.com/s/c/bWDrP2GPHNe43feYgLR8KM0sZKAjMa_HqBoHaZuuZe6hiM-avNtYGDvr8Rz0s9T9XCQpqQY_JOXsX8Pz4HgDRwgBglPVrQpxX4H8zaeHJ1nX-ulCQxWPEc-6MGEJo4TX7wSHL1fgLp5F5SYClSP9HDkWWqUyEcwB7m3_KWNHoUNj-SiVAsusByzTV7XmJCXHIO6nLKMp-UNozllTDFTfyE2sI8hMmTGtGUM1JqjDM38yjQirI9dxUYWJBbFq8HSKOFrI6stENqjmisvvvOsLKDbFZ6sGlawYdFpSXSoucDBysLFPAcqqEp9f26QBN-QjBO7rjI8RCFEO6kPogmIjXUdiIjlq03Fk2ptJiuzynsgRs1SHTyJcXZNWvw/WrtlKJBFsFwLuN9_rPTDSlNpUSF6zUWl/17" style="font-family: Helvetica, Arial, sans-serif; text-decoration: underline; font-size: 14px; color: #767676 !important;">View in browser</a> </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/DaNM9RKSrSQyGKz1_Ej_7O7xWpbY0F1DVFOYfjAjaqCZD85XyDnufDxANDbmTWWK4HA0-T-QAL9wr4ioyeJ3BU1sUmZYjzoYFgxUOFFzvr9M--OmLepx1rkeW_JPZW2H3FZv1Cu93AvLZhvDfgjuX6UasbE4bND1P4OK_dS2OVoROBNc3ni8r0QUDPfPPgXDN0kjH5rhy_30EEo-6dQ-_e_BFRtdPqL3jCM6cyweOIjsLZU9sbyO3mIV1h7pG22VQ96jvCZM6euoh-zvQPM7jOtODQIQ2rIBZ_8gymYTKw-dYfvSg3XZCG9w8xl-SKbLbIviNSHgj7x8O_NyB-uSaDikksSlgiCLJRzHSslPA2V3_5HhNxcchcDBoA/ohJQ-W6ps6s285QNlbyt6VvmcyJ8ewv6/17"><!--[if mso]><table width="550"><tr><td><img alt="Bloomberg" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/img7rZ7yYddA/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/img7rZ7yYddA/v0/-1x-1.png" border="0" alt="Bloomberg" style="max-width: 550px; width: 530px; display: block;" width="530"><!--[if mso]></div><![endif]--></a> </td> </tr> </table><table align="center" border="0" cellpadding="0" cellspacing="0" data-lt-version="3.0.0"> <tr> <td colspan="2" align="center" style="line-height: 1px"> <img src="https://sli.bloomberg.com/imp?s=1149004&amp;li=16663955&amp;m=4c6f36cb7bc27023b5890c47a7e79821&amp;p=01282026&amp;lctg=c5f61690-dee6-41f3-a7ca-09184f83151d&amp;stpe=static" border="0" style="max-width: 550px; display: block; max-height: 12px !important;"> </td> </tr> <tr> <td colspan="2" style="line-height: 1px"> <a href="https://links.message.bloomberg.com/s/c/_7Maa0eiwSWmPvXQIEu1eywRTkBW7mB82sUOs6_n8gbDxxkOc43_CLQ3UmXv8wn8JhQOJUFOPpvZ7jvn14-ATDYP1w8xCT4Mmb6u1mS19KUzwUPmNu-jqXYy_YRtFdVG3Bv8ud6rDk2A7fME2XFyFqcefYrI-4zbOVoDTUXF0X6l_D-7vubl03lIT9ghH1iJpo_V8XCfhi7NCplSWH3ty0xdxVijTqTbZs5NkI5le47TT-V00gj61DPx7soGXSgV_XZv6E7Rxcc0DJ1rLyvhP5zWdXnhJoNeEkD1RzRCLDKOh1YRl69pvGziva1tK2s21TUtNw35F5ZX-bdoXtLVxa05FQ6wJjxXnO-hWTCYnGYwprdsyFINaEopLG4sm3cTOVZgdYAfa5czP9vSG5CMJd2lZnf1j_QxL0gLCaUKZI2ZSmpeHVXWzl0-TJhL3d8NM43D2QjjVdBwosnNV8S27OrS2VfEYzcVmoPcREwdRK3ANkzSFev1R35iEQvfpEb2dG4yhkphX-ffnxJ7mgxMZX3Wt1NapHOEcbvd7cJjcSxjM2PC2fAPBKVgsplUL4iEp09-CzsXhFFu1eltDs8pG4Db-n7ltea_XJ_Pv23dISdN1YUu-YRw1nLWHgSXFI5Iszn02HvcglOdPwskGiv_jGv3ggQ86mAGDjf_09ql3GVJvg1gC2KIEwfC01g9cUw/FgShXmGJ4D5hKRFG62VJXmvQLRJMv8u9/17" rel="nofollow" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=1149004&li=16663955&m=4c6f36cb7bc27023b5890c47a7e79821&p=01282026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d&stpe=default&li_coord=desktop&collapse_width=550" border="0" width="550" style="display: block; 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/d_aHYk0AfxXPNyLrj-DjQHgC6Kg5pw1RErgxM2eQ0NoftXq5mLX-ta5qxRK3lwMHkxekj17zu4YMurHMdB_MAOa-ch5xfYNLip3jSIkeJkh4g-Ks4Lwa1-5yCEoWPICEY9FkRk6FSa9XVFm5k9gNcmGDMTIN7NakM3W64vO58sgDVOWkEy-oPRBHCPi9iYd2VNyFyxAI01eNVbN_4O1FotHKplJf_uu_FLs-poRx0tm17p82V_kxfX6t5JMkGgrDckF21e8hvzCj3MYsAUVM-McQjLmJduTz3bdt2Tgg-VjumKUMRWkNOjVWzEw3xlhVU5I9J-OJWgYFlvl9s6klutSSWIe_qAjKUxD6GCAPAElmJDS32lXRDiMaL2joq0ztP6cqFN6qVgllt_Niv94rZY79odL-GQ0-zjGuwmHeFUwKdus9UJf9_oqiHMbw5aU8QaqXXc7ONehc8ysLreolrHDm0MXHmlmKBUgFoDSJoWK2trkW9mL6fm9dUtDWPTQEEJCuEr4XgVMwhOhLLvyT6GaJgRo3C8Uj7W4ONyENX0jjV-B0e9JFJbgt3n_dbB-IYt8JgFUCQYecbyCFNiwaK4z2C6GkAkeeDoodzzqZ1AyzTk0efIv2qtPO4rO9KsIdp2cRWscEKGWdXmYsvqn5PGQ29cxRPDO8sSfL0F2aURSmdqb9H60sgz3sNpKlmkQ/owG_htR1leiKIjgvcH4gYdK4qwKQBO0C/17" rel="nofollow" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=1149004&li=16663955&m=4c6f36cb7bc27023b5890c47a7e79821&p=01282026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d&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;">Planetary alignment</h2> </td> </tr> </table> <p style="margin: 16px 0;">One occasional interest of mine is whether people should make investment decisions using astrology. The first-order analysis is: “Making investment decisions using astrology is dumb. There is no fundamental reason to think that the alignment of the planets influences asset prices, no mechanism other than medieval superstition.” There is a relevant <a href="https://links.message.bloomberg.com/s/c/MxcwudJKOeoUrDZa_H12D8QvQLDH3GcQ4k5dqZuBVY0la_pdYfEk_5PSHqnNDFpjn3kiP1iWqdN-D54NbvHFjaKbQ9t4Cq8k_GjYPZdYvxwriebeglzspfuXO5KVpG3myLeARblyFqepFxsFs7mDJn4hO0-NGWbV1hemGE2ewcejh3RS4UNL_N_G7iNjVuXFRASdVHTZ98aX2qGSRxV-e3DgHcWoD1p1mPQgSm7TvIgG363auTelr4caUu9KfuhWJ-JFUgNWKOBYiwMwOTawTjaI7cEAMTeJIeIdC0z9P2dBnSnChHocty5t6XRTcpxsssHaGzTe9WB--JlBFxWd0YVkDela8ehEvlFiv5jNgPQE2Blu3ptb9l5Odg/pjwizSvqkyx4orZebP3nhBJ-_-abUPOD/17" 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;">xkcd</a>.</p> <p style="margin: 16px 0;">But then the second-order analysis is:“Look, it doesn’t matter that it’s <em>dumb</em>. People do lots of dumb stuff, and financial markets reflect the stuff that people actually do, dumb or not. If, empirically, lots of people make trading decisions based on astrology, then the alignment of the planets <em>will </em>influence asset prices. The mechanism is not medieval magic, it’s regular old investor psychology. Good investors and traders have to understand and take advantage<em> </em>of other people’s irrationality. Your job as an investor or trader is to anticipate what other investors will do, and if those other investors are influenced by beliefs about the planets then you should start casting horoscopes.” There is a relevant <a href="https://links.message.bloomberg.com/s/c/-mhDijiHXU_kid9Kj-ttCJ5mto933uFl_FRkkVT4kVkf7hHp8BFKysYNAdlusc8mElYxec5bNg6nd8d-b1VUVzvbbgBI5ccOaUqCzmEqzi17KHoneuePAnZZwPN7n2VF5cmAEAW_VsCWiyEgad4fT6OZu5wfzypo5SujhJTgt7NybaiX9Hn2Ooeh1IxODTTNA2PiM68i_5tH6sVHiJWjAnnsEGHpWFfaBKJVcXX8RoD1K-RM4FWAE8EufSDH9IqIZmb3_fby_-XkCR13DSez3lQLufwlGHEiOI2w-iNC1Fjh0rzXSpumWj2-f9js-2vgQXrT9mGVd2UNufdI9InalGYmdRNwvHg23G5fUX_azM-3hGoqj3i0cr1nbg/_W7zzkDun30F3X51ck1t9MTsuqQf9SCo/17" 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;">passage in Keynes</a>.</p> <p style="margin: 16px 0;">My casual sense is that in the US stock market you probably can’t make any real money using astrology — “there are not so many astrology pods” at big multistrategy hedge funds, I <a href="https://links.message.bloomberg.com/s/c/w8QcAk95-awp-EBrcJl1PVohXVRM9C5pO20eAmJp5q_nEe8oZqfwwUbe2lvRXrpmz3H8zLrwJcdshUWs6mbV4LdNFxzkfEHug77rbyVR2dzIc4U1n8GGlsc-Pypqc5N7akeUgHfL9xBoVIakbEp6Wtw88pTBiCErOOkN28eZJo6xQt1GHREeELj9VKXf2GUm8e6yjesmvnn4Fm78TSCvxQY8b6ObPoUiqLC_D7BUBvbPrf3IcuognSzlLBLH9AzdZAkV7U_RV8SfjGeLp1qRBw9DTj925DO2sye9Pj-QiNM8DnefHn5DnxMr7o_VMXc14kaVkKfApalnD3Tb9oRxFkODYW9Cl3IXQKvQvyztZdN1BHs3Xx8AkMnI5A/OS3z_SdTRLvjFUMV5PQUTKOaMnM-Nc3L/17" 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 written</a> — but you can’t rule it out a priori, and it probably works in some markets. (Not investing advice.) We <a href="https://links.message.bloomberg.com/s/c/z7ZfTMnF0EBZL-J3cjOeLgUQNNcNJVz_jaO5rutVd3OrhEclF0i9yNmRBqIh4rraEjvD32XBSoKjW6AeFJ72vYdu2L-C7WzrCK3_TU59JXk76RT-fDsov90SnSTLS4_4_bfLOoVoyIDVPkw4yS0j-ZBxbZBaavahGrxUrWLBWEvUuvnSA2sjRWFIoncVS7O6dCgaYx0j4qk03ywewMxlHm7LaeSJaXb-4KjekqmO3TbuHBoeLX5jWTuJJY5530oCvgKqyQ94AQ8pr46ApcQjzHT-dlHwU2cN4W-R-OdZI1mMfzehkSPyZzXRRFC7K90WoajHRvwBDCMU4AdGClS5HS5LZ6Ixir3x2ll1pC1JTMKI-lbcpE4Qsrf9Pg/DW3y2AioG4QwV7f_mh2hIuCzhxs97P-9/17" 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 discussed</a> an academic <a href="https://links.message.bloomberg.com/s/c/ZTroYIyRK-JbtXLedRmaZDUwK1HFW8wKyT68fcR7b6jxMaw33YrP44-hKoJdlGC-QVrPtlw9k5LShQznZljATuVXoN3MkWU856nWXnsKKVEoU0eZrHG_2Pz8LlWLaG23k2vRDrqd4xKx85P_vsHEGr5_CJi8YuGvAZNLX-CGotku7wo9FStxmmQb_JD7xFpQ7o_8tF0yDN2xLzrKG1tXR1fhv81umBBcDUWUzLegxHzHGAn4sCrI-mN9C4Rn1TECsf6N5SXilsiwFbIwxYvFv63sHLwTN1_CiL1hrii03GwIL6mOH6HNI59d9059AqQBgxi-f99qSEcqC0LGuXQc9w4rLMPH0LdhNerlurGzQ83OBfHO_zBY7tYJNQ/wG499amkYor6d0hUfaXuev12ApAyjRmU/17" 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;">paper</a> finding that Chinese mutual funds show “a significant 6.82% reduction in risk-taking during managers’ zodiac years, traditionally considered unlucky in Chinese culture”; maybe that’s a signal you can trade on. There’s a small weird literature. If you are a finance professor interested in working on astrology, I cannot promise that it will get you tenure, but there’s a good chance that it will get you mentioned in Money Stuff.</p> <p style="margin: 16px 0;">Meanwhile, what <em>does </em>move the US stock market is <a href="https://links.message.bloomberg.com/s/c/iww7rWyrav5Soi85_UNE7Q6mPcw_JAG93WYGf9GR3L2bmLX_FUTYm3xgrMb3uZY6fGsgIdUEISxowt-oU8dMXvsiI2bflOiZ-cbGF2d5P1JWaAvuaPeml5H2G6UVkYyvRwETbHvB6PvOBdnZxDeCRNUorMNyLQ4hf_V7utps80IKS0b9wliHalopbHxmSPmfhnLxqiINP1SBn5abCQ63cTqp17n3n0Eb6JjOt39gFi4fMv997LcpbBUsn_HCyrHPXLIDb-h1XzkKU0vjZJhxjS62HAPEkuvjnnwuDgpngptEn9ZFSB56OVkeCMbBpr0GIo8CvyX7-xxkcrUrCvAeVH5SQulxun-S6P4wv_iZHPSPMAAGqIm22dv6mr0/6twZeP5LjSVA5NHpmlEbtq1ejORNlDvc/17" 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 whim of Elon Musk</a>, and if Elon Musk starts making his own economic decisions based on the positions of the planets then guess what, you’re in the astrology business now. The <a href="https://links.message.bloomberg.com/s/c/MwCmKDApIZkHaB9AZ0vU8dd8k0TYGJne9kf7cMaWFKqH7LKVSUmG6ymjwWWXHj9IqEhBuLZ3RLa0kNedbgHS7UtIXWq3PLApivOChIKzbTvnFm62NjuDOzTE0fUBRfpKWkyVNmCVDJVnvgL53Fd0PNYzbP_NvAJvIK9xXlPpQs0VsnQgDmGWyTfivNTNxb6e6TEnoMPYHwjBKHgK_j96YPRxrVRMkDfmnVUvhz4Vp62SrO0mh7ZJwnq-fmVrIVlbjGzXPc3jM-XEBBQICnCFyD5lq2s1wpjb0C2vf-s3i0sW97-HfA8iieUJOP2rk-RLZkEd3ebvd-_XwUUU7j3FAI1VuitZukMhvJplS8J5MBc1qNmBfdgGZ-_iVBE/lBnyO_Lyl3IJay3_17y5aREpRY0faMTL/17" 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 reports</a>:</p> <blockquote> <p style="margin: 16px 0;">Elon Musk has proposed timing SpaceX’s initial public offering to coincide with a rare planetary alignment and his birthday, as the world’s richest man seeks an auspicious date for what would be the largest listing in history.</p> <p style="margin: 16px 0;">The rocket maker is targeting mid-June for its IPO when Jupiter and Venus will appear very close together, known as a conjunction, for the first time in more than three years, said five people familiar with the matter. </p> <p style="margin: 16px 0;">SpaceX is seeking to raise as much as $50bn at a valuation of roughly $1.5tn, the people added, which would make it the largest IPO in history and far exceed the $29bn raised by Saudi Aramco in 2019. They cautioned that all figures remain preliminary and may change. ...</p> <p style="margin: 16px 0;">On June 8 and 9 Jupiter and Venus will be “within a little more than 1 degree of each other in the sky, about the width of a thumb held at arm’s length”, according to non-profit organisation The Planetary Society. A few days later, Mercury will also align diagonally with the two planets.</p> </blockquote> <p style="margin: 16px 0;">I guess if your business is shooting rockets into space you have somewhat more reason to care about planetary alignment than the rest of us do, though I can’t see how Mercury’s position would be relevant to the IPO or even really to the rocket launches. Also I don’t exactly know how you would trade this particular piece of information — SpaceX is not currently public — but the point is that, if Elon Musk sometimes cares about astrology, then the market sometimes has to care about astrology too. Also his birthday.</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/J2CUfhG2AO0upWrFGcf19XRBhz6iO9RFifuWMI_6hhST7x0CW65l4wlBby0E6L_r3Dtjs2Gi_m84cq19jSEvGdIrTtuCvkjCN0KG70wEoEr4vO4xEAJS92QFyyPniVviXIY7GQrFKs6D9-O_UNPCAxzm-ZfPV5MMX-EncmAX6SiTNvTmhynRhyrLLmUodBdzDonHfFNrCw-hJpoN39WtTVU7Txx4kyb5g2KQw1Z7aH5LLgPVYS2wkmXw0hNqI1ANjtncPM2UA_DbRRyb6doNRdI93n9bwUoW2Goz0sbgzgAbVQRIg_GQr7z-r3kU5bGXpcnS6nW4S8zVqfMS8sMQFFOiqVC2mLHCH9HO4o04zAeGkHdj08FpHVxqt_T7MS7LjwSB-dfzPDFSbYIVGokiVzW3zsJ9zIow3Uc8hrKwXj-wnQ3eBBnZrL7NNt6O6F202CJWyMnH1oo4GJcR48dg4IAsorULgDXllNbMtQL3UU3Qw7MWFYQ0e3Hj6PxnpoXrrGqRRl6s6VzvoqWSIVwHBo6PURMN2WhufLxmcV3g-kKh1qqOZezmNmwaNg6YnJzFtwryXbvQJSUKs5K1oyv_90TnWZ0a9S0UmWxEDun6FPZX_Zw3dHCYjsEc_VE7lO0M_F-ty4tQtf_ldV0tIDbWkyPj1gQAD-oT9dN3-10WgjtJxym-p31HFc7wXnA9Ew/HwZ41wIrWgcslVCmC7QhJmG3fWjHkWcH/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=16663955&m=4c6f36cb7bc27023b5890c47a7e79821&p=01282026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" 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/7hwENDVxuc8uy2VZ9n_8Wy_fuc_1smp-kMcW5_v2tB8CoBXVD96Z481yfXZDsumb4Ql1ZreREB8A4U2Pii6jI553O4djjoyIpJTzaTLVBAcWg7BE_oxuDgInUSVfAszG6MjIOF3thcoH69yO8_v-lhu8vIYFmxYaqHbeL-Jkt2vlS4us_dVA03Gxv7waV-y-h4zC5Xbz3_9lX-FC5QqA0NrJzrpJDbCt1C2bMVOhMoEshD-RgGQufFuH4OY6ytyAAVtLcbW2Dd68TX01hu5OoQz4DieAwvFfTlM_4DloKZAtufS7W22gpbVrsCPp2oIzhAAs_WaBYb-NitOETWGG77jy_9pSHKW0wcRP-evO7jrY-5wb7hgtWIp8vAyC0ZZDwyBCxzv_Kpo75G_YbjWQ6uCLYK2rIl3-BqqEGJUKGdeYMEl1DzZ2RgRaHHSMQnVh0PjfgqROxUPL8rMK5j_jBDG9gxIYAgptqv6a2OEKetU7HIozbo40J50cP0uuDxoDS-_QnjnXW6atx3Spui0-r_nlg5GtHN9Cefh7NB_yglhCClyWyfTAHxdc9J_ywRcmnqWnebQmWeEr6nswN5GVaAlozRBA3J8mOjj8IlE2HqQ-YsvzBVLfh1jS3D6njuYNGWfKILoWFti7gUnWfpbA0e1DeePnCnYWg1upXBCZTy0VmBh0j5voZCJaFR47Jg/iamdBciYX9rnk2qOmtoBGCM5y0Z8kosO/17" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=16663955&m=4c6f36cb7bc27023b5890c47a7e79821&p=01282026&lctg=c5f61690-dee6-41f3-a7ca-09184f83151d" width="100%" border="0" style="max-width: 550px; 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;">ADM Nutrition</h2> </td> </tr> </table> <p style="margin: 16px 0;">Lots of companies have multiple divisions that make and sell different products, and it is interesting to think about how they fit together.<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> There are some companies that take an extremely free-market, arm’s-length approach to their different divisions: Each division has to stand on its own, the divisions are free to compete against each other for business, and if one division wants something from another division, it has to negotiate and pay a market price for it. Every business head is compensated purely for the success of her own division. Other companies take a more collective approach: The divisions are supposed to help each other out; each employee is supposed to work for the overall success of the company, not the success of her division at the expense of others. Every business head is paid a bonus that reflects her own division’s results, but also her contribution to the broader company.<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;">At many companies, one division will be favored more than the others by senior management. The favored division might be the especially profitable one, or the one that is growing the fastest, or the one that gets the most media attention, or the one managed by the chief executive officer’s son. If the favored division goes to the CEO and asks for more capital to build a factory, the CEO will be happy to give it the money; the favored division has, as it were, a lower internal cost of capital than the less-favored divisions. And if the favored division wants something from one of the less-favored divisions — if the favored division asks another division’s salespeople to cross-sell its products, or to lend it a few employees for an engineering sprint — the managers of the less-favored divisions will do their best to help. After all, they are good team players; they are working for the overall success of the company, and the overall success of the company depends more on the favored division than on the rest of them.</p> <p style="margin: 16px 0;">Again, sometimes the favored division is the CEO’s son’s division, but at a well-run company the favored division really will be the one that is most important to the overall success of the company. One way to think about this, particularly at a <em>public </em>company, is using market valuation signals. If the stock market tells you “we will pay $20 for $1 of annual profit in the widget division, but only $10 for $1 of profits in the sprocket division” — definitely something that the stock market is capable of telling you — then that is, roughly speaking, a signal that the widget division is twice as important to the company as the sprocket division. Widgets are the future, and increasing the revenue and profit margins of the widget division will create more shareholder value than you could get out of sprockets, so management should focus on widgets. And the head of the sprocket division, if she wants to be a team player and help the company succeed, should do her best to help out the widget division. </p> <p style="margin: 16px 0;">As a matter of <em>incentives</em>, the head of sprockets might get a bonus that reflects not only sprocket sales but also her contributions to the widget division. But even if she doesn’t, she will probably get paid largely in <em>stock</em>, and her <em>stock </em>will be worth more if the widgets division does better, because that’s the division that the stock market really values. So the head of sprockets will want to help out with widgets, because she is a good team player but also because that is in her personal financial interest.</p> <p style="margin: 16px 0;">This creates, at least potentially, an <em>accounting </em>problem. Let’s say the sprocket division has some resource, and the widget division wants it. Widgets will go to sprockets and say “hey I know you were planning to use that steel to make sprockets, but we are out of steel to make widgets, can you give us yours?” In a pure arm’s-length free-market company, the head of sprockets might say “no,” or she might say “sure but it’ll cost you” and charge widgets the market price of the steel plus a markup for her trouble. But in a more congenial team-oriented company, she’ll be more congenial and team-oriented. “Sure, I can help out,” she’ll say; “take some of my steel.”</p> <p style="margin: 16px 0;">But what will she <em>charge? </em>On the company’s books and records, there has to be some sort of entry. She has transferred some steel to the widget division; the widget division will have to transfer some money back to her. That price will be negotiable, and in the negotiation, <em>both sides </em>might want to get a good result for the widget division. If the widget division pays less than the market price for the steel, its profits will increase, and the sprocket division’s profits will correspondingly decrease. But the head of widgets gets paid for increasing the widget profits, and the head of sprockets <em>also </em>kind of gets paid for increasing the widget profits, and the CEO gets paid for increasing the widget profits, and everybody wants to increase the widget profits, so everyone will be happy if the sprocket division sells the steel to the widget division at a discount. Certainly the <em>shareholders </em>will be happy: They value $1 of widget profits at $20 and $1 of sprocket profits at $10, so increasing widget profits by $1 at the expense of $1 of sprocket profits increases the overall value of the company by $10. Good deal all around!</p> <p style="margin: 16px 0;">But that’s cheating. That’s not <em>really </em>$1 of extra widget profits; that’s not $1 of profit created within the widget division by being good at making widgets. That’s just a subsidy from sprockets; it’s just moving money that “really” belongs to sprockets to widgets, because shareholders will pay more for widget profits than for sprocket profits. It’s <em>securities fraud</em>.</p> <p style="margin: 16px 0;">A crude simplified model of Archer-Daniels-Midland Co. in 2021 and 2022 might be<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> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Its Ag Services and Oilseeds (“AS&amp;O”) division was in the business of acquiring soybeans and processing them into something called “white flake.”</li> <li style="margin-bottom: 5px;">Its Nutrition division was in the business of acquiring white flake and processing it into “food products it sold to external customers.”</li> </ol> <p style="margin: 16px 0;">Just from those words, you can probably fill in the rest of the story. “White flake,” as a product, just sounds less appealing than “food.”<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> Turning soybeans into white flake seems like a commodity business. Turning commodities into food seems like a better business that the market might value more. And, since (some of) the outputs of AS&amp;O were (some of) the inputs for Nutrition, ADM had a lot of flexibility to allocate profits however it wanted: If AS&amp;O spent $10 for some soybeans, and then spent $5 turning them into white flake, it might sell the white flake on the open white-flake market for $16. And Nutrition might buy white flake on the open market at $16. But if AS&amp;O sold the white flake to Nutrition for $7, then that would reduce AS&amp;O profits by $9 and increase Nutrition’s profits by $9, and that would be better for everyone.</p> <p style="margin: 16px 0;">But that’s cheating, and yesterday the <a href="https://links.message.bloomberg.com/s/c/cqz5_AQPesik-xZHiJEqi0Cprx2t98ppD9dZA-n0WqNDeq2IvPeL1HQqHHm6EycrJn1uvIqKDg2qfvZ_rKHQm5FwXUbF_QTidSRNxzS-LxJmbXEPh3xnsvYWWFGjcYWoX-B4zXMUytxsXxr4LxSdNl0YXdQ0_fwffg_H4I6Wnib3T2srHxNdVd5TmyMY2Nq7mfIxbjhCjAQgOa5ESqI01-r4eyC4LjP7C2nIlpp86aKU24EKnH8S5V5HmuGGZ0w1hJC-JbpbmENNQIsfp1F-6KxEzOUddPHtZ-iCDoa9k4iCjgbBAeEqpYIBv9eea_ThbAkPbnPLdGuNhT3lQd8MdCWRE3hlXrASl3j5DSmng807s-yslHXjapjDDEc/QKM2x4-A5XWz4QbWox8cOLibI_K0Mvjv/17" 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;">US Securities and Exchange Commission sued</a>. (It settled with ADM for $40 million, and also settled with two other executives; it is suing ADM’s former chief financial officer, Vikram Luthar, whose lawyer “<a href="https://links.message.bloomberg.com/s/c/45SOdKoyHtd0sOANPD0ODM_8VFKU8uBpYKqWKJFE_fD-etVENOFnvG21F6BWn-YknhB_dZiEfc1IlDMWpePVSu7ZEKx9fl5TpYeuysgNthjutasEZdGOIDpgk3IOn-ZkRSqMYn8kWRhBvhJLjLSbK0RolRWqZ-VwIZlVyQQny805EWKpsXo60GcwOfCbX-WBhpeeKdpxn-AL0HmAaRRssdS9Vz2gAnHmNMOyJsO7vrEmEdwYdA7fdFcDMHOAP73eXAtPOA7TChvMgzTSiRq6ZvQ5j9_0m7lRIx8XawSOesBDzruzF_hdkoUh2mlSEnfC9qv8069U1g9G86Q84lZ_QqT1t5_nvAENfwMFr1Ps3wkDEQqVqTNw2cXJVxE/6X05LHKL5gSTC3TckBvewPG8JkFLdRmH/17" 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;">said he would fight the allegations</a>.”) We have <a href="https://links.message.bloomberg.com/s/c/zdf--1vGxvVXcsDeoC5VELKvT0gO3OGlbOrnio-lLVZGM9s-SUj2JK4NfnEyAuWMbXdo-03GoqPfISPieu61fzjzTMOpQ_VQzAdwztOBIhqfsH1VuG3bRM_X57h8lsed2_s3RvPIUVn3bJ3bh9qe_Z4sIhvlREvuTAH7LwJFBdnD1MofEMLBKOK3aberbCQ5E-Tc7xO9F3UXAvRqDwkxNAsd-7A3Pfnls4_kSR3FoIXKmS0IVkxkOqIg3xc4MWs8LfJ7QZQm9c8TWnWTP5RJP7Q6DscpBQyPDFzPE56jPZX6qN7XkS8PL_AhtfgAkYuM189MdPMueknUvAbo6zb9x8gDSWKjQVqEEK4bpqtPq10SLmTpju8YdwjPajo/89ZFcFOvgq5ySkQZGoUUJxj6m0m8rYx6/17" 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 these allegations</a> before, when they were first reported in 2024, though I had to guess at some of the details. But now we have <a href="https://links.message.bloomberg.com/s/c/0_TUw_JgxXefgdnx08z_l5dk2RXA9OlrVrPKszQ5qEysNM_Mhg_9gA2hL6cCg4kP89AyOhegvXzjtbB0BxylnG69JWlv6LX0wEMR1v72TpmwmUrw5cYYlLAWu1ZQhjqLwLeilsz8YcHPILIcSRfTM_Kjvv5mtX70ANDXB5zmGagTi7ziFM0Ksrc04uIIHShlHoWOVWFSd_ROQ5OnpnXwRCZIPwHbHuLmqUp5TOEpaprvdPu0MAhyBFnRCDfUBZOsbChnWDSKkMHjVqyh1tCf_PyH6Er4BCD8GAm9xWnwDEV906j7Y0IGhfQbo0FX06s9rjTqIAYMztwwKzWYorW1xPBsuJC52zp1a6pCgQLs27Kub3fXUfeAS1kkqeQ/YOtHOccM56bJhh_-KeIW7CR3frUwVEU3/17" 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’s complaint</a>, and all the details are pretty much what you would have guessed. Nutrition got a higher multiple than AS&amp;O or Carbohydrate Solutions, ADM’s other main division:</p> <blockquote> <p style="margin: 16px 0;">ADM pursued this investment strategy [of investing in Nutrition] because equity shares of food processing companies were trading at higher multiples than mature, commodity-based companies like ADM. In other words, ADM recognized that investors viewed food processing companies as having higher growth potential (and less volatile earnings) than ADM’s traditional, commodities-based business. …</p> <p style="margin: 16px 0;">Although Nutrition was ADM’s smallest business segment by gross annual revenue, at all times relevant to the Complaint, Luthar and other ADM executives: (a) routinely described Nutrition – both internally and to the investing public – as a key driver of ADM’s growth strategy; and (b) knew that Nutrition’s operating profit growth was a key metric evaluated by investors and prospective investors in ADM.</p> </blockquote> <p style="margin: 16px 0;">And so ADM’s executives were paid based in part on Nutrition, even if they worked in other divisions:</p> <blockquote> <p style="margin: 16px 0;">The Nutrition segment was so important to ADM and its investors that ADM developed executive compensation plans that were tied to Nutrition’s performance – even for executives who worked for ADM’s other business segments (i.e., AS&amp;O and CarbSol). To incentivize management to bolster the Nutrition segment, Nutrition’s operating profit growth target was added as a performance metric in ADM’s 2020 and 2021 cash bonus and equity long-term incentive plans for eligible ADM employees, including Luthar and senior executives of CarbSol and AS&amp;O.</p> <p style="margin: 16px 0;">In practical effect, as of 2020, ADM’s compensation plans incentivized AS&amp;O and CarbSol executives to assist Nutrition (even though they were not working for that segment). In addition, executives and other employees at AS&amp;O and CarbSol widely understood that to be considered a “good corporate citizen” by senior management, they should at times be willing to assist Nutrition – even when that meant adversely affecting their own business segment.</p> </blockquote> <p style="margin: 16px 0;">And so, allegedly, they would shift profits from other divisions to Nutrition to meet profit targets. Stuff like this:</p> <blockquote> <p style="margin: 16px 0;">Nutrition faced an unanticipated obstacle in late 2020 that threatened its ability to meet its publicly disclosed 15% to 20% operating profit growth target for FY 2021.</p> <p style="margin: 16px 0;">As part of its routine operations, Nutrition bought a processed soybean product called “white flake” from AS&amp;O, which Nutrition then used to manufacture food products it sold to external customers. Nutrition agreed that it would pay AS&amp;O for white flake based, in part, on the market price for soybean meal (white flake’s main component). Nutrition and AS&amp;O memorialized each purchase in a purchase order reflecting the then-current market price for soybean meal.</p> <p style="margin: 16px 0;">But, in the fourth quarter of 2020, the market price of soybean meal rose significantly, causing a corresponding increase in the price of white flake sold by AS&amp;O to Nutrition. This substantial and unexpected increase in the price of white flake would have negatively affected Nutrition’s operating profit margin. ...</p> <p style="margin: 16px 0;">Luthar executed a plan to retroactively re-price the white flake transactions between Nutrition and AS&amp;O to reflect the pre-spike August 2020 market price for soybean meal, which would: (a) improve Nutrition’s operating profit; and (b) allow Nutrition to achieve its initial FY 2021 operating profit growth forecast.</p> <p style="margin: 16px 0;">As this plan took shape in late 2020, Luthar knew that AS&amp;O executives were incentivized to be compliant partners rather than arm’s length negotiators. Nutrition’s President reminded Luthar that AS&amp;O’s President was financially motivated to help Nutrition even though a transfer of operating profit would adversely affect AS&amp;O. Nutrition’s President told Luthar that AS&amp;O’s President “is willing to work with us on white flake too. We spoke privately last night and he is severely motivated by [ADM’s Performance Incentive Plan] and [Performance Share Units] to help us.”</p> </blockquote> <p style="margin: 16px 0;">Right, yes, good teamwork, arguably bad accounting.</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;">Work harder</h2> </td> </tr> </table> <p style="margin: 16px 0;">Investment bankers mainly get two kinds of pep talks from upper management:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">“You need to go out, pitch more clients and win more deals.”</li> <li style="margin-bottom: 5px;">“You need to go out less, pitch fewer<em> </em>clients and do fewer deals.”</li> </ol> <p style="margin: 16px 0;">We talk from time to time around here about the second variety, which, as a former investment banker who never did many deals, I find more congenial. Sometimes bankers get the “actually do less” talk for <a href="https://links.message.bloomberg.com/s/c/MM0Gzv1Z3PZBexktZrXlVOs3PIlbh0pvw7hFTOh9Bxefl7cW643iDgu8p0ltwAIchjtcSrLui065Vqydu_zjPWK0Il4k5jcFbIISJs02RBZ19d34gb-312FAi9tWbe78zmfr8qLIrbrWoP6T3XPrNAPcDJZmrAkppZ9da-h5uAMTmQaKazwW3UIxn4CD4d2gyD3f34e3jl90WrLJuIm7DVWm79taLUjTCZwn1dIiCHCD3fLmsA5VyKuF-M-SP0IiKMDt-1i6buM5Yq-CBnGUpWMJpdlHvkymnEri16ERuaz7aa5j6U-GbrgFHMuJNTrptS_4BCBy4iGf91mWIlhLfYnDBGp1ASWZZDfUbCiOlfGZkjqtoZUXEWiRfic/DW7Az3O-hXHJk7GB7ow8v5CjuYvOFiNw/17" 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;">compliance reasons</a> (if you pitch a lot of clients, you will end up working with some bad ones), but sometimes they get it for <a href="https://links.message.bloomberg.com/s/c/bt1882y59kOrBdD_5_I3XTS3A2BhD0zZEk1tbRAoMtQpwH8kYhFMjNVR0e-_AZAFTxaf22jAq16VOy8Fg9qsQFWmGGlW4b2wLOP_dLJi3IFjz3rOJu6M7MNhN2yu143gUwXBloCq1z9SKB74gR72rpMocq-LcsOavPFqp3uA_wFGKUePrCF7GaQnUq4c4LjWt27FRZ7xurX3gRIUJ8cucvjFo5kYbXvh8DTNjJuNHjIjabqso1Ki0F6jUcIQe0USqGKoWD1wMVMF-El-Mlk38tYCxdPuyoewE_uvmYPsIJ8O95p_SjR88aMi7r3LHMw8jvqXZBmusFlReq-gIdvgF5NBw3_QS3IgxtNGMJx68DsCTVDdZCxg-5wDuAc/D_Y45dSRn0jdU8u2zdMCfSLd4bxxqYOb/17" 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;">pure efficiency reasons</a>. Investment banking is a business that involves <a href="https://links.message.bloomberg.com/s/c/LOL_1Xb4OtNGYoahZ8CO5CKkZKmZCGBlJp9cs1Xi9MP1Ioc_s0raq9_0U-qRcm1YZN1D5MKZulz1fCMXxzS1fMU81E0oMSG2O24NW32MYkQD1UFF-yCuKmGDotkQY2osnFWkiEebsU8BJF6t7QkFHQEeHjF9VXBTsfyicbv79NUcvU0OY_jb_5ZAL8KVw87BzIE-YoV3kzuZf-9SOTC4bOKzbZXLk_5jP1vuJpM08vZykfy_CmnNLFW7p_XMBLh9adxE_nRMT9jesp900Ov66HWEjn0AdSaRp6ogDQJj7qF8jir1SMPJIj4GNtztAgwW56up61Yi_wyqs8aBkwnOiFe7ZBpj0il6Men-_ITqJI4IouzdAJGaDZQombk/pKAa0lWaNwAHJEMxZ1TQ_TGN02ZG2wOG/17" 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;">doing a lot of free work</a> for prospective clients in the hope that they will eventually pay you a fee to do a deal, and sometimes senior management will notice that their bankers are doing a lot of free work for slim chances of small fees on marginal deals and tell them to knock it off.</p> <p style="margin: 16px 0;">But the first pep talk — “go do more deals” — is surely more common. Bloomberg’s <a href="https://links.message.bloomberg.com/s/c/z09QuQYKjmFFeNLrfZ6TP8bqsCIhYlaNGcWVA2L2j-Ha5F84kuyZJdgkGVI3P5bE1yNRMCKVWnMa0nncTZUCd6hFON2N1IR33Rqk9q01KsWjdLYtGiUb3oA5gHUy93kP0fscMxTYIdO5jV9e9fYShyN04fK75aaA66IaHRt-GDJ3n_J0Kefh7NnYhr6KGdoYWtvfrbuIU5ywCaBQCFfS4jta4hACIWHpvHFzKevJUCW4xPy4Rg-P12qIKjg2Am7n2Cb53i3uCzS_zaqzC5I4J-lcsI2OrFgUwGEyTQqrlayn2O6rlll6jvo3xkiY8NsDqc_M4vXaGVhY8DOGPnxzZJCCa4z-4EM6AVVHBxjO9dkfSm4u-UF0roHnILQ/lnWqRgqTT7wGE5iRuUljg1fl4v0SHFZl/17" 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;">Crystal Tse and Swetha Gopinath report</a>:</p> <blockquote> <p style="margin: 16px 0;">JPMorgan Chase &amp; Co.’s leadership has told the firm’s investment bankers that they need to work harder to close the gap with rivals including Goldman Sachs Group Inc. on mergers and acquisitions, according to people with knowledge of the matter.</p> <p style="margin: 16px 0;">John Simmons and Filippo Gori, co-heads of global banking, delivered the message to staff during an internal meeting this month, the people said. The co-heads said the group had underperformed in M&amp;A in 2025 and that improvement was needed to start winning back market share, according to the people.</p> </blockquote> <p style="margin: 16px 0;">Sure. I suppose if you work in sales at, say, an enterprise tech company, and management wants you to sell more software, they sit you down and talk about all the new features of the product and all the new customers it could help. But investment banking is just kind of investment banking, and if you want to do more of it you just have to do more of it.</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 whistle-blowing</h2> </td> </tr> </table> <p style="margin: 16px 0;">You could imagine that the people who are most worried about the risks of artificial intelligence would not be the most productive builders of AI. You could have a model like “actually AI is good, and the people who are worried about it are wrong, and being wrong does not make you a good AI researcher.” Or you could have a simpler model like “well, people who are really scared of AI probably won’t work 20 hours a day to build AI as fast as possible, and we want to hire the people who will.”</p> <p style="margin: 16px 0;">But in fact there seems to be a surprisingly strong positive correlation between noisily worrying about AI and being good at building AI. Probably the three most famous AI worriers in the world are <a href="https://links.message.bloomberg.com/s/c/XoZb3EsthLkdJNlFMDYZjZeOCYqDoPqIM_GuVJjiQJCDATP5CnGhbefjtQbRFZjTdhRvGfB48tQyMt5Nm1bYSvVRoGz6bj0YvYr9nZhBjEOd8Y50Wi0pd2HM5UQW3KDIRekZnmYOAmBejTsFYhgK2-NCZMvhXbKH6RLLEnfyGaxOAnaBpB-wCBoUYKIeCroihBNwXhwldGOyA3jA8BRv3slhvDOzhhOlFH4O-zIBXBJOMpBc9EMbGtqpXaHgTqis-yjF_lAPMZbyOsslSuuXQPxIJ6BYRwxJs17xlb4alhRj3WBXPAPUlJjMWn1IBEbeuML-oIyaAa4UN_HCOQlOWI5i9MSCmk_yBlcAnBx2kGnyvz84Tots48WQsRc/HMzwb9HGnyRIEp6h_UNGNJlO-30DZSD_/17" 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;"> Sam Altman</a>, <a href="https://links.message.bloomberg.com/s/c/CRO0TgzK-fLOonKv9e-Q2iA5HTnyvME_U0KJgg1JZuNFyBU3CYdX9x-W89W7mRQDdibE4jRMDB0-JIr4vgM-zmffQqw8FKAXvaXFE6PTvFhm4MeZJ0fOcWZr8DVkeSVI0m3UZviIpjG7alBpwE-roVfdU9IcZheD_iWRw1cVWDtpsO7TTA2BhFtwORZ0E3WH3bmeUDtNrhU5b8r-nylFmaGmBMan7Q_d90xLnt6lNNmnAR-Gq2MJ16KNvzfS2tVlF30wx-mWpFmOQu9ORsCQmXWiDRzsLhSCsbgLcvDEpiQNogTs7f2sh4Kawtjy7ltNImhxGUKqn-Ex614P8xOjXRJUt7ZD9FhAC-1t0yRoRr2MvtEaKDYue0o8htE/fQh8IhW9zsVJMnFvvohARiJfJF0O3Vkh/17" 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;">Dario Amodei</a> and <a href="https://links.message.bloomberg.com/s/c/skNrvqDlfRnVLY-OS77HuXNXVeWYLgrjVYWrRwETXunWzuWswsyiF9bA6GX23RGW76Y-D-gB2EejQvlvrU_pkPaxKfZfZE8S_DSXnKSzbJHmhRZ8Do-tPpmFC9e3OmTrFNkqc5tVhLHAZACgBDgA24Zymke68zShlF3uahvB30zYGLN1lQYUL2JBhX-8StN56rKTi_vdB51CSEVtjTsHGqgfrdlEoYBhwTeMKGNJCNWJTxGR94-4mUP3dJIZUbQ2gwKYQNc8YAiaKdvc2E_PUmKuIhLI2uZcm_BVVt8wdksQUC2P__ci6p-n_Q-X4pOs6t5hAhj5sRCri8NHCTnWIoph92dPr2e3yUE9zMfqgMe7cARRdsBrcfJQIP0/1MUwyNMSASMD-TcSaDv4SKT7QHdoviLo/17" 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;">Elon Musk</a>, who are also the chief executive officers of three of the biggest AI labs; they take time out from their busy schedules of warning about the risks of AI to raise money to build AI faster. And they seem to hire a lot of their best researchers from, you know, worrying-about-AI forums on the internet. You could have different models here too. “Worrying about AI demonstrates the curiosity and epistemic humility and care that make a good AI researcher,” maybe. Or “performatively worrying about AI is actually a <a href="https://links.message.bloomberg.com/s/c/U4wjkkXxbPD7LQCcmoEvXuUMrcLbLleewNgMSzEXlhsqHuk0EtMWw5NpPdlN6RG5z5SfVzIQhUM7mFQvnJy2f_Q6G-sPqok3yF2__w_zID3ek1DVM0Zn-wWJhpL4SKVmEqgRwEnnnEQL2R5j4jv94KnKGTm9aek7jMxZ88astdfmP8Ridpc3i4SOUyMVBNlhR8j1MtGDUzmMtZSAaodAShu_9bhrCfpLxbR9itkHGYl7mXfopaIUqSkd83F5Pn-pg8ZJjOoLS6b_3PwX5_bevkHCasUgvWhGJH4VzdPXRL8P6MNLn0c2VCxDEzZ5JpgbxKmi41eR72hHphqOKEtl6G4iACFw_RZ5af51c21GsMyiUqxGF_jYup-XcTk/t0tB9NLmPCHKuPIxkbCKAk3E5yjz34Tv/17" 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;">perverse form of <em>optimism</em></a> about the power and imminence of AI, and we want those sorts of optimists.” I don’t know. It’s just a strange little empirical fact about modern workplace culture that I find delightful, though I suppose I’ll regret saying this when the robots enslave us.</p> <p style="margin: 16px 0;">Anyway if you run an AI lab and are trying to recruit the best researchers, you might promise them obvious perks like “the smartest colleagues” and “the most access to chips” and “$50 million,” but if you are creative you might promise the less obvious perks like “the most opportunities to raise red flags.” They love that. The Information has a story with the wonderful title “<a href="https://links.message.bloomberg.com/s/c/x42hXcMS5x4JFQtQi5vIMEiFpQLl_btmsxHAoibjP_yZfBUmj-Ruy99917lbnGGMPANjmvZZt6IcH3cIWejvOQpogE_ZcsY3QA0X-29rsB24_xyiwhJa9U7Y_QBdvoLJnsHQ_PJPJ5hFKODDRzAqZbNtGC7GCnz8xk3KKpNFG14SUgH_-frOZ9t_OcmwTqMoQDpWSo2shIM1rTJh4C_bc4f-YGRzgd7GwDqi9syY_5R0S5sJEqBjzE3Jq2B2G44b_D-aT-ImBQbfi0E2SgwGnS457b9puW2mMFkR657bc6f8YPueCXODqvwpJeX_CBo0EN2pL4YNU-iT6Qji-i7kUX7pqf8HN9hu6ZvBYM7J_GJvfwAuV-zxL4DrXqg/BtUTWtqxWLPGuWG2ksXP2ZZl7t5ZOFGP/17" 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;">OpenAI One-Ups Anthropic with New Whistleblower Policy</a>,” suggesting that this is the sort of thing that AI labs compete on now:</p> <blockquote> <p style="margin: 16px 0;">OpenAI’s new policy is the strongest whistleblowing policy that any of the leading AI companies have published. It goes further than Anthropic’s, which was published in December. Anthropic’s version is narrowly focused on employees reporting violations of its own safety and security policy and lacks a timeline when it pledges to respond to complaints. </p> <p style="margin: 16px 0;">A spokesperson for Anthropic said in a statement that the company has a non-retaliation policy similar to OpenAI’s that covers additional topics, such as fraud and conflicts of interest, including an anonymous reporting line. Anthropic has also said employees do not have to sign non-disparagement agreements that would make it difficult for them to publicly raise safety concerns.</p> </blockquote> <p style="margin: 16px 0;">“Actually we have even more ways for you to report complaints” is not the most <em>obvious </em>recruiting advantage. Do you <em>want </em>to recruit the people who are most excited to report their complaints? In AI, counterintuitively, you do.</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;">Neolabs</h2> </td> </tr> </table> <p style="margin: 16px 0;">AI hiring is weird, though, because do you even want<em> </em>the most productive researchers? The contrarian logic of AI is not just “the people who are most afraid of AI are the best people to build it,” but also “the people who are building productive useful AI quickly are not the most prestigious AI people.” They are sullied by commerce. The most prestigious AI research is completely disconnected from boring stuff like applications or revenue or shipping products; the most prestigious AI research is about fundamental questions of what intelligence is and how to create it.