Mr. Novogratz’s Galaxy Digital Assets Fund was due to start on Dec. 15.
Bitcoin has fallen more than 40 percent the past four days. It hit a low of $10,776 Friday, down from $19,511 on Monday. The digital currency has since rebounded from its low and was recently at $13,268.
Prosecutors are said to be seeking Kushner records from Deutsche Bank.
Ben Protess, Jessica Silver-Greenberg and David Enrich of the NYT report that Federal prosecutors in Brooklyn have sought bank records about entities associated with the family company of Jared Kushner.
In recent weeks, prosecutors from the United States attorney’s office in the Eastern District of New York subpoenaed records from Deutsche Bank, the giant German financial institution that has lent hundreds of millions of dollars to the Kushner family real estate business.
Mr. Kushner, who was the Kushner Companies’ chief executive until January, still owns part of the business after selling some of his stake. The family businesses include many legal entities. It is not clear which records were sought by prosecutors, what they are seeking to learn from them or to what degree, if any, they directly involve Mr. Kushner.
There is no indication that the subpoena is related to the investigation being conducted by Robert S. Mueller III, the special counsel, into Russian meddling in the 2016 United States presidential election.
Add BofA to the list of companies passing along some of their tax windfall to employees.
The WSJ is reporting that Bank of America is handing out $1,000 bonuses to about