</p> <p style="margin: 16px 0;">This is sort of how <em>everything </em>works in <em>academia </em>— the most prestigious mathematicians or physicists or literary theorists are the ones who are most removed from the grubby realities of everyday commerce — but modern AI is like fancy academia with billions of dollars of venture capital. “My basic model of modern artificial intelligence labs is that they are like emotionally intense graduate school programs but with unlimited money,” I <a href="https://links.message.bloomberg.com/s/c/m9u_baO72Zzhm4B7J8_yER98LhdCkIFuBSzUfVvHmQ4ASYjHZoT1FSg3_emuVkRrjYQVQpWBIhaCcPzWW9oPoe1aHmb6H9ch33gJqi6h7eVGSBI9KfnUOUGwc8YiGHtG3r2FTr2iPQ-95EOQMPtxQh61dJOS7dhQOGqREpweQL8gzB0cZC2_FMBoEYxFl1RS7uMFGYokKaNZ7lm5vqit1q21i4cPfuqfGY0iIuqQ8bkapMZI7uaFBgyPaYWl_xIf3rf0KFLKq_kwO6adGRnFF7nfcZAs6kEGLN4i5p0j9NtivDgIl1nH54xmlTY-jySWXpcPXVSi1g18erH7hAsZ1DjjczqTYu2GIGAofCRvUdCMQLCxVyFVPJTpoc4/f5JVuyV538dZUm6Aor24KABsKQHIeZ0D/17" 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 the other day</a>.</p> <p style="margin: 16px 0;">So here’s a <a href="https://links.message.bloomberg.com/s/c/iCH_QpVWIz3QpYZc9t12PFMMjaCnw6-HchH9OZM70dmFUOz_1Zmavu53FKaZ48n_dNlX6GqelWa6HFlepM5ULj7uR7tyeQ5clsphm0wUBDDMS2z2poRrEofn1Teb1hRzitRert3CEwSUGxXk6s5ydP5EiYYZ7lRlAp6Zt3FzXrOJSEo1OHk9_yahLZl1umdYVhWHYcJ-7zeXdtV1NWun7VRAjKmYjaSkw9eihDFtxffFhgxT9RRnafFOX-BjC13OUdWNoB1scJUzyGuxVjfYNDQG6QYDY5_3x4Lblt3xSBUE-G24W19tqM5DYwbH89OkuYJoPg06lrlZ_VG6MxRs6-vH79st3dYtUavoNTrU2CE_KhhD0Jp4hM8jZgQ/vqErcQmfZbo10rKIme2faeHc7r1H54Qt/17" 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 story about “neolabs,”</a> small AI startups with excellent researchers who keep themselves completely untainted by commerce so they can raise a lot of venture capital:</p> <blockquote> <p style="margin: 16px 0;">Ben Spector had an unusual pitch for investors last fall.</p> <p style="margin: 16px 0;">A Ph.D. student at Stanford University with a highly prized artificial-intelligence background, Spector had no near-term plans to make money and no traditional pitch deck. He didn’t even have an idea for a hit AI product.</p> <p style="margin: 16px 0;">What he did have was a lab, called Flapping Airplanes, a novel idea for training AI models and a zeal to hire talented young researchers eager to tackle AI’s biggest problems.</p> <p style="margin: 16px 0;">Venture-capital firms jumped at the chance to back him. ...</p> <p style="margin: 16px 0;">Flapping Airplanes—a reference to the biological cues future AI should take from nature—is part of a new wave of startups some have dubbed “neolabs,” which give priority to long-term research and developing new AI models over immediate profits.</p> </blockquote> <p style="margin: 16px 0;">It’s not an unusual pitch! We talk about it all the time! It was Mira Murati’s <a href="https://links.message.bloomberg.com/s/c/xBAyYaEBS9NOxLz8L4vFCFXiR6DciShpSQf7VTof5CqZX_cQIAPrM49UWubNsWkfJy4b7OYCuOpGzWr-9-HPGR4m7oT3RKgOqG3zK359OQ4V4DhSLshZqY-Sk-kLGHkfRmwAQ7d12azeyfD8iEPKQmRFNPLBidLKx32nq9Pqf-AqTS3GU0zFkuchm7Bohq7FtYuqoV3vlQa2tD1CG6-Ok80qBtnewSBV2UUI8I-Y764jcZwKCL62oWKMQ4v6baRImG9JqEyKWnyW-cybFZjHNt5lcOnTU_7XGicO9BxO_ijq8G1OgcIDhitIz04Ol6EiI48rEOmEbx3fC4uSHavZ8hbD313YOB6kipNcB0SEocFwyy4GqsaY2xcDOXE/yYSCHGDshKzRfsLK8xCh393GeiP1iM9V/17" 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;">pitch for Thinking Machines</a>, which was essentially “we have a lot of top AI researchers, give us money and don’t ask about products.” It was also <a href="https://links.message.bloomberg.com/s/c/nIeEuoPqY1IXyz9jnFE_Ut2TDpqfWpp3y5qjQl_my8xrtISNKBQhXMja5ZWzC5nQz5F7gzJ20ZUJ4u1WfjvkalwgXGMwlkXcbM9XO1k8kx-eEqAGaeNN-3a04Uy-UG7Xk2hayyhlGJkKAY0bstV3fDVcIxFUF5Khj7ji2f8nggZ4TGkV9Cy9HXFE3T1HTxE85c0go7qV7WM4YzgYxt9B5uvbBfyynwLG1vGxGBSFzHhWj-D2thj7hJx1DeymnBulXuzVUIESBwETKYd3IMCcKs9A7Yae3AW2AtHmwGumzpdZ_SpqZ6AEdb4AyYSwSJHcHGAprnXXySTKq8TBZiLKH0eA3JBjuEzYEm0Egr_tl7wjDA8cJwbFtDVvdCI/IMouPVGI2vdDIaqzOakA3ggBqz2gwOsP/17" 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;">Yann LeCun’s pitch</a> for his new startup, about which I wrote:</p> <blockquote><p style="margin: 16px 0;">It is really an amazing time to be an AI researcher. You can come into work to pursue pure science, uncontaminated by any need for near-term practical applications or making money. And when your boss comes to you and says “hey guy not to be annoying but I am paying you $100 million, is there any way we could turn any of this stuff into money,” you can quit in a huff and find venture capitalists who will give you billions of dollars to be even less commercial. And they’re not even wrong! Betting on long-term theoretical AI research has turned out to be hugely lucrative for a lot of investors; there’s no reason not to keep doing it. It’s a golden age of academic researchers getting bazillions of dollars to pursue pure research.</p></blockquote> <p style="margin: 16px 0;">Yeah I mean keep getting those bags, guys.</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;">Popular <a href="https://links.message.bloomberg.com/s/c/YtYan0W91SR2-pX-3Lxo41I7MaG8ZPIU4-wanWUJAAGkL5qOExHWJtN0k-w5BaEImoFyj3a2OBf4--Dg5zrLixkk6UPSyxK1vkewqVBE2zoDE0HZlUbdVufyg0hla85S2tSi8_yaXRdh1-alZ4_7q0eCE-llY-FbW8Vfb2EEK7W9HBELoIRM_p9aI4ovsDgRh_jUh1KLxJLU9NP1x4u75PzrYDFyzkd7a0r7MvjD9exJzEbYUQBNm3zMWJMdpwN_hWX5NNMeQS0NFt-AcNU4pJQfwMG48LtJvxJLpvp93w4acbCbLnLE9oVybmdFWumXimaHGY3zHyb4u5-o_fveC0-XWiPNLrVtJHGZ5x-z-YWdrPW8l6GM3kQN8fY/AqCEQnlY9PyhgqifGNBXkruPET3O4PZA/17" 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;"> Dutch Pension Trades</a> Are Backfiring After Months of Hype. Trump’s Embrace of <a href="https://links.message.bloomberg.com/s/c/rN9aQMPtEXd1w0MqKk_lNhgvg2mCu2Lk1ljduOLZQMRzT9oRZD08zpPqol3R7YsPzIBJACw497WXPzwIPA7mYSfQDVBw7RkS9CGEMgKEurXmhlEe1yaO6nF_c2XUJKMM-FWgLz6sCLZzkIxC7nCNQNow1yXFo20h4-vUZxXkw1xXQ0cg_NihTlyfOMvqvS9Y3-WtdsPrIynTuHsUBnzLLJCDYkINdXkLXsh-cRg2XWUkrNRGZ6H_d3UoX_wHyLI407093UznbLAZm1u3zF_PJvbD1_AhXbv8lxM1GAryFaZ_eEyiucwTO_2EWoAK-qBNW2_Whpllz6YLjjX6eZ1I3X0kroRwY1AnrPgR4WbNAHod4A7bzi5PoJ5LUW0/4x87CuystLMSerLJOxVA6zXrp_Bf639w/17" 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;"> Weaker Dollar</a> Fuels Bets on New Downtrend. SoftBank in Talks to Invest Up to $30 Billion More in <a href="https://links.message.bloomberg.com/s/c/ha5n1BYfaD2HzmX_2xesbebHxoGiFhx5PDAB9P_UQjCX8p7QHofB9pjtTyM-oAwFQ-k8rR626zwtIX3bB-LyeCqspPJyp9wiKnRqp3yXoVW9zpxf-CRsjq31shzsMeB1ZRVhDz64wxFkwMqNGsqgI30B402PFKYsrWZPJ1pNyD44QQNJZvTSfVc_-l-r5O38XlqYEBzXAIhb0FC435d_wttyOPSJns_FxtC9IDmD3c_ovE_aHGpZRMn674SrgZlmJbNTTA7Artu8M_BCqKvoExkxpEQCeJo5_yLd8ptHvvWdnZlMfu-WVU9_K1EgZGtzVDIsCBX1M6o-C__Z5-5VVpIzfA3Zky0GH2grcNA0bAompk9EbnrV0fgPURY/l9-ilOa4GRUX7Ze9cF-ZD_aWX7geLMZS/17" 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;">OpenAI</a>. Private Wealth Fuels a $240 Billion Market for <a href="https://links.message.bloomberg.com/s/c/PF3-tF6Mt3cwf6g5zRt5JrUT9z7G1u8GNQIk1yRsBtDIeraCfT0Jf_S-_uE_m6GQk9z9RsH6kss8hc1AXp19IcVHJQNY2PmcdZfj29zBuJMxXDN0QOIWerb956T3AckJ-h5aQarP-jz2S8hiGnrCCaP1mQNJ0GitnIERyv2a7n0w5yeBtcNhX3vihJWTYwyca7rQAxzTOlTS85c8Zb6wpWd_ZYWk4huaFoSktmLbdJ5Vh12BQwdkPM9TeOPHqv2eYOWu4q40uAwM8SJ406WGrLlHUVGItYM7AomgLgEJKSxHJ2m_AHd2foZTLrjUt0berrumdxpqwRZX5m66qgsazi9h2aHH8dr2iwD-MfqVQNVru9oYQMIEEtpcqr8/E4hzapuSZoG5qTJJhp3Mt8DsgKxFbzMf/17" 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;">Secondhand Investments</a>. Private Equity Braces for Major Changes in <a href="https://links.message.bloomberg.com/s/c/CvEMs3WjLWNCVmGHeQphXP-2yAizES71tTFYuj-xW_yb14o3fd1xstRZXl0PICPnof5VTeSRWn-GnB2TvMvYyzUPD9v21o0K1Uz-lhG2rZT2ClyvtmYm8xU1bvwnKoT2jWlvIN5nG-AIING-i_o3Km0zhUG2eJJULTVyh1SiOFtX8jJyrZ9_CfdCdGWtdA0DebsBSG0hVgXw-Di-s61XeppYjYbvvp4rtXZpz3aMtNtcrXRUq4x_wpSSc0Rxa2sxdAvDjEjM2ZhOS6BjTWsY3g9MoTNXy2OBVH99QlV0Xi4fNfJWxZ_CkfFfnoj6UBZi20QqUsxIj_YKBYcU8j8XaCFYJIgGW5WrQDzaTsLAeyh42F2-VXB5l_vY-ws/hA6np641xm9-HkM6jI3iZcb4Dvl1CNgg/17" 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;">401(k) Investing Rules</a>. How private equity’s pioneer in <a href="https://links.message.bloomberg.com/s/c/in1fCLSLuaFA0uxNUx7UJTSKOzx0wamig9wFMKu-dKSGDaOv6_EcsbooxqiOYugYqbo_fy_KFsfqNvUtQv1_fTciJDrOc_YEQvinjHnBLWOTrE7oFfRP7zSyIJbsnkOCTMEcOWfpfIEwFrFgjTiziWktMtX6fdcQjZP2kiDRn4f3379OtCRrm3tjFvCl0Ie8vXtofxJV25oTk2PDfcPAwNAzAT2lATCeEjWj6SOyrSOx81FLn_nIJBBW8HKOqWKH34kbnFKXHeoY70aCsA8VtmtYHwchtf6g-mN4YaFChQ--cs81XmJFzpCBfUuNSZGtFa_EeW1tEfAOa5Dq44Ry-qZGh4Myx688mXwn_5HEUVotCKZ3WFd-W9yRMXY/0zT-Knkkt8pFuejZCDuvLbgKyE1uQQon/17" 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;">tapping retail money</a> lost its edge. Wells Fargo <a href="https://links.message.bloomberg.com/s/c/J0UPfll7-j0kCysf0MSUWRL2SdNeFvbZbxrRnrgNvtO8ZSZ-Jd5j75fiAiqnWXsca4VbRo7Czaxl1Z9EMjwPJSt87RQDrf4CW5QddyY3WcCDeojaG8_0H64NJJaCNr56qUW7n16WUVJCYgTFdhxNXwYLM3vBn8lKPf8ALqgqs0yAz_1ygQfc7iZYvFFExfr8PyI6xzqfSt90CI1xuMmIoXruYfqUPSSBPxhbqQWtVwtSSl1XYhiNjrhdheeSENfnhgg3YFi_UwTBPcHCDIwlebk_TbRCBLOG6CV8-pInxGoIlBNPBSOHgf7U5g98VJMQEa3aX_z6A4pKso3mr7AKoEVVzXW2ptTV1eldnDifzvWT8lPcyHWA0tlyj_A/-UJS1iIW27taJdyvRaM2EyFNZFCQVg7D/17" 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;">Cuts Proxy Adviser Ties</a> in Latest Blow to Industry. Star <a href="https://links.message.bloomberg.com/s/c/ij2IwhgMhFI24LHv2PoyX4Nu11Wn1TR3yr88VnpKJKtMWi6BH0PAnoOcxTIpAvn7pTMbebQzzJ_3oSMFTYf8fs2pxIDlNxVvN_K5IykH8Pj9Nnd6t-nJLnlEXWqCnmmp8_d0AwfT-cnizwDfr3-lNt8usbhkd-CTdFAhHGvzpC6xXveFdmbi5QVjIxpSXBgu7ORXEagejH97VGbuPy76e11z3Ggqt_QQ-wmSOrxuoJH_TOp-RfPTxpUrwFg2MvASPoDg-nsSw1LNPV9KTXfvpxp694nA1jF-tWs8k4rkOXkBhADOVsBEvK_4BV7-g8yufwNoQc2fq9izyp_VayvsolQ7hAwZcCDfngAVJi7wmqNU0prSvHlw18sLPVQ/TKZpd4MxFQIaCzvY4puiM0wTW5npZfep/17" 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;">Kirkland & Ellis</a> partner’s future in doubt as firm sides with PE in legal tactics dispute. <a href="https://links.message.bloomberg.com/s/c/d-YxhLXOq5P3nhwV5mjpqBGOMClaTZOjpZJGpxMUqKC4pRuj-MfGMWcGJnyxB-ROqAYYX0cM67mWOx47SzoSGjeEvYmvELNTJjze9TXNYx8CT6ohQS0HovlB_R1YH3zLIS-psD9-8dZ21QVYDTAPXbqlBF8xGTJIo72fG5IB6h1uTMmNuytfFUkpMYfQ3hpoKo3eW4EIJP021fdUTtOfoXncoQh9oZJoPbxuhdTtNlHwdRABYLaHD5qimK2F4ZAXFTQAxWDBs3KXsOY7t3rFoksS2AfVsWceqasHbYCSrw9vPmRvuUZT8bBy9pfV_XUd9eX5e1FrsJVNhN0NpgMP5MgIcfN-xpscdXds9yWtXm7xqj00CoO_5wiMmjQ/ipVe7YITMBeA6-wM05jVkmFpnzGB66Rw/17" 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;"> Deutsche Bank Raided</a> in Money-Laundering Probe of Employees. <a href="https://links.message.bloomberg.com/s/c/NwRWrvxoHYOky7O4RI4yEYG3EEP5A7j5GjVFPCWgVl0CNg0mnWZAOsZH1W4hEaA3BgiAK_a6jhoh9fEVw7ZmSfoA0vu1VX4mRMEGKT3EYVgWcTkhXxzgru6yhKmPuJ6aJlB8BzSDAXV0NQSLOo_j_RHwUyjiV7AhY1cmPWAd6Samwf0wvIn5563qpqlPCEh4OF8pay2TjXjinYO8Wx3Vl6tUsG1pOCQjDxsXNpijf-7VGv_z2iMsJizuzizwVCwXwAVNQ2avntIBNrwPP-GFsX6uBqAoFMSJwcIv9nTptnyrZAaNoExOZlDQqMpRoKLuqUUhdThoVaf6zeBeSVqLAS4ZoiBAYvMbJjFFEm-7_ruw8E2bC1ikzleC9qg/pwDOoIFesVXX2mgN6WQLNb3sTGNMhl-0/17" 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;">Silver squeeze</a> leaves solar panel makers feeling the heat. Amazon to Cut 16,000 Corporate Positions to <a href="https://links.message.bloomberg.com/s/c/y1V144soFe8OW8eikZ4h1t4piFcjgrYCQY6U4Kp1wGAEIXJ3cg2ctnKThdTsUrKYlnJpZplFbdT5F8U--GGKBRpag-09d5T4awlEQf-8qyLPItfnlt-3O2SpkDcqPqiPNfktkeuNHCDsIL2IKHyE6SBlnfyCr5MQHuR903nfO3R1FyJ8vobAW7ON6FNDtHXLbNxioz3idgmHdeQGx126pzXn3EW4zcPkvgd_wLr8Y94G0vdVVqN8zFkFbNoxSHwfEK77WPX0WqRmMDtGrIzNgf6js3EnPqCHI5IJrah_jiD36p-8l8I_Jdd3pGdfmZyX6ykQ8WDcmu3eNZssFJCftwkaa0wza60bb-pm1xcDdf7vS55ydGJhvh36Fa4/6_W_9hpuN_TlLH15i93bYEOJA6uixNhq/17" 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;"> Trim Bureaucracy</a>. Amazon to Shut Down All <a href="https://links.message.bloomberg.com/s/c/oz25aGulVuIU-d-Ie8qNvlm6-IBtn-EHPbWauoHChWp3tuVN3eIXYDcoL2xAANU1_dxrXwzrP09Hmonr9OpmUqL8KdfFjIUXvpddxa7tGNaFFKHg8kOrtPHioJOw4CmTRy0-7cBX8gLUwTgt26OHagc6GSizL0P4iQc5q4eJMwzS40mwdY7QQP28BGCrUmYH8VsS7Yh3g_mBo19AwBzQCUkpDPFxfdE9peZ9fWC0XVQ59VBkY3kahNCOS6KD31ynPsw5PvhDK7SXAUv9TNl9JsKUpDWe3xcnpJq7EBRXtQkHFYUGB52shL0m75LjA2Sb2eyyQ1E0bABFHse06OkAOmFFy6wdunFCT7I2-jrAFO3ujD4gZNrdlTxaolQ/_Tvzps7QvB2tv1GG7kTwrGVGALte4TuR/17" 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;">Amazon Go and Amazon Fresh</a> Stores. Amazon <a href="https://links.message.bloomberg.com/s/c/Y2e563KlxSgZEbJNhewaqZATtRQ8XJyRc3yzuUTFYm-3COGXHrDIb_UI8ULE3WvG7TAiYuh97-ZYHShf0sJ5NtOEyX9UECMCuandwnRlzt2Y4zl42LlewmxA4uz88LrZxz24VLe-lwY6oQBedc4I2IXU2OXdNarojPVmv25aZGd16T3wGN7IWLg7gh6xeUTL39WQmaUsLLOMYnDZbWY7U5BydozX21bw4-JjSIMVfXcXc92iKMwwi7kZ7UOSaGJgrNosWVecU7NzI7KIT2esSXD8YYQ88YcHp8Zu_1gH_ZZs5m0tJKZ2jzk7jFMgPxbeKLNmSGG1CwX_86JUR0zH-jLrp_z668Mb6GKH5z_WcvDU0YRx-SwVKT_oB0A/ocuXjJUYqIe1Wb9ZTcNiL00TPFakqOvn/17" 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;">inadvertently announces cloud unit layoffs</a> in email to employees. BlueCrest Goes to Supreme Court in Senior Trader <a href="https://links.message.bloomberg.com/s/c/SjLmhx7Krg0IxlkjiD7IF074jlxYjFdUVa8VhcsPU8RA2awu56qFrGU5kqIJW2IlBTvYIgEhCow8WcU7oxwxsp84lHzPCmgRKNDYmXPPCFP9lEGjuLXeeid8ThVwxg-EO0CX1JZbXtzUq0xMm3kHODUVjNsh4fgVr1MN7eRGy3w_fBA8fm-Wq2BUNmfyv7jaSzZ3ChQVSXAzEcFarepBSiNwxae4HcnIx5IDQnnLbD-aRDgHlNGNAAPpJZImP8kR30cFhW2UusSe_vFh2Rss5qFt_rYapq9WfkYszYLAch_MfkVxjk92CrqIqZi0RJGQLIZ4DrAppprdquroPqZ_Y_svuzU_Ss-fj7hrZCr0ElSphZM5s8vPf70n9HE/IplTdtS8ucXxoSNITmyNmmrkvAlJyWe1/17" 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;"> Tax Dispute</a>. France presses Capgemini over <a href="https://links.message.bloomberg.com/s/c/pLkVAVj3QiXy_x45ecc6BsjSpmvqopFpik2swe2iHsQzLL2NCR1zFiy78Ag-rqt6W-rGqPAeUg04jIS4y5sPGWcaWi_aj8Kfc10wqsXGFEu7IQJyxB9vOohoqnQ1953XUcK8Gp71yanftNt0yM6dfb4gXZzvAWhO4u3KsZ8AN_b8TfDCE1wpwFf58lJVh5aiLULTTz1sKp78jgcWbVxSc4y-2ZE0PWepFpkTMgTsIN5h_3gLcKct1QXXeW3U__fT5wxp4kcMImd8Ttxrr-IZsTtnsmJZVz2p2PZlHW2EMm5JIKBI_BkmeLJBxy8qjMqpiEWKo2vBRaxQAJmd4UuQaU1so7pe8pL_Rj8zBn3RK9k6SAIovWmCm3DODYY/o0Kp5T-LvTmT-Y2YWyi8EezV4OkHDJw1/17" 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;">ICE contract</a> amid international backlash. <a href="https://links.message.bloomberg.com/s/c/f5MGs5_ValFYgtbxOkTRZsWnineessKfOsMmt_7W8pBeqg5dxz992buvkClm7P6J76YwTils-v6-7osNyNuvITs7KAs8FJ7PrTJO3PJv86UZPWXqhPgRqUqFzUQQHoUjQd-7v0V0pYSetmgF7YtjieHvPEHaJzBQpZVb0kCKhRMni1C7rLlQrHrpBfziQge9tIYmwJm3J13bmhJJ2u_i-fQyNDhT2iEzOi6vJKE2fm2R9pUILgSOb0l-ZK-KFG5Z6LDOwFCSnzLTBQNz2wR5YTqsaYBDKpPocD-wt1YyP1N090gQSldYs7nUu22xv2cHNV-rYwSz4xzSORvbMUgLxvnNd_LniYSKZCoMHSZrw8599d7Ca1Oh4zKXMtI/OO6fiLypb5Ip-JB0N8o8J_U06b6Mc9ke/17" 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;">Fish pile up</a> at European ports as new digital system falters. Weill Gives $120 Million to <a href="https://links.message.bloomberg.com/s/c/TiaY2JjwaLsMzRT4QlSdVzV_AwtjX1CGmBo3lgx0T45Yp8wkDGHTB3ize0hs54GinuMPW9HVhq83fKG6EstClmTlFvs9-a1socXkCDLcZPzBjvxzdG5I8UcJYHvyCJABoDt0vAI46snm6X8l2Y08criGqerZIWlgg_3oYcicvLn2O_gENo2ujzEZT8PH8wJRl4hE1Ez74M8CK19z7hE6J0tSe4XcLsv7zv4845zV5z1nhpnJuAO1GHEWwp3x2lLsbKUtlN3aE2qKUofVlvajmcjM-yZb_frFpLfC1GF4nWTgDUlzZOs_qUFelFxaYIgiubfS7s142E-6PgmHgiANn-Kqgb9p6Pw9LDjVL1chh8QnAJMGpVA6IOThoCQ/ZIEPmZv1h5Zh3UrOBITqmBSjM4sxYJEh/17" 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;"> Vet School That Treated His Dog</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/KT8iFy6tmdfOu0YqaW2ry7vp2g40gDb2hdMWT4k8VStGLy-vPdipnq-GCzSqbTKXko-wwYWpsQR0DQx3j22PWskR6z-ERWCG1sTpAsl7p0chHqfoFNp6P8uMVhmSZcA4uCuRGnSs0zXdBdsMch-Menj9H7POqoQ2vSCWV7WAB3xMZYZrx7sKCKMJHZdgBCxoH7Hb-79skxpYZcn_Q-SCZdxlGcchp5op26AJGdfmDNagSs67Xjzmkh-eCIw57ytwx3NpYomHd-Zzsl1tNsDu-siCQl5XOklyX7nj5bbmPoqQ-9ZJNrjC2aNTL_7YVLYQUX55vS6mo05r7jw1uBIBI-4ZqXR6c8hFuSsk4jOv2TxYZIwi6ai-6IhILrc/JbP5oWamhQlvkfvO5QfVznIjCpjZTlCq/17" 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/I58fmuVl5vT2I6lqjF7SJfZ8GukPVjNNJlYW0BDXBuGE2mfBGIMuNA4JVkoIlzc46H8z_OD8GGOqva-JJ41O8Vn1eS7rpel1SUjdqHlxM2HQuW-bXY147ZjbdwwGohWioozO-geSDhi1SIVYwcfFhlKroHvdk861n4zHctBPKF0MaODLUoMrX_wM6bneU-ocr2CgI5DEHVrE8YRZMJK9cXLotdW0bMrRe9mtQ5o3o8weCyJSg4amKhueZWYYunYv310aGF4YO6u3OoI1RdBXdDCoZufrs4d_2iSDlFabNmefOsgCBl-501jyEaJxFfnnG0WhawhY0CTsPhZWJZQ43eBzdWVCY3qtjRTaoMRlL3dZIw1GMkLbBlDCloc/DREcy8rbV4LrSd6hOPWHSXZnV64iEFnc/17" 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] There is a relevant <a href="https://links.message.bloomberg.com/s/c/raKJYwuG3ArKT1dYbAKa6ccmoCyZrCmFQ5RvEJmb-GdYWTyEUulm23UlQGs_3vIyPtKtXVcRZD_iOx6RWF8DifEpLQqPEiYF4aiTulZOP_ZzoX-46nnuBNMUZ3yhfTMI2v9M_gHhFQabGL2n6XhtO7sOq_bX52bB4dZxJpx_Dc03p0eUPtNVOaeh5SzMXSZ2D8lPj5BUOmUI9yvqdKWF13UdFHYYAlwDaXU6F1ysHpumc844qHsY4oLA4vJa2KbNdWlAdS2bhJ4Zh--utzQCTgcD25f3652VjzcXI3pqU78KTSeTGPI1s0OAKOcj3F4XY9N7uHcIACGI6NQQlptFhY_3zFzD_hWm_w9jffr0cLvLGfJsXFgw-ejoWbM/purYV4ShRWgPWz2licpdc3yfiaA0Ofgu/17" 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;">Coase paper</a>.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] In the financial industry, most investment banks at least say that they are the second kind of business (teamwork, one bank, etc.), and many probably mean it. Some multistrategy multi-manager hedge funds, though, are very consciously the first kind of business, with all of the pods in brutal competition against each other.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Quotes are from <a href="https://links.message.bloomberg.com/s/c/D0CaEG53uqk10KK3PyNFV4Oz4jFEp16K2nVBpD6ZJIrQ5BYkfDwj_cQOkvyiuZB3FgwszVEP6IrZrk0HjeRBmDRsd1ObTIuL0ZEU2etP3N-P-OyMkfecEwEz5dESAtO3t2R2R5Nc8k7GiHGxLn6V--d223q6zQDRMF7tA4muqG-s5HIdKxERkqAVpdTQbw_zkKiA2MnZp5LuXN-0XOHhZ9MvDLst-cdv0dBW8YyNRK0kTlyC78SQGPbObT7bXMIzO8jwapv4J3JAsDb-Fv0pVwQSYwvJi5Y2kBBQJdFJUupml215Ug1EWOydEebDHNPs78BNso3f6QP3t9qUspqfz1XVJH1j3Y1PrBOLqyDWz6VoxGXqPmlbE_arJIY/QQYDeO5AEwPysahWWEE9hBTnt9-eP-le/17" 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 complaint</a>.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] I mean I guess it sounds like cocaine?</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; 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  7. CardsFTW #189: A Deep Dive on Coinbase’s Card

    Wed, 28 Jan 2026 17:15:19 -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 #189: A Deep Dive on Coinbase&#x2019;s Card</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; 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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/4c918c9e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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="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/1ea7e816?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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 #189: A Deep Dive on Coinbase&#x2019;s Card</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, Brexit, Bushel, Bank Charters, and a new Airline Card</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;">28 Jan 2026 </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/7742375f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/b0146367?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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%; line-height: 1.4; 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%" data-testid="email-preview-content" 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="brexit" 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;">Brexit</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Way back in 2021, <a href="https://www.cardsftw.com/r/84e44797?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW #18</u></a> was titled: &#x201C;Brex Wants to Own a Bank.&#x201D; Those were the days. Well, as of last week, <a href="https://www.cardsftw.com/r/eda5b451?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">a bank wants to own Brex</a>, with Capital One announcing its plan to acquire Brex for $5.1 billion.</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/2026/01/brex-1.png" class="kg-image" alt="Black and grey credit card with the Brex logo and word mark in the top right, the silver Mastercard logo in the bottom right, and the EMV chip on the left." loading="lazy" width="600" height="379" 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;">But will this ALSO become a Discover card?</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I didn&#x2019;t see this one coming. If I had guessed which bank would have acquired Brex, it would have been Fifth Third, which just last month announced a partnership for corporate cards (see <a href="https://www.cardsftw.com/r/6080df8e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW #183</u></a>). I also assumed Capital One is busy integrating Discover, which is an enormous project.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The deal makes sense to me, however, as Capital One has a large market presence with small business credit cards, but isn&#x2019;t known for its corporate card business. Brex has long focused on being an all-in-one provider, not just a corporate card, with deposit accounts and more for its customers. Shifting that to a true bank charter should help economics and expand services for both brands.&#xA0;&#xA0;</p><h1 id="bushel" 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;">Bushel</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Bushel is an integrated workflow solution for agribusinesses, helping farms to manage their operations, including payments. Bushel was a customer of ours at Apto Payments (see this aged <a href="https://www.cardsftw.com/r/39bbdbf8?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>LinkedIn post</u></a>), but, to be honest, we had trouble getting the debit card program that we all desired in place. With new partners and people, it looks like <a href="https://www.cardsftw.com/r/87224508?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Bushel has finally launched</a> something we were aiming for back then: a debit card helping to speed up payments, because, as always in business, cash is king.</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/2026/01/Bushel-Card.png" class="kg-image" alt="Yellow credit card with the Visa Business Direct logo in the bottom right and the logo for Bushel in the middle of the card." loading="lazy" width="600" height="512" 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;">Eliott Bush</span></div></div><h1 id="affirm%E2%80%99s-bank-charter" 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;">Affirm&#x2019;s Bank Charter</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Speaking of how Brex wanted a bank charter, so does Affirm, <a href="https://www.cardsftw.com/r/dbd99374?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>and maybe everybody else</u></a>! Affirm announced <a href="https://www.cardsftw.com/r/0bfb0bdb?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">it will seek an Industrial Loan Charter</a> in Nevada (not as popular as Utah, but closer to San Francisco). ILCs can help non-bank owners access cheaper deposits, become a direct member of payment networks, and more. (For more on ILCs and Utah, see <a href="https://www.cardsftw.com/r/d3415274?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW #171</u></a>.)</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/2026/01/affirm.png" class="kg-image" alt="Blue credit card with the Affirm logo in the bottom right." 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;">Alfred Firm</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">It truly is the golden age of bank charters: Ford and GM were <a href="https://www.cardsftw.com/r/e91e5ff3?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>granted charters this past week</u></a>. What&#x2019;s old is new again: GM&#x2019;s former finance operation, GMAC, became Ally Bank. Now it&#x2019;s time for GM to have in-house finance again.&#xA0;</p><div class="kg-card kg-callout-card kg-callout-card-yellow" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #FCF4E3;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F587;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Did someone forward this to you?&#xA0;<a href="https://www.cardsftw.com/r/0ff18371?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"><u>Subscribe to CardsFTW today.</u></a></div></div><h1 id="avelo-airlines-launches-a-card" 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;">Avelo Airlines Launches a Card</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Avelo Airlines, a relatively new discount carrier, <a href="https://www.cardsftw.com/r/7017f4b1?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">announced</a> the launch of its first co-brand card product in partnership with technology provider Cardless and issued by First Electronic Bank.</p><div class="kg-card kg-callout-card kg-callout-card-blue" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E9F6FB;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x2708;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Avelo Airlines launched in 2021 with its first scheduled flight between my home airport, the (Bob Hope) Hollywood Burbank Airport, to the harles M. Schulz&#x2013;Sonoma County Airport. Prior to relaunching as Avelo, the airline operated charter flights as Casino Express Airlines and Xtra Airways. Today&#39;s routes are exclusively on the East Cost with a base in New Haven, CT.</div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The <strong style="font-weight: 700;">Avelo Airlines World Elite Mastercard</strong> earns 5% Avelo Cash on Avelo flights and 2% everwhere else, plus free carry-on bags, standard seat assignments, and priority boarding for everyone in the cardholder&#39;s reservation.</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/2026/01/avelo-mastercard-image.png" class="kg-image" alt="Avelo Airlines World Elite Mastercard" loading="lazy" width="600" height="379" 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;">Alejandro Velos</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">As far as discount airline cards go, this is a very solid offering, with very strong base cashback at 2%. If you find yourself flying Avelo frequently, it&#39;s a good choice.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">From an industry viewpoint, this is Cardless&#39;s first domestic airline partner, following prior launches with international brands like TAP Portugal, Qatar, and others (not to mention the Coinbase One card profiled below). We continue to see more brands select modern card issuing platforms over traditional bank ones.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><em>(More to come on this as we update our annual </em><a href="https://www.cardsftw.com/r/a2c8b130?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>Credit Card Program Management Platform Market Analysis for 2026</em></a><em>.)</em></p><h1 id="coinbase-one" 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;">Coinbase One</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Coinbase is the leading crypto exchange in the United States and one of the oldest, founded in June 2012. Over the years, Coinbase has positioned itself as a trusted way to access a new alternative financial system, with bridges back to the traditional financial system.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In 2015, Coinbase <a href="https://www.cardsftw.com/r/7f4ac6e6?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>launched</u></a> its first debit card in partnership with Shift Payments. The Visa card allowed users to spend their Coinbase balance anywhere Visa was accepted. I had one of these cards and spent what is now an absurd amount of USD buying a latte at my favorite coffee shop. (A personal aside: Shift Payments eventually became Apto Payments and powered debit cards for many programs, including Coinbase and Uphold. Apto acquired my last startup, Vertical Finance, in 2021, and most of the Totavi team joined me at Apto.)</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/2026/01/shift-card.png" class="kg-image" alt="Screenshot of the Coinbase app on a white iPhone circa 2015. In front of the phone image is a blue credit card with the Shift logo in the top left, Debit Visa in the bottom right, and embossed card numbers, name, and expiration date in the middle." loading="lazy" width="600" height="759" 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;">Full credit for &quot;Taylor Shift&quot;</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In 2020, Coinbase <a href="https://www.cardsftw.com/r/229f78fc?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>relaunched</u></a> a debit card with leading payment processor Marqeta and Pathward Bank.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Yet, for all these attempts at debit, no credit card was launched until just last year, when Coinbase announced the Coinbase One American Express card. The card is issued by First Electronic Bank and powered by Cardless.</p><h2 id="why-credit-is-better-than-debit-for-crypto" 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;">Why Credit is Better Than Debit for Crypto</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">My experience at Apto, where we powered Coinbase&#x2019;s UK/EU card and Uphold&#x2019;s US debit card demonstrated key challenges with using debit for crypto. The traditional US payment networks (American Express, Visa, Mastercard, Discover) are dual-message networks allowing for changes between when you authorize a transaction (e.g., check for fund availability) and when you settle or capture a transaction (e.g., finalize it).&#xA0;</p> <!-- POST CONTENT END --> <div class="kg-paywall align-center" style="text-align: center;"> <table class="kg-paywall-hr" role="presentation" width="100%" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tbody> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; vertical-align: top; color: #15212A; margin: 0; padding-top: 1.5em; padding-bottom: 3em; font-size: 17px;" valign="top"> <!--[if !mso]><!-- --> <hr style="position: relative; width: 100%; margin: 3em 0; padding: 0; height: 1px; background-color: transparent; border: 0; border-top: 1px solid #e0e7eb; display: none;"> <!--<![endif]--> <table class="kg-hr" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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-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="latest-posts-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 24px 0; border-bottom: 1px solid #e0e7eb;" valign="top"> <h3 class="latest-posts-header" style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; margin: 0; padding: 8px 0 8px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 13px; font-weight: 600; text-transform: uppercase;">Keep reading</h3> <table role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, the Apple Card heads to JP Morgan Chase</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; 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  8. Banking Brief: Davos to AI: 'Show me the impact'

    Thu, 22 Jan 2026 17:50:53 -0000

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font-size:15px; color:#222a43; word-break:break-word; padding:3px 20px 16px"><div id="hs_cos_wrapper_module-3-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-3-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:12px; line-height:115%">Source: Adobe Firefly<br><br></p> <h3 style="margin:0; font-size:15px; line-height:115%"><span style="font-family: Helvetica, Arial, sans-serif; color: #000000; font-size: 18px;">TODAY'S BRIEF</span></h3> <div style="line-height:150%" aria-label="Leave comment"> <div style="line-height:150%"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="content-module" data-onboarding="content-module"> <div style="line-height:150%" data-test-id="element-mouse-events-handler"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="module-module-3-0-1" data-module-wrapper="true"> <div style="line-height:150%" data-test="overlayHtml"> <div style="line-height:150%"> <div style="line-height:150%" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;">January 22, 2026<br><br></span><span style="color: #000000; font-family: Georgia, serif;"><em>Hi Roger,</em></span></p> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;"><em>Greetings from Davos, where the talk of the town is ice </em>–<em> the slippery black kind that claims a few bones here every January, the government agency in judicial overdrive across the Atlantic, and most of all the ice on a certain island that starts with Green. But tech and finance are out in full force as well </em>–<em> and so are we. Alexandra and Matt bring you a dispatch from the Alps.&nbsp;</em></span></p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;"><em>&nbsp;</em></span></p> <p style="font-size:18px; line-height:150%"><em><span style="color: #000000;"><span style="font-family: Georgia, serif;">Also this week in the Banking Brief, a revelatory quarterly earnings report from PNC, a rare agentic use case, and in our Big Ideas section, a way to help AI remember better.</span> </span></em></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;"><em>People mentioned: <span style="font-size: 18px;"><strong><span style="color: #000000;">Jamie Dimon, Michael Roberts, </span></strong><strong><span style="color: #000000;">Bill Demchak, Meg Hillier, Michael Ruttledge, Demis Hassabis, Mahya Knox, Brad Martin, Tammy Plummer, Brad Novak, Nima Khajehnouri, Bob Hoyt, Joseph Chan Ho-lim </span></strong></span><span style="font-size: 14px; color: #000000;"><span style="font-size: 18px;">and others.</span> </span></em></span></p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;">&nbsp;</span></p> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;"><em>This edition is<span style="font-weight: bold;"> 2,076</span></em></span><span style="font-family: Georgia, serif; color: #000000;"><em><span style="font-weight: bold;">&nbsp;words</span>, a <span style="font-weight: bold;">7</span><span style="font-weight: bold;">&nbsp;minute read</span>. <span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3hKBlW8wLKSR6lZ3kqN1mlrGB2jRmjW5BHGJ610sdQ7W121cBb78q2XcW53hR8P3shpyhW7S2C0w3qBrqnW62XKY28xFkKVW999f8G8Q4g-sW1q8TTm1YHnFqW16D28M5Xj-hlW3H92KV3gQdmzN5L2nJf9rDdSW1W80KC7csJHMW5NpQkz8nDNfWW5xGSGc9j9wchW9151Jx6CP5RtW4Qlk973VLr3NW16mvsz21QGbhW4fN_0T4mmvf3W34rcxV30P-HgW3wwq5d6V50fZW2gp0m55LRMVXW4w1JZ25TgmsYW7mRzLH9hHtG-N48xgYpxwTr9W21Q6pc50Pw8kW4MBxTZ7YPCXzW4D52Vv4cfT2BW7BkGJv64RkFGf5WLXtg04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="YGsmw41M" target="_blank"><em>Check it out online</em></a></span>. If you were forwarded the Brief, </em><span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K3hKBlW7lCdLW6lZ3l8W3TFrD08n7SvnW1DdvRN3Nf7LXW8zHdP47Cyq8kW3zpQYt6vY3mTW3wq3LT6dYH0tW5TKBP91KcTXJN1G32B_ZkFtcW1V8HHW4JtLwPW3vdWkZ7v2hYrW8z1kpV7ZVvStVH1fZ572F3PXN5fF80h73WykW7tcQkV1jMpF9W31RRkl3ZcQzgW3rNv7c5Tm7s6F3XcHg0_T02W74MchB6XZ_V4MWSWgygntrqT1m_f5SBGqQW6w3X9t2ZdV0wW4zzKXn2XqqLTW2z9bZv76cxr7N5jpydmnN8kCW50V5Fv5-Sg8DdLjJk604" style="color:#f4854f; font-style:normal" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="JaBNhVk2" target="_blank"><em>you can subscribe here</em></a></span><em>. We always want to hear from you at <a href="mailto:thebrief@evidentinsights.com" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="tJjfnY3u" target="_blank"><em>thebrief@evidentinsights.com</em></a>.</em></span></p> <p style="text-align:right; font-weight:normal; line-height:150%; font-size:18px" align="right"><span style="font-family: Georgia, serif;"><em><span style="color: #1f2a44;"><br>– Alexandra Mousavizadeh &amp; Annabel Ayles</span></em></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17617492146231" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="dispatch" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Brief/V54/dispatch.png?width=120&amp;upscale=true&amp;name=dispatch.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module-4-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-4-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>DAVOS DISPATCH</strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>BIPOLAR AI</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="color: #000000;"><span style="font-size: 18px;"><strong><span style="color: #000000;">DAVOS, Switzerland </span></strong><strong><em><span style="color: #000000;">–</span></em></strong><strong><span style="color: #000000;"> </span></strong></span>There are two kinds of conversations about AI that caught our ears here in Davos. The public ones that drive the headlines. Those mostly speculate about the impacts of this technological revolution – and swerve between euphoria and apocalypse. Then you have the private ones, at off-the-record events and the countless meals and cocktails held across this Alpine town this week, that are measured and grounded in the realities of the moment. Both tell an important story.</span></p> <span style="color: #000000;"> </span> <p style="line-height:150%"><span style="color: #000000;">&nbsp;</span></p> <span style="color: #000000;"> </span> <p style="line-height:150%"><span style="color: #000000;">The eye-catching headlines first. <span style="font-weight: bold;">Jamie Dimon</span> captured his fair share with his warning about AI – which not surprisingly overshadowed his usual pitch of talking up his bank’s own vast investments in AI. Here’s the Guardian: "<a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ665nXHCW69t95C6lZ3m6Vg-pMl1vFcNqW8X39GZ2PvlZxW42LJ-r6-V2L3W18H_5V1pFthBW8C13Bh63nBhRW7rxwRD8bwtbGW56pWJw9dmFJXW9l2SBR94wyj6W2FV-Vb3D79VQW2rp4r03tF-_VW82HjYV9gyfXrMPkmBQqv98nN4nbB7DMHp6kW3BL4-s12hDsPW1Tdxdm40tTpbVjS8Qh6m0_zLV2Q4-l6vbzYgW1qNtBp7ZJtrTW1k2Hvw4NlL1yW8yVZ4T6bbt00W5mcGLc92CYT_W6bhW5F1PSRv9Vxyvgn17W_z_W5cbWCB3TBC9hW8rdc5M4bzH_KVFW93Z1Lb-_tW3fDRjT58YwKbW5HCnWC26YtrcN2n2cWQ_l1j8W8-QMyb34YkH8W1Hjxz75yHcXtW4XLfBv8Y4g_YW4mN70q5kYKd1W45sjD-5zmgV_W2xVfrX1HJXcRW34LSrr8NLWs_f6bW4VK04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="g3evMX0x" target="_blank">Rollout of AI may need to be slowed to ‘save society’, says JP Morgan boss.</a>" </span><span style="color: #000000;">Dimon said the bank would probably have fewer employees in five years, and if that plays out without guardrails across the economy “you will have civil unrest.” <span style="font-weight: bold;">Anthropic</span><span style="font-weight: normal;">’s</span> <strong>Dario Amodei</strong> added to the mood of concern by saying that half of all entry-level white-collar jobs could be replaced by AI. This prediction is a kind of reality since it drives perceptions and deepens anxieties among employees and customers about AI. Executives have to pay attention.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;"><strong>HSBC</strong>’s <strong>Michael Roberts</strong> brought a different perspective that more closely reflects our own view based on what we are seeing every day in the banking industry. AI won’t lead to </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3qn9qW8wLKSR6lZ3lLVmw61J7dmRTHW4PTB462J7v-zW3yx2dR8_5pMZW2HzC4B9dxXQFMQDSmQ173GYW5s-Fwv7dgrxgN2M1CyGqBg2pW24y8kh6Gv5KwN4ygkpPwvNGqW8RxXP66qW7swW3bsZZ_6vhBDqVDhHXZ5VDDFPN7HD3Yr6cHffW6Jy8426fzdqyW3k6fvc6dSnwcW6HYQXQ4Zx7vHVW9qKS2m1zJVW3CK5Dr5H6J6bW660r2N5d1Q4WW1k4W-L83w_gYVCgc8Z2VLwPbW5sX1g_8K48PdW8zsKw68yXGLRW2GH_FD4xRFrKW2BJS5S7syQQ2W4bRFTJ17pC8YW4m5ggj2KxStyW6g0WLD97P7swf6BcQPC04" style="color:#f4854f; font-size:14px" data-hs-link-id="0" data-hs-link-id-v2="VetIEqVu" target="_blank"><span style="font-size: 18px;">“massive layoffs,” he told CNBC</span></a><span style="color: #000000;">. If anything the opposite is happening and likely to continue to, as banks that lean in most on AI are increasing their overall headcounts. The kinds of jobs they are filling are of course changing. But <span style="font-weight: bold;">Nvidia</span>’s <span style="font-weight: bold;">Jensen Huang</span> scored his share of headlines with the claim that the danger in the AI future won’t be mass layoffs as much as labor shortages. “AI empowers people, it lifts people, it closes the gap, the technology gap, and as a result more and more people are going to be able to do more things,” he said.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">The other big debate was over AGI – or, in other words, when the machines will outsmart us for good. Amodei, who almost rivaled Donald Trump for how much press he got with his opinions in Davos, said artificial general intelligence would be here in three years. He had a prominent dissenter in <span style="font-weight: bold;">Google</span>’s <span style="font-weight: bold;">Demis Hassabis</span>. The two went at it face-to-face at a dinner hosted by the New York Times. Hassabis said we’re more like five to 10 years away. That scenario sounds more right given what we know is still missing from the current foundation models. Only when we are able to create fully self-learning capabilities will we be able to get there. We aren’t close yet.&nbsp;&nbsp;</span></p> <span style="color: #000000;"> </span> <p style="line-height:150%"><span style="color: #000000;">&nbsp;</span></p> <span style="color: #000000;"> </span> <p style="line-height:150%"><span style="color: #000000;">These 36,000-foot, forward-looking and therefore speculative views on AI for sure influence how politicians regulate and executives communicate and one day if not immediately allocate resources to AI. But many, perhaps most, of the private conversations we took part in on AI here flew closer to the ground. These were practical about what’s working now. <strong>JPMC</strong>’s Proxy IQ, rolled out last month, was one of the use cases invoked in these sessions (See "</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3hKBlW8wLKSR6lZ3lzVHkVQs7_tMZYW47sqJb7h971jW32BYv04J4cRxW63ZL5J1sSvdGW5S2XCQ3j9JgxV6gBKr8R1F0xW4SbXvV8-xGrXVfR7nL6Bz34hW6CxRGq1YHZBkW1L7mDF251Y64W3kTwj194sQXQW7LdzM-26xxS-W7T_YDM4K0T6rW8Z_4S87lvryNW8pNF4916s68zW56l-sT1scwGjW2VDPN87YRlT3W3VBltH44TPy-W99Qrnk5yXzZxW8sLzwb7L6BGTVBy2M3762YcpW8RBPfb1nXYfmW8zNp5d3hByQmW8p7qKn3_9WFyW8zz41p5P8n0sW589YvC69sZf8W6mg4_G6M-h5QF4ln7RJmPXQf7--w3l04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="nJCYNBgL" target="_blank">AI kills the proxy firm</a>", <span style="color: #000000;">The Banking Brief, Jan. 15). “What will other banks do to follow?” one analyst asked at a dinner on AI adoption, held under Chatham House rules.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">The private conversations reflect a sharp shift in the debate over just a couple years here from speculation over AI to real-world applications. “The question now is how do you go from 1,000 flowers blooming to how to focus in on the things that get you returns on your investment,” this analyst said. An executive with a tech firm chimed in, “No one wants to be experimental. Everyone wants to do something that has been derisked. Show me the impact.”</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%; text-align:right" align="right"><span style="color: #000000;"><span style="font-family: Georgia, serif;"><em><span style="color: #1f2a44;">– Alexandra Mousavizadeh &amp; Matthew Kaminski</span></em></span></span></p> </div></div></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1766060689829" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container hse-no-stack-row" style="min-width:280px; max-width:600px; margin:0 auto; border-collapse:separate; display:table; width:100%; background-color:#ffffff" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" class="hse-no-stack-row" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="middle" style="width:600px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1766060689829_0" class="hse-column hse-size-12 hse-no-stack" style="display:table-cell; max-width:600px; width:100%; vertical-align:middle"> <div id="hs_cos_wrapper_module_176606106729927" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;table-layout:fixed" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1749644496936" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#F0F8FF; padding-bottom:15px; padding-top:15px" bgcolor="#F0F8FF"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#F0F8FF"> <tr style="background-color:#F0F8FF;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:15px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1749644496936_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_17690725323883" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px; font-size:0px"> <img alt="use case digest" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Brief/V54/use%20case%20digest.jpg?width=1120&amp;upscale=true&amp;name=use%20case%20digest.jpg" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_175819656124315" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_175819656124315_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%"><span style="color: #000000;">See where AI is delivering real ROI in financial services. The Evident <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3hKBlW8wLKSR6lZ3q3W91TJkl4dtCFMW33M26R7YMBCpN7YNnrPqKk2QW2hT2cL16631_VGXd667vxqMZW8JW8zl7fn73cW4VMfd-1yGg-kW57ZX8l15lHbCW1Zl8NQ7NfbY4W4vdYKc2C8yjXVj9BcD6spnxvW5d5cSl6dPxnxVvKtlK77YgPFW345Qm-8YVdqxN4PdjZbXftRyW1p1R9l2cB9mXVNBsK659nt7pW98sWhd8LMllbW7tsdjc2n_jjJVR20_k4lGgsZW89-C4f3zmFs6W456_fb8GGtlrW6N1BB-4QV8KjW4RQzVT3CtkXfN9d8mz8pQTSyW3MYbgj667D43W6v_Js02VkXbXW84q40V1by-07f6_G5hb04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="UtWz3fzb" target="_blank">Use Case Tracker</a> is a database of over 500+ AI use cases announced by 80 of the world's largest banks and insurers.&nbsp;</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">Evident members can access the Use Case Tracker, along with a monthly <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5R5gf_PW5BWr2F6lZ3ncW4rN5G67xjmJYW5MTb6Z8NS9g2W5LTGxt3Hy625W41CqpC47r6QdW5Xh9B_8dCjTXW4L38Lw6hbYqCW2R_CbH44vHv0W6Y2QT_86pl-ZW6dGVlt7ycndMN1Pq1qMlD7BqW3gVNMX5SkbZjW8znBTW1dVjVmW7vYtWD80rRS-W11fpct6tY7c2W7SPGFw97wHFNW1JtHM85Jz0BVW466Xwn4XcymsW9258xg3XK7VMMmx6cdcwQ7KW78gBVj6Q_53vW2t5dKM3gBHRXN2ZSMkv_45zdW7gfCjl4BtV1KVY44Hw1MzxG7W4mHmHw4yTjxtN6LFmzcxjqMDW8HjMDK99Y012VxRV9y6LscbRW3W_BSQ9bDbmkW3yxJNz1Q9zTqW6_pZpt5TSmT-W7rMDFF1mhKDgW6qrqDt5z7zrhW4R3h7-4d0VHNf6lSNcl04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="kAdTxPu5" target="_blank">Use Case Digest</a> highlighting the most notable additions and emerging trends.</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">Not yet a member? <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K3hKBlW7lCdLW6lZ3nmW2fD5hH6GcbTqW2JVx_y8bQ1__W1s5z3F5_wCp5W2BzSsp3skB-JW95FQG323d1xjW8-7QHW8R8LdSW4VKW8962dRg1W5p26Ws3fZnqXW4WK0QM173g68W89ZY-13yH00JW65qdJ_6zkskgW9dlH-J3NB3pYN71wmW1TYMKBW152WxN5HfJGsW6rq9VD62lZT-W4qWbx44rKs84W6d6wPR4r1lXtW98LmQd9gRFFwW7VtKxc5m8HrTW6j7Tss52YY_xVFyRHL3k2m06W7KLF502WZBFXW1NfGV09c7cJXW9dCgJm5X1v3Jdf6mhb04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="uLvSEnox" target="_blank">Find out more</a> about Evident membership.</span></p></div></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1769084551615" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#ffffff" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1769084551615_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_17690715508683" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1756987234667" class="hse-section hse-section-last" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#ffffff; padding-bottom:10px; padding-top:15px" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:10px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1756987234667_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_17690715453351" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="top-of-the-news (2)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/top-of-the-news%20(2).png?width=120&amp;upscale=true&amp;name=top-of-the-news%20(2).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17690715475192" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17690715475192_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">TOP OF THE NEWS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>SHOW AND TELL</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;">America’s regional banks have started 2026 as they finished it: showing the “Big 4”<span style="font-size: 22px;"> <span style="font-size: 18px; color: #000000;">(<span style="font-weight: normal;"><span style="font-weight: bold;">JPMC</span>, <span style="font-weight: bold;">BofA</span>, <span style="font-weight: bold;">Citi</span>, and <span style="font-weight: bold;">Wells Fargo</span></span>) </span></span>that they are not going to let them run away in the AI race. While Citizens Financial ended 2025 with a flurry of use cases (eight new use cases published in <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5R5gf_PW5BWr2F6lZ3pbW6bPHxg55s1rLW4_lk5S2tYGMsMprTflt1ls7W5WDTBH11b6CsN67_Ys-tjyN8W43bCTC4t7dW7W1QzM5V64l4M5W2ncKrt8vwnM1VThtC138kq5GW2vly2h1c4Hf3VqfrS11Qx2XRN7Gy5ZHyKNTPW2M2g_H5QnXVqW4tjGC28HY8qTW6M3dpX6k0x6PW2qRGHF5lJG-rW4nphxC2h_pYwW6h5cJd44FTJ8W4Kk21c32Mxq5W77PZPN5fQ5WyN9fjqGV5jWbdW4zf6672LHy6XW8NQzKS5RkQTkVrdb9p4tByW-W2mph2h35QfZvW3CpsVN2wW8PTV-lVdm8zB_tKW4WRy-17LZPPwW5gSck74YLhYMW36Bq9c7Rn9CKVpb6XK5rshP2W6RMDL62g9qs2W4ZmDGW8S9CLpW26SFQJ1gl064f3w3YXb04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="kMu1nOIB" target="_blank">December</a>), Pittsburgh-based <strong>PNC</strong> (ranked #42 in the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K3hKBlW7lCdLW6lZ3p2W8VsPR83fHzMZW2J85Nw7S9WSDW5rpp6L1BCdHrW13w6g46L3FZgW495n4s2qxTKXW4cf7-T4SjfhCW2XnYsj2cXPDxW3YbG1q1jZMb_V-VxtM5l7VQkN7rHygDvL2zmW8HV9Ym3Pv54kW4wrfj56M7JZ-W8MHs8c1cPt0zW1kmQC_45rh3DW7GMPl32vFvwfW3cmMVf4qBFZnMXGHptc1cqFW8KPy__5W_JK1W4rrfGK2kRyqQW3DXyFj7p4l-CW1cwYP01kYfBmW1YNSwK7bVnXFW587vjQ5jynwWW4_qjCN2qcLydf8xV41l04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="NOIiF+w+" target="_blank">Evident AI Index</a>) <span style="color: #000000;">has started 2026 by telling us it is increasing its AI budget.&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;">In his </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5R5nXHCW5BWr2F6lZ3lGW6qRtNN7M2Z_jW7XTR0j3LlqCmW7F4Ks-57tv19W4GxbcD82DxrvW1d2lgV2QLpMPW6LZKXw5SY9yrW9hpt2L404xDpW4VXvqm1mCX8DW4SCZP17gTd-WW5KPZxN3D59Y9W5txgFF8zfS8qW3gRYF37ChSNFW68jNdB3_5B5wW1G388L2D8T-gW8Py_lK6jW9qtN35HFtbGTz0hW2FZr_k7r1SVjW6jTGmR1PR7HmW3980kC5lnS65W3H9rXm1j83rwW8Jxmqt44BV70VyjVf96MG0MgN1tCPYzgb3r3W942dQx6ZfQYFW86sSwF5D7DZNW65nTBV1qkh_fW4CQ02_2mmbGZN1JPx2FVP8gpN6f6S0SMs-pzW4zFM1k7b7GylW891mCY5JRvttW5Q8Bmd3zRFX3W4qDJ4D2wq8r-W22tp6V1f6Lflf6qdYBT04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="R2VWKJ7q" target="_blank">earnings call</a> <span style="color: #000000;">this week, CEO <strong>Bill</strong> <strong>Demchak</strong> joined the few banks that have put concrete numbers on how much they plan to spend on AI in 2026. PNC’s current technology budget is roughly $3.5 billion and is expected to grow by about 10% this year, he said. “And inside that, you know AI is 20% of that increase, beyond what we spend already,” Demchak added. Across the sector, as we wrote last week, AI spending isn’t only going up but going up significantly as a share of the tech spend. (see “</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3hKBlW8wLKSR6lZ3lhW6c07vh48L5frN7jPwDmQc0cfVDb6VY1zPHsrW609JXj6C-D_XW6954F_7p3mxbW6w9rlW3ZZ_H5W5jf2jH3np28TW3VK0DW21PC9mN62yNQd3stvwW6kTYth7j-5mtVVXhk86D7lP6W3ygbTv2F_X1TW4lPcwk8mBNr3W99Y4hQ34ljjBW4m7LSL2CwK00W1Vk8lT6vCxG7N35DqvgbDwPFW7VFQ_K1Pr7D-W91y_863tx-rtW3RWVc76LfZSMW4wMyTn4xprSXW1GxWB41L347nW4RDP1n98rtc7W1w7lxk3S_022W7XJL5324sgYMW463N822RkdkjN2Rb9SM6Tn5BN61lWgH_qTL3f94Dlhq04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="I62tk9rb" target="_blank">What Goes Up</a>”,<span style="color: #000000;"> The Banking Brief, January 15)</span></span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17690792541101" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px; font-size:0px"> <img alt="PNC OPENS UP" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Brief/V54/PNC%20OPENS%20UP.png?width=1120&amp;upscale=true&amp;name=PNC%20OPENS%20UP.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17690792704132" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17690792704132_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:150%; font-size:11px"><span style="color: #000000;"><em><span style="font-weight: bold;">Source: </span><span style="color: #000000;">Evident analysis of PNC Q4 earnings transcripts.</span></em></span></p> <p style="line-height:150%; font-size:11px"><span style="color: #000000;"><em><span style="font-weight: bold;">Note: </span><span style="color: #000000; font-weight: normal;">The figure of $350 million is based on 10% of $3.5 billion estimated technology spend shared on the earnings call. Only AI was explicitly quantified (20%); categories in the remaining 80% include Infrastructure Modernization, Branch Expansion, and Payments Tech.</span></em></span></p></div></div></td></tr></tbody></table> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17690959918631" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17690959918631_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Arial, sans-serif;">PNC’s rare candor works out to roughly a $70 million uptick in AI spending on top of existing budgets – a significant increase for a bank with $569 billion in assets. As notable is the detail Demchak provided about savings from adopting AI. Between 2022 and 2025, operating leverage (the gap between revenue growth and cost growth) improved by 30% as a result of company automation efforts – with AI investment predicted to drive another 40% improvement between 2025 and 2030.</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17678606542433" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176484676200811" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="notably-quotable" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/notably-quotable.png?width=120&amp;upscale=true&amp;name=notably-quotable.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176243037280124" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176243037280124_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">NOTABLY QUOTABLE</span></p> <p style="font-size:18px; line-height:125%; font-weight:bold">&nbsp;</p> <p style="font-size:22px; line-height:150%"><span style="color: #767e96;"><em>“Based on the evidence I've seen, I do not feel confident that our financial system is prepared if there was a major AI-related incident and that is worrying.”</em></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="text-align:right; font-size:18px; line-height:150%" align="right"><span style="color: #000000;"><em>– Dame Meg Hillier</em>, <span style="font-style: italic;">Chair of the UK Treasury Select Committee, alongside a new report&nbsp;</span></span><em><span style="color: #000000;">on </span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j5nXHCW8wM7ks6lZ3k_W2LRpxc26RJt6W7K3Ykn58rDhnVplpRd39j099W1_HbP-58nNmhW8MLWhb2WL0hDW2zP1615nvGJNW2YxLNp6xvGQvMjPHdMG1RlVW2S19zz5Wwqs2W5SKhSF1mH-TXW6lDX8F8yBd-_W8dQPG64017SKW92rMYt3k8zFSW1kdm5R5qHb89W4vQ6hh48cHVtW8Qs5HM6vs1ZdW4yDdzB1sfZLHW7XVv076rN0PRW2yyDYb2rYy9mW69q4007vcDY_W7ZxHx89d9bxsW61D05X34MqKGW98V3xF1jj9YyW7tTy-G2jcS4_W740gpN6-SGtXW6Jl4fZ1Mff4hW4W5fcX8WtP5XVrMyCg1p8SWhW5HFYZV7G7vFwW6zP16S7Gfq9XW2TmK0v72dW0sW6LBcXp4cJ9m4W3Yz3qz3rdqYJW1h_q528CFDC7W5DFcY26kD8TZW1r0W7867HnNSW3MhyVd8kHwnSW4lwVzk7hNgTyW47035M15s6X5W4d4k_21FjRk9VP4zPp2y9RNYW6-ts4q5Dkc8_W1RJMqR3XZhkXVlvzXf6Zlr28f6BqmW-04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="TgQB0255" target="_blank"><em>AI risks</em></a><em><span style="color: #000000;"> in financial services, </span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j5nXHCW8wM7ks6lZ3mkW9ggTm29kyjRyW7C_9VW2x7y5RW2Hzd108-mTSGW7N7kqd3Kt_P1W8Xq7TB918LJnW1gFbtH5sMDcDW4WnjnM2gLDGfW3s9sWP25CCzCW5r04FR2QH_7mW66MxqZ3SGwC7VdNhsx71wW4BN2V37hsYVs_tVVtFl97jjNYxW8T0ldN1l2L8hW29zjVn6v78HQW8qK7J81_k5yVW8JD4Hw66Q5mQW3q8hC08BLXvkN19LxR0sTK9gW3Yl_p02H-xZXN1-PC8lLVghKW3XxkH24cW0myW1P6jC-6-YPgMW6DR1Sb11_2RgW69ccp25HpPgqW47XD2L7DsKFDW3XHm_0639nVJW1d6N-M8l9nrlW5PKjPn5y2ZrdW7Hrd808_JjR0W2FBCyF8nDy_GW8ypNQv53c1k6W5v34nK1SbXxCW2jsyVG8WmdDrW97tjPF42ZTSLW6Clrgn4wCj4pN6qWqS51thwmW4Dbfv-8QLYyBW8mrsyX7dXTNHW2qdgst6YvZmcW222JpS3qFwxBW4DsfSF4yvGLlW937X-y4NgrK7W4Rnngh5QKrtlf9gZbVK04" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="FRbDWgTn" target="_blank"><em>Jan. 20</em></a></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176484789143714" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176606165121434" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="misc-usecases" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/misc-usecases.png?width=120&amp;upscale=true&amp;name=misc-usecases.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 20px"><div id="hs_cos_wrapper_module_176606165238835" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176606165238835_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%; text-align:left" align="left"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>USE CASE CORNER</strong></span></h2> <p style="font-size:28px; line-height:125%; text-align:left" align="left"><span style="color: #000000;"><strong>AGENTIC GREEN SHOOT&nbsp;</strong></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;">Based on the January update to our </span><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3hKBlW8wLKSR6lZ3mBW7QtCY97BT84vN118cCnVjw4pW4k3fpf8NfMN5W8xdhrl4SgTxQW8xX7t13dB-dPW6W-c585SPD7BW2jLG9H4XQGcZW4gFQ1n6KS6CnW8Nm6y740Y0R4W6X3-7x1KRkchW29QX647Qk6XXN1bXDkl4hMR9W9hvzDR4lWYywW3BGnBS2p8-RBW8t43zb8dkmfdW2hdZJ247P_dhW1xNFlS6SrxfnW6PG-5H88T2QMN196sbtBxKYbW4CV1Cw3RKBzkW6yXtQJ8D7YvhW726gwl78dSlZW2CnrFQ1zJnYvW70hJjz7q__1TW7nL-zY522ySjW68RqjY4m_ltcW7k4Q5t7dZzTlW2fQ7kZ1R8FSjddmVVY04" rel="noopener" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="8dMae5t9" target="_blank">Use Case Tracker</a></span><span style="color: #000000;"><span style="font-size: 18px;">,</span> 7% of the 380&nbsp;use cases announced by the 50 banks we track in the Evident AI Index are already classified as agentic. Despite this momentum, no bank has (publicly) rolled out fully autonomous agents for core banking functions such as customer onboarding or risk management. But some of the latest applications within support functions (e.g. complaint resolution, transactional servicing, and customer communication) demonstrate progress towards more comprehensive automation, as the following use case disclosed last month demonstrates.</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;"><span style="font-weight: bold;">Use Case: </span><span style="font-weight: normal;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x5nXHCW50kH_H6lZ3lXW56N1sv2j6g_3W5WDV9L6VV1JrN79yzy2GskxkW2D4b866bGny1N4rHC6plHbVwW5mSP5-7g0VP9W7M9Zv69g3nFdW2x7pVY38x1rdVrtPjp5LpV1wW7m3x9Q2PwyZKW3CTYq26j058pN3wFmn4SmZX6W8kTgC12YJTxxW8qc4DP21Q5HzW1FxkTs5-cM2RW58skp482GcYyW5xYFcM37ssNNW3K-2SV872n99W1sW6hy7F6LT0W1d99Xn3bhrNfW7Q7BWj3tYFrwW7C3wP-8X7LY7W6wMNXJ73RCYqW5CfmzX1dwl06W53Nl_Z442m2gMlnQjGc8nksW7dnc076qFxBQW6BFWW91RHnjcW3PbByV85m3F-W2M8m2k7W4M5jW7mYFxG33MjvrW5Vfgmt7CNmglf7p6RLq04" style="color:#f4854f; font-weight:normal" data-hs-link-id="0" data-hs-link-id-v2="Pey9+Mc3" target="_blank">Complaint Handling Agent</a></span></span></span></p> <p style="font-size:18px; line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;"><span style="font-weight: bold;">Vendor:</span> <span style="font-weight: normal;">N/a</span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal"><span style="color: #000000;"><span style="font-weight: bold;">Bank: </span>Citizens Financial</span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:normal"><span style="color: #000000;"><span style="font-weight: bold;">Why it's interesting:</span> <span style="font-size: 18px;"><span style="font-weight: normal;">It directly interfaces with customer communications. It requires high-volume, pattern-driven interactions where consistency is paramount. The resulting shift from “AI assists humans perform tasks” to “AI handles tasks with human oversight” represents a meaningful step forward in terms of capability (and potential ROI).</span></span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;"><span style="font-size: 18px;">How it works: <span style="color: #000000; font-weight: normal;">An agentic AI system automatically classifies incoming customer complaints and generates appropriate responses. Unlike traditional chatbots that route queries, this agent handles the full complaint lifecycle – from categorization to resolution drafting – with minimal human intervention throughout.</span></span></span></p> <p style="font-size:18px; line-height:150%; font-weight:bold">&nbsp;</p> <p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;"><span style="font-size: 18px;"><span style="color: #000000; font-weight: normal;"><span style="font-weight: bold;">Bigger picture: </span><span style="font-size: 18px; font-weight: normal;">Banks are building trust in agentic systems through an incremental, iterative process: starting in narrow domains, validating outcomes, and then expanding the scope of deployment. <span style="font-weight: normal;">Citizens Financial </span>CIO <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x5nXHCW50kH_H6lZ3nkW3vnXsp3Tm88KW1lfsh43ksxJPW4v7m245zMfw2W2fMj-J2CWKH_W217jsd5dFKZzW6bHh1s34L_nBW8GQNzV5w482bW7mpMTv3Z_r3cVR-N3T8WGXqFVvP8sj66z6cQW2m9hVq7G9f_XW2TDcB61gq2g5W8t3-cT6Yyvb0W2X7W4_3T4QszW2gRk7R1KryPMW42DHJ54m8ddrW38xjXV4D_tM7W7mpP807f3yM8W2sZ-Zr460tQgW4Jd4Km8Vfg5BW7V387k1qNyv_W2n0jxl8MR--fVdRJf22B5vkFN1hMYRLngmfhW1RWSXL6C9FC1W5gWt_F2DYg5TW7_nVYS3_6wrjW77scyx27cgQMW5x_50Y5_hxrzW4szBzk1DXH5yW3znNzg7bhvtdN7H0Cn53bM35dRNtdx04" style="color:#f4854f; font-weight:bold" data-hs-link-id="0" data-hs-link-id-v2="wS20yfot" target="_blank">Michael Ruttledge</a> recently described this exact process by detailing how 90 “proofs of concept” were whittled down to the most promising candidates before entering production.</span></span></span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176786301161015" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17678618473054" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="big-ideas" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/big-ideas.png?width=120&amp;upscale=true&amp;name=big-ideas.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17678619795908" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17678619795908_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">BIG IDEAS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>LIFELONG LEARNING</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="color: #000000;"><em>In these first editions of the new year, we’re exploring the big ideas shaping AI in 2026. This week: Continual learning.</em></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;">Current LLMs suffer from a severe case of amnesia. When you hire a human employee, they spend months absorbing institutional knowledge, like remembering that a specific vendor requires a unique invoice process. The LLMs powering AI agents, however, are transient. Every time an agent spins up, it starts from scratch. This forces them to solve the same problems repeatedly, limiting their ability to develop judgment over time. The solution might be <em>continual learning</em>.</span></p> <p style="line-height:150%"><span style="color: #000000; font-family: Arial, sans-serif;">&nbsp;</span></p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;"><strong>Google</strong><span style="font-weight: normal;">'s</span>&nbsp;<strong>Demis Hassabis</strong> defines this as the ability to “online teach the system.” Unlike normal <em>offline</em> training, where a model is frozen after a massive, one-off training run, online training allows the model to permanently alter itself </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5R5nXHCW5BWr2F6lZ3nLW21XdXS4FQ0rjW8-qJZX3-Qm6PW8w3hS11c-r7XN5DrchrP_nxjW8GGGH_5nFcGWW3ZN0F_6g59drW2Wy3HY2LrHxqW4CV_DK4q2_j6W3l3ff26YkdFmW2ZC6c32J7n0tW2LZxZP4pjgDSW6x8yXd3V-4cdW5YQrt08QctB2Vzn9HV7CHbrhW4YtBr76mlGYyW6VxxnZ739R00W10lZYY5FZBZ4N1GmG-lLPWTvW8wJsZg8B9pvPW1Lq33J7ZWj6FW1SBlwY5YpLKyW9kBYbc5gWf-wW5W7ykW4Pmy73N7X-lby36jDmW5bNz0m67-WMRMG14tSx1sF-W91kTf63n3dBBW16c3mv5Gl96GVT-wzm6jBNVzW62sw4p9gwnrPW2pJ8568_LCrfW89Q8Hr5YzgMqN5ljJ3ZkpQGbW4L4JGs3ylgPSf3-9NqC04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="sWYSX2tX" target="_blank">during deployment</a><span style="color: #000000;">. That’s a route to learn new information, but</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ665nXHCW69t95C6lZ3mlW4vGJJk1BfbFkN1YWCf7-tqNjW9bpVtC77xQT1N5PV3rfbdp2WW8SjWsk32qtF8N4VVKzkHw_bvW7KBlFh2kmXP8W8W9V0D1f3X5TW84JYYh7gZ23BN7LpdJy8ddW5W4fh5-W4j55_kV3-src4jZ22WW1zvvbF4f1gHtW1LJLgb61cxMbW4XFcPm2SGdRtW2l2K5-1ZxTbyN96j10cHSN33W22nzyh7nr-lgW7BgPjt5fdSHqW2z1pVY7jZ92lW8h6cKx17DMjpVw972x3V6tNHW5hxSVP4676sZN8jykqPBgP1XW2nGk5m7FZCmsW6cFV513sXJDBW6Jn3Mx6vnMXQW3GHQpt8rM3LyW11WB-D67N-FjW9l5C2n6fbS2SW376ft01mb6v5W6Y1ScH4XXnGWW8x6jxd89HB3ZW4kf7C42RyB0bW74qD2S8L2dg_V_B7r298DdxMf2PQF1v04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="WZs60no3" target="_blank">critics warn</a><span style="color: #000000;"> it can trigger <em>catastrophic forgetting</em>: as the model learns new information, it may abruptly overwrite existing weights, potentially "unlearning" safety guardrails or core logic.</span></span></p> <p style="line-height:150%"><span style="color: #000000; font-family: Arial, sans-serif;">&nbsp;</span></p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif;"><span style="color: #000000;">A potentially safer </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x5nXHCW50kH_H6lZ3nBW44g5Vw3R5tRFV4SDsw7dqL-YW8bJZk81XSqbmW8r7zpH8xTtRTN8p0G0LbJXDzW1rYdm88bN7KTW3KZrbn3jnlc9W5xT40b8BFsYPW8q-Hg_6H1-ZZW2dYqFr1ZQ9LYW8r4D2k76-npnW7t4yNz7-NypvW2pNYJJ1bykxHV9rF4H5M_-KqW5BZr-78KxT-YW4mQ6-n76zzZCW13tRkn2vQxZCW3j07l87Ph4_cW4_hPLN1gpkfTVCCyKx88lhMTMkvZ48TwDl5W1k2tTM1VBLlPW1H__X646DrVnW792ZlN1bXR77W1LLH_l2gxqs-W7m94gF7NDx8LW3MhJt65_-c2xW70-8yC4jR60FW1v6z2L2KqvWvW8Xd1v-3LNSDmW7w8Ksn55PRfcW5mB-HW65sVD4f1NSWQ604" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="liHfDsmV" target="_blank">alternative</a><span style="color: #000000;"> lies in <em>context graphs </em>– external records of steps taken by previous agents to solve problems, which fresh ones can then reference. Context graphs could lead to faster, more predictable agents, and they can be audited to check agents are behaving as expected.</span></span></p> <p style="line-height:150%"><span style="color: #000000;"><br><span style="font-family: Arial, sans-serif; font-size: 18px;"><strong><span style="color: #000000;">Bottom line</span></strong><span style="color: #000000;">: There is a ceiling on what AI models can achieve as long as they remain static. There is a race among AI researchers to solve continual learning, and this year we’ll see more and more fixes to get AI learning on the job.</span></span><br></span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684846940992" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17690726822311" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px; font-size:0px"> <a href="mailto:partnerships@evidentinsights.com" target="_blank" style="color:#00a4bd" data-hs-link-id="0" data-hs-link-id-v2="wyXklgJo"> <img alt="logo3" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/logo3.png?width=1120&amp;upscale=true&amp;name=logo3.png" style="outline:none; text-decoration:none; border:none; max-width:100%; font-size:16px" width="560" align="middle" class="stretch-on-mobile"> </a> </td> </tr> </tbody> </table></div> <div id="hs_cos_wrapper_module_17690726965482" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176176966277723" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="stat-of-the-week (1)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/stat-of-the-week%20(1).png?width=120&amp;upscale=true&amp;name=stat-of-the-week%20(1).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17648494286741" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17648494286741_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">STAT OF THE WEEK</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176406909497618" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px 0px; font-size:0px"> <img alt="Brief v54 Stat" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Brief/V54/Brief%20v54%20Stat.png?width=704&amp;upscale=true&amp;name=Brief%20v54%20Stat.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px; border-radius:1%" width="352" align="middle" class="stretch-on-mobile"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 10px 10px"><div id="hs_cos_wrapper_module_176484767944413" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176484767944413_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><pre style="white-space:pre-wrap"></pre> <p style="line-height:150%"><span style="font-size: 18px; color: #000000; font-family: Arial, sans-serif;">The amount that <span style="font-weight: bold;">KeyBank</span> has cut call center expenses thanks to AI. Per CEO <span style="font-weight: bold;">Christopher Gorman</span>, calls taken by AI now cost the bank 25 cents each, whereas calls taken by human customer service reps cost $9 a pop. </span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684845048001" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176786237098810" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="talent-matters" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/talent-matters.png?width=120&amp;upscale=true&amp;name=talent-matters.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406232479610" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406232479610_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">TALENT MATTERS</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">OZZIE AI</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; font-family: Arial, sans-serif;"><span style="color: #000000;"><strong>National&nbsp;Australia Bank</strong>&nbsp;</span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ665nXHCW69t95C6lZ3pjW4PG0St1B0_HmW93xssb4MWvKXW8Fk8jr7TWwWHW1PtXJ88djPT5W2XnpVm1rySnfW68s5548ws5slW4k-yJf6C2JMnW155bYF68Nd62W5m-nj31rphNZVJW7MD8XBbzyV9GLQj3wPsQHW5qn1pb7FX_HmW4Jvkzt8j22FDW8qDhwt1ywGn5VbCM7N4mTNtyW6TjBNn7y35_3W3G_LRF5HkfrPW4cbj522VgmG2N4Z2_GcJ8jBHW1f0-p56yBc1GN5Xk1DV81Nc5W6nMtWr6PSNhtW7wl8q124M9CsW3Sj85n3Sm448W2gWNpJ1sPYF1M448BzFvFCXN55BVdsDj0Y9W2s13828rvDKnN4rPpXlmwSWFW5j5McS5j37XbN5nZxRfmsHBJV-KX915vKmL_W5559bw3Sq9-CW1tVL-V52WZb5V6407x6YK7pCW1qV01M9c1Z9yf8JzX8d04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="0mGp+uni" target="_blank">appointed</a><span style="color: #000000;"> <strong>Mahya Knox</strong> its new chief AI officer. Knox comes over from <strong>Commonwealth Bank</strong>, where she also led AI strategy.&nbsp;</span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; font-family: Arial, sans-serif;"><span style="color: #000000;"><strong>First National Bank</strong></span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K5nXHCW7lCGcx6lZ3mvW5sk63J63SC1zW5yKYcP6d102GW16q-xh3Lb6D_W6wrMJ53GJmZkW6VFYZS1ZHTbcW8_y0Cd7340DYW6x3YnJ5Wws1VW4lmTLB3f_N42W3PCsTl2WwTjvW13tHXv29PC59W1YHTJN3-BLk8W26Mm1j5T1r8kW2VM2sy68nkDhW5XHrh83Gl_DBW4ZBJHM60ChKhW5ZlHS78XW5S6N7ctHndM-gXLW3RcMWk6MG-Y7W5hcbG78zr4LvN2tC93Yfrwy8W3bLpv17hVy4tW609PLF8tBX42W7JvpQT62qG7gW5GWGBS3MH481W7Fbmq76Kz89PVD9Zjp2pKfl4N1sVkWbNtNYmW1Wv8F65jRmrwW5mwj9R443D3DW4Bnvf42Qm9Q4W1vmnvt9jw-V_VrcC921CK8sqW4WNZ2Z6nBSv4W4CdYD95Lrs0SVJfMKM9fc3ZsW7tfCDd4GfhmjN12-X7dN3Vh-W3QVHYb2P34jgW4HJPKf8M-3wNW1qgbcH7hL4lhdzvlq404" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="mUBCEuBf" target="_blank">named</a><span style="color: #000000;"> <strong>Brad Martin</strong> its new CIO, replacing <strong>Tammy Plummer</strong> in anticipation of her retirement.</span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; font-family: Arial, sans-serif;"><span style="color: #000000;"><strong>Brad Novak</strong></span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x5nXHCW50kH_H6lZ3kRW7_m3703VF79vW8kLqgs4wJWfrV31qHl889mCRW5GKhPX9jlLfqW3XYJwB92ZTczW6Mx97969dG5hN88C7g0dSRfqN700Bxw9sTSdW2Gp2WZ3rf_65W15L4kN81GHF6W4JQ4Zy7jQVrMW7w4WcK3kfXs9W1hBYWs3BysYCW1qmKzL2Bg8QqW1M8Ns94yf-L-N4HMslh_tNxRW1y02Dg6kgtdNW7HTF0N4Mj1ZpW4gnlnh7-YpzCW8j3m_z3xh5MqW5XcBD15z_2ytW9f0f6C6s6JfJW5N2Nfb1KLpRNW4sTwXJ9cFplfW7K5h-86zwJlTW96k2pM48XC-MW1Q0w0319gMjBW7lhLYH6-nyQqW8TCC5P4S55ZNW45Y5Tg91_GbYW2szLXH45YYM3W8hCSdb7HwdKzf6WHhzW04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="6QESKCY3" target="_blank">joins</a> <span style="color: #000000;"><strong>Rathbones</strong> as CTO, bringing decades of experience in fintech with stops at Goldman Sachs, Credit Suisse, and Barclays.&nbsp;</span></span></p> <p style="font-size:18px; line-height:150%; font-weight:normal">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; font-family: Arial, sans-serif; color: #000000;">Ex-Meta engineering VP <strong>Nima Khajehnouri</strong> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6q5nXHCW6N1X8z6lZ3plW4MJ-BZ5HSYn2V1Q2fL2j5-KnVw55dj7_FJjRW8YK6y75xXFY_W4sh_Nt2YG0rgW8KX1ms6YThPWW4cjzK_7PKjXTW4ZmTyg7TwQyxW4WhWwH7DxFhrW5BlmkR4PbRYBW31H3rm7DnLg9W4jXfRG3F9C3PVNlGVZ68KjTFW7fm7_G5QySk_W5L8rfD2z7tf6W8NJNqC6nYp7YN8mmp-w4VhQ0W600R8s2T6Rl2W1ymStD6kkhXMMRN69fnZGhbW1WzgZy2XkvLLW1gW5686SZMQnW64B8GS1Qk_rKW23CWC915fBnpN6cgh-KXJK_lW7m3GRR6_qwtsW5tqGM996h-MsW2sMYsk2WftR1W4l_FWr8_X4ZkN51ZlB_rKbx2W3ypXsB1yfzXLW3PJ1sb3VBlH_W2jBGnn1VtMyPW1nWxJ13MKmySW8vjKJT5pCjftW57dMg31dM6qwW9gtwKq5MNXTZW8TkZNT2MshSYdGXwST04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="nqWJPAGO" target="_blank">joined</a> the Board of Directors of neobank <strong>Dave, Inc.</strong>&nbsp;</span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684848784316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17684860697389" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="in-the-news" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/in-the-news.png?width=120&amp;upscale=true&amp;name=in-the-news.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17684848808327" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17684848808327_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">IN THE NEWS</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">5 STORIES THAT CAUGHT OUR EYE</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><strong><span style="color: #000000;">JPMC</span> </strong><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ665nXHCW69t95C6lZ3mTW153LKc5ZT3JsW1-3jSF7NgjL0Vj7GX28X2Q0gW7W6NCL4cbJZyW25pFV28qfQSBW6G2Vx46t3JcPW4WyKP564SzSFVJ9PDb1d6-wvW7n8CHf7gC23yW8F164G3YjZyvW50Qyf848r8z6W70rSCV8cnnnpW8CWxJK5nMdvKW2nmlL03YlYWDW1BnK2d33z_m1N8hYw60DR9bSW3Z38k_5Vf5FTW4hDbqH58NMB9F3sSf_wF6Q1W62l4CL6VHbcBW2_wBxk7690FSN3y-qTs9WPsMW90lngr4vfcW5W12yP928pvnX0W2qqRWs7gL7L5VtnQLQ6TYysVW6qnQYs24jXjFW8f-6kT2Yhdl-W2m1qRN7MhQ1PW7dFvly8mwtlyW6pNd_F87XF4rV3GCSk5-ZxWyVvX5nj9780rfW6bTVhG1H7tgJW3DjkvM5W56cMVLVttc8HBnWtf2RKd5Y04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="S6F3/EQk" target="_blank">switched</a> <span style="color: #000000;">its classification of AI from “discretionary innovation” to “core infrastructure.” The move puts the tech in the same category as bread-and-butter budget items like data centers, payment systems, and risk controls.&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;"><strong>HSBC</strong> is </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ665nXHCW69t95C6lZ3lgW4v6nPg6Zv7dlW2SXJ5887PPB9W74VmJk6HvlsCW12qSlW1Tdd_FVNJD424Gk4RzW7fMgSh41YB7mW96bkq63psJHyVC4b172mpWMtVZWKf86mKcpDW2m13py96qZFRW7rHmtf3F7gnsW1wNGnw7gWxQJW2YWy_64jPFFFW5R7C_h63phy6V3znVx3n52b5W6N1T_75c1ZHxN8TpFscjB3lYW41rzXX1YtgXCW7RWPBS4__5wWW44PzBv4WgHs_W49QSyb5mHNljVrzY7n4jq-DtVXx5nZ655TlcW36-prJ2wBR5nN3kD6NsYGy_qW24xWyq4JdlsqN22gMbPk0_hcW6ZpPdR8ssy4BW3ndPzL48TKJwW7QL_kf2fcYbMW1LXWlC6qB2mVW8fmFcD2YlfYkW4fY3cQ3XcYHVW7dn2Gy3WFCznW8F0Xlw7NQWrFW7cmhy26LwWKsf6cDXNT04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="nWp3Wp9D" target="_blank">partnering</a> <span style="color: #000000;">with Harvey AI on a pilot program to improve workflows for its legal team. Per HSBC’s Chief Legal Officer <strong>Bob Hoyt</strong>, the new tech will help cut down on rote tasks, freeing up the bank’s lawyers to “spend more time on strategic, high-value work.”&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;"><strong>Lloyds</strong> is</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5R5nXHCW5BWr2F6lZ3pJW9dnQHw5nRFRbW8T7_Fb95VSm0N5rW8K-77SKFW5FBGT115FDWjW8hyNFL4RDnjkW6cgD9P1_TXPtW3FLpJj8sxq4KW7ZXWK22vpysYVXHhBs7g-MvhW5_61Ry1K7Kf2W42zd0c1DyJ44N3FF84Fqmn8rVjG8987qzKwDV1nL864JyHnCW4z7jgS6Zhs_HW8-T1dT7ZfbdYW2-znmj6FF1N6W2Y8n6Z1Plg6KW4lw6sz5tgzHhW7XbrRF8Qp3-MW1R7MkC4p0NCQW8Svjw_6lyVp9W4RWzZx5Pn4PbVvl4cX3Gr8z6V77c1X761c2HW65kM7d4hzYcKW1dV44j74bkhdV2KSRw5wT_TLW8Wyn6V1mQyhLW2X-VQ-55602DN1HDD1dYWWmSW4XSVJ87VSYymW2sXwwY2hvQmjN3-Z_G79G9gbf3wPp0d04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="mPcNoNkJ" target="_blank">launching</a> <span style="color: #000000;">an AI Academy for all 67,000 of the bank’s employees this month. The bootcamp will offer a range of courses tailored to each employee’s role, ranging from straight-ahead users of AI to “leaders, builders, and enablers.”&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;"><strong>Cake Bank</strong>, a Vietnamese AI-first neo-bank with more than 100 use cases in production, managed to</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x9l0H-W50lwYY6lZ3lnW608cV55NZwvlW1Fn6YR5trQYmN5bhHJXWnDL6Mlq371_r1Q3W4tTkvl61pMBSVRGwvy4lq33NW77twxt6N0v1cW4--WN959BLvXW7gMcH45fy_c3W5N-bjb4Cjg3LW3-CyNs7TWzZfN5w3VpY8qvpCVDjsJp1CPgbxN44CYycyt-mMW3FlgHJ3tRsYCW6QJ_5X66xQbNM3zYG6lgzHfW429s2z8wdZnnW2z2Bgj6gLlJKW4x4xVb21k_C_N6l7V7SmXnYhW2F1SQG7nKD-PW2V_R5s6-LZW6W8bRWRR2s59snW1KwF2P67nYhJW402PXm3WK_PhW7qh6th1Pptp-W5g4C3v6r9fZnVfFZbc59Yg-YW59tLf_1tk_fjW7Djs5b6RFpL7W6HlVj55BstL3W3RhCxD4PtQ9fVf5F1y4cNF1rW862HKN2NRpsbW73BQGc8PdMb_N79yzWHtLDvBVRxCRg8RyPlKW643ylv7jDBrZW1XhC0V6ld6xdVzFfkZ8JKVmJW71tQMM3c2bVHW7rnfsP14BQm3W1NyQ3j3D1wp3W9g9Xj34hTy3HW7qGY-j770_wjW8F4mm13DbXnRN5wgm_NJCYGyW4dzJn48MBjDjW3BQkLh3dLJ0YVJxMMK82F6MlW3sh7Xw3xm2TqW2hHmjX98pYV3W7DghfR4yCkdtW5dWtLF24_Q-cN5VDt-WsWkb2W21jDv642r54hW4HJh-b39_mXZW6MMTFv2FFkL3W5SB8tX3kGzZDVkL0jq8nP2yNW5yL8Y-6MbrxKW2Y1-6c1DK1FcW5tS1dx5Mjj1Kf7hvCcT04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="J4V0K1Ft" target="_blank">attract</a> <span style="color: #000000;">over six million customers in its first five years of operation, achieving profitability three-and-a-half years after launch. The bank has built its own in-house Vietnamese LLM and </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ7j3qn9qW8wLKSR6lZ3kKW654p4_4JSN4nW96rxrs3lr7_dW6pxR2J5hW2TbVfBsk-5LzmNNW2b0RlT8pJWXSW5VS20f6LKc_TW1TRFqc3KJlhzW7ftkPw6DQtWLW3FFs2-6Dz9GnW5LfNmR7yl5K5W6dKjtj7Gw-zkW354t1m6kVdSFW5l8yl-2WjJrpW4dQw9t4M1KzRW8DST3h4J1qpsW7v5_1Z20khlBW2XLY0y5dvc3bVRGnxp35VDd-W5xqv6d5F12sMW3jh5gT1RYyBrN8lpRdzbPBZ8W5_QqSN7lr-1nN8syDfx83NCxW5gRKgX6Fl3BDW6GCZ-Z5MhBPtW239bLy91KHpqN6t81lV6sRXbW3TQWs-1kdgl2f3W-Lwl04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="Hx4zkrHa" target="_blank">struck</a> <span style="color: #000000;">an expansive partnership with Google Cloud.&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;">At the South China Morning Post’s Greater Bay Area conference last week, <strong>Joseph Chan Ho-lim</strong>, Hong Kong’s undersecretary for Financial Services and the Treasury,</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K5nXHCW7lCGcx6lZ3lLW8-cWHl11NBVxW129bG_3nJF1fW9k9vms6jGRBdW3nhCFy4jlmYrW72BqlR26-2xVW39c6gP1ZPRsPW6q82Lf2FLBjgN43FGFMWzmgWMDqHgbcXw2yVK3YQN43Y5-TN8JTdtt_HM9CMryKVvM834_W70sxDC17mmcwW3wGn_j5V6Cn6W5Nwj7W4CpLdyW8Y_Nsh8C1jPsW3Z5pZJ6sq_cvW2YH4D-2NKpsXW34v2ch2vPY8yV-ml4l6wR6YHW94c48B1mpdHLW89XKR35WfX3yW4RcBkd2CNwfLW9bt-V25MczyfW4PXs3F8VNQmPW9g48RY5drJwYW94Y1Y_4mbNf6W304PC240ZSmLW8smNmx4p7DzpW28L1H_7Vmm9kW6bhNDh4ssbqFW3vJv1v1L-0bdW1Ymlgh1yb6p-W1zYCkF5BRgTCW2hmPNJ9lSBBvW2wQcks348D4sW67t3mF2_TCr8W2fL1Gf2dDRYZW7pYsXh55Kfz4W2wTvht2hS3Jmf7C2FT-04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="4TowS4Ae" target="_blank">said</a> <span style="color: #000000;">that Hong Kong and Shenzhen will be combining their strengths in banking and technology to form a collaborative ecosystem.&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;">CEOs and employees aren’t exactly on the same page when it comes to reporting productivity gains from AI. According to a </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ5x9l0H-W50lwYY6lZ3n1W1zV04d7dpbHwW5bFRtF3sWkNVVp3t8w3xXP30Vz4-Hr1CBtlYN6Pw0QjD-bL4N5vDV3PcvntQW99nlKq34T8WpW8Xl-xQ8LVRJ9W56_h2Q5cYC1DW4hjJmh1rBKFTW4QFv0N42HZpGW1XBSsq77H27yW6MbC7r7HXZj3W1m6pM9556jl7W5bFz4N1S6b3hW7M_1CY6S4GsdW3BHY9676T2rmW8srNwg1_8LHMV4W2K11wxYjCW5LKg0p4n084NW26ZYPt8LWwqTW8ZyD525HS6LjW91P0VD6cKWYTW5YFgjp91RhxkW2xQrMq6vXNp9W75_cV_573kdRV_bXWl5tHfLxW6ztPD735xF59N4-75s33NxzwW7hGKWn6Tggy9W1wDBjg8-NCwTW15Hr954THrCcW1xM7q0876fdGW7Znz4-7fdgH1W1ZKrvw5YHgvbW8DdC761dPmLyW3v7c15334-mQN5PZmV5k_yY7W1kb4jH5j_JbpW4NTZ3G71glZ_W827pqZ5fL5NVW6RYv_c3G7skKN2fps68sKXk1W5yVLsQ8G2wtZW5pwSwB87ccwcW58QQvy5y3XJ4W2-t9hB3ByW3gW3wwyHS4rmBp2W4wt-LD8D0GgnW2lWTk02SNHVKW3kz1b74kSCgzN3s2HHg8glJfW8K1hHW1DwDF6W3J0_1M4VjVM1W18k6-N6tRK4hW1s3ZNV20bBSCW6zWgtJ6tsJzJW1jtdbt8LZGFTW3Q88Bw3m07zjN91Zd9v1ZRM1W2NxbvN24lXR9W6ssHgW4_Z9JNW2m2cYn5mM5qtW4-6-LG6W9dxbf3bk9-R04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="l7ewDTA6" target="_blank">survey</a> <span style="color: #000000;">done last fall of 5,000 white collar employees by AI consultancy <span style="font-weight: normal;">Section</span>, 2 in 5 workers thought AI had no effect on their efficiency, compared to 2% of execs.&nbsp;&nbsp;</span></span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684847873993" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406271000612" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406271000612_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">WHAT'S ON</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Mon 19&nbsp; - Fri 23 Jan</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ6K3qn9qW7lCdLW6lZ3kYW2n74Wt7Y_yyhW7qc7gL53J0JmW6zsDJH6ZthNYW6Pbw0T2x8lBWN6rWV6rB4fjNVgfjdf49-wLWW1G1hs65gx0fBW2dZD7Q7PgYdlW2Kb9NK1Ffq27MZHV6Y7xZSTW3trrqW4zm7L6W3KfY2m1tSRsZW6r6SwC9c04CyVdv0Sx4D8r1KW1bx2Nf5hWkQWW1gkPJm3DQ0-6W6bbHxM8005X9N8PRST_K5rjvW7hmys550k6_wW2ZV5kF350xRYW1FBpF26dQFsXW7dHFq64dfznZW6Sq7PH6tWzrRN1tR1yYjj52Xf2HDfCn04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="mz15XpbA" target="_blank">WEF</a><span style="color: #000000;">, Davos, Switzerland</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Weds 18 - Thurs 19 Feb</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ703qn9qW7Y8-PT6lZ3lyW9lkRFK8R6GKSW1-J3mq3VwPQQW8X6zfg483cGDW2gjFvR2cWVrNV-wwRB5nHGQQW7jwNBm2Qd3V0W6lpyX_6BmNGPW66P04Y1N8QrdW791v6d67G-pqN2qmnMly2LhlW4t-rdT3wJxYrW9jNpYt8jvqWGW2b7Fq05dNZwYN6pNc0GjmHM5W61fkN43TJS2fW2yFR9n5R7N_VW19jDxT8GjZngW8-PnG468dj3wW8PbsYh6Nz1bvW8kLCC86X0PwFW4dQlfM8F003_W4w7d-s75qSvYW20md6n2CcNpMW1kkJxD35YzykW58_qsm6C_DqcVRBStz7LJfz7f1MWqDl04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="+D+EN+3G" target="_blank">CDAO Financial Services</a><span style="color: #000000;">, New York, NY</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Tues 24 - Thurs 26 Feb</span></strong></span></p> <p style="font-size:18px; line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VXjmYX7qRVHXW8WWdty12Zzh4W52hptB5JCMScN3mxJ703qn9qW7Y8-PT6lZ3pXW7CrJHq3Fh6KwW47Dhz41-w4q-W6Gmn5F4_lv5SW4tVDMc2M1hLGW4CVl4m18v_8SN6jZ3ZWZBD8VW8DJBQN50MxYwW7ZQzX_398DRVN2kTSxFhJ1P3W74F_kF8ZkmkBW9kBF_138ztxLW4kgH873gBspYW7wCB_Q2kZPrSW3qHWpk5V4yWNW47dZBJ79JdJyW2y4qpD2n0WWfW6XMQDr3zc_rTW1rgcPx4LxhQqW6tfT4H1QChG0W8zbDDJ5PqD2XW1hl7Yz7GdQcdW4-YWQr8w1spfW8DRB8j9l94jLW8zMq7k3t8mr6W4C7hLQ15BLDWW90pY6_2Z6Xvbf8GfNGY04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="qRxww+JK" target="_blank">International Association for Safe &amp; Ethical AI</a><span style="color: #000000;">, Paris</span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_175698782863316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:20px"><div id="hs_cos_wrapper_module_174004384022316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_174004384022316_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:125%; font-size:18px; font-weight:bold"><span style="color: #000000;">THE BRIEF TEAM</span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Alexandra Mousavizadeh&nbsp;| Co-founder &amp; CEO |&nbsp;</span><span style="color: #ff7129;">alexandra.mousavizadeh@evidentinsights.com</span><br><span style="color: #000000;">Annabel Ayles | Co-founder &amp; co-CEO |&nbsp;</span><span style="color: #ff7129;">annabel.ayles@evidentinsights.com<br><span style="color: #000000;">Colin Gilbert&nbsp;| VP, Intelligence | </span></span><span style="color: #ff7129;">colin@evidentinsights.com<br></span><span style="color: #000000;">Matthew Kaminski | Senior Advisor | </span><span style="color: #ff7129;">matt@evidentinsights.com</span><br><span style="color: #000000;">Kevin McAllister&nbsp;| Senior Editor |</span>&nbsp;<span style="color: #f4854f;">kevin@evidentinsights.com<br><span style="color: #000000;">Daniel Shackleford Capel | MD, Banking | <span style="color: #f4854f;">daniel@evidentinsights.com</span></span><br></span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="font-style: italic; color: #000000;">Contributors:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Maryam Akram | Senior Research Manager</span><br><span style="color: #000000;">Andrew Haynes | VP, Innovation</span><br><span style="color: #000000;">Zachary Groz | Reporter</span><br><span style="color: #000000;">Alex Inch | Data Scientist </span><br><span style="color: #000000;">Sam Meeson | AI Research Analyst</span><br><span style="color: #000000;">Gabriel Perez Jaen | Research Manager</span></p> <p style="line-height:125%; font-size:13px"><br><span style="font-style: italic; color: #000000;">Design:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Jay Prynne | Head of Design</span></p> <p style="line-height:125%"><span style="color: #000000; font-size: 13px;">Marcus Gurtler | Junior Designer</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17400439881576" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; 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  9. CardsFTW #188: A Stablecoin Card Primer

    Wed, 21 Jan 2026 17:15:18 -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 #188: A Stablecoin Card Primer</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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} 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> <!--[if mso]> <style type="text/css"> ul, ol { margin-left: 1.5em !important; } </style> <![endif]--> </head> <body data-testid="email-preview-body" style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 0; 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, Fanatics Announces a Card, and Bilt&#x2019;s Confusing Launch</span> <!-- SPACING TO AVOID BODY TEXT BEING DUPLICATED IN PREVIEW TEXT --> <div style="display:none; max-height:0; overflow:hidden; mso-hide: all;" aria-hidden="true" role="presentation"> &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; 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&#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; 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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; 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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/c6c3ae8b?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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 #188: A Stablecoin Card Primer</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, Fanatics Announces a Card, and Bilt&#x2019;s Confusing Launch</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;">21 Jan 2026 </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/897d6b38?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/285059b6?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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%; line-height: 1.4; 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%" data-testid="email-preview-content" 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 --> <div class="kg-card kg-callout-card kg-callout-card-blue" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E9F6FB;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F64F;</div><div class="kg-callout-text" style="color: inherit;">CardsFTW is made possible in part by our paid subscribers. If you&#x2019;re one of them, thank you. If you&#x2019;re not, please consider supporting CardsFTW (who knows, maybe you can expense it!)</div></div><h1 id="fanatics-announces-an-open-loop-card" 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;">Fanatics Announces an Open Loop Card</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Fanatics, Inc. is a global digital sports platform with 22,000 employees and brands like Topps, Mitchell &amp; Ness, and Lids that manufactures licensed sports merchandise, trading cards and collections, and offers sports betting. The company has offered the FanCash Rewards Card, a private label card with Synchrony Bank for a number of years that earns 4% FanCash (the company&#x2019;s proprietary loyalty currency) on purchases at Fanatics.</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/2026/01/FanCash-Rewards-Card.jpg" class="kg-image" alt="Two credit cards with red shadows on a black and white background. The cards are primarily black with red stripes on the right side." loading="lazy" width="600" height="372" 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;">This is NOT the new card. Thank goodness. Frances would be a good card name.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Last week, the company <a href="https://www.cardsftw.com/r/5dccc8c1?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> the upcoming launch of an open-loop credit card this spring at the NRF show. According to founder and CEO Michael Rubin, &#x201C;There&#x2019;s never been a credit card that a sports fan can actually care about.&#x201D;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Sports credit cards have always been a tough business. An old joke was that the only reason the NFL card portfolio existed was so the issuing bank&#x2019;s CEO always got a Super Bowl ticket. Past efforts have shown that teams are frustrated by low volume and fan rejections. Broader underwriting has led to underperforming portfolios.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Fanatics is not a single team, though, with extremely broad coverage across most major sports leagues. I am also fascinated by the alignment between sports betting and traditional financial services. More to come when details are announced later this year.</p><h1 id="bilt%E2%80%99s-confusing-launch" 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;">Bilt&#x2019;s Confusing Launch</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Fintech card program Bilt had a big week: it <a href="https://www.cardsftw.com/r/73e8c3b4?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> its new cards and rewards program. Then they <a href="https://www.cardsftw.com/r/e778c94f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>changed</u></a> the setup for their new cards and reward program. And, it jumped on the news cycle by <a href="https://www.cardsftw.com/r/dadef186?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announcing</u></a> that the new Bilt cards would have a 10% APR on new purchases for the first year, to align with Trump&#x2019;s request. Wow.</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/2026/01/bilt-cards-2.0.png" class="kg-image" alt="Three Mastercard credit cards, one black, one silver, and one blue. All have the silver Mastercard logo in the bottom right, the Bilt logo in the top left." loading="lazy" width="600" height="379" 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;">They do look nice! Snazzy MC logos.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I&#x2019;ve been asked quite a few times if the new Bilt card is worth it. I&#x2019;ll be frank: it&#x2019;s so complicated I don&#x2019;t know. Having both Bilt points and Bilt cash is a lot. I think I might come from the school of: if it is too complicated, it simply isn&#x2019;t worth it; or, my time is also worth money.&#xA0;It was so complex that Bilt rolled out a 2.0 version that gives users two reward options. Oy.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I might be wrong. The internet says the average mortgage payment is around $2,300, and the average rent payment is around $1,700. Earning points on that is valuable. However, my reading of the Bilt program is that you need to spend at least 50% to 75% of your rent amount on other goods on the Bilt card to make this worthwhile. Given that rent is supposed to be 30% of your income, that&#x2019;s a lot of discretionary spending.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I do think Bilt will continue to grow, however. They&#x2019;ll find a way to explain this, and the program will make sense to some users. More power to them. I&#x2019;ll continue to pay my mortgage the old-fashioned way, with an ACH to my lender.</p><h1 id="cards-go-semi-atomic" 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;">Cards Go [Semi-]Atomic</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><em>Programming Note: Today&#x2019;s main story is a guest post by </em><a href="https://www.cardsftw.com/r/07194603?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>Nate Krinsky</u></em></a><em>, Head of Product at </em><a href="https://www.cardsftw.com/r/df269897?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>Agora</u></em></a><em>.</em></p><h2 id="introduction" 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;">Introduction&#xA0;</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I spent the first fifteen years of my career in &#x201C;TradFi&#x201D; (that means traditional finance, not trade finance, a mistake &#x201C;normies,&#x201D; like myself, can sometimes make). When I left TradFi to join a stablecoin issuer, and was informed of said trad-ness, I still assumed, if I ever did write a blog post, it might be about L1 architecture or ZK proofs, but nope: it&#x2019;s card programs.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">CardsFTW + Stablecoins = LFG.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This past summer, aka &quot;Stablecoin Summer,&quot; marked the shift. U.S. regulatory clarity screamed &quot;GO&quot; and everyone from fintechs to Fortune 500s scrambled to move capital. That momentum had no chill and barrelled straight into winter.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">We are witnessing a collision of operating models: TradFi and fintechs are getting on-chain, while crypto companies race towards compliance and fiat rails. The cultural mashup of crypto degens and white-shoe bankers attempting to change global finance together provides endless popcorn moments and bloated conference schedules.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">But the real output isn&#39;t just bad anthropology: it is product. Cards have become the nexus of this convergence, and they are going atomic.</p><h2 id="going-semi-atomic" 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;">Going [Semi-]Atomic</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Last month, Visa <a href="https://www.cardsftw.com/r/54ed90a5?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> stablecoin support for both Issuer and Merchant settlement for accounts at Cross River Bank (CRB) and Lead Bank (Lead). This isn&#39;t end-to-end &#x201C;atomic settlement,&#x201D; nor is it &#x201C;atomic commerce,&#x201D; but it&#39;s moving the entire space in that direction.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Wade Arnold, Founder of Moov, is worth repeating:&#xA0;</p><blockquote style="margin: 0; padding: 0; border-left: #F9A60D 2px solid; font-size: 17px; font-weight: 500; line-height: 1.6em; letter-spacing: -0.2px;"><p style="line-height: 1.6em; margin: 2em 25px; font-size: 1em; padding: 0; color: #15212A;">Networks do not move money. They sell a promise that money will move.</p></blockquote><div> <!--[if !mso !vml]--> <div class="kg-card kg-bookmark-card " style="margin: 0 0 1.5em; padding: 0; width: 100%;"> <a class="kg-bookmark-container" href="https://www.cardsftw.com/r/8200ad7f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="display: flex; min-height: 148px; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; border-radius: 3px; background-color: #ffffff; background-color: rgba(255, 255, 255, 0.25); border: 1px solid #e0e7eb; border: 1px solid rgba(0, 0, 0, 0.12); 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;">Visa/MC to thrive with stablecoins, not replaced | Wade Arnold posted on the topic | LinkedIn</div> <div class="kg-bookmark-description" style="display: -webkit-box; overflow-y: hidden; margin-top: 12px; max-height: 40px; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; line-height: 1.5em; font-weight: 400; -webkit-line-clamp: 2; -webkit-box-orient: vertical;">There&#x2019;s a lot of noise about stablecoins disrupting Visa and Mastercard. I think that&#x2019;s b<span class="desktop-only">ackwards. The networks don&#x2019;t m</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-2" 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="Wade Arnold" style="overflow: hidden; max-width: 240px; line-height: 1.5em; text-overflow: ellipsis; white-space: nowrap;"><span style="margin: 0 6px;">&#x2022;</span>Wade Arnold</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/1764872402988&#39;);"> <img src="https://www.cardsftw.com/content/images/thumbnail/1764872402988" 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/wadearnold_theres-a-lot-of-noise-about-stablecoins-activity-7402411389618860032-HMLX" style="text-decoration: none; color: #15212A; font-size: 15px; line-height: 1.5em; font-weight: 600;"> Visa/MC to thrive with stablecoins, not replaced | Wade Arnold posted on the topic | LinkedIn </a> </td> </tr> <tr> <td> <div class="kg-bookmark-description--outlook"> <a href="https://www.linkedin.com/posts/wadearnold_theres-a-lot-of-noise-about-stablecoins-activity-7402411389618860032-HMLX" style="text-decoration: none; margin-top: 12px; color: #738a94; font-size: 13px; line-height: 1.5em; font-weight: 400;"> There’s a lot of noise about stablecoins disrupting Visa and Mastercard. I think that’s b<span class="desktop-only">ackwards. The networks don’t m</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/wadearnold_theres-a-lot-of-noise-about-stablecoins-activity-7402411389618860032-HMLX" style="text-decoration: none; color: #15212A;"> <img src="https://www.cardsftw.com/content/images/icon/al2o9zrvru7aqj8e1x2rzsrca-2" width="22" height="22" alt=" "> </a> </td> <td valign="middle" class="kg-bookmark-byline--outlook"> <a href="https://www.linkedin.com/posts/wadearnold_theres-a-lot-of-noise-about-stablecoins-activity-7402411389618860032-HMLX" style="text-decoration: none; color: #15212A;"> LinkedIn &nbsp;&#x2022;&nbsp; Wade Arnold </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; color: #15212A;">A common crypto-centric analogy that&#x2019;s circulating to describe what&#x2019;s happening here, from both Visa and Rain, is that stablecoins are the L1 and Visa is the L2. Stablecoins for settlement. Visa for merchant access.&#xA0; </p><div class="kg-card kg-embed-card" style="margin: 0 0 1.5em; padding: 0;"><!--[if !mso !vml]--> <a class="kg-video-preview" href="https://www.cardsftw.com/r/4d9c80cd?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" aria-label="Play video" style="background-color: #1d1f21; background-image: radial-gradient(circle at center, #5b5f66, #1d1f21); display: block; overflow-wrap: anywhere; color: #F9A60D; mso-hide: all; text-decoration: none;" target="_blank"> <table cellpadding="0" cellspacing="0" border="0" width="100%" background="https://i.ytimg.com/vi/VDrpdteUC6o/hqdefault.jpg" role="presentation" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-size: cover; min-height: 200px; overflow: hidden; background: url(&#39;https://i.ytimg.com/vi/VDrpdteUC6o/hqdefault.jpg&#39;) left top / cover; mso-hide: all;"> <tbody><tr style="mso-hide: all"> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; visibility: hidden; mso-hide: all;" valign="top"> <img src="https://img.spacergif.org/v1/150x450/0a/spacer.png" alt width="100%" border="0" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; height: auto; opacity: 0; visibility: hidden; mso-hide: all;" height="auto"> </td> <td width="50%" align="center" valign="middle" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; color: #15212A; vertical-align: middle; mso-hide: all;"> <div class="kg-video-play-button" style="height: 2em; width: 3em; margin: 0 auto; border-radius: 10px; padding: 1em 0.8em 0.6em 1em; font-size: 1em; background-color: rgba(0,0,0,0.85); mso-hide: all;"><div style="display: block; width: 0; height: 0; margin: 0 auto; line-height: 0px; border-color: transparent transparent transparent white; border-style: solid; border-width: 0.8em 0 0.8em 1.5em; mso-hide: all;"></div></div> </td> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; mso-hide: all;" valign="top">&#xA0;</td> </tr> </tbody></table> </a> <!--[endif]--> <!--[if vml]> <v:group xmlns:v="urn:schemas-microsoft-com:vml" xmlns:w="urn:schemas-microsoft-com:office:word" coordsize="600,450" coordorigin="0,0" href="https://www.youtube.com/watch?v=VDrpdteUC6o" style="width:600px;height:450px;"> <v:rect fill="t" stroked="f" style="position:absolute;width:600;height:450;"><v:fill src="https://i.ytimg.com/vi/VDrpdteUC6o/hqdefault.jpg" type="frame"/></v:rect> <v:oval fill="t" strokecolor="white" strokeweight="4px" style="position:absolute;left:261;top:186;width:78;height:78"><v:fill color="black" opacity="30%" /></v:oval> <v:shape coordsize="24,32" path="m,l,32,24,16,xe" fillcolor="white" stroked="f" style="position:absolute;left:289;top:208;width:30;height:34;" /> </v:group> <![endif]--></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Rain is noticeably absent from Visa&#x2019;s announcement, even though they&#x2019;ve already been doing this with Visa on the issuing side for years. I&#x2019;ll get into that later.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This does not turn Visa into a blockchain. It is optimizing settlement. The cardholder experience and merchant interactions could have nothing to do with blockchains, stablecoins, or crypto, and still benefit from this launch.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This is still not a fully atomic settlement just yet. There are intermediaries, risk buffers, and reconciliation layers. But it is closer to instant and final than what most card programs have historically operated. True atomic settlement implies instant, simultaneous exchange of value. For companies banking at CRB or Lead, you can now settle with Visa directly 24/7/365.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Issuers</strong> (and partner fintechs and neobanks) gain greater flexibility in managing liquidity and settlement timing. No more pesky prefunding increases before that long holiday weekend! This should be a welcome and significant bump for fintechs working with these banks.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Networks</strong> reduce risk and issuer tension.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Merchants</strong> get paid faster.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Cardholders</strong> may benefit? Do you believe in trickle-down value? I imagine some issuers will pass savings to their customers somehow.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Stablecoins &gt; Wires (this can be a separate post)&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">But for now, it must be in USDC, on Solana, and you must be banking with CRB or Lead.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Issuers win. Networks win. Merchants win. Cardholders tbd.&#xA0;</p><h2 id="crypto-native-card-operator" 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;">Crypto Native Card Operator&#xA0;</h2><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2026/01/data-src-image-f4e9031f-9ebf-41f0-9c48-84a719a319fd.png" class="kg-image" alt="Meme of the movie character Bain with the Rain logo over his face. &quot;You merely adopted the dark I was born in it&quot; is in white over the bottom quarter of the image." loading="lazy" width="423" height="426" 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;">What the Visa announcement did not highlight is that a number of crypto-native issuers have been building and running versions of this model for years already. Stablecoin settlement is not a future roadmap item for them. It is how their systems were designed to work from the start. Their card programs also tend to involve customer-facing blockchain and stablecoin offerings.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Rain is one example of this approach. Rather than retrofitting stablecoins onto legacy infrastructure, Rain built issuer operations assuming digital dollars would be the settlement asset. Custody, authorization logic, and treasury operations were designed around that assumption.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The company&#x2019;s <a href="https://www.cardsftw.com/r/03a2776e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>recent Series C</u></a> is notable not for its size, but because it signals that this model is moving from early adoption to scale for global enterprises.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">As more companies enter the space, differentiation will stop coming from whether stablecoins are supported and start coming from how they are supported. The differences will show up in authorization timing, custody design, treasury operations, and how systems behave under stress. There are still very few teams that understand these technologies, and that gap will matter as volumes scale.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">To understand how a stablecoin-backed card program actually works, a look at the names on the plastic or metal might help, but as most of this audience already knows, there&#x2019;s more to it than that. From a cardholder&#x2019;s perspective, the experience is familiar. Under the hood, however, the system added several new, tightly coordinated layers, each with its own responsibilities and failure modes.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">All of this also means more options and decisions for new card program creators!&#xA0;</p><h2 id="semi-atomic-card-stack" 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;">Semi-Atomic Card Stack</h2><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2026/01/Data-Layer-Cake-2.png" class="kg-image" alt loading="lazy" width="600" height="426" 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;">What follows is a simplified view of that stack. It is not exhaustive, but it should clarify who does what and where stablecoins meaningfully change the flow.</p><h3 id="0-startcardholder" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">0. Start - Cardholder&#xA0;</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The payment journey begins with a cardholder attempting to make a purchase.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Cardholder/Customer or Business<br><strong style="font-weight: 700;">Action:</strong> Swipes, taps, enters card details at the point of sale, or buys something online&#xA0;</p><h3 id="1-card-issuer" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">1. Card Issuer&#xA0;</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The issuer manages regulatory compliance and validates spending permissions before any blockchain interaction occurs. Depending on the issuer&#39;s infrastructure, this layer may be tightly integrated with custody arrangements.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Rain, CRB, Lead<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> Usually via another fintech that partners with the Issuer (Chime, Current, Brex, Ramp)&#xA0;<br><strong style="font-weight: 700;">Key Question:</strong> Does the Issuer have a setup that allows for settling with the network in stablecoins? Who manages the program?&#xA0;<br><strong style="font-weight: 700;">Function:</strong> KYC/AML gatekeeper and cardholder verification</p><h3 id="2-custody" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">2. Custody</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Funds reside in one of two models:</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; color: #15212A;">Custodial: Partner holds keys via licensed custody provider</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Self-custodial: User-controlled wallets with smart contract spending limits</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This layer defines who can sign, under what conditions, and how stablecoins can be programmatically reserved or spent.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Fireblocks, Bitgo<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> Likely depends on what type of custody.&#xA0;<br><strong style="font-weight: 700;">Key Question:</strong> Who controls the private keys?<br><strong style="font-weight: 700;">Function:</strong> Holds the stablecoins and enforces spending constraints via smart contracts</p><h3 id="3-stablecoin" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">3. Stablecoin</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Stablecoins (USDC, AUSD) are paired with high-throughput L1 Chains (Solana, Arc, Monad, Avalanche) or L2 chains (Arbitrum, Base, Polygon) to ensure: fast settlement, micro-transaction costs, and retail-scale liquidity.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Circle, Agora<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> Depends if the Customer or Business knows or cares that there are stables under the hood.<br><strong style="font-weight: 700;">Key Question:</strong> Does the cardholder see additional rewards from the stablecoin?<br><strong style="font-weight: 700;">Function:</strong> Acts as the on-chain dollar that backs card spend, allowing real-time balance checks, programmable controls, and real-time settlement</p><h3 id="4-issuer-processor" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">4. Issuer Processor&#xA0;</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The issuer processor must:</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; color: #15212A;">Receive a Visa authorization request&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Query on-chain balance</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Apply dynamic authorization rules based on real-time context (velocity, risk scoring, liability shift, spending patterns, etc.)&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Reserve stablecoins to guarantee settlement</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Returns approval/decline to the network</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Legacy processors are static, binary gates that bleed revenue through fraud and false declines. Modern processors act as programmable governance layers, injecting real-time context and continuous risk signals into every authorization.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Marqeta, Lithic&#xA0;<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> The Customer or Business usually has no idea.&#xA0;<br><strong style="font-weight: 700;">Key Question:</strong> What happens in real-time and what doesn&#x2019;t? Can your auth decision engine query on-chain balances and execute smart contract holds within card network SLAs?<br><strong style="font-weight: 700;">Function:</strong> Translate Visa authorization (BAU) &#x2192; pull-in blockchain query (NEW)</p><h3 id="5-card-network" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">5. Card Network&#xA0;</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The network treats this as a standard message, routing between the merchant acquirer/payment processor and issuer. The underlying blockchain complexity happens outside of this.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Visa, Mastercard, American Express, Capital One/Discover<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> Logo on Card<br><strong style="font-weight: 700;">Key Question:</strong> What stables do you accept?&#xA0;<br><strong style="font-weight: 700;">Function:</strong> Transaction routing</p><h3 id="6-merchant-acquirerpayment-processor-payout-to-merchant-only" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">6. Merchant Acquirer/Payment Processor [Payout to Merchant Only]</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Two stable settlement paths:</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; color: #15212A;">Acquirer/Processor receives stablecoins from the network and off-ramps to local currency to send to the merchant</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Merchant accepts stablecoins directly (possibly in real-time), and then holds a balance in a yield-bearing stable (hopefully) or immediately off-ramps to fiat</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Visa (direct for Stablecoins), Velocity<br><strong style="font-weight: 700;">Cardholder Interaction Note:</strong> The Customer or Business usually has no idea.&#xA0;<br><strong style="font-weight: 700;">Key Question:</strong> As the merchant, how quickly do I get the funds? <br><strong style="font-weight: 700;">Function:</strong> Pays merchants, traditionally in fiat T+2, sometimes same-day, or even now in real-time using stablecoins&#xA0;</p><h3 id="7-endmerchant" style="margin-top: 0; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px; font-family: Georgia, serif; letter-spacing: -0.01em; color: #15212A;"><strong style="font-weight: 800;">7. End - Merchant&#xA0;</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The merchant receives funds in their preferred form (fiat or stablecoin).&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Who:</strong> Merchant/Business<br><strong style="font-weight: 700;">Action:</strong> Receives payment&#xA0;</p><h2 id="what%E2%80%99s-missing" 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&#x2019;s missing?&#xA0;</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Lots!&#xA0;</strong></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Again, this is the gist. I&#x2019;ve left out a lot in the flow above, including, but not limited to: Payment Processing, FX, Smart Contracts, Risk Solutions, Ledgers, Blockchain Network, Wallet Connections, Indexing, Program Managers, and Interchange.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I also left out Stripe. They now participate in almost every part of the flow above and more.&#xA0;</p><div class="kg-card kg-callout-card kg-callout-card-yellow" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #FCF4E3;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F587;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Did someone forward this to you?&#xA0;<a href="https://www.cardsftw.com/r/b8e17c37?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"><u>Subscribe to CardsFTW today.</u></a></div></div><h2 id="what-is-dead-may-never-die" 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 Is Dead May Never Die</h2><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2026/01/SomeThingsNeverDie-1.png" class="kg-image" alt="Meme from Game of Thrones showing a bedraggled man with long white hair standing before a kneeling man. The kneeling man&#39;s face is covered with logos for Visa, Mastercard, Amex, and Discover. In the background is an ocean with black rocks." loading="lazy" width="512" height="318" 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;">Shamir Karkal, founder of Simple, Sila, and now Aleph Invariance, wrote a post a while back reminding folks that Old Payment Systems Never Die. </p><div> <!--[if !mso !vml]--> <div class="kg-card kg-bookmark-card " style="margin: 0 0 1.5em; padding: 0; width: 100%;"> <a class="kg-bookmark-container" href="https://www.cardsftw.com/r/a554df14?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="display: flex; min-height: 148px; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; border-radius: 3px; background-color: #ffffff; background-color: rgba(255, 255, 255, 0.25); border: 1px solid #e0e7eb; border: 1px solid rgba(0, 0, 0, 0.12); 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;">Old Payment Systems Never Die</div> <div class="kg-bookmark-description" style="display: -webkit-box; overflow-y: hidden; margin-top: 12px; max-height: 40px; color: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px; line-height: 1.5em; font-weight: 400; -webkit-line-clamp: 2; -webkit-box-orient: vertical;">Empire Startups Contributor Shamir Karkal illustrates that once a payment system is broad<span class="desktop-only">ly adopted, it never truly can</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/https-3A-2F-2Fsubstack-post-media.s3.amazonaws.com-2Fpublic-2Fimages-2F6bc2530b-dee0-4352-a7d8-d286f616cc2c-2Fapple-touch-icon-180x180.png" 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="Empire Startups FinTech Newsletter" style="line-height: 1.5em;">Empire Startups FinTech Newsletter</span> <span class="kg-bookmark-publisher" src="Shamir Karkal" style="overflow: hidden; max-width: 240px; line-height: 1.5em; text-overflow: ellipsis; white-space: nowrap;"><span style="margin: 0 6px;">&#x2022;</span>Shamir Karkal</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/https-3A-2F-2Fsubstack-post-media.s3.amazonaws.com-2Fpublic-2Fimages-2Ff5cda86a-764d-4a5a-864b-3d0ee7241442_1536x868.png&#39;);"> <img src="https://www.cardsftw.com/content/images/thumbnail/https-3A-2F-2Fsubstack-post-media.s3.amazonaws.com-2Fpublic-2Fimages-2Ff5cda86a-764d-4a5a-864b-3d0ee7241442_1536x868.png" 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://substack.com/home/post/p-143207785" style="text-decoration: none; color: #15212A; font-size: 15px; line-height: 1.5em; font-weight: 600;"> Old Payment Systems Never Die </a> </td> </tr> <tr> <td> <div class="kg-bookmark-description--outlook"> <a href="https://substack.com/home/post/p-143207785" style="text-decoration: none; margin-top: 12px; color: #738a94; font-size: 13px; line-height: 1.5em; font-weight: 400;"> Empire Startups Contributor Shamir Karkal illustrates that once a payment system is broad<span class="desktop-only">ly adopted, it never truly can</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://substack.com/home/post/p-143207785" style="text-decoration: none; color: #15212A;"> <img src="https://www.cardsftw.com/content/images/icon/https-3A-2F-2Fsubstack-post-media.s3.amazonaws.com-2Fpublic-2Fimages-2F6bc2530b-dee0-4352-a7d8-d286f616cc2c-2Fapple-touch-icon-180x180.png" width="22" height="22" alt=" "> </a> </td> <td valign="middle" class="kg-bookmark-byline--outlook"> <a href="https://substack.com/home/post/p-143207785" style="text-decoration: none; color: #15212A;"> Empire Startups FinTech Newsletter &nbsp;&#x2022;&nbsp; Shamir Karkal </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; color: #15212A;">The payment layer cake just gets larger and stranger.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Stablecoins have not dented network volumes; they&#39;ve expanded them, for now anyway. The product is a paradox: Plastic and 1970s messaging in the front, 400 millisecond settlement on the blockchain in the back.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Visa nailed the stablecoin mullet strategy. Visa has almost 200 million merchant locations worldwide. You swipe plastic. The network gets a bit. Settlement happens on-chain. These analogies, maybe this whole post for that matter, might not make a whole lot of sense, but the product somehow does, and so does the distribution.&#xA0;</p><h2 id="warning-excitement-prediction" 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;">Warning, Excitement, Prediction</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The stablecoin space has already entered the phase of the cycle where every company is starting to say the same or similar-sounding things. They are not, I repeat, <strong style="font-weight: 700;">not</strong> the same.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">These systems are icebergs. You see a token. Beneath the surface, you find a web of compliance, indexing, and liquidity.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x200B;&#x200B;Stablecoins reset the conversation around value, control, and access.&#xA0;</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; color: #15212A;"><strong style="font-weight: 700;">TradFi,</strong> which missed the fintech boom, can skip a generation.&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Fintech companies</strong> that did the hard work, built the right infrastructure, found the right audience, or did both will pivot quickly.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Crypto companies</strong> have mainstream validation and vibes.&#xA0;</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">We have a renewed chance to realize the original promise of fintech. It starts with bold moves. Add Visa buying Circle to the 2026 bingo 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&#xA0;</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I first met Matthew when I was doing due diligence on which BaaS bank to partner with for a previous start-up. The questions should have been: Which BaaS bank would let me be a customer for a price we could afford? But that&#x2019;s a different story. Matthew was kind enough to help out a founder he had little connection with, something for which I&#x2019;m still grateful. I&#x2019;ve been following his content ever since, and after running into him at Fintech Nerdcon, I was pumped at the opportunity to contribute to CardsFTW.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I tried my best to get this guest post rebranded StablecoinsFTW, maybe next time! If you found this helpful at all, please do two things:</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; color: #15212A;">Subscribe to CardFTW&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Follow me <a href="https://www.cardsftw.com/r/0a1c73b4?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>@nathankrinsky</u></a>. I don&#x2019;t tweet a lot. But if I get up to 1,000 followers, my company will pay to have our pretty gold logo next to my name.&#xA0;</li></ul><h2 id="about-nate-krinsky" 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;">About Nate Krinsky</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Nate Krinsky is the Head of Product at Agora Finance, a stablecoin issuer and infrastructure company. He has spent his career building and operating financial infrastructure across traditional finance, fintech, and now blockchain, including leading product teams at Current and American Express.</p><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/689b88e0?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/c477789f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/2de50cc2?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/1d1b5406?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><div></div> <!-- 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; 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="latest-posts-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 24px 0; border-bottom: 1px solid #e0e7eb;" valign="top"> <h3 class="latest-posts-header" style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; margin: 0; padding: 8px 0 8px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 13px; font-weight: 600; text-transform: uppercase;">Keep reading</h3> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; 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margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/ea55fcff?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, the Apple Card heads to JP Morgan Chase</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/b24dbbd5?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #186: The Biennial CFPB Consumer Credit Market Report</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/bd7a8257?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, Fancy Cards Require a Year-End Review</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/d33f124f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #185: Everyone Wants to be a Bank (Again)</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/dad31567?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, more on Cap One / Discover, and the merchant settlement</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 steeves</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">zdcrjicyoldnafoj@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: 1 November 2025</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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  10. Banking Brief: Dawn of new enterprise AI

    Thu, 15 Jan 2026 16:50:09 -0000

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text-decoration:none; border:none; max-width:100%; font-size:16px; border-radius:1%" width="560" align="middle"> </a> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:3px 20px 16px"><div id="hs_cos_wrapper_module-3-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-3-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:12px; line-height:115%">Source: Adobe Firefly<br><br></p> <h3 style="margin:0; font-size:15px; line-height:115%"><span style="font-family: Helvetica, Arial, sans-serif; color: #000000; font-size: 18px;">TODAY'S BRIEF</span></h3> <div style="line-height:150%" aria-label="Leave comment"> <div style="line-height:150%"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="content-module" data-onboarding="content-module"> <div style="line-height:150%" data-test-id="element-mouse-events-handler"> <div style="line-height:150%"> <div style="line-height:150%" data-selenium="module-module-3-0-1" data-module-wrapper="true"> <div style="line-height:150%" data-test="overlayHtml"> <div style="line-height:150%"> <div style="line-height:150%" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;">January 15, 2026<br><br></span><span style="color: #000000; font-family: Georgia, serif;"><em>Hi Roger,</em></span></p> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;"><em>Quarterly results season is&nbsp;in full swing, and Donald Trump spoiled what was supposed to be a big party for the banks. But there is always one thing that seems to<span style="color: #000000;">&nbsp;keep going up.</span></em></span></p> <p style="line-height:150%; font-size:18px"><span style="color: #000000;">&nbsp;</span></p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;"><em>Also in the Banking Brief, a game of "follow the leaders". That's what we're seeing play out in the sector through the</em> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3hKBlW8wLKSR6lZ3pHW4GV0fD2cjGt7W6-wLHX1TSrMBN7bRFmrtmchyW3cg2fn4wkBRdW2QnVGb16MMbmW4Y_TQG4BDm7xW2ccS5b2GDDxpW7QGFhW1ZJS9qN3J3VTZk0HL0W73-yZT2pmGBTW4h_t8t5C9cgkN6Mty7yDMPmVW2cXymm6-VbLsW8bpGXP1SRGl5VBxYnr6KlTvhW1v4jWz7PPR68W79M_X88pF323W1VBx6Z2J0_sjW9dWBJx7z22kjW1081RK8cCjq9N4txdT19TYNMW8fZ7_k9bJFdjW2pFyD08ZlMR1W71ryKT6011KYW1GFjzd2JklMBW7mBQmw1znW4xW5ZBy7g5FXb-6W7wB0WW6S01-5f7Zsz1204" style="color:#f4854f; font-style:italic" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="vTkf+DzY" target="_blank">Evident Use Case Tracker</a>,<span style="font-style: italic;"> </span></span><span style="color: #000000; font-family: Georgia, serif;"><em>which will be updated next week. Today, an exclusive preview.&nbsp;</em></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="color: #000000;"><span style="font-family: Georgia, serif;"><em>And in our&nbsp;Big Ideas section, we look at the new frontier of general enterprise agents that the LLMs are pushing toward in 2026. It’s a risky journey but how it turns out will have big implications for AI adoption.&nbsp;</em></span></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;"><em>People mentioned: <span style="font-weight: bold;">Jamie Dimon, Mike Mayo, Dermot McDonogh, Fiona Browne, Mark Wightman,</span> <strong><span style="color: #000000;">Michael Höllerer </span></strong><span style="color: #000000;">and others. </span></em></span></p> <p style="line-height:150%; font-size:18px"><span style="color: #000000; font-family: Georgia, serif;">&nbsp;</span></p> <p style="line-height:150%; font-size:18px"><span style="font-family: Georgia, serif; color: #000000;"><em>This edition is<span style="font-weight: bold;"> 2,138&nbsp;words</span>, a <span style="font-weight: bold;">5 minute read</span>. <span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3hKBlW8wLKSR6lZ3nzW47Wwl-1bN0y9W8JyGlQ16yBW4W6g7XSC5VF_v-W8DC1Fh49C_jRW4CGn1368317mW3gxN0T1bY22qV2xnlC5hbH6pW8XtXDD4grfYMW7SQ1c55Y6MsSW75G3428ygmzVW2R3tCZ5N8tN1TkqBH4ZH8z0W1qm5c71fkZ4SW6Cyffj2jmxClW8Sxtp05bp4p6W38BJV65rD3LpW7v-cyS14cr6QW11bhfY3xvm6RVglqxw2cBKzrW5c2WDG6MFd40W1nm9WK4kWK_jW39v_5_6r9myDW2FnGy325Lr4TN1sWxHRG18lzN5HyWhfmjbGRW3KXzd-17Tsq0W6BhtZd3YS5WRN1-Bb_LKMFGmf5DnDnn04" rel="noopener" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="FWpFXKXn" target="_blank"><em>Check it out online</em></a></span>. If you were forwarded the Brief, </em><span style="font-family: Georgia, serif;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j3hKBlW7lCdLW6lZ3mvN3Ry3rdvHJ0JW2j0_JC57LFxDN1nFzmmK0mm5W55QFkh3YzmcKW4hzN1h7-VFGzW90wbP591M3VMW3l5Zyv9gtyQPW6gXTRT6w7DBnW8Pb6zy3G_6ZgVSSJBV5SDL4GW1MlHlb28syXvVbVjhV5NSSmFN7T2ZHtMZk7MW20Kt422XcqcpW7txDZ16FFjl9W5WBZB-5l_JjzW7pFmDh1rfPGQW2KrjRf8VJN1NW3tvBB222FH34W8qjk2y6BjWJyW9b9gch8dKVC3W36BVZw3KCwFzW4xFSMH6kqzThW5msWxY8tk5PDdjbtWR04" style="color:#f4854f; font-style:normal" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="GAaQjh+u" target="_blank"><em>you can subscribe here</em></a></span><em>. We always want to hear from you at <a href="mailto:thebrief@evidentinsights.com" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="tJjfnY3u" target="_blank"><em>thebrief@evidentinsights.com</em></a>.</em></span></p> <p style="text-align:right; font-weight:normal; line-height:150%; font-size:18px" align="right"><span style="font-family: Georgia, serif;"><em><span style="color: #1f2a44;"><br>– Alexandra Mousavizadeh &amp; Annabel Ayles</span></em></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_174971714881021" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17617492146231" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="top-of-the-news (2)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/top-of-the-news%20(2).png?width=120&amp;upscale=true&amp;name=top-of-the-news%20(2).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module-4-0-2" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module-4-0-2_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">TOP OF THE NEWS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>WHAT GOES UP</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;">Some mixed earnings reports and Donald Trump’s call to cap credit card interest rates spooked markets this week, sending&nbsp;stocks even of banks that beat expectations.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;">But something else came through clearly this week: Banks are doubling down on tech spending, and AI spend as a share of that budget has shot up this past year. That’s as true at flush banks who have capital to throw around as at those that are cutting costs generally but have carefully ringfenced AI spending from austerity drives.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;">For sure, executives still aren’t being as upfront about this spending trend as analysts and the markets would want them to be.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; color: #000000;">During the <strong>JPMorganChase</strong> results call Monday, the <strong>Wells Fargo</strong> analyst <strong>Mike Mayo</strong> sparred, rhetorically and amusingly, with CEO <strong>Jamie Dimon</strong>, pressing him repeatedly on where the bank’s $17-18 billion tech budget and an additional $9 billion in investment was going and what the “payoffs” from AI were. Dimon weaved on the details of the budget spend and bobbed about ROI. “The tech spend is always one of the harder ones to measure and evaluate,” he said. "Tech is going to go up." At the end, Mayo came back: "You're spending more in AI." Dimon: "We will be spending more in AI."</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-family: Arial, sans-serif; font-size: 18px;"><span style="color: #000000;">This isn’t exactly a scoop. What is less widely appreciated is the steepness of the spending line across the sector. Most banks we cover have told us, and they don’t break this out precisely in their results, that they have increased their AI spending by double or triple digits in percentage terms this past year — faster than in any previous year —&nbsp;that trend looks certain to continue into 2026. You can see it from the rising cost of cloud computing and hiring engineers and researchers to the non-tech roles that banks are adding in leadership, strategy and AI enablement (see the talent section of the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j3hKBlW7lCdLW6lZ3mBW8XLlfk7fNhsHN2yhT1JKTFJkW1HTqKY8y5rk0W7VR9lB3dwg89W64x10N8ytP07N38hdRgXq-jyN2FDLbQf0tBFW3bZlGK4My3YjN4XWzs6X6Vk1W1Wl6kH4ghNLTW3D9v0021h2fMW92mpyZ8Z2btBW9cg38J3S4YKbW1tNLjb3BC480W6cQl4Y76lP3JW6jM3pb8s8V1gW11fK5s1zt-JQW8fRXK53JrygbW67N2584XtBGSN89mQBlpsZ5wW5NHQPy4Gly1WW58rY0X8HJYJ6W6tdMXH4V_65-W1P8cnk7WCc_7f87gryK04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="+D4l0xTJ" target="_blank">Evident AI Index</a></span><span style="font-size: 14px; color: #000000;"><span style="font-family: Arial, sans-serif; font-size: 18px;">). The banks aren’t fibbing when they say they don’t always know precisely where the AI spend goes. Many aren’t even able to measure the rising spending at a granular level.</span> </span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">The execs also aren’t necessarily dodging when they say the returns aren’t straightforward to measure. Even if they keep saying it. For example, <strong>BNY</strong>’s CFO <strong>Dermot McDonogh</strong> on Tuesday: “We don’t think about [AI] in the narrow definition of efficiency… It’s all about growing with clients, increasing revenues and optimizing the potential for our employees.”</span></p> <p style="line-height:150%"><span style="font-size: 14px; color: #000000;"><span style="font-family: Arial, sans-serif; font-size: 18px;">&nbsp;</span></span></p> <p style="line-height:150%"><span style="color: #000000;">The truth is, big banks are only two to three years into testing Gen AI and early deployment and we are beginning to see tangible ROI, primarily through efficiency gains. Revenue uplift is emerging more slowly but that’s a feature not a bug of this transformative moment. The direction of travel is clearly upward – both on how big the investment is and what the potential returns could be. The banks in the lead are embedding AI across their business and building at scale, and are going to see those returns start to accelerate well before the lagging banks will.&nbsp;</span></p> </div></div></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1766060689829" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container hse-no-stack-row" style="min-width:280px; max-width:600px; margin:0 auto; border-collapse:separate; display:table; width:100%; background-color:#ffffff" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" class="hse-no-stack-row" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="middle" style="width:600px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1766060689829_0" class="hse-column hse-size-12 hse-no-stack" style="display:table-cell; max-width:600px; width:100%; vertical-align:middle"> <div id="hs_cos_wrapper_module_176606106729927" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;table-layout:fixed" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1749644496936" class="hse-section" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#F0F8FF; padding-bottom:15px; padding-top:15px" bgcolor="#F0F8FF"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#F0F8FF"> <tr style="background-color:#F0F8FF;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:15px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1749644496936_0" class="hse-column hse-size-12"> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_175819656124315" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_175819656124315_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%; text-align:left" align="left"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>ABOUT EVIDENT</strong></span></h2> <p style="line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">Evident is the intelligence platform for AI adoption in financial services. We help leaders stay ahead of change with trusted insights, benchmarking, and real-time data through our flagship Banking Index, our new Insurance Index, Insights across Talent, Innovation, Leadership, Transparency and Responsible AI pillars, a real-time Use Case Tracker, community and events. </span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;">Watch our </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx58b3hKBlW95jsWP6lZ3nhW7lsb6p4p4LmsN5N8bsnLXPpxW7wQ__P5v2wyXW4RH9sP7_HWrfW6rgwCj7vG1TGW7PCRK73SPPB6W161hbS794bmJW5hyN524j2KLkW3J-GlR4Hmh5PN4-Q0hJf-jLnN8ZhRxJFc9pPW40hhtC2nc2GxW7ZgntC1rPl9xW2Tfj-x17PB0dW19S1N95wm6jBW5pvpgN82S5DcW1VpWg72jNQC6DXjdFtYXD5VS86PQ7nCjXHW4php3V2pZS5mW5vzGHl1y3SNZVNHsb86jFl4lW42sNbn1w5gWrW1XjKNf5__5z8W7YGRyy3qX9vMN4g9CQVtsQ6qW8q0F0C2GS9GfW7r7Cy-355VKDW4Gm6681GZX-pW75g1kN95vmngdrM3Hd04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="NFNXuGn5" target="_blank">latest roundtable</a> <span style="color: #000000;">exploring the insights from our new Insurance Index, and </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j3hKBlW7lCdLW6lZ3kCW98MFgF8d14W0W60ZYkN5S1_LgN2FKkNtwnM_SW4S9Sxr28VjDRN8n35tLZ25lXW36MvY_8hFHr-W4ydPgq7gyCr3W6zd7sm3rGJVPW4NmNLC6fJ5kcN8tYHyssP0M4W4wvlV-29jPJNW44nzSc5X4gB-N2-dvF0RtxlLW3r8xn582GgmjW5wc53h6z__ClW1Qk06C3z80GKW7XL45v5GMdmzW6XJgRY31t9SZW6dSYc_482TB1W2CLmgt1GYbJsW4dk6YV5n_L3VW6nf3v26QXNFsW3dd7nv5LRpL0W8HjPzD4dxsZmf88v09P04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="U7i53IL4" target="_blank">get in touch</a> <span style="color: #000000;">to hear more about how Evident can help your business adopt AI faster.</span></p></div></div></td></tr></tbody></table> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div> <div id="section_1756987234667" class="hse-section hse-section-last" style="padding-left:0px; padding-right:0px"> <div class="hse-column-container" style="min-width:280px; max-width:600px; margin:0 auto; background-color:#ffffff; padding-bottom:10px; padding-top:15px" bgcolor="#ffffff"> <!--[if (mso)|(IE)]> <table align="center" style="width:600px;" cellpadding="0" cellspacing="0" role="presentation" width="600" bgcolor="#ffffff"> <tr style="background-color:#ffffff;"> <![endif]--> <!--[if (mso)|(IE)]> <td valign="top" style="width:600px;padding-bottom:10px; padding-top:15px;"> <![endif]--> <!--[if gte mso 9]> <table role="presentation" width="600" cellpadding="0" cellspacing="0" style="width:600px"> <![endif]--> <div id="column_1756987234667_0" class="hse-column hse-size-12"> <div id="hs_cos_wrapper_module_17678606542433" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176606165121434" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="misc-usecases" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/misc-usecases.png?width=120&amp;upscale=true&amp;name=misc-usecases.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 20px"><div id="hs_cos_wrapper_module_176606165238835" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176606165238835_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%; text-align:left" align="left"><span style="font-family: Arial, sans-serif; color: #000000;"><strong>USE CASE CORNER</strong></span></h2> <p style="font-size:28px; line-height:125%; text-align:left" align="left"><span style="color: #000000;"><strong>CLUSTER BANKS</strong></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">New AI use cases in banking are clustering in five focus areas, according to the latest data from the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3hKBlW8wLKSR6lZ3mYV76SQV4Q-bBZW56XGcm1ft3vWW8VZ7GZ8rwyZ0W3w14Vp6zg3NFW3FzPhP3ZypLtW5ZXSlV4SWKnLW1G7lyN49fRKWW1wY2rQ946HVhW4PntVT3bShNCW3TW1SG1BRMXNW1S48BS4lYlh3W977NvK1sSzwNW6d59yy6F7dztVlKJb_92LwyVW6z_3rK7VVy22W3CvV4_51Q77_W8mtpdf1nlxL_W4yzPxN2FFV96Vs9LTN1sQV2MW2ppjwV1bwF90N7xsQrvRLkLCW4Kk8Pn1MgHdqW39c_F77C71QmW4G1_DH5qrxG9W6jGP_85KfRyjW67tTZq9500HWN2nDfcCDdQcTW6lk04T7q8YKvf3Zkd1Y04" rel="noopener" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="YmpsxNFN" target="_blank">Evident Use Case Tracker</a><span style="color: #000000;">, out next week.&nbsp;</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">We group the use cases announced by the 50 banks we track for the</span> <span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j3hKBlW7lCdLW6lZ3mMM272CnCxgqCVkf9sp4tWBbsVJbv7X4wD0lZW51kw8V3RK327W16Jy3G6LYX_JW5n0msT1jQHDNW8PYbCz3-rlNtW3ZzgQ44yKNFRW2vXZ7S88RyDGW74-LCz9kDKnqW8hTy4H22W2BlW183Zgg8YRZnlW3QDxLP75nWpfW3MSL317c66YPW95675p7Rq81hW6rVYV866LmpxW7bQ1FX6W2Pw1W17VNMl6lyLFRVqklCZ23Tkr-W6jld3R4cBD6GW7JXVZQ3P4bYJW4dyFSX9ddJ9RW5b_4R56v6L_fN32Mr8273b0Hf7f5FJ204" rel="noopener" style="color:#f4854f" data-hs-link-id="1" data-hs-link-id-v2="mBUFnV4s" target="_blank">Evident AI Index</a><span style="color: #000000;"> </span></span><span style="color: #000000; font-size: 18px;">into 10 application areas, ranging from Customer Engagement to Financial Reporting and Planning. The most common five applications drove 80% of new use cases in the last quarter of 2025, versus 64% of all use cases tracked since January 2024.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">As this concentration shows, the early movers on AI are doubling-down on applications that have shown returns. We’re also seeing a “follow the leaders” mentality in play, as others pile in where the leaders have shown the way.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="font-size:15px; line-height:125%"><span style="color: #000000;"><strong>WHERE AI BETS ARE SHIFTING</strong></span></p> <p style="font-size:15px; line-height:125%"><span style="color: #000000;">The number of use cases unveiled by the 50 Evident AI Index banks since the beginning of 2024.&nbsp;</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176848750187715" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px; font-size:0px"> <img alt="chart (6)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/chart%20(6).png?width=1120&amp;upscale=true&amp;name=chart%20(6).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px 20px"><div id="hs_cos_wrapper_module_176848747420114" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176848747420114_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:150%"><span style="font-size: 12px;">Source: Evident Insights, Use Case Tracker, January 2026.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">In the last quarter, <strong>Product and Service Operations</strong> use cases surged to become the second most common area of investment. Examples range from credit underwriting assistants and slide-deck automation to automated complaints handling. Product and Service Operations is also the second most common area for use cases reporting measurable outcomes, indicating a growing alignment between investment priorities and outcomes-driven deployment.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">More than ever, top-down AI mandates are now translating into tangible deployments found lower down in companies. In 2024, less than 10 of the 50 banks we track documented use cases tied to this application area, Today? It’s over 20.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">“Agentic GeoAI,” a unique back-office automation released by </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx5705nXHCW6N1X8z6lZ3mXW3tKblJ8x7t3sW1pQ2PG9jSy5QW7bH2N34zyqBxVKlDF05QZTrYW1s4tZZ5lrT5YV_5f0D70n-dPW2RqZQg97ntMfVjsN8w95ghN2W9lcTHk2JJ-PrN370-fxPMz0TW6FFKGX1Wb2CXW7p3yzW6Xt7GxW46RYzm54RSjbW1g4cP46jv3JWW2cfhZC3kVftcVSKf9L9dZn9bW2YnPNC6C80lsW1WbFR975L-fbF6QbsKTzN0GW8xzHwG5PvnJ3W1t8-js7CkFjYN2Dw0Qvz7mS0W54WMtf2qS4zqN2cbWJM8Q71lW401JsY64j6VLW7p3QLf3zySggW1CYJV32nFVnyW569pwc1zpgVPN8qVMV7mw5qVN7mz-YbZ4DW9W6_-B2B2zhX6jW8tkZQ84j9rn5W7PrpS57gqf8WW2LgXDc6wch1XN86nJ-PGyrglW9kGb_X6VYNpbW750xvf1W46ZlW7cdLD390lk4Vf1nm4Dl04" style="color:#f4854f; font-weight:normal" data-hs-link-id="0" data-hs-link-id-v2="3B7QNkpM" target="_blank">Lloyds Banking Group</a><span style="color: #000000;">, is a good example. This system accurately matches customer addresses to real physical locations – for example, linking a home address on a mortgage application to a property record used to audit internal systems and prevent fraud. Instead of making those associations from text matching alone, Lloyds employs agents to clean up addresses, narrow down location by geographic info, and resolve small discrepancies in how people say where they live.</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">While the task seems simple, the supporting architecture is not – including specialized agents for pre-processing, geospatial filtering, lightweight semantic embedding, and similarity search. Where possible, the system offloads GPU-heavy tasks to Facebook AI Similarly Search (which can be run on a basic CPU).</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px; color: #000000;">This implementation translates to hard (and well-documented) ROI. Agentic GeoAI showed huge gains versus their legacy system in average search time (800x), energy use per record (90% lower), match accuracy rates (+4%), emissions (-270 tonnes CO2e), and total cost (£171,315 saved).</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176484789143714" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176484676200811" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="notably-quotable" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/notably-quotable.png?width=120&amp;upscale=true&amp;name=notably-quotable.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176243037280124" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176243037280124_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">NOTABLY QUOTABLE</span></p> <p style="font-size:18px; line-height:125%; font-weight:bold">&nbsp;</p> <p style="font-size:22px; line-height:150%"><span style="color: #767e96;"><em>“The way you get senior people...is by having a bunch of people be junior and then you figure out which ones are learning the field well enough to be at the next level. In the next two years, we're going to find the best prompt engineers. I'm pretty sure the best prompt engineers are&nbsp;not the best managers.”</em></span></p> <p style="line-height:150%; font-size:18px">&nbsp;</p> <p style="text-align:right; font-size:18px; line-height:150%" align="right"><em>– David&nbsp;Magerman</em>, <span style="font-style: italic;">cofounder of Differential Ventures and ex-head of product at Renaissance Technologies, on the </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3qn9qW8wLKSR6lZ3p-W7TyXJs16MCCwW3lg9qV7Q-x_jN6QWXwXd-NHRW5mN-pk3ry8fnW2BxVF32n-qwgW7MPX883qTt9qW2yKRs86yLymbW8tnC8h7QvPVtW7V5hmm8sdt_0W5pDtCD3K0gM0W3JY9f76nLQrvW46YMgJ29fxhPW4m2-zf41VPwLW3SC8mq24YtlRW763wxc6CB1wYW3XWv_577dZhTW3G1BNJ1fvv65W97Bl8z34qkDGW5L95CG2h5cHjW940zCs6QYcmRW2NBPc15BGvgKW52WjZb3sKJzpN6SLlrZ91WjFW6QrQ3C7YMH2lW7z1dhy7n79lGW6ljJwT2kpBWwW7cMy5x7xZr4BW1WRKtV7QQQ2Bf1wlRs004" style="color:#f4854f; font-style:italic" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="moBQY6ZT" target="_blank">Invested podcast</a><span style="font-style: italic;">, Jan. 7</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176786301161015" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17678618473054" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="big-ideas" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/big-ideas.png?width=120&amp;upscale=true&amp;name=big-ideas.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17678619795908" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17678619795908_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><h2 style="margin:0; font-size:18px; line-height:125%"><span style="font-family: Arial, sans-serif; color: #000000;"><strong><span style="font-size: 18px;">BIG IDEAS</span><br></strong></span></h2> <p style="font-size:28px; line-height:125%"><span style="color: #000000;"><strong>TALK TO MY AGENT</strong></span></p> <p style="line-height:150%; font-size:16px"><span style="color: #000000;">&nbsp;</span></p> <div style="line-height:150%; font-size:18px"> <p style="line-height:150%"><span style="color: #000000;"><em>In these first editions of the new year, we’ll explore some of the big ideas we think will shape how banks approach AI in 2026. This week: general enterprise agents.</em></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">Last year’s big breakthrough for LLMs was “reasoning,” models that think for longer before answering. Reasoning models in coding agents like Claude Code have improved rapidly, and they are now capable of</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx5665nXHCW50kH_H6lZ3mGVqjyDW5Qsdz-W10rL4S6dq_HfW8lhQ4w31W0VJW1mKJBn7MhRQ2N2rt1FdpMsSPW3L3ZqL8Dgw8gW59zvCc6r2m3BW2QgdBX5dP4K3W4XCNC62WtrRzW2c2dTr2yr3qkW5j8rDH6CXHZXW3nkxG06StGPDN4xz-7rNvvGSW7MJch67HGM_7W8YHXdQ7TMXFlW2rDFCx986WRNW9jh9rw3wTYc5V4B0Dg7RLxjSW3jPmHc3mtW4qW8W3Z-53ykqgMN4mcc2xnl1D6V_1Q0r7_R3t4W7WkrNd5w_fKgW6l40rC7sy07RW94ccgj8S4P-TW6XNQ7x2qHr_sW5XjbJZ3tttWpW6BxXJK8mNLTSW2Pr-Vj6-VlsSW4MTNhk17LRVRW4dkFSS5F_dZ3N3LP6kBpF0DNf8PVD5604" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="Oes2yB3I" target="_blank">running for hours</a><span style="color: #000000;"> to solve challenging problems. But people who aren’t software engineers haven’t been able to take advantage of these new agentic capabilities. This year, that could change.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;">The top labs, like OpenAI and Anthropic, are betting billions that they can replicate their success with coding in the messy, subjective world of other work in a company. Anthropic is reported to be</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56q5nXHCW5BWr2F6lZ3p3N3RPHyTLMjMjN5HfDN0Gv6jCW8B8WXm67247dVStLk241k1f3W2CFgN71DNfXHW14JYjP4-MnrQW8Dtl8J2Cm8CXW5VsdJQ1JwcnXN3ZdZjCxkdnNW8nc3Nr7frHKCW4VmGLP10wHTrW3y8DGX4JhjrMF8__FlqBDCJN7TGmyKbxdTTW1mPSkm2KwyZwW7CcrVb45rTs_W8VLY2y5cfXj5W5SKCY-5QchMvVJmtfr77mcq8N1lz2m28h-J7N4YtvSmSMCLLW7zl29-3HksrkN98Sw5sxV_8VW8w5vDF40WTmJMNVJY45BxvmW2St-jt4CqFcHW1mmY5Z54jgFbW1zqB9P7bgTK4W3xd86V5W3qm0VV73pD7jRG45W3rvkn51THKDwW1bw_JT71_0TYW5kqCnx1XXvHRW4J2jWK7PYrkVf2QNBk604" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="WfZKK+Dy" target="_blank">spending $1 billion</a> <span style="color: #000000;">on “enterprise environments,” a kind of practice range for its AI to figure out how to work with software that resembles what’s commonly used everyday, like Slack, Salesforce, and Excel. The idea is to allow agents to learn in these closed loops the way they learned to code, so they’ll be able to navigate sales pipelines or an HR workflow.</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000;"><strong>Bottom line: </strong>We know AI can write code. This year will reveal if the billion-dollar bet on simulated environments can teach it to do a job.</span></p> </div></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684846940992" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176176966277723" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:10px 20px; font-size:0px"> <img alt="stat-of-the-week (1)" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/stat-of-the-week%20(1).png?width=120&amp;upscale=true&amp;name=stat-of-the-week%20(1).png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17648494286741" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17648494286741_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">STAT OF THE WEEK</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176406909497618" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px 0px; font-size:0px"> <img alt="Stat of the week 3" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/Stat%20of%20the%20week%203.png?width=704&amp;upscale=true&amp;name=Stat%20of%20the%20week%203.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px; border-radius:1%" width="352" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:0px 10px 10px"><div id="hs_cos_wrapper_module_176484767944413" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176484767944413_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><pre style="white-space:pre-wrap"></pre> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">As reported by BNY in their </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56K5nXHCW69t95C6lZ3lgW5J-3v81-4yGpW4F8d533qK02qW1nWhMD24v9HjW8nX1_H7f3-fdW9lcPRL69rLCqV7Xqmj7VTRClW8tg7jf8fKq17W17L2kH6DvsfgW7mFz9d2lv3W-W4dfzG31DH9y_W6tRXg_3j_pMqW4gcBXV6CzZncW1d-Db_3gBMfvW9jvTst4cGccSW1t5gty8jBV8WN2b1tdM4sgkjW605w0j4Bmxz7W12dqn_4BKlGyW3v5xx85FRM_BW4lfhj05RR-1sW5nft1x6wBfB8W4l-bmx9chvXGTwDdf8R4YJlW6D4RV64snFGGW5xSpZv2kX0fYW6yBmYZ4_4zCKW61QBD78ySH89W6FP5-t695513W5-ST8X2whXbYW8nVf955Vn3nXN6ZWgfxXR4W-V609TV71l6dCW7kR7Fz1NWhZ3W35mvF48tJGm2W255kc48Khp_8W5SV7H34mbR8nf80ZyZF04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="LRBEeFa+" target="_blank">Q4 Earnings Call</a><span style="color: #000000;">. The bank said these multi-agent support tools will work alongside existing staff to validate payment details, remediate code issues and ultimately free up time for more valuable client work.</span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684845048001" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_176786237098810" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="talent-matters" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/talent-matters.png?width=120&amp;upscale=true&amp;name=talent-matters.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406232479610" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406232479610_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">TALENT MATTERS</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">DANISH DEBUT</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Danske Bank </strong><span style="font-weight: normal;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56q5nXHCW5BWr2F6lZ3lJW7JVpz02vdRtHW5GXHYw4_Zw_NW64NRs374ldP6W63gs4x68DswLW56jbVD41xvwrW48W2rb65bKfNW1-K8KG5Z1_K8W7Jplw96_Jp5YW2x2TcJ4tYt-mW8ZZsDV4MjBXLW2z_2092ndFWdW2hD3W340r-_4W73TxbB6rG4QGW4r6FxH7rC6QtM8s7nWr4w_VW3QYfdR1jNHMxW5J2-Pk2ghXFsW50Nljn8KXNvcW3_FksQ3wZLT7W3lsWVF8sZ_TgW1mL7FC44nBfrW9fHLJc6NS9XtW1VsdH_2TJSs-W23nSnh8yxVMXW1bSY4w8zzYymW1yvWC48CGMBDW7bPTSs97DY-SN4cCmcPLHqvyW31j2zH47BRWHW5-TfvX3Fs9qyW92Cd4Q4V-V7jW6QmYWF7r-ZBMW3kB5HL6Dh5kDW6c6LtF8pqByYf8m_gzd04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="lCG8jlCR" target="_blank">appointed</a><span style="color: #000000;"> </span></span><strong>Fiona Browne</strong> its first Head of AI. Browne was previously an engineering manager at fintech outfit 9fin and brings nearly two decades of experience in AI and machine learning to the job.</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong>Mark Wightman</strong> </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56K5nXHCW69t95C6lZ3n4W5-QvRY1CjtpDW8wGW0c9m4lqjW7TGQq34GvVv5W8FwwD07pQY_CW62-knp2b2Cn3W7TpnzL6hY_jPW38WW-v6cBLLRW3hMh3p7ykx6hN2_cbsZwrwxPN39C4SLcFkpYW3tznxh1zScRrN1L8R8NFtZK5W7HYyrV2HWTRvW46lbmk35JLJ0N5QjdPsH-bQSW1WmlhB51LJgJW4wsypC405KW-W5ppLyD3r76MGW5RTlVN4CjyDQVJQvzz1trHSbW6nWbwj5l9z-HW320wBD6xDb1gW4TtTN43xHyZmN7-qqRw3w-g2W5vxrYj1c6z3CW2tqPYr32f8XcMZ2cK26ghHmW5sfBbD2y0b9fW3Bkl-f6Dym60W1ybJLQ1dlVc_M_5NkW3gM0wW6qVkZq4vWd0cVWdxBG3RXtfnW83NMHX4XHMHDW7R8xvy4V-BHLW8NcPp96PJlkVf6Wz2mK04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="yBhksKfT" target="_blank">joined</a><span style="color: #000000;"> <strong>State Street</strong> as the firm’s new Head of Transformation, after 11 years at EY.&nbsp;</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="font-size:18px; line-height:150%"><span style="color: #000000;"><strong><span style="font-size: 18px;">Michael Höllerer </span></strong><span style="font-size: 18px; font-weight: normal;">will</span><strong><span style="font-size: 18px;"><span style="color: #000000;"> </span></span></strong><span style="font-size: 18px; font-weight: normal;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56K5nXHCW69t95C6lZ3nSW1dGc1G6rm_MhW3vQch65-ZRjxW1cx2MF73KxlzW2sd7gq5nFlW-W2DFNkD53Y1t9W4WFJyM73NsFmW5rh4dh319bPgW4n8Ddw6FZ5LcW1PV-cC7NSKpMW4vHLs01jNb-WW43wqgL7gfjqGW5vY9vP1sgGhmN79k-3PFCWJnW761G548gsz0kW2P889K5qBx1tN11PjcP6y3THW9kD_sD1R4GbWVJwdMf5gLYB1W8ZXT2F2J10nLW5pCKPw4zpYDcMhltgXftLlgW2WXHC01lQ0PHW8T1vlH207HHCW3RypQb7V2n6NW70m75725KpBXW5jhLqh8gFgDzW2MnrC75-fCH3V8MFWg3_S20MW4YJ7791_tw3mW2bShKT4z94c6W6gM5Qw8py3CWW6yC_gg36QVdnW6JY9rw2Lwf_BW2XnKXW3-QdvCW9blpFc43bjqnW249Dx_3tnwK1f8WKNtK04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="oYj6ezIv" target="_blank">take over</a></span><strong><span style="font-size: 18px;"><span style="color: #000000;"> </span></span></strong><span style="font-size: 18px; font-weight: normal;">as CEO of Austria’s </span><strong><span style="font-size: 18px;">Raiffeisen Bank International (RBI) </span></strong><span style="font-weight: normal;"><span style="font-size: 18px;">in Jul</span><span style="font-size: 18px;">y. Höllerer previously served in upper management roles at RBI, including as CFO. </span></span></span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17660642178783" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17684859543408" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="future-usecase-corner" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/future-usecase-corner.png?width=120&amp;upscale=true&amp;name=future-usecase-corner.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17684847919994" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17684847919994_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">ON THE HORIZON</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">READ BETWEEN THE LINES</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%; font-size:16px"><span style="font-size: 18px;"><span style="color: #000000;"><em>In this segment, we explore how a bank’s AI research advances their AI strategy. This week: JPMC’s </em></span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3qn9qW8wLKSR6lZ3lyW8kTv-H3vzRtkW2TPSGB8TRFTLW73hqQL1W7N6HW3FSTDG7HlF61N62R_5PDH4v4W5XJrw63QYSBjN26Cxmd3SStcW29kBGv8nyjtVN53dwWL8CTt8VGz1MJ8sJZV-W4QDtqV4ZFrXSN2_3Mrl6Zw8sW1KNrZ38xq9GPW1Z_gDp7_87jMDjKFz6PsQSW2NYPZP4fdJw8VjDM4r6chzZlW7YnP6r1zlbP4W3B8br_9cRrQCW8761Bp6BwcB9W2QpCDw8QZS57W39NxbR4r3m8mN3KlT7KqdFGnW4wThTF3qmqmTW5kjBYV3DlT2fW7sLLds2LbQXmW8jlCyY73CtpwW5NvXdZ46LWzLf31Xlbn04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="4kwIel9/" target="_blank"><em>patent</em></a><span style="color: #000000;"><em> (published November 2025) on AI Bots for Derivative Pricing aimed at streamlining a process that relies heavily on human interpretation. </em></span></span><span style="color: #000000;"><br></span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_176848731876012" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="center" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:center; padding:10px 20px; font-size:0px"> <img alt="unnamed" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/unnamed.png?width=1000&amp;upscale=true&amp;name=unnamed.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="500" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176848734196813" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176848734196813_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:150%"><span style="color: #000000; font-size: 18px;"><strong>The patent, explained: </strong>We’ve come a long way from hand signals on the trading floor, but derivatives price requests still arrive much as they always have: terse shorthand, fired over chat. A single line can encode timing rules, payoff mechanisms, and assumptions about the market that only experienced salespeople know how to unpack.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000; font-size: 18px;">This patent describes a system that reads Requests for Quote (RFQs) in natural language, translates what the client means, sends the request for automated pricing, and replies in plain English.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="color: #000000; font-size: 18px;"><strong>What the bank can do with it: </strong>Standardizing how RFQs are interpreted saves time and reduces the risk that a misread abbreviation costs a trade.&nbsp;</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%; text-align:center; font-size:18px" align="center"><span style="color: #000000;">* * * * *</span></p> <p style="line-height:150%; font-size:16px; text-align:left; font-weight:normal" align="left"><span style="color: #000000; font-family: Arial, sans-serif; font-size: 18px;"><em><span style="color: #0a0a0a;">The </span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3hKBlW8wLKSR6lZ3mWW2S9NLK8KVynhW3wtC4t54n_9hW1lHR3S4Y22RkW4GCqt31jyMSyW6gFqhZ26gmBnW2_XHmM2pC85_W5Yk95X99sk0ZW8y7vtc1VPBQPW5Vs_WS713bGrW4sg_MF1sbjHbW2f6DmB9fFVPgW93RbpS5TX2P4W3Ytzwb7_rnmcW8RlXbn683_7KW852Bb28LCVZ1W8b-8Jj7zpdrmW2WqxgX1z6JkFW1nGX0X2DXThSN4YfVmd_j9rsN8BHpfmv04wcW10BpJ54YwkJDW1Sl4mD1MyCg_VLRmcN8NQ3l9W35YT6l3rnmTCW79Hwqr6Jc01YN6mckY5F0j_XW3DWh2d4Y_-5GW1FzqkB7MtL8vdTk3FW04" style="color:#ff7129" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="G8yFbNhU" target="_blank"><em>Evident AI Patent Tracker</em></a><em><span style="color: #0a0a0a;"> is our member-only database of 1500+ AI patents filed by 80 major banks and insurance companies, alongside our analysis of the latest trends in how patents contribute to firms’ AI strategies. Non-members can read some of the key insights from the tracker for banks </span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57C3hKBlW7Y8-PT6lZ3pDW96ft8X1m-B5CW3cqtZ08d3dq7N45qjVcRK0frN1XCmL0ydfCrW1T6KhV2ycg5WW39Gxls2DjTVkV9P3Nk8fr745W921M-J8z7ZZRVNMVyh7nj91sW48CGHM5Hqlg9W5H_cwc39bWz7N6v7xRp8v2S0W3qwDv217Z5WNW367mFQ5hYBmRW4nRP7s4CdW7mW8l5nlQ2Cm-1zW25YynR9k1QTsW6_XWh32FPZdJW1tt-kC8Hy-0cW5pJcjx20kQzmVLYRdg49KtN0W5MzRKs8vM5KkW4qmjjY2Y__9qW5B-S1R63J3xXW7WL60t6TM1_zW7H0dxS6VLdhlf3LygL604" style="color:#ff7129" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="WWD7haH1" target="_blank"><em>here</em></a><em><span style="color: #0a0a0a;">, and for insurers </span></em><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57W3hKBlW8wLKSR6lZ3mQW1wm1PS31YmBTW7ySM2G1s4JfLW8K-G-Y1sMDYmW61PS-S5mfhpVW6tkc3H72Nwk8W3g4CDz5y_xHwW93Wc1g3hBzBYVWq8mC4N5yx-W2tpZPK42zw9PW4ndD6Q3DzgFTW3l-p3z3VGQ1pVT1Yq64vg7cpW2QN_S_4DWjS3W3WkLHq349RrfW67lSlX3Y3M_mW13p3tg3HTTZmW8cw2sr3MH5tMW8YwnCh2L6z8-W7R5z1059t009W148m-x8yqGhVW37ZGMc4QzyxrVN52lK8B6gt3N19XSt18sCJDVzf46W8YbRP7W4_TYjK6nmCZZW7C6yMn2JvDjSW6T4w9L3NJzlmW1qD-Tx38qV_vf2_fcn-04" style="color:#ff7129" rel="noopener" data-hs-link-id="0" data-hs-link-id-v2="dBgjg8/j" target="_blank"><em>here</em></a><em><span style="color: #0a0a0a;">.</span></em></span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684848784316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <div id="hs_cos_wrapper_module_17684860697389" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table class="hse-image-wrapper" role="presentation" width="100%" cellpadding="0" cellspacing="0"> <tbody> <tr> <td class="hs_padded" align="left" valign="top" style="font-family:Arial, sans-serif; color:#222a43; word-break:break-word; text-align:left; padding:20px 20px 10px; font-size:0px"> <img alt="in-the-news" src="https://hs-26807565.f.hubspotemail-eu1.net/hub/26807565/hubfs/in-the-news.png?width=120&amp;upscale=true&amp;name=in-the-news.png" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="60" align="middle"> </td> </tr> </tbody> </table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_17684848808327" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_17684848808327_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">IN THE NEWS</span></p> <p style="font-size:28px; line-height:125%; font-weight:bold"><span style="color: #000000;">AI KILLS THE PROXY FIRM</span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">The entire domestic workforce of Singapore’s three major banks –&nbsp;35,000 in all –</span> <a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56K5nXHCW69t95C6lZ3l_W2q8jh118lF5gW89H5r584r75RW5cH9cR4r76LSW2zzjyK4yZs1gW407jG71spzxRW4dw2X-97YmNjVXRMf-9jZyDKMS54G_3jNXKW6MKBsR1KN5XmW2sn8xm5df6WmW2CCRhX7nS-33W8gsMkM1C31WFW5vhdDQ4ykRXCW4bW6ZC2FlW6SW5MwZYT6WnvyVW6zl5Cf6cXvltW1kQCVL4HNpmVW4Ts-Ng7HsXwMW6FqVsN3DP00MW7Djgwz1x6yFqW6mBh4H22glj3W4MGFkT2Qz9VfN82vG9kFB0hxW2bpp--3bTJskW4rQ3Jw2CLRNZVzrDnF6dDqkhN5LynHgSQNBxW6V_bzF38k_lwMHLS_XPWzJwW53pvXv81CZyhVYHhZd2FPPtmW6Zb8-H2Hp2XrW7hr7V87_q2jYW1TG0378QZVVcW5hlqqB1RKQZrW5GxQbW4w0R-XdRbq8804" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="b2j9vnpO" target="_blank">is off to AI bootcamps, courtesy of the city-state’s government</a><span style="color: #000000;">. They will offer a basic AI literacy course for every banker, an AI collaboration course for managers, and an AI development and governance course for technical teams and upper management.&nbsp;</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;"><strong>JPMorganChase</strong>’s asset management unit </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56K5nXHCW69t95C6lZ3lXW8SL0yn23rN6ZN6-BpN7BFLstVqTsBB42W96YW5Ss4FW3SlpdHW19qqlh6D3McvW8G2g9S60y_79W2wrKVl4sJF7nVWTFYD5MVJdjVfL75s46WH0RVWFjm94mZ_MGW8N8FhR2NXpXHN2PRlSYq2jGQW7ScJq46n3NjRW7tcfJk13trp5W76mSrY20T2YFW3DQ2PV6q9wZpW6mf0yy1_xpzSW8ZtBRZ8HJjDCW4HxbSX4KXYw9W6GbqvB8V4jFVW81x45d3Rdks_N1QLLSJtQrVCN5L-k8Cr8zkFW5L7Y5-7DNFLMW5gJZHW4XkRKvN3NXwyflP2X2N6Bt1R0k5c7PN13Py77wBybNW81QTgM524f09N3kpFTSNH4jdW4XRNQc4-Th-jW8NnNr48wlltmW7--Kd07Vh9_VW6w5z194smY_0W2zYJc-91pKyHW4VFcW16TvF4xf8z4Zl804" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="Z7VGysHJ" target="_blank">is saying bye-bye to all proxy-advisory firms</a><span style="color: #000000;"> and replacing them with a single in-house AI platform called Proxy IQ, in a first for a large investment firm. The decision comes after CEO <strong>Jamie Dimon</strong> called proxy firms “incompetent” and “should be gone and dead, done with” last spring. JPMC’s asset management unit will use Proxy IQ to manage proxy votes and analyze data from more than 3,000 annual company meetings and provide recommendations to its portfolio managers.</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;">UAE-based neobank <strong>Mal</strong> </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j5nXHCW7lCGcx6lZ3pfW8XvMwr5nQ1XWW3_hGh53w5kL2W7VqFD6704q8qN9ft_BrqwMWzN2GMWGp6C0fbW7WlDMT23xdKTW2NLK8p97cTzKVqtCxg74x6yZW5ll0vJ2VSwKsW4dLzRJ5-_x7dW4ssR_x6-sZ1_Vl_-xZ27dW11V4bGGc8bpL2vV3XM_r8jvvZNW2XSxj-4SBwJSW23gb6x7t7cR7W4pzr9y2rhZvxW7Z5NVH9hCyFfW8yxJ8887-PwFW3zmG2-4FLz2pW2H2b9923hXfmW79J-F-8NN4ZsW1kG79t1xdLJqV_fby7507dnVN3_lkZgTnx9lW6KMV0R6VfsmwN4RGRfdbk6K-W3JJ6q_3kGSdNW2Z3y5Z3rQRlYW4Kb6vc9cK8GxW7Qf4861FsD1yW3YV2Ch6GggSrW61tt_D3mCcvmW7Jt6Wn6kGcw6W3JJZQ34JDwzNW1gRD6M2PW-ZGW2cGDrJ8TWpq2W5m79862hprzPW7_gCW_53PBFLW7Qd-3b71gmM5f34c2J204" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="ZvnI7vYE" target="_blank">completed the biggest seed round</a><span style="color: #000000;"> in the region’s history, taking in $230 million ahead of its official launch. The AI-native mobile-first startup is bringing on board alums from more established fintech challengers <strong>Revolut </strong>and <strong>Nubank</strong>.&nbsp;</span></span></p> <p style="font-size:18px; line-height:150%"><br><span style="font-size: 18px;"><span style="color: #000000;"><span style="font-weight: normal;">A couple of Silicon Valley heavyweights are getting cozy with banks. </span><strong>Apple</strong>’s credit card has a </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx5665nXHCW50kH_H6lZ3ngW7B6t0G6VP_QxW6HbMZN6pmLH2W3hbgxD9lBsM2W4z6w_j41T1GvW2fXWsp6bXnmQW7yWg-C2Bj8B2W7hB-l82nrVSPVZSYcb4gB2FqW7KFYRT8Tcj-FW7K8j1-7c353tW7K6Vgf8gKl2GW6_hl2T8TsQbFW8VymSF6R7XpsVTf9gD540MQPW4zM1wn4djHwfVJ7QXM5JnqQGVPlM1348CY_DN49W79p7mrKSW8Pvk7M16s1L9W3Qs3bL4Zn3bBW3c5qjz1rkKxFN7mjBv7WRKhSW2cv7yM929H08VxpdmS69H-4VW1D3wPm1km8Q7W95V9XK4b17pZW4VZ__v5TT3X_W8fvVg15bJ7mjW6lWVZs4Xlk-MW5WRH766kF_t0VN2TyW8_9N0bW5SQysS7ZNfKCf5B5lqd04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="sQVzeVgR" target="_blank">new issuer</a><span style="color: #000000;"> in<strong> JPMC</strong>, while <strong>Microsoft</strong> said it is </span><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57C5nXHCW7Y9pgv6lZ3mPW4gqd-d6w1YJfW11WSnr76rgNdW92NqGp1YhYfzW83Th7X8Q2d9nN5qmtHk5-w0jW5ZSx3b2G2SfpW4cn6fV7Bgg0pW8QVk2t8B9DbGW547y337RtTpVN8BfDyytrwmJN4kSVDlqPLv7W3Jpzv81ryY-gW8m0TWW6yB1l3VN-j7N6S4PLgW1pk7Y_5NSdYCW8Qprjp2rBBhCW7khFHz2HqH6gW3hvqhT8-VLwxW82ChkJ6hmmgTW4GwFZJ3Lv5zgW14XZwn7ywjW0W4nXK_-1NCjfmW19yZ5M1WSxh4W606BtL29mCmBW7s28M77GJH-DN1LjQgFQLG3WW1GM9mz354bQ1W2Wt1fT6Q54HMW8tbnZ_2jnSSFW2zVQF-7nV-fdW8TbDC071w3Z2W25nyVP8JR7TPW3G1qgz2fS8z1W8K6JjZ5bLWNXN62kBXYyHKYKN7ywZsP829vBW7MVMfx4V7bryW4cTcky31zVHSW5ZD5q_31rqlpW8v4jGz3HgYY4W5tZlFb5SFT9HW80QJkb2cBBRdf1jNP_Y04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="/1ppvUGz" target="_blank">implementing</a><span style="color: #000000;"> Azure and Copilot at <strong>CIBC</strong></span></span><span style="font-size: 18px; color: #000000;">.</span></p> <pre style="white-space:pre-wrap"></pre></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17684847873993" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:10px 20px"><div id="hs_cos_wrapper_module_176406271000612" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_176406271000612_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="font-size:18px; line-height:150%; font-weight:bold"><span style="color: #000000;">WHAT'S ON</span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Mon 19&nbsp; - Fri 23 Jan</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57j3qn9qW7lCdLW6lZ3kBW5c4zjN6CSsp4W6JYvCk4tpZ4PW1qsyRt7LcFJHW2wXv0H13ZYT0W973Pmt78xJdQW6cvGR_7Vf_3wW7h0Ltx5RPjPhW2S59077gBbP7W2Q9zpV1MqBmLW8BZxQg64XFQ4W81xBnz6hPhCTW1R7dW93k6BSjN90jNQJs6sHGW4STwvV7S4NxWW1vgWz85nv8R3W7xqJPY7ZX-FJW6nHSZz4FT5BQW4wn8JC79Z9b0W3CGKp84s7gP5W64J7Xg4pGJM-T8g9470QgZ8W3XxwP97XD1t9W5mT_jF8VGC8hW98-nTc8KW_sHf3nLwtK04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="mz15XpbA" target="_blank">WEF</a><span style="color: #000000;">, Davos, Switzerland</span></span></p> <p style="line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Tues 20 Jan</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><span style="color: #000000;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx56q5nXHCW5BWr2F6lZ3kBW3_Vnjh768ZGwW6VVcnf1C8LBSW3C-Fc72dGvnYW9hD4MV3vpPb4N51_qqCSdgqkW26mFkJ6QrvcxW3gPVM72_Xsw3N1WZNrzMBL-PW1RdH2516jYXmW1zBPrB5ZW6JJW40YJ5r7LrbwpW8k7qDX8-MCTJW5lMmJH7tvj98N4yKttqlpJY5W3SkytG2Dn_gwW21qkCt8xvWVwW4gWKFk6cCmr9W3mVqHJ3vl8VGVysc0N18Gd19VPgDT04nNM13W6tQ9ZB7lJzs4W5mt-l62HGDykW3SpwL14r9FNqVZRmPS1L8Cd7W6MT94-3sPTP1W3xmq5F6Vg0-0W7rGWPj3KG30bVx0cYL4qkkZqW7QKP7C1RR6_BW8hXjzY8d0S8jW7qzK9J6vm-2bW2l0_5K1CQbJlVsN8x61h2NVCMtPg99dNnhFf1Ch3PW04" rel="noopener" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="qutkGw4I" target="_blank">Achieving the AI Advantage</a>, Davos, Switzerland<br></span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Weds 18 - Thurs 19 Feb</span></strong></span></p> <p style="line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57C3qn9qW7Y8-PT6lZ3krW6n993-8qQYBwW3rSKKy12wXWrW2Y4dqP66YrtWW7kh9rn16YQ7bW9fY5r67pbKypW8Ctz_N59sdMtW97ryGQ3vqJCSW1z7VWL1GgnfYW8kPL6G1hgb0FW60qsJR5rqXN6VNNNjH5STCJmW6qtvHl1knrMrW3HMxZd3nH1sCW5Ql56c7PFxG3W8C52gF6XyRPjW6jZtdw7rTZRNW4B0Vpt7rg7HqW7GD-WC4ZLPl5W3flllQ6kCcVMW71l8Gt27QK_XVscGvJ6nbHYSN1y65L1db64jW80sNxY3_h1qwW4KGs1x8B8ytqW5QWmcP6WpKHhW2FgM7x8xKgNLf7dstvC04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="+D+EN+3G" target="_blank">CDAO Financial Services</a><span style="color: #000000;">, New York, NY</span></span></p> <p style="font-size:18px; line-height:150%">&nbsp;</p> <p style="line-height:150%"><span style="font-size: 18px;"><strong><span style="color: #000000;">Tues 24 - Thurs 26 Feb</span></strong></span></p> <p style="font-size:18px; line-height:150%"><span style="font-size: 18px;"><a href="https://d38fgp04.eu1.hubspotlinks.com/Ctc/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-N8Qx57C3qn9qW7Y8-PT6lZ3lYW3cMks49017nKW4VwKby7lM3kqW6VcvqV4RZC2xW2kb34F1NlbtMW3TtSh36dRT4NW2ZN5RY7tK2G7W6b6PhP1YfhWnVT7Z0_4-KPkNW4N5-Gg91B_VfW7g8c9J8GRxwlW5qGjTx2dC_2_W39flXd8gXZQkW6qfCw411Jp9GW1-Hbq42RF__qV7sK4Q67HlDNW2Brtj515RK14Vy9y6w8s2FCSW70_Zff6rmRx-W7rxS7k7LJlKpW7tq6zD2VPsWkV7nZpR1BCQzbW4zFJj43Kl2_sVx2Psz1mg_LPN72x-_K-kfTMW1YFnhN7BjnrBW5DhT6267W6d6f7Ml8-s04" style="color:#f4854f" data-hs-link-id="0" data-hs-link-id-v2="qRxww+JK" target="_blank">International Association for Safe &amp; Ethical AI</a><span style="color: #000000;">, Paris</span></span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_175698782863316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="none" border="0" cellpadding="0" cellspacing="0" style="vertical-align:top" width="100%"> <tbody><tr> <td align="center" style="font-family:Arial, sans-serif; color:#222a43; font-size:0; word-break:break-word"> <p style="font-size:1px;border-top:3px solid #F1F2F4;width:100%;margin:0 auto;"></p> <!--[if mso]> <table role="none" align="center" border="0" cellpadding="0" cellspacing="0" style="font-size:1px;border-top:3px solid #F1F2F4;width:600px;"> <tr> <td style="height:0;line-height:0">&nbsp;</td> </tr> </table> <![endif]--> </td> </tr> </tbody></table></div> <table role="presentation" cellpadding="0" cellspacing="0" width="100%" class="" style=""><tbody><tr><td class="hs_padded" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; padding:20px"><div id="hs_cos_wrapper_module_174004384022316" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><div id="hs_cos_wrapper_module_174004384022316_" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text"><p style="line-height:125%; font-size:18px; font-weight:bold"><span style="color: #000000;">THE BRIEF TEAM</span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Alexandra Mousavizadeh&nbsp;| Co-founder &amp; CEO |&nbsp;</span><span style="color: #ff7129;">alexandra.mousavizadeh@evidentinsights.com</span><br><span style="color: #000000;">Annabel Ayles | Co-founder &amp; co-CEO |&nbsp;</span><span style="color: #ff7129;">annabel.ayles@evidentinsights.com<br><span style="color: #000000;">Colin Gilbert&nbsp;| VP, Intelligence | </span></span><span style="color: #ff7129;">colin@evidentinsights.com<br></span><span style="color: #000000;">Matthew Kaminski | Senior Advisor | </span><span style="color: #ff7129;">matt@evidentinsights.com</span><br><span style="color: #000000;">Kevin McAllister&nbsp;| Senior Editor |</span>&nbsp;<span style="color: #f4854f;">kevin@evidentinsights.com<br><span style="color: #000000;">Daniel Shackleford Capel | MD, Banking | <span style="color: #f4854f;">daniel@evientinsights.com</span></span><br></span></p> <p style="line-height:125%; font-size:13px">&nbsp;</p> <p style="line-height:125%; font-size:13px"><span style="font-style: italic; color: #000000;">Contributors:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Maryam Akram | Senior Research Manager</span><br><span style="color: #000000;">Andrew Haynes | VP, Innovation</span><br><span style="color: #000000;">Zachary Groz | Reporter</span><br><span style="color: #000000;">Alex Inch | Data Scientist </span><br><span style="color: #000000;">Sam Meeson | AI Research Analyst</span><br><span style="color: #000000;">Gabriel Perez Jaen | Research Manager</span></p> <p style="line-height:125%; font-size:13px"><br><span style="font-style: italic; color: #000000;">Design:</span></p> <p style="line-height:125%; font-size:13px"><span style="color: #000000;">Jay Prynne | Head of Design</span></p> <p style="line-height:125%"><span style="color: #000000; font-size: 13px;">Marcus Gurtler | Junior Designer</span></p></div></div></td></tr></tbody></table> <div id="hs_cos_wrapper_module_17400439881576" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="color: inherit; font-size: inherit; line-height: inherit;" data-hs-cos-general-type="widget" data-hs-cos-type="module"><table role="presentation" class="hse-footer hse-secondary" width="100%" cellpadding="0" cellspacing="0" style="font-family:Arial, sans-serif; font-size:12px; line-height:135%; color:#23496d; margin-bottom:0; padding:0"> <tbody> <tr> <td align="center" valign="top" style="font-family:Arial, sans-serif; font-size:15px; color:#222a43; word-break:break-word; text-align:center; margin-bottom:0; line-height:135%; padding:10px 20px"> <p style="font-family:Arial, sans-serif;font-size:10px;font-weight:normal;text-decoration:none;font-style:normal;color:#b5b9c4"> Evident Insights, 9th Floor, 107 Cheapside, London, United Kingdom EC2V 6DN </p> <p> <a data-unsubscribe="true" href="https://hs-26807565.s.hubspotemail-eu1.net/hs/preferences-center/en/page?data=W2nVjwf3Y2x5bW23nch41N58YTW1N4MRz3gpc-NW3P0sF03QTp00W2WssT_1LyXCgW3zfLCS3SJscBW49j29n2PS7f_W4mqWTf3VXDNnW4fNmBL34D0d-W1Zbmz22WqsKSW2Mm_3m213n6JW3XPn2y3C65wmW2KQrtc3dby_tW3yXWV21Zw2v5W4hxc-g24SHD_W2KHk_z47R5WWW3Kb2_g385b_CW4cRWnx4ft9hhW1Xppdj4mFVxhW3jdkbQ30Kwm3W1V7S3w329BL8W41CyRr3F0rgnW4kr1s33T27X7W1XxXsp1V0rK0W2H-r1y2RSlGgW1LdWNg45nbfHW1BFvdn1ZpGQPW2RQbfJ2xzKhkW2vNntJ3P3hY8W2zQtr84h9_LrW32gwLB2p1j-bW2MHysX3d2gHGW3QC_wk2WPQwMW3g9zSM4kn8HCW2qFFHy1Q2qX7W1QcD6f2HqQMFW2FVdLK3g1CN8W2MR2Qf1VrhxfW2RB_WV2RPr9kW3H37Db2-CSvFW2YcqlD3W4Tq_W1_qd8J2-my_9W3BV_103GXdk6W1Bs7W33VJ7DkW2TBT8N43BcR3W3XH6Xf4tymy5W1X8W_G3_ZBxTW4t7hSF43N70SW1LxcSN36DFM9W2-npcc2qLGrQW3jkDMK2xR4sSW30Hs7m3dwg_KW49MYJC4cB8rJW3SJT8w41HSvXW4kLh1C41ylwSW2TslLk1XtDNyW2RC2062p1kzkW3GZlKp45TMjH0&amp;utm_campaign=83923185-Brief&amp;utm_source=hs_email&amp;utm_medium=email&amp;utm_content=126151572&amp;_hsenc=p2ANqtz-9ZyLbLKqBsWruF6aFnb8wFpVAOTc320jyaRTGzdjeLloCveixjfX7m-NFvGuSvLvN4u-Zjt-F15Wt0hRle7Idg3-acIfRnMRDt0GB8OKlXqtdKg_g&amp;_hsmi=126151572" style="font-family:Helvetica,Arial,sans-serif; font-size:10px; color:#979cac; font-weight:normal; text-decoration:underline; font-style:normal" data-hs-link-id="0" data-hs-link-id-v2="qjPJqCop" target="_blank">Manage preferences</a> </p> </td> </tr> </tbody> </table></div> </div> <!--[if gte mso 9]></table><![endif]--> <!--[if (mso)|(IE)]></td><![endif]--> <!--[if (mso)|(IE)]></tr></table><![endif]--> </div> </div></div> </td> </tr> </tbody></table> </div> <img src="https://d38fgp04.eu1.hubspotlinks.com/Cto/X+113/d38fgp04/VWn3Ff47TkF_W5x-5Tf15hyWgW4sKGqD5JkGL-W8Qx4W68fYy8q31761" alt="" width="1" height="1" border="0" style="display:none!important;min-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"></body></html>
  11. CardsFTW #187: Ten Percent

    Wed, 14 Jan 2026 17:15:08 -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 #187: Ten Percent</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-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 0; 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, the Apple Card heads to JP Morgan Chase</span> <!-- SPACING TO AVOID BODY TEXT BEING DUPLICATED IN PREVIEW TEXT --> <div style="display:none; max-height:0; overflow:hidden; mso-hide: all;" aria-hidden="true" role="presentation"> &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; 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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/0891bb6c?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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="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/ab67826e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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 #187: Ten Percent</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, the Apple Card heads to JP Morgan Chase</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;">14 Jan 2026 </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/07e05a88?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/ff01c3ff?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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%; line-height: 1.4; 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%" data-testid="email-preview-content" 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 --> <div class="kg-card kg-callout-card kg-callout-card-blue" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E9F6FB;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F64F;</div><div class="kg-callout-text" style="color: inherit;">CardsFTW is made possible in part by our paid subscribers. If you&#x2019;re one of them, thank you. If you&#x2019;re not, please consider supporting CardsFTW (who knows, maybe you can expense it!)</div></div><h1 id="thoughts-on-trumps-10-cap" 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;">Thoughts on Trump&#39;s 10% Cap</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">My Friday night went sideways when President Trump tweeted that he plans to cap interest rates on consumer credit cards to 10% for a year starting on January 20, 2026. (I know he doesn&#x2019;t use Twitter, and also I won&#x2019;t call it X, but I <em>really</em> can&#x2019;t use &#x201C;truthed&#x201D; as a verb)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">First, while I am not a lawyer, and definitely not a constitutional law attorney, I don&#x2019;t think that the President of the United States can simply decree a cap on credit card interest rates. Congress may be able to pass a bill, which the President could sign into law with a cap on interest rates. Such a law is something that a motley group of politicians from Bernie Sanders (I) and Alexandria Ocasio-Cortez (D) to Josh Hawley (R) have been advocating (at times 10%, at times 15%).&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Second, even if some path to regulation exists here, it may only be relevant for nationally chartered banks. Different states have different caps on interest rates today, and cards issued out of those states typically are regulated by those regulations. (See <a href="https://www.cardsftw.com/r/9db85b93?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>CardsFTW #154</em></a> and <a href="https://www.cardsftw.com/r/bde3910f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>CardsFTW #171</em></a><em>.) </em>Would the interstate commerce clause allow the federal government to preempt state rules here? Maybe. Can the President decree it? I don&#x2019;t think so.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The idea of an immediate (nine days!) cap on credit card interest rates is stunning, but I don&#x2019;t think it can happen. Plus, there&#39;s TACO: Trump may simply move on. The cynic in me believes this is both an attempt to distract from other political headlines and to curry favor with voters ahead of a challenging midterm season. (&#x201C;AFFORDABILITY!&#x201D;)</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/2026/01/Red-10-percent-cap-small.jpeg" class="kg-image" alt="Red baseball hat with large white 10% on the cap." loading="lazy" width="500" height="500" 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;">A 10% cap!</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Filed under irony, in chatting through this with the compliance experts here at Totavi, they want to point out that:</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; color: #15212A;">Federal bank regulators don&#x2019;t have pricing authority; they are prudential regulators focused on safety and soundness.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">There is a Federal agency that (may be) positioned to enforce this cap, and it&#x2019;s one of Trump&#x2019;s favorites: the Consumer Financial Protection Bureau!</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Yet, when the CFPB has tried to regulate pricing (see the credit card late fee cap), it hasn&#x2019;t been able to do so and has been stopped in court.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">The CFPB has been <em>explicitly</em> barred from setting Federal usury rates under the Dodd-Frank Act.</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">So, you would need to amend Dodd-Frank <em>and</em> give more power to the CFPB. What a world we would live in.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">All that, plus, realistically, banks can&#x2019;t change fees in a few days. Legal requirements are to provide 45 days notice to material changes in terms (you could argue lower rates are fine because it&#x2019;s lower, but probably banks would want to add fees), and regulators would need to start to evaluate the compliance with this.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Phew.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Ok, so, putting aside whether or not Trump can enact this, let&#x2019;s talk about what it would mean. There is an argument that credit card interest rates are too high and are predatory. The average credit card interest rate right now is about 20%, or approximately 15% higher than the baseline secured overnight funds rate (SOFR) target set by the Federal Reserve.&#xA0;</p><div class="kg-card kg-callout-card kg-callout-card-yellow" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #FCF4E3;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F587;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Did someone forward this to you?&#xA0;<a href="https://www.cardsftw.com/r/0108ca92?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"><u>Subscribe to CardsFTW today.</u></a></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Research by the Fed (see <a href="https://www.cardsftw.com/r/a7505150?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>CardsFTW #154</u></em></a>) posits that credit card companies do charge a higher-than-expected APR, given the risks associated with their lending, by up to 2%. Two percent is not 10%, however. So let&#x2019;s talk about why credit cards are expensive forms of lending:</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; color: #15212A;">For the most part, they are unsecured, meaning there are no assets to recover.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">They are open-ended, meaning that the underwriting process at account opening must account for long-term changes in the borrower&#x2019;s financial health and behavior.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">They are revolving, meaning that money can be borrowed repeatedly.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">They have transactional fraud that must be covered (e.g., stolen card numbers).</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I&#x2019;ve seen arguments that personal loans are counterpoints to credit cards. Personal loans are also unsecured, but they do not revolve and have clear paydown schedules. I don&#x2019;t think they are cheaper: according to Bankrate, personal loans vary from 6.24% to 35.99% depending on the lender and your credit score. That looks a lot like credit card rate ranges, if you ask me. Yes, credit cards average 20%, but users often get low-interest-rate offers, or long-term 9.99% rates, while others are charged very high rates like 29.99 or 34.99%.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Credit cards incur heavy losses and operating costs: 3-4% in losses (fraud and write-off), plus 3-4% in operating costs, plus 1-2% in rewards. Add that to the overnight funds rate (3.64%), and you get 10.64% on the low end. Banks certainly aren&#x2019;t going to give money away.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The story is even worse for fintech programs. Even the largest companies pay more than SOFR. Robinhood&#x2019;s latest <a href="https://www.cardsftw.com/r/c5f78bbd?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>10-Q</u></a> disclosed its newest warehouse fund costs as SOFR plus 1.4%, and that its weighted average cost of capital as of the end of Q3 2025 was 6.45%. That&#x2019;s a full 2.81% higher than the bank&#39;s rate at SOFR and the best rate I&#x2019;ve heard of for a fintech program. New fintech card programs often pay more than 10% on their own funding, which, again, leads to them losing money when lending at 10% to end consumers.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">It is also true that consumers are willing to trade a higher rate for rewards (which isn&#x2019;t a very good trade if you ever do carry a balance). Maybe folks think they won&#x2019;t carry balances, but in the end, they often do (see <a href="https://www.cardsftw.com/r/811b1231?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>CardsFTW #186</u></em></a>).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In recent years, we have seen alternative secured cards, like Aven&#x2019;s home equity card (see <a href="https://www.cardsftw.com/r/f35fc337?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>CardsFTW #176</u></em></a>). These cards have lower APRs (Aven&#x2019;s midpoint as of this writing is 11.24%). Lower doesn&#x2019;t mean (a) all rates are under 10% or (b) that this is the best rate you can get, or that (c) the loan is the most affordable (taking cash out of Aven&#x2019;s card costs 2.5% for your draw).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Look, I&#x2019;m not trying to argue that one product is clearly better than another, or that any one rate is correct or fair. I prefer a free market. I think the market can and should continue to set credit card interest rates. Consumers have <em>many</em> lending choices. Some folks, unfortunately, have poor credit and take out very high-interest pawn or payday loans. Some folks have better credit and can use cards for short-term or emergency lending.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">If we were to see a 10% interest rate cap, the credit cards of today would go away. <em>End of story.</em> Only those with excellent credit would be able to get cards, and the benefits and credit availability would be quite different. All of this would be a boon for debit cards! (And a challenge for rewards systems.) Maybe that is a social good, but I would guess that many millions of consumers would instead have to turn to much higher-cost loans.</p><div></div><h1 id="apple-card-to-jp-morgan" 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;">Apple Card to JP Morgan</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">After <a href="https://www.cardsftw.com/r/0f00a6e1?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>much</u></a> <a href="https://www.cardsftw.com/r/24a5113c?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>speculation</u></a>, we finally know that the Apple Card portfolio is moving from Goldman Sachs to JPMorgan Chase.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Goldman Sachs lost a significant amount of money over the years with its now-concluded foray into consumer finance. At one time, having purchased personal finance companies like Clarity Money to build out Marcus and personal loans, launching the Apple Card, and acquiring the GM credit card portfolio, Goldman is now ditching all of it.</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/2026/01/image-2.png" class="kg-image" alt="White credit card with the Apple apple logo in the top left corner and the EMV chip in the middle of the right side. Card is floating at an angle on a gray 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: #15212a; color: rgba(0, 0, 0, 0.6); font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">So long, Apple Card from Goldman Sachs</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The Apple Card portfolio is quite large, and few issuers would have the capacity (and perhaps the interest, given its reputation) to take it on. Chase always wants to grow, it seems, and I have no doubt they will right the ship.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">What does this mean for Apple Card holders? Well, we don&#x2019;t know much yet (there is only this <a href="https://www.cardsftw.com/r/ee77d90d?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>webpage</u></a>). I assume Chase will:</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; color: #15212A;">Launch a revised product on a new BIN</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Migrate folks</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Try to offboard some folks</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Goldman had a very broad underwriting box and was writing cards with limits ranging from $250 to $40,000. That&#x2019;s a wild card product. I think we&#x2019;ll see something more in line with traditional issuers from Chase.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">What stands out most is the experience changes that will likely occur: Apple offers daily rewards payouts, which is rare among cards, and a deeply integrated, API-driven experience. Chase is likely to deliver a similarly API-driven model, and card management will almost certainly be integrated alongside other Chase cards. At the same time, daily rewards are likely to be eliminated, and billing cycle timing will almost certainly change as part of the transition.</p><h1 id="me-elsewhere" 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;">Me, Elsewhere</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">10% credit card rate caps are bad for credit card companies, but turn out to be a good way to get a quote in <a href="https://www.cardsftw.com/r/fe403110?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Bloomberg</u></a>.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Before all the nonsense started, I was excited to make it into the <a href="https://www.cardsftw.com/r/a1a5bb6d?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Fortune Term Sheet 2026 Crystal Ball</u></a> edition, alongside other fintech luminaries!&#xA0;</p><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/44461617?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/c2303921?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/7017a07a?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/66991446?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">More like this</p> </a> </td> <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/cardsftw-187-ten-percent/#/feedback/69669e6e0d3c66032bafcf9e/0/?uuid=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d&amp;key=b2468bdc4e76e0c875b581046940e1a8edb1c61ebbe0ca4a76efe3ad88d01261" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/less-like-this-mobile.png" border="0" width="42" height="42" alt="Less like this" 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;">Less like this</p> </a> </td> <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/0b4867ce?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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="latest-posts-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 24px 0; border-bottom: 1px solid #e0e7eb;" valign="top"> <h3 class="latest-posts-header" style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; margin: 0; padding: 8px 0 8px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 13px; font-weight: 600; text-transform: uppercase;">Keep reading</h3> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/ce98c191?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #186: The Biennial CFPB Consumer Credit Market Report</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/9a03c29a?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, Fancy Cards Require a Year-End Review</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/40bf33dd?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #185: Everyone Wants to be a Bank (Again)</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/2dc5e654?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, more on Cap One / Discover, and the merchant settlement</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/e38480f4?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #184: Credit Cards Are Hard</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/8f801d8f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, New Membership Programs, Virtual Card Numbers, and More</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 steeves</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">zdcrjicyoldnafoj@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: 1 November 2025</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; 2026 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d&key=b2468bdc4e76e0c875b581046940e1a8edb1c61ebbe0ca4a76efe3ad88d01261&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/eJwszs1uwyAMAOCnKbdGNj-GHPwwYEObLikSYYu2p5807fjdPmWX0IVgKmOk5BFWiKYeedvvmzKtFKVhAnVCBM6W3BSsN0-OqdSQclQCK0RJ1iI55dpKiOpaMRtbsASIHiMGoGVFiSHFQALY1LWbh-OxSB56tnkt0g8z-EdlvDb57ru-c-uvm4d3vc69zlnHMrrWbiaXz_3j_rc0kx_Pfs5_fbH9DQAA__-e90Cw"></body> </html>
  12. CardsFTW #186: The Biennial CFPB Consumer Credit Market Report

    Wed, 07 Jan 2026 17:15:43 -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 #186: The Biennial CFPB Consumer Credit Market Report</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; 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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> <!--[if mso]> <style type="text/css"> ul, ol { margin-left: 1.5em !important; } </style> <![endif]--> </head> <body data-testid="email-preview-body" style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 0; 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, Fancy Cards Require a Year-End Review</span> <!-- SPACING TO AVOID BODY TEXT BEING DUPLICATED IN PREVIEW TEXT --> <div style="display:none; max-height:0; overflow:hidden; mso-hide: all;" aria-hidden="true" role="presentation"> &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; &#x2007;&#x34F; 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line-height: 1.4em; text-align: center; padding-bottom: 32px; font-size: 20px; font-family: Georgia, serif;">Plus, Fancy Cards Require a Year-End Review</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;">7 Jan 2026 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; 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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%" data-testid="email-preview-content" 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 --> <div class="kg-card kg-callout-card kg-callout-card-yellow" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #FCF4E3;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F587;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Did someone forward this to you?&#xA0;<a href="https://www.cardsftw.com/r/53285cd7?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"><u>Subscribe to CardsFTW today.</u></a></div></div><h1 id="the-2025-credit-card-landscape-growth-risk-and-competing-payment-trends" 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;">The 2025 Credit Card Landscape: Growth, Risk, and Competing Payment Trends</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">As the United States consumer credit ecosystem continues to evolve post-pandemic, the most recent Consumer Financial Protection Bureau (CFPB) <a href="https://www.cardsftw.com/r/120fe4fd?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>Consumer Credit Card Market Report to Congress</u></em></a> (December 2025) paints a detailed picture of where credit cards stand in 2024 and what this means for consumers, lenders, and the broader economy. The credit card market is expanding sharply in nominal terms, with significant shifts in who is driving growth, which products are thriving or contracting, and how alternative financing options, such as buy now, pay later (BNPL), are reshaping payment habits.</p><div class="kg-card kg-callout-card kg-callout-card-blue" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #E9F6FB;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F44F;</div><div class="kg-callout-text" style="color: inherit;">As an aside, I was amazed this came out! Congratulations to the staff at the CFPB who made this happen. The report is mandated by law, but that doesn&#x2019;t seem to mean much these days, especially when it comes to the CFPB. I&#x2019;ve been saddened to see many of the CFPB subscribers to this newsletter have bouncing email addresses over the course of the year. So, hats off to you, researchers of the CFPB!</div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This edition of the report reflects data through calendar year 2024 and includes benchmark comparisons to 2022 and earlier years. It highlights the rising role of prime-credit borrowers in spending growth, mounting balances, and fee and interest income levels not seen in recent history. It also documents the contrasting trends in private label credit cards and the fast-growing BNPL sector. Understanding these trends is critical for payments professionals, issuers, regulators, and anyone tracking consumer credit risk.</p><h2 id="credit-card-market-growth-and-consumer-behavior" 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 Card Market Growth and Consumer Behavior</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In 2024, consumer credit card purchase volume continued its upward trajectory, reaching $3.6 trillion, up from $3.2 trillion in 2022. This roughly 12.5% increase over two years reflects steady nominal growth and continued reliance on plastic for everyday spending. Importantly, this growth was almost entirely driven by cardholders with prime or higher credit scores. In contrast, cardholders at or below prime saw negligible growth in spending volume despite an increase in their number.&#xB9;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Outstanding balances also climbed, breaking through $1.2 trillion, with the average per-cardholder balance at about $5,300 and even higher at $8,700 for prime borrowers.&#xB9; The acceleration of balances suggests consumers are more willing or more compelled to carry debt than in recent cycles, likely influenced by interest rates, inflation pressures, and shifting income dynamics.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">From an issuer perspective, this translates into growing interest income (about $160 billion) and fee income (over $31 billion).&#xB9; Notable within fee income is the dominance of late fees, which alone accounted for roughly $17 billion, dwarfing annual fees and pointing to shifting revenue drivers for issuers in a higher-rate environment.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2026/01/Quarterly-Late-Fees.png" class="kg-image" alt loading="lazy" width="600" height="299" 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;">The average Annual Percentage Rate (APR) on general-purpose cards exceeded 25%, the highest in at least a decade, suggesting that consumers carrying balances are paying more for credit than they have in recent history.&#xB9; These elevated rates reflect broader monetary policy conditions, cost of capital pressures on lenders, and competition dynamics around rewards and introductory offers.</p><h2 id="delinquency-and-consumer-risk" 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;">Delinquency and Consumer Risk</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Delinquency rates offer a window into the sustainability of consumer balances. By year-end 2024, general-purpose credit card delinquencies had returned to near 3%, a level consistent with pre-pandemic norms. Private label card delinquencies were higher, at roughly 3.8%.&#xB9; While these numbers do not signal systemic stress, they indicate that debt levels and repayment pressures are rising as expensive credit becomes more entrenched.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Another noteworthy trend is the share of borrowers making only minimum payments (around 15% for general purpose cards and closer to 20% for private label cards), signaling a segment of consumers relying on cheap liquidity to manage monthly budgets.&#xB9;</p><h2 id="private-label-credit-cards-a-product-in-retreat" 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;">Private Label Credit Cards: A Product in Retreat?</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">While the overall credit card market continues to expand, private label credit cards (PLCCs) (store-specific cards typically co-branded between a retailer and a financial institution) have shown a contrasting trend. The CFPB report indicates that private label purchase volume reached approximately $163 billion in 2024, a figure that has remained relatively stable in recent reports, despite a significant increase in overall credit card purchase volume.&#xB9; Open private label card accounts also fell to around $185 million, down significantly from 2018, while open general purpose card accounts climbed to $608 million.&#xB9;</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2026/01/Open-Accounts-by-Month.png" class="kg-image" alt loading="lazy" width="600" height="279" 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;">This divergence in account growth and volume suggests a relative decline in private label card reach and usage within the consumer credit mix. Industry analyses outside the CFPB indicate that market share has shifted toward general-purpose cards and digital alternatives. A PaymentsJournal examination noted ongoing declines in private label prominence as consumers opt for payment options with broader usability and rewards incentives that store cards often lack.&#xB2;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">This trend reflects broader shifts in consumer behavior and payment preferences. Where private label cards once provided easy store credit and tailored rewards, they are less compelling alongside versatile general-purpose cards and flexible alternatives like BNPL. For retailers, capturing and retaining card usage has become more challenging as the diversity of payment options increases.</p><h2 id="the-rise-of-buy-now-pay-later-mobile-first-short-term-credit" 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 Rise of Buy Now, Pay Later: Mobile-First, Short-Term Credit</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Buy now, pay later (BNPL), a form of short-term installment financing that enables consumers to split purchases into multiple interest-free payments, has become an increasingly visible alternative to traditional credit options in recent years.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Although BNPL has historically been underreported in credit records due to gaps in reporting practices, data indicate rapid adoption. A CFPB report on BNPL usage found that 21% of consumers with a credit history financed at least one purchase with BNPL in 2022, and usage has continued to grow among younger demographics.&#xB3; A Morgan Stanley survey from April 2025 found that more than one quarter of U.S. consumers reported using BNPL products, and BNPL financed approximately 6% of U.S. e-commerce sales in 2024, up from 2% in 2020.&#x2074;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Additional data shows that BNPL adoption is strongest among Gen Z and Millennials, with users drawn to simple digital checkout integration, interest-free installments, and avoidance of traditional credit costs.&#x2075; A 2025 survey indicated that roughly 30% of BNPL users make purchases at least once per month, signaling regular usage patterns among a significant subset of consumers.&#x2076;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">While BNPL volumes still trail credit card usage in absolute dollar terms, the rate of adoption and integration into retail platforms is notable. Some forecasts project that BNPL transaction volumes in the U.S. will reach more than $100 billion by 2025, with continued growth expected as merchants integrate BNPL options across various categories.&#x2077;</p><div></div><h2 id="what-this-means-for-the-economy" 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 This Means for the Economy</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The combined forces of rising credit card balances, robust interest income, and the rapid uptake of BNPL reflect several underlying economic conditions:</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; color: #15212A;">Consumer reliance on credit remains elevated. Despite near-normal delinquency rates, the substantial rise in outstanding balances and average lender revenue from interest and fees suggests that households are increasingly relying on high-cost credit to fund consumption and day-to-day expenses.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Credit conditions are tightening. The concentration of purchase growth among prime borrowers suggests that consumers with lower credit scores are not expanding spending at the same pace, potentially reflecting tighter underwriting or risk aversion among lenders.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Diversification of payment options is fragmenting market share. General-purpose cards continue to dominate, but the slower growth of private-label cards and the rapid expansion of BNPL underscore a shift in how consumers choose to pay. While BNPL does not yet rival card transactions in total volume, its adoption among younger and budget-constrained consumers suggests a long-term structural shift.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em; color: #15212A;">Regulatory attention and consumer risk profiles are evolving. As BNPL becomes more deeply ingrained in everyday purchases, regulators are starting to pay closer attention. Incorporation of BNPL activity into credit scores, scheduled for late 2025 by FICO models, could bring greater transparency to this growing form of credit and potentially alter consumer behavior.&#x2078;</li></ol><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">For issuers, the implication is clear: adapting to diverse payment preferences and understanding where value lies in complex consumer credit portfolios will define competitive advantage. For policymakers, balancing access with consumer protection across both traditional cards and emerging products like BNPL will be essential to sustainable credit markets.</p><h2 id="one-random-note-gaming" 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;">One Random Note: Gaming</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Most credit card issuers prohibit users from using their credit cards for gaming (gambling) purposes. Not everyone does, though. A weird note that stood out to us:</p><blockquote style="margin: 0; padding: 0; border-left: #F9A60D 2px solid; font-size: 17px; font-weight: 500; line-height: 1.6em; letter-spacing: -0.2px;"><p style="line-height: 1.6em; margin: 2em 25px; font-size: 1em; padding: 0; color: #15212A;">gambling spending on credit cards is low but growing&#x2014;in 2024 it was $2.7 billion, nearly double the $1.4 billion it was in 2019.<sup>1</sup></p></blockquote><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">More debt. Higher rates. More gambling. What could go wrong?</p><h1 id="the-great-year-end-review" 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;">The Great Year-End Review</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I spent a lot of time in 2025 writing about ultra-premium cards like the <a href="https://www.cardsftw.com/r/84aba986?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Amex Platinum</u></a>, <a href="https://www.cardsftw.com/r/55cdeed5?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Chase Sapphire Reserve</u></a>, and <a href="https://www.cardsftw.com/r/538c2f72?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Citi Strata</u></a>. With the new year, savvy cardholders now must review what credits they did (or didn&#x2019;t use), what credits renew for the new year (some are anniversary-based, linked to your card being opened, many are calendar-based), and what changes they must make.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">My least favorite task is deciding, each January, whether I want to change my &#x201C;preferred airline&#x201D; for American Express. Both the American Express Platinum and Business Platinum cards offer an annual airline incidental fee credit that can help offset part of their hefty annual fees by reimbursing up to $200 per calendar year for certain airline-related charges.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">To trigger this benefit, you must select one qualifying airline at the start of the year and then use your card to pay separate incidental airline fees such as checked bag fees, seat assignment fees, in-flight refreshments, and other airline incidentals that the carrier codes properly. Once those charges post to your account, Amex will issue a statement credit up to the $200 limit; charges that do not qualify include the actual airfare, gift cards, or fees not coded as incidentals by the airline.&#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/2026/01/image-1.png" class="kg-image" alt="Two mirror-reflective American Airlines cards, one business, one personal, on a black background." 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;">Reflecting on my airline choices.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">The Business Platinum version works similarly and ties the selected airline to both the $200 incidental credit and the enhanced 35% Pay with Points bonus for that carrier when booking through Amex Travel each calendar year.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Picking the right airline is essential because only purchases with that one carrier count toward your credit, and different airlines vary in how many incidental fees you&#x2019;re likely to incur. For instance, flying a carrier where you already get benefits like free checked bags through elite status or co-branded cards might leave you with few incidental fees to reimburse, meaning you could leave value on the table. Instead, choosing an airline where you expect to pay for bags, seat assignments, or lounge passes can help you maximize the full $200 credit each year.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Over recent years, the structure of this benefit has become more restrictive and focused on incidental charges rather than broader travel credits seen on some competitor cards, and tracking and redeeming the credit now requires careful selection and advance enrollment, given evolving terms and airline coding practices.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I plan to use my Amex points to fly for free, and that 35% bonus is big. But what will I fly? Probably American to Miami for NerdCon - I have to make a bet!</p><h2 id="footnotes" 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;">Footnotes</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#xB9; Consumer Financial Protection Bureau. <a href="https://www.cardsftw.com/r/e7e9b23a?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>The Consumer Credit Card Market Report to Congress</em></a>. Dec. 2025. PDF.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#xB2; PaymentsJournal. &#x201C;<a href="https://www.cardsftw.com/r/27f6c0be?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Private Label Credit Cards Are on the Decline</a>.&#x201D; PaymentsJournal.com.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#xB3; Consumer Financial Protection Bureau. <a href="https://www.cardsftw.com/r/c05d037c?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em>Consumer Use of Buy Now, Pay Later and Other Unsecured Debt</em></a>. Jan. 2025. PDF.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x2074; Morgan Stanley Research. &#x201C;<a href="https://www.cardsftw.com/r/bd39f89d?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Buy Now, Pay Later Growth Raises Concerns</a>.&#x201D; Jun. 2025. MorganStanley.com.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x2075; Wikipedia. &#x201C;<a href="https://www.cardsftw.com/r/24192f36?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Buy now, pay later.</a>&#x201D; Accessed Jan. 2026. Wi</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x2076; Motley Fool Money. &#x201C;<a href="https://www.cardsftw.com/r/34ed844e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">2025 Buy Now, Pay Later Trends Report</a>.&#x201D; Dec. 2025.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x2077; Wall Street Journal coverage on BNPL adoption and forecasts, including &quot;<a href="https://www.cardsftw.com/r/56f97819?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Buy Now, Pay Later Has Almost a Billion Reasons to Celebrate the Season</a>.&quot; 2025.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">&#x2078; Business Insider. &#x201C;<a href="https://www.cardsftw.com/r/6c0ead87?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Buy now, pay later loans will soon hit credit scores</a>.&#x201D; 2025.</p><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/03602ce1?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/85320f75?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/ab265f64?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/5d6bae71?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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; 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="latest-posts-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 24px 0; border-bottom: 1px solid #e0e7eb;" valign="top"> <h3 class="latest-posts-header" style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; margin: 0; padding: 8px 0 8px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 13px; font-weight: 600; text-transform: uppercase;">Keep reading</h3> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/986bd2be?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #185: Everyone Wants to be a Bank (Again)</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/f24968de?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, more on Cap One / Discover, and the merchant settlement</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/f42ebeac?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #184: Credit Cards Are Hard</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/5802165e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, New Membership Programs, Virtual Card Numbers, and More</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/db2eeca3?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #183: Retention vs. Acquisition</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/77d4ee6a?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, Deals on Socks, Predictions for 2026 and more</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 steeves</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">zdcrjicyoldnafoj@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: 1 November 2025</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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  13. CardsFTW #185: Everyone Wants to be a Bank (Again)

    Tue, 23 Dec 2025 20:15:09 -0000

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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/4b0cd6e2?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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 #185: Everyone Wants to be a Bank (Again)</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, more on Cap One / Discover, and the merchant settlement</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;">23 Dec 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/d29768fe?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/13cdb880?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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%; line-height: 1.4; 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%" data-testid="email-preview-content" 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 --> <div class="kg-card kg-callout-card kg-callout-card-yellow" style="display: flex; margin: 0 0 1.5em 0; padding: 24px; border-radius: 8px; background: #FCF4E3;"><div class="kg-callout-emoji" style="padding-right: 12px; font-size: 20px;">&#x1F587;&#xFE0F;</div><div class="kg-callout-text" style="color: inherit;">Did someone forward this to you?&#xA0;<a href="https://www.cardsftw.com/r/2c53fb1f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: underline; color: #F9A60D;" target="_blank"><u>Subscribe to CardsFTW today.</u></a></div></div><h1 id="programming-note" 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;">Programming Note</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Happy Holidays, everyone! We&#39;re publishing this week a day early, ahead of the holiday. CardsFTW will be off next week. We look forward to seeing you on Wednesday, January 7, 2026!</p><h1 id="everyone-wants-to-be-a-bank-again" 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;">Everyone Wants to be a Bank (Again)</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">In 2005, I attended some fintech/payments conference in Miami. I can&#x2019;t recall what it was. I do recall sitting at a table at lunch with Green Dot co-founder Steve Streit and a regulator discussing Green Dot&#x2019;s plans to eventually buy a bank. That dream came true in 2011, when Green Dot <a href="https://www.cardsftw.com/r/dc3d0daf?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">purchased</a> Bonneville Bancorp.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">During the time I was at Green Dot, Walmart had applied for an Industrial Loan Company charter in Utah (2005). At the time, Walmart was viewed as the evil corporate empire of the time. They did not obtain their charter, <a href="https://www.cardsftw.com/r/e15f6023?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">withdrawing</a> their application in 2007.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Square (Block) <a href="https://www.cardsftw.com/r/3b985e36?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">formed</a> a <em>de novo</em> ILC in 2020. Lending Club, a fintech lender, <a href="https://www.cardsftw.com/r/611b24bf?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">closed</a> its acquisition of Radius Bank in 2021. Varo <a href="https://www.cardsftw.com/r/77552f28?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">started</a> as a non-bank fintech providing card account services in 2015 and started the process to form a bank in 2017. Varo&#x2019;s bank was opened in 2020. Jiko <a href="https://www.cardsftw.com/r/259b60dc?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">acquired</a> Mid-Central National Bank in September 2020. Nelnet (an education finance provider) <a href="https://www.cardsftw.com/r/b5c1b2db?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">launched</a> an ILC in 2020. SoFi <a href="https://www.cardsftw.com/r/5a4c8adb?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">acquired</a> Golden Pacific Bank in 2021.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Brian Barnes, Founder of M1 Finance, took a different path, personally <a href="https://www.cardsftw.com/r/79fea38b?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">acquiring</a> a bank in 2021 (First National Bank of Buhl, now B2 Bank) with a goal of integrating B2 with M1.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">That gives me seven acquisitions of banks by fintechs in the past 12 years (if you include Brian&#x2019;s purchase).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Well, 2025 and 2026 look like they will be banner years for this trend. First, a number of crypto and stablecoin companies, such as Circle, Ripple, and Paxos, have received <a href="https://www.cardsftw.com/r/99f3883f?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">approval</a> to open national trust banks. In addition, both <a href="https://www.cardsftw.com/r/8618768a?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">PayPal</a> and <a href="https://www.cardsftw.com/r/4f885c95?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Mercury</a> have filed to open banks (an ILC for PayPal and a national bank for Mercury).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I get the appeal: working with a partner bank can be a challenge. They are risk-averse, regulated entities. You have to ask them for permission to do just about anything (marketing, product changes, etc.). You have to pay them quite a bit.&#xA0;So you think, why not buy a bank? It will make life easier. We can be vertically integrated!</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;"><strong style="font-weight: 700;">Maybe.</strong></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">(It&#x2019;s gone quite poorly for Varo, although that might be more about Varo than it is about buying a bank.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Being a bank is often bad for your stock valuation. Banks are often valued somewhere between 0.8 to 1.2x their book value (regulated capital base) with well-run best-in-class banks like JP Morgan Chase trading up to 2x book value and 10x earnings. Fintech companies, on the other hand, can trade at 25x earnings in growth mode and 10x in a more mature spot. Some bank-owning fintech companies like SoFi have kept their stock up, but it isn&#x2019;t a clear winner. (Not investment advice, I&#x2019;m sure I got something wrong here.)</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/2025/12/afpguy.jpg" class="kg-image" alt loading="lazy" width="600" height="385" 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;">some things don&#39;t work as planned</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I don&#x2019;t think becoming a bank makes your life that much easier as a fintech. Sure, you don&#x2019;t have to argue with your partner bank, but now you have to argue with your internal legal and compliance function. I guess that&#x2019;s better? I think these companies should be careful what they wish for.</p><h1 id="merchants-don%E2%80%99t-like-the-settlement-offer" 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;">Merchants Don&#x2019;t Like the Settlement Offer</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I wrote about the latest swipe fee settlement offer in <a href="https://www.cardsftw.com/r/e15c7719?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW #180: Do Not Honor All Cards</a>. Merchant groups, including the National Association of Convenience Stores and the National Retail Federation, have filed <a href="https://www.cardsftw.com/r/040baa4d?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">complaints</a> about the proposed settlement, arguing they are simply not meaningful. As the complaint states:</p><blockquote style="margin: 0; padding: 0; border-left: #F9A60D 2px solid; font-size: 17px; font-weight: 500; line-height: 1.6em; letter-spacing: -0.2px;"><p style="line-height: 1.6em; margin: 2em 25px; font-size: 1em; padding: 0; color: #15212A;">The proposed settlement would reduce the &#x2018;average Effective Interchange Rate&#x2019; by ten basis points, a trifling increase from the seven-basis point reduction Judge Brodie rejected last year. In fact, it&#x2019;s a step backward because average interchange rates increased by nine basis points between 2024 and 2025. The proposed settlement would thus leave rates approximately where they were in 2023, nearly two decades after this litigation began, and at a higher rate than the 2024 proposed settlement.</p></blockquote><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">Looks like this will continue to drag on. I&#x2019;ll keep you posted.</p><div></div><h1 id="the-challenges-of-the-discover-network" 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;">The Challenges of the Discover Network</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I want to start by saying that I am a Discover fan: It was the first credit card I ever opened. Discover has served me well, and the Discover Network business has undertaken innovative projects over the years (e.g., <a href="https://www.cardsftw.com/r/d4d7c96e?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>pay by PayPal at Home Depot back in 2012</u></a>).</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/2025/12/store-door-acceptance-signage.png" class="kg-image" alt loading="lazy" width="400" 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;">Discover Club</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I have a Capital One checking account and received my new Discover card this past week. The mailer included this fun buckslip that warned me about acceptance. That&#x2019;s rough.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/12/data-src-image-0f58a424-6fae-4f31-8b3a-24d1d60b53e5.png" class="kg-image" alt="Scanned image of an insert from Capital One included with the new Discover debit card that defines how the debit card can be used in the United States." loading="lazy" width="600" height="251" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/12/discover2.png" class="kg-image" alt loading="lazy" width="600" height="251" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><h1 id="me-elsewhere" 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;">Me, Elsewhere</h1><h2 id="cambrian-fintech-podcast" 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;">Cambrian Fintech Podcast</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">My first of two interviews with Rex on the Cambrian Fintech Podcast was released last week.&#xA0;</p><div class="kg-card kg-embed-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><!--[if !mso !vml]--> <a class="kg-video-preview" href="https://www.cardsftw.com/r/d79cebfd?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" aria-label="Play video" style="background-color: #1d1f21; background-image: radial-gradient(circle at center, #5b5f66, #1d1f21); display: block; overflow-wrap: anywhere; color: #F9A60D; mso-hide: all; text-decoration: none;" target="_blank"> <table cellpadding="0" cellspacing="0" border="0" width="100%" background="https://i.ytimg.com/vi/WhgU23Rv0mA/hqdefault.jpg" role="presentation" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-size: cover; min-height: 200px; overflow: hidden; background: url(&#39;https://i.ytimg.com/vi/WhgU23Rv0mA/hqdefault.jpg&#39;) left top / cover; mso-hide: all;"> <tbody><tr style="mso-hide: all"> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; visibility: hidden; mso-hide: all;" valign="top"> <img src="https://img.spacergif.org/v1/150x450/0a/spacer.png" alt width="100%" border="0" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; height: auto; opacity: 0; visibility: hidden; mso-hide: all;" height="auto"> </td> <td width="50%" align="center" valign="middle" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; color: #15212A; vertical-align: middle; mso-hide: all;"> <div class="kg-video-play-button" style="height: 2em; width: 3em; margin: 0 auto; border-radius: 10px; padding: 1em 0.8em 0.6em 1em; font-size: 1em; background-color: rgba(0,0,0,0.85); mso-hide: all;"><div style="display: block; width: 0; height: 0; margin: 0 auto; line-height: 0px; border-color: transparent transparent transparent white; border-style: solid; border-width: 0.8em 0 0.8em 1.5em; mso-hide: all;"></div></div> </td> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; mso-hide: all;" valign="top">&#xA0;</td> </tr> </tbody></table> </a> <!--[endif]--> <!--[if vml]> <v:group xmlns:v="urn:schemas-microsoft-com:vml" xmlns:w="urn:schemas-microsoft-com:office:word" coordsize="600,450" coordorigin="0,0" href="https://www.youtube.com/watch?v=WhgU23Rv0mA" style="width:600px;height:450px;"> <v:rect fill="t" stroked="f" style="position:absolute;width:600;height:450;"><v:fill src="https://i.ytimg.com/vi/WhgU23Rv0mA/hqdefault.jpg" type="frame"/></v:rect> <v:oval fill="t" strokecolor="white" strokeweight="4px" style="position:absolute;left:261;top:186;width:78;height:78"><v:fill color="black" opacity="30%" /></v:oval> <v:shape coordsize="24,32" path="m,l,32,24,16,xe" fillcolor="white" stroked="f" style="position:absolute;left:289;top:208;width:30;height:34;" /> </v:group> <![endif]--><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;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: inherit;"><span style="white-space: pre-wrap;">Wow, what a big gold card.</span></p></div></div><h2 id="cardrates" 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;">CardRates</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em; color: #15212A;">I was quoted in CardRates about our old pal, the K-shaped economy.</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/0c931438?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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">Read the Article</a></td></tr></tbody></table></td></tr></tbody></table><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/a1f5851c?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/f28f41ea?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/0186967d?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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/7f60e580?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" 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; 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="latest-posts-container" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 24px 0; border-bottom: 1px solid #e0e7eb;" valign="top"> <h3 class="latest-posts-header" style="margin-top: 0; line-height: 1.11em; text-rendering: optimizeLegibility; letter-spacing: -0.01em; margin: 0; padding: 8px 0 8px; color: #15212A; font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 13px; font-weight: 600; text-transform: uppercase;">Keep reading</h3> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; 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font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <a href="https://www.cardsftw.com/r/8cf9d819?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">CardsFTW #183: Retention vs. Acquisition</a> </h4> <p class="latest-post-excerpt" style="line-height: 1.6em; margin: 0; padding: 0; font-size: 15px; font-weight: 400; color: #15212a; color: rgba(0, 0, 0, 0.6);"> <a href="https://www.cardsftw.com/r/05f35b08?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; text-decoration: none; color: #15212a; color: rgba(0, 0, 0, 0.6);" target="_blank">Plus, Deals on Socks, Predictions for 2026 and more</a> </p> </td> </tr> </table> </td> </tr> </table> <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 class="latest-post" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding: 16px 0; max-width: 600px;" valign="top"> <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 valign="top" align="left" class="latest-post-title" style="font-family: -apple-system, BlinkMacSystemFont, Roboto, Helvetica, Arial, sans-serif; font-size: 18px; vertical-align: top; color: #15212A; padding-right: 12px;"> <h4 class style="margin-top: 0; text-rendering: optimizeLegibility; line-height: 1.2em; font-family: Georgia, serif; letter-spacing: -0.01em; margin: 0; padding: 2px 0 4px; font-size: 18px; font-weight: 700; color: #15212A;"> <ahref="https://www.cardsftw.com/r/ccad8682?m=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d" style="overflow-wrap: anywhere; 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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 steeves</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">zdcrjicyoldnafoj@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: 1 November 2025</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=318fd8e9-e0b4-4efa-ba53-2ef32cdc485d&key=b2468bdc4e76e0c875b581046940e1a8edb1c61ebbe0ca4a76efe3ad88d01261&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/eJwszjtuwzAMANDTRFsMitYnGngYkRQTp3YEyGqD9vQFio5ve0rrza8xukY-pxQRCmTXjrrt100plVDtFkK0gFJAVLmYFHAPMvagObIlvrXsOSCvzMJFfS1m1W2EgNEjrgg-Ql4ihKq5qU-auAhfAhz3RerQ0-Z7kX64QT8q47nJd9_1Va0_LwFe7X3ubc42ltG1dTeJP_eP69_STbo_-jn_9UX4GwAA__9Bj0Hs"></body> </html>
  14. Canadian Fintech Affiliate: New bank who dis?

    Tue, 09 Dec 2025 15:46:18 -0000

    <html style="scrollbar-width: thin;scrollbar-color: rgb(219,219,219)rgb(255,255,255);"><head><meta charset="utf-8"><title>Canadian Fintech Affiliate: New bank who dis?</title><style> @media (max-width: 1024px) { .typography .pullquote-align-left, .typography.editor .pullquote-align-left, .typography .pullquote-align-right, .typography.editor .pullquote-align-right, .typography .pullquote-align-wide, .typography.editor .pullquote-align-wide, .typography .pullquote-align-center, .typography.editor .pullquote-align-center { float: none; margin: 0 auto; width: 100%; max-width: 100%; } } @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 (min-width: 1024px) { .typography:not(:has(#toc)) .captioned-image-container figure:has(> 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.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; } }</style></head><body class="email-body" style="font-kerning: auto;--image-offset-margin: -120px;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUxMjA5MTU0NjA5LjMuMmZhMzZlZWNmY2FkNGJkNUBtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6NDEwMTc3MDU3LCJyIjoid2NnMm5yeXQ0dHVhZ3dvNEBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOjE4MTEwNTU0NiwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjoyMDc5MDA2LCJjIjoicG9zdCIsImYiOnRydWUsInBvc2l0aW9uIjoidG9wIiwiaWF0IjoxNzY1Mjk1MTc0LCJleHAiOjE3Njc4ODcxNzQsImlzcyI6InB1Yi0wIiwic3ViIjoiZW8ifQ.3F8ZTjYQ9mSFdARB7FZtXsUfS2zUm37SkiveLCbjLvE" 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;">Questbank coming soon, Wealthsimple is Goldmember, EQ matches with PC Financial &amp; our interview with Jean-Maximilien Voisine, founder of Milesopedia.</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; 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cellpadding="0"><tbody><tr><td></td><td class="content" width="550"></td><td></td></tr><tr><td></td><td class="content" width="550" align="left"><div style="font-size: 16px;line-height: 26px;max-width: 550px;width: 100%;margin: 0 auto;overflow-wrap: break-word;"><table role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td align="right" style="height:20px;"><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><span class="pencraft pc-reset reset-IxiVJZ tw-font-body tw-text-ssm tw-text-substack-secondary" style="font-family: SF Pro Text, -apple-system, system-ui, BlinkMacSystemFont, Inter, Segoe UI, Roboto, Helvetica, Arial, sans-serif, Apple Color Emoji, Segoe UI Emoji, Segoe UI Symbol;font-size: 13px;color: unset;list-style: none;text-decoration: unset;margin: 0;"><div class="pencraft pc-reset align-right-VJbKw5 size-12-mmZ61m reset-IxiVJZ" style="list-style: none;color: 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href="https://substack.com/app-link/post?publication_id=2079006&post_id=181105546&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=6s7in5&token=eyJ1c2VyX2lkIjo0MTAxNzcwNTcsInBvc3RfaWQiOjE4MTEwNTU0NiwiaWF0IjoxNzY1Mjk1MTc0LCJleHAiOjE3Njc4ODcxNzQsImlzcyI6InB1Yi0yMDc5MDA2Iiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.xTH5uLDbw3qki-nrUc9bgZkEm8nAaUSFyJSH3I2M7Rg" style="color: rgb(54,55,55);text-decoration: none;">Canadian Fintech Affiliate: New bank who dis?</a></h1><h3 class="subtitle subtitle-HEEcLo" dir="auto" style="direction: auto;text-align: start;unicode-bidi: isolate;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: normal;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 4px 0 0;color: #777777;line-height: 24px;font-size: 18px;margin-top: 12px;">Questbank coming soon, Wealthsimple is Goldmember, EQ matches with PC Financial &amp; our interview with Jean-Maximilien Voisine, founder of Milesopedia. </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/@cameronmillband">Cameron Millband</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: 11px;line-height: 20px;text-decoration: unset;color: rgb(119,119,119);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;"><time datetime="2025-12-09T15:46:13.314Z">Dec 9</time></div></td></tr></tbody></table></td></tr></tbody></table></td><td align="right"><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><a href="https://substack.com/@cameronmillband"><img class="custom-css-email-avatar avatar-QIQ5yR" 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0;"><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="310" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/04e4af1d-9dfd-448d-b9f7-98ffdb481d0b?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" 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;margin-top: 0;margin-bottom: 0;"><img data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e28ee8b8-b925-4185-917b-9f45b69b33f7_1000x400.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:400,&quot;width&quot;:1000,&quot;resizeWidth&quot;:310,&quot;bytes&quot;:127102,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="310" height="124" src="https://substackcdn.com/image/fetch/$s_!aQiR!,w_310,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe28ee8b8-b925-4185-917b-9f45b69b33f7_1000x400.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;">Morning! </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Welcome to the </span><strong>Canadian Fintech Affiliate </strong><span>newsletter, a monthly roundup of industry news, offer updates and conferences worth attending for Canadian affiliate marketers. </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>In today&#8217;s email:</strong></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>What&#8217;s trending</strong><span>: </span><a href="https://substack.com/redirect/ba2a8141-1140-4fde-a2d5-4ba2e2c37962?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Questrade becomes a bank</a><span>, </span><a href="https://substack.com/redirect/2e5eccfe-fd89-4ff4-9c37-501e56aaf539?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Wealthsimple ships new features</a><span>, </span><a href="https://substack.com/redirect/5c36d4c4-c731-47c8-a45e-870bc27f70eb?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">EQ acquires PC Financial</a><span>, </span><a href="https://substack.com/redirect/c197cc3f-ff05-4d64-b787-f67f6e78fcaf?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Laurentian is sold off</a><span> to Fairstone and National Bank</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>Interview </strong><span>with</span><strong> </strong><span>Jean-Maximilien Voisine, founder of Milesopedia</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>Best conferences</strong><span> to attend this winter</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>Jobs: </strong><span>Roles at </span><a href="https://substack.com/redirect/aa747ed4-3c82-4d96-b8fa-e548d480b5f8?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fintel Connect</a><span>, </span><a href="https://substack.com/redirect/66cbfb38-9ec9-4690-942d-1b7f3bc89de8?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Pet Lab Co</a><span>, </span><a href="https://substack.com/redirect/a9cf3ea3-7d00-4934-84c2-3d8c72c3f490?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Embark</a><span> and </span><a href="https://substack.com/redirect/e617b5b6-20f5-4469-82c1-ed18ac7a8adc?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">10+ others</a><span>.</span></p></li></ul><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Today&#8217;s reading time is </span><strong>6 minutes.</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Opinions expressed are my own*</p><div class="subscription-widget-wrap" style="font-size: 16px;line-height: 26px;"><div class="subscription-widget show-subscribe" style="font-size: 16px;direction: ltr !important;font-weight: 400;text-decoration: none;font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';color: #363737;line-height: 1.5;max-width: 560px;margin: 24px auto;align-items: flex-start;display: block;text-align: center;padding: 0px 32px;"><div class="preamble" style="margin-top: 16px;font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-size: 18px;max-width: 384px;width: fit-content;line-height: 22px;display: flex;align-items: center;text-align: center;font-weight: 400;margin-left: auto;margin-right: auto;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Join 279 subscribers from companies like</strong> <strong>Google, TD and Nerdwallet</strong>. Subscribe now to get the latest insights in your inbox. </p></div><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/eyJlIjoiaHR0cHM6Ly9jYW1lcm9ubWlsbGJhbmQuc3Vic3RhY2suY29tL3N1YnNjcmliZT91dG1fc291cmNlPXBvc3QmdXRtX2NhbXBhaWduPWVtYWlsLWNoZWNrb3V0Jm5leHQ9aHR0cHMlM0ElMkYlMkZjYW1lcm9ubWlsbGJhbmQuc3Vic3RhY2suY29tJTJGcCUyRmNhbmFkaWFuLWZpbnRlY2gtYWZmaWxpYXRlLW5ldy1iYW5rJnI9NnM3aW41IiwicCI6MTgxMTA1NTQ2LCJzIjoyMDc5MDA2LCJmIjp0cnVlLCJ1Ijo0MTAxNzcwNTcsImlhdCI6MTc2NTI5NTE3NCwiZXhwIjoyMDgwODcxMTc0LCJpc3MiOiJwdWItMCIsInN1YiI6ImxpbmstcmVkaXJlY3QifQ.88QlhVlEssi4kMKIzU8A3nl6UbZj6iz5ofuzFCUvVtc?&utm_medium=email&utm_source=subscribe-widget-preamble&utm_content=181105546" 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: #45D800;color: #ffffff !important;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Pledge your support</span></a></div></div></div></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><blockquote style="border-left: 4px solid #45D800;margin: 20px 0;padding: 0;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);margin-left: 20px;line-height: 26px;font-size: 16px;"><strong>Affiliate Tip</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);margin-left: 20px;line-height: 26px;font-size: 16px;">Don&#8217;t discount the role relationships play in affiliate marketing. Affiliates are taking a risk in sending traffic to untested landing pages and trusting they will get paid (on time) by advertisers only after users convert. As an advertiser you need to build trust and fast. </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);margin-left: 20px;line-height: 26px;font-size: 16px;">An quick way to do this it by being &#8216;easy&#8217; to work with. If an advertiser is making constant requests, not being flexible and ultimately delaying the initial launch, affiliates may cut their losses and move on. </p><div style="margin-left: 20px;font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div></blockquote><h3 class="header-anchor-post" style="position: relative;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: 1.375em;"><strong>&#129297; </strong><span>What&#8217;s Trending</span></h3><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Lots to cover, here we go.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Questbank coming 2026</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>With Questrade becoming a </span><a href="https://substack.com/redirect/2d5ef02e-dc9a-4941-84db-a76caee70c30?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">schedule I bank</a><span> they are expected to release a new suite of banking products, including chequing and savings accounts, credit cards and loan products in 2026. </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Publishers should expect more competition in unsecured credit cards in 2026 ;)</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">For affiliates, this is exciting news. With Questrade on Impact, expect them to roll out more offers on the platform as they get released. Hopefully, this new release will allow them to build out their events tracking attribution in Impact. </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Time will tell how aggressive they&#8217;ll be in the affiliate channel. These are competitive verticals where brands have strong welcome offers/bonuses and high CPAs. </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Wealthsimple is attracting advanced traders</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>In October, Wealthsimple had its </span><a href="https://substack.com/redirect/1c6a5fd1-234e-4bb8-9646-151613c5226d?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">second product unveiling</a><span> and announced a ton of new features, like zero-commission options contracts, lower crypto trading fees, the ability to buy and sell gold, access direct indexing, mutual fund exchange, a portfolio featuring alternative investments, loans to help maximize RRSP contributions, and artificial intelligence (AI) stock research tools. </span></p><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="487" style="text-align: center;"><a class="image-link" target="_blank" href="https://substack.com/redirect/a47a1de5-f06e-4e1e-ac6d-090e872e15fd?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" 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/300a3c7c-f95e-48ce-a93a-55846a1a5b10_487x327.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:327,&quot;width&quot;:487,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:270037,&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://cameronmillband.substack.com/i/181105546?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F300a3c7c-f95e-48ce-a93a-55846a1a5b10_487x327.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="487" height="327" src="https://substackcdn.com/image/fetch/$s_!y8bz!,w_487,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F300a3c7c-f95e-48ce-a93a-55846a1a5b10_487x327.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;">These are great features for Canadian investors, but what about publishers and creators? What does it mean for them from an affiliate standpoint?</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;">Increased conversion rates </p></li></ol><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">If these features make their app more desirable, it could lead to a positive increase in conversion rates. Higher conversion rates mean higher earnings per click (EPC) for affiliates, which could then incentivize them to push more traffic to WS over other partners. </p><ol start="2" 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;">Increase the average revenue per user (ARPU)</p></li></ol><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>With over </span><a href="https://substack.com/redirect/307a6f75-e76a-4db8-8463-6d6ae4814420?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">3 million</a><span> Canadians already using Wealthsimple, increasing the ARPU is a priority. With new features targeting more advanced trading features, they&#8217;re making a push to increase the number of trades each users makes. With their products being 0 or low fee, expanding higher margin products like crypto, options trading and gold can lead to an increase in the average revenue per user. </span><br><br><span>The higher the ARPU the higher the LTV of a user. In turn, marketing budgets will increase and CPAs for affiliate along with it. That said, with Wealthsimple currently paying $25 CPA, it has a LONG way to come before it&#8217;s remotely competitive. </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">I think WS is building an incredible suite of products and their acquisition loop is clearly working (might be the best in Canada). If they decide to invest more in building out the affiliate channel, here&#8217;s what they need to do:</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;">Increase the CPA to $150 on deposit</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;">Leverage Impact attribution tracking and set up events on registration, KYC, first deposit and total deposits in first 30 days of registration, add event for first trade. This gives affiliates more transparency on the quality of the users they&#8217;re sending.</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;">Work with top affiliates to scale on a hybrid conversion events, meaning the publisher or creator gets paid multiple times when a user hits different milestones (events in Impact). Example could be $100 on KYC, $100 on first deposit, $50 on first options contract.</p></li></ol><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Get ready for the EQ Bank No-Fee Mastercard with PC Optimum</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>EQ Bank made a splash by </span><a href="https://substack.com/redirect/1135ce3d-4653-41dc-a2eb-ae7a209b1e18?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquiring PC Financial</a><span>. I&#8217;ll be honest, I have no idea if this was a good deal or not from a financial perspective. But for publishers, its good news. PC has been on the fence with affiliate acquisition over the years. They have a few relationships but it&#8217;s never been their focus. </span><br><br><span>EQ&#8217;s program is more robust. They&#8217;re live on Rakuten with attribution set up and have a dedicated affiliate manager. Expect both the </span><a href="https://substack.com/redirect/cb1bc060-1c58-4462-b735-bad902a1ae34?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">No-Fee and World Elite</a><span> cards to be added to their affiliate portfolio first, when the rebrand is complete. I&#8217;d like to see them also add bank accounts and insurance offers also.</span><br><br><span>The more offers they add, the more investment they put into the affiliate channel sends positive signals to other FIs that affiliates are a strong source of quality users. </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Laurentian is finally dead</strong><span> </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Any time an offer goes offline, regardless if it was a strong revenue driver or not, is a negative. You want brands to be successful in the channel and to continue to invest in growing with publishers to drive new customer acquisition. </span><br><br><span>What&#8217;s the direct impact on affiliates? Outside of a few niche creators, likely minimal. That said, more competition in banking is not only better for consumers but also for affiliates. </span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h3 class="header-anchor-post" style="position: relative;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: 1.375em;">&#127864;Conferences</h3><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Upcoming conferences worth checking out: </p><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;"><a href="https://substack.com/redirect/cb9b1ab0-856b-4906-9c55-89a0b7c54193?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Affiliate Summit West</a><span> - Jan 12-14, 2026 | Las Vegas, US</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;">One of the largest affiliate conferences in North America.</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;"><a href="https://substack.com/redirect/84ea6584-05fa-4088-bc54-285abcaf95f4?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Automotive Finance Canada</a><span> - February 10th, 2026 | Toronto, 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;">If you&#8217;re active in the auto finance space, this would be one to check out. </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><h3 class="header-anchor-post" style="position: relative;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: 1.375em;"><strong>&#128188; Affiliate Marketing Jobs</strong></h3><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Looking for a job board specifically for affiliate marketing roles in Canada? </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Check it out &#128073; </span><a href="https://substack.com/redirect/e617b5b6-20f5-4469-82c1-ed18ac7a8adc?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">affiliate-marketing-jobs.com</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>See roles from </span><a href="https://substack.com/redirect/aa747ed4-3c82-4d96-b8fa-e548d480b5f8?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fintel Connect</a><span>, </span><a href="https://substack.com/redirect/66cbfb38-9ec9-4690-942d-1b7f3bc89de8?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Pet Lab Co</a><span>, </span><a href="https://substack.com/redirect/a9cf3ea3-7d00-4934-84c2-3d8c72c3f490?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Embark</a><span> and </span><a href="https://substack.com/redirect/e617b5b6-20f5-4469-82c1-ed18ac7a8adc?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">10+ others</a><span>.</span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>If you're hiring in the affiliate space, you can post a job for free. Get started&#128073; </span><a href="https://substack.com/redirect/3aea9903-3d41-4067-bb49-0b8b584186ab?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">here</a><span>.</span></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h3 class="header-anchor-post" style="position: relative;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: 1.375em;">&#127897;&#65039; Interview with Jean-Maximilien Voisine, founder of Milesopedia</h3><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><br><span>This month, we did something different, and I asked </span><a href="https://substack.com/redirect/a7a872ac-1806-46b6-b82f-9a24bc70abb1?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Rakesh Mistry</a><span> if he would step in for me and sit down with </span><a href="https://substack.com/redirect/d5d3e241-66a8-4204-bbcc-8b4ef7c5fcfd?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Jean-Maximilien Voisine</a><span>, founder of </span><a href="https://substack.com/redirect/0c47aa42-5edc-4564-b5e5-c7549b14bbb1?j=eyJ1IjoiNnM3aW41In0.9HALq_Rq0s3azS3LEGkmmMLHM2lZF_o9Y6riByZ66dQ" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Milesopedia</a><span>, as part of our Fintech Affiliate Spotlight Series.</span></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In this conversation, Jean-Maximilien shares how Milesopedia built credibility in a highly regulated industry, how data and authenticity have guided every partnership, and what&#8217;s next as the company embraces AI and new growth opportunities.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Here&#8217;s their conversation, edited for clarity and length. </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;"><strong>Rakesh Mistry:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">First off, congratulations on Milesopedia turning 10 and on everything you&#8217;ve achieved during that time. It&#8217;s been great to work with you and to see how far you&#8217;ve taken the brand. For those who may not know the full story, how did Milesopedia identify affiliate partnerships as a key growth lever early on, and how has the strategy evolved as the brand matured?</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Jean-Maximilien Voisine:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">At the beginning, I actually didn&#8217;t know anything about affiliate marketing. When I launched the site in 2015, it was mainly a personal blog about travel and credit cards. Shortly after the launch, Scotiabank and Fintel Connect&#8212;then ShareResults&#8212;reached out to me and explained how affiliate partnerships worked.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">I quickly saw that readers were taking action after reading our guides&#8212;they were applying for cards and booking flights. Affiliate marketing became a natural way to fund free, high-quality content, and over time it turned into one of our core pillars. </p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Even though we now have other revenue sources through strategic partnerships, affiliate marketing remains central to our model and helped us build a strong sub-affiliate network, which is now one of our key strengths in Canada.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Rakesh Mistry:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">I&#8217;ve always found it interesting how you created not just a brand but an ecosystem&#8212;Milesopedia as the anchor and the sub-affiliates supporting it. You&#8217;ve helped connect major financial institutions such as RBC, TD, and Scotiabank with your audience in a way that benefits everyone. When you&#8217;re selecting affiliate or brand partners&#8212;banks, card issuers, travel providers&#8212;what criteria or performance metrics matter most to you?</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Jean-Maximilien Voisine:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Authenticity comes first. The products must bring real value to our readers. We only promote items we&#8217;ve tested and approved ourselves.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Our team of 20 is very diverse&#8212;parents, digital nomads, students, even retirees&#8212;so between all of us, we&#8217;ve tested virtually every product on the market. That allows us to evaluate where real value lies.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">After authenticity, data drives our decisions. We look at approval rates, EPC, conversion metrics, and payout reliability&#8212;because we&#8217;re a business, and we have employees to pay. Sometimes a partner looks good on paper but isn&#8217;t a fit in practice; when that happens, we simply don&#8217;t promote them.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Rakesh Mistry:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">How do you balance your content strategy between what you want to create and what your audience is asking for?</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Jean-Maximilien Voisine:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Community feedback is the foundation of Milesopedia. We have around 40,000 members in our Facebook group, moderated by 10 volunteers who handle hundreds of questions each week.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Because of that engagement, we always know what readers care about and how they&#8217;re using their points. We hold monthly meetings with bank and travel partners&#8212;airlines, rewards programs&#8212;to share those insights.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Recently we hosted events in Toronto and Montreal where we connected executives from Air Canada Aeroplan directly with our readers. Seeing those genuine interactions reminded us why we do this.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Rakesh Mistry:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Which untapped affiliate opportunities or verticals do you see as the next big growth areas for Milesopedia?</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Jean-Maximilien Voisine</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">For Milesopedia, credit cards will always remain our core. But over the years, our banking partners have asked us to expand into related products&#8212;checking accounts, savings accounts, and other banking tools.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The next major growth areas for us are insurance, mortgages, investment platforms, VPNs, and eSIM services.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Because Milesopedia is still largely perceived as a travel-rewards brand, we&#8217;re planning to launch a separate brand focused on personal and business finance. I can&#8217;t share the name yet, but it&#8217;s in the works.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Rakesh Mistry:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">To wrap up&#8212;if you were advising a new fintech brand entering the affiliate space today, what should they focus on first: tracking infrastructure, relationships, or content authority?</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Jean-Maximilien Voisine:</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">It&#8217;s really a combination of all three, but start with clean tracking.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">When we began, tracking wasn&#8217;t our strong point&#8212;but it&#8217;s the foundation of everything. Without reliable tracking, you can&#8217;t prove value.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Next, focus on real relationships&#8212;face to face, not just Zoom calls. I travel between France and Canada six or seven times a year to meet partners. A handshake still builds more trust than a Google Meet.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Finally, take compliance seriously. We&#8217;ve seen competitors disappear because they ignored it. That&#8217;s why brands and creators partner with us: we manage compliance so they can focus on creating content that converts.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">When done right, affiliate marketing becomes a win-win for both brands and publishers.</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;margin-bottom: 0;"><strong>***&#8212; Are you interested in being interviewed for my newsletter? 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} } @media screen and (max-width: 650px) { .typography .markup .apple-podcast-container, .typography.editor .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { .typography .markup .install-substack-app-embed img.install-substack-app-embed-img, .typography.editor .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { .typography .markup .install-substack-app-embed .install-substack-app-embed-text, .typography.editor .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) { .typography .markup .install-substack-app-embed .install-substack-app-embed-link, .typography.editor .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 481px) { .share-button-container { height: 38px; } } @media screen and (min-width: 481px) { .share-button-container a.comment { height: 38px; line-height: 38px; padding-right: 10px; } } @media screen and (max-width: 480px) { .share-button-container .separator { display: block; margin: 0; height: 8px; border-left: none; } } @media screen and (max-width: 480px) { .share-button-container a.share.first img { padding-left: 0; } } @media screen and (min-width: 481px) { .share-button-container a.mobile { display: none !important; } } @media screen and (min-width: 541px) { .settings-add-pub-modal-wrapper .container .add-recommending-pub-modal-container { padding: 36px; height: 680px; } } @media screen and (min-width: 541px) { .settings-add-pub-modal-wrapper .container .add-recommending-pub-modal-container .footer { position: absolute; bottom: 36px; margin: 0px; } } @media screen and (max-width: 650px) { .header-anchor-parent { display: none; } } @media screen and (max-width: 768px) { .post { padding: 16px 0 0 0; } } @media screen and (max-width: 650px) { .post .post-header .post-label { margin-top: 8px; } } @media screen and (max-width: 650px) { .post .post-header .meta-author-wrap.alternative-meta .meta-right-column .post-meta { margin-top: 6px; } } @media screen and (max-width: 650px) { .post .footer-facepile-container { height: 64px; padding: 0 16px; display: flex; align-items: center; justify-content: flex-start; width: 100%; } } @media screen and (max-width: 650px) { .post .post-footer.use-separators { justify-content: center; } } @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 (max-width: 1024px) { body .pullquote-align-left, body .pullquote-align-right, body .pullquote-align-wide, body .pullquote-align-center { float: none; margin: 0 auto; width: 100%; max-width: 100%; } } @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 (min-width: 1024px) { body:not(:has(#toc)) .captioned-image-container figure:has(> a.image2-offset-left) { margin-left: var(--image-offset-margin); } body:not(:has(#toc)) .captioned-image-container figure:has(> a.image2-offset-right) { margin-right: var(--image-offset-margin); } } @media (min-width: 1300px) { body .captioned-image-container figure:has(> a.image2-offset-left) { margin-left: var(--image-offset-margin); } body .captioned-image-container figure:has(> a.image2-offset-right) { margin-right: var(--image-offset-margin); } } @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; } }</style></head><body class="email-body" style="font-kerning: auto;--image-offset-margin: -120px;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUxMTAxMTY1MTIxLjMuYTUxNjkyZWEwZmJlNDA1YS5tZmpkdWxnYkBtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6NDEwMTc3MDU3LCJyIjoid2NnMm5yeXQ0dHVhZ3dvNEBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOm51bGwsInQiOm51bGwsImEiOm51bGwsInMiOjIwNzkwMDYsImMiOiJmcmVlLXdlbGNvbWUiLCJmIjp0cnVlLCJwb3NpdGlvbiI6InRvcCIsImlhdCI6MTc2MjAxNTg4MiwiZXhwIjoxNzY0NjA3ODgyLCJpc3MiOiJwdWItMCIsInN1YiI6ImVvIn0.jCftcrVSfJd6g17EYtmo4WO-EKoYelWOUnlj6SrvhYw" 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;">Thank you for subscribing to Canadian Fintech Affiliate Newsletter</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; 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&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; &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;</div><table class="email-body-container" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td></td><td class="content" width="550"></td><td></td></tr><tr><td></td><td class="content" width="550" align="left"><div style="font-size: 16px;line-height: 26px;max-width: 550px;width: 100%;margin: 0 auto;overflow-wrap: break-word;"><img class="static-XUAQjT" src="https://substackcdn.com/image/fetch/$s_!9FUn!,w_80,h_80,c_fill,f_auto,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe4b4884e-ab63-45d4-8c03-b82035f5ef7b_256x256.png" width="40" height="40" alt="Canadian Fintech Affiliate Newsletter" name="Canadian Fintech Affiliate Newsletter" style="border-radius: 8px;box-sizing: border-box;background-color: rgb(255,255,255);margin: 0;max-width: 550px;border: none !important;vertical-align: middle;"><div class="post typography" dir="auto" style="--image-offset-margin: -120px;padding: 32px 0 0 0;font-size: 16px;line-height: 26px;"><div class="body markup" dir="auto" style="text-align: initial;font-size: 16px;line-height: 26px;width: 100%;word-break: break-word;margin-bottom: 16px;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-top: 0;">Thanks for subscribing!</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Here&#8217;s what you can expect from my newsletter.</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>Published </span><strong>monthly on the second Tuesday of the month.</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;">Insights into the affiliate marketing industry in Canada. </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;">Updates to offers, traffic channels and insights into the biggest industry news over the past month or so. </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;">An editorial section by me on where the Canadian affiliate industry is heading. </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;">Conference spotlight - the best shows to attend each month. Where to rub shoulders with the biggest advertisers and direct publishers. </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>You&#8217;re in good company</strong></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Here are some comments about my newsletter from industry experts on LinkedIn:</p><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="510" style="text-align: center;"><a class="image-link" target="_blank" href="https://email.mg-d0.substack.com/c/eJxUkk2O3SoQhVcDM1tQgH8GHrRa8luGVYaymxcDDuC-6aw-8r2KWpkdqYrzfUJlsdKe8te0ZaLmQYdNgbibOoWbcZwm2XcgpBkGxSmgP5adImWs5Bas31MYO8E_JjUCDV1ne6W16C2KzRoAMpvtN-lIcz-BACOlkLIzEmSrWjSyG4FQbCtpYbAN2__uOvaVaRH2xom2XGupaH-0NgXuy3K73i5TzRfxY_qo9SxMvTGYGcx_t62L9wMGsw-4E4N5o2o_nku6LAzk-N9uGUgG79uCV00M3n--gnrbU3L34FjOnPZMpfhPYuqtVKKTwfxigrmp5q403-TmTKU2gZzHtqgWA_5OER_lpWNgPq_18PYZn27lGTtjVie0bUgO0Ohhs81grGq01ihHY0AqtRgpfslOt2fc-Xmti00hXNHXr4Uirge516e8CFh9iot3E4h-FKLjeXrYHWL-qrpeuD-SZlpEepSDaqXc5uQo8XKtLgX0cbIYKKcY_HGsGB2v_97JVSjf9VoK2ffC9Pxzgj8BAAD__645wAU" 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/655bd04c-e182-48fc-85c3-444a19552133_510x164.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:164,&quot;width&quot;:510,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:24822,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="510" height="164" src="https://substackcdn.com/image/fetch/$s_!9Ggc!,w_510,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F655bd04c-e182-48fc-85c3-444a19552133_510x164.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;">Tomi Gbeleyi-Curtis - Sales Lead | Google</figcaption></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="494" style="text-align: center;"><a class="image-link" target="_blank" href="https://email.mg-d0.substack.com/c/eJxUksGupCoQhp8GdxooQZuFi5OTuL9PYAoobe4IOICnp-fpJ3ZncjK7P6ni_76QslhpS_k5rZmofdBuU6DGTUOPq3INTWIcgAt1u_UNBfT7slGkjJXcgvV7CnrgzX3qR61H3WuuScnbzelVIaAAocHAQKbxE3BQQnAhBiVAdH2HSgwaCPlqSHKFXVj_d-e-GSZ52FrHu3KaUtH-6GwKjS_L5Xq5TDWf1OzTvdajsP6Dwcxg_rttXbweMJh9wI0YzCtVe38tybIwEGaO_zEQDD7XBc-aGHz-fIf-Y0vJXYN9OXLaMpXiv4j1H6USHQzmNxPURVVXpfomt0cqtQ3kPHal7zDg7xTxUd46CubjNLu3r_hyK69IwkJvlWn70blWohhbM0jejiNJAHCDXm-L1MMvIaE74tYcp1lsCuGMvj4Ximh2cu9PeROw-hQX7ybgo-Z8aPL0sBvE_Kyynrg9kmSSR3qUnWql3OXkKDXlNC4F9HGyGCinGPy-G4yuqf_eyVkoX_VScDGOXI3N1wR_AgAA___wnMAR" 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/e1c23c5b-37dd-4a17-b640-77e4222d69f8_496x142.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:142,&quot;width&quot;:496,&quot;resizeWidth&quot;:494,&quot;bytes&quot;:21358,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="494" height="141.42741935483872" src="https://substackcdn.com/image/fetch/$s_!bFnQ!,w_494,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe1c23c5b-37dd-4a17-b640-77e4222d69f8_496x142.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;"><strong>Scott Birke - Director of SEO | Wise Publishing</strong></figcaption></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="547" style="text-align: center;"><a class="image-link" target="_blank" href="https://email.mg-d0.substack.com/c/eJxUksGO2yAQhp8GbrZgDHZy8CFayW_QszXA2KE14ALeNH36yomq1d5-aYb_-4TGYqU15ee4ZKLmQZtNgbgb-w4X7TiNcuhBSH25dJwC-m1eKVLGSm7G-jWFay_4fbwY0MrYSw-9HaRw1glheiURemnIIPcjCNBSCil7LUG2XYta9lcgFIshJTS2Yfnpjm01TImwNk605TClov3V2hS4L_PperqMNR_Et_Fe615Yd2MwMZj-b1sXzwcMJh9wJQbTQtXeX0uqzAzk3ZkfDCSDj2XGoyYGH7_fobutKblzsM17TmumUvwnse5WKtHOYHozQZ9UfVbqL3Kzp1KbQM5jW7oWA_5NER_lraNh2g-zefuKL7fyiiSscYs0jXQDNWqwrkFnsLGLuy6dvMLQX2athj9SQbvHle-HmW0K4Yi-PmeKaDZy7095E7D6FGfvRhDDVYie5_FhV4j5WVU9cH0kxZSI9Cgb1Uq5zclR4uUwLgX0cbQYKKcY_LYZjI7X73dyFMpnvZJCDoPQA_8c4V8AAAD__3kCwjc" 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/e0cbdf1b-1d7e-47cd-adba-cfd9f3192768_547x142.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:142,&quot;width&quot;:547,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:22846,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="547" height="142" src="https://substackcdn.com/image/fetch/$s_!hdbU!,w_547,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe0cbdf1b-1d7e-47cd-adba-cfd9f3192768_547x142.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;"><strong>Claire Taylor - Marketing Director | Fairstone Bank</strong></figcaption></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="547" style="text-align: center;"><a class="image-link" target="_blank" href="https://email.mg-d0.substack.com/c/eJxUktGK5CoQhp9G7xK0orFzkYthoOE8RSi1kvFs1Kya6Z19-iXdLMPe_VDl_31IOWy05fI1r4Woe9DuciTu53HAVXtOszQjCKlvt4FTxLAvGyUq2Mgv2L6nMI2Cf8zoFQmnLGhlLHl7I2tv7qaBlBym0fAwgwAtpZBy1BJkP_So5TgBoVgtKaGxj-v__tw3y5SIW-dFX09bG7ofvcuRh7pcrpfL3MpJfJ8_WjsqG94Y3Bnc_247n64HDO4h4kYM7is19_FcUnVhIP_DMzCQDN7XBc-WGbz_fIXhbcvZX4N9OUreCtUaPokNb7URHQzuLyboi6qvSv1N7o5cWxfJB-zr0GPE3znho750NNyP0-7BPePTrT7jKKyhUdlusJPslDFTN5FRHclB-dEZNThatDK_pIL-SBs_Tru4HOOZQvtaKKHdyb8-5UXAFnJagp9BmEmIkZf54TZI5aupduL2yIopkehRd2qNSl-yp8zraX2OGNLsMFLJKYZ9t5g8b__eyVmpXPVKCmmM0IZ_zvAnAAD__xIIwRo" 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/60b7e64b-3b91-4779-9e74-e134d6c743ce_547x142.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:142,&quot;width&quot;:547,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:23509,&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;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="" width="547" height="142" src="https://substackcdn.com/image/fetch/$s_!Iaui!,w_547,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F60b7e64b-3b91-4779-9e74-e134d6c743ce_547x142.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;"><strong>Nadir Marcos Mechaiekh Simon - Owner and Founder | Planhub.ca</strong></figcaption></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="547" style="text-align: center;"><a class="image-link" target="_blank" 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    Sat, 01 Nov 2025 16:43:53 -0000

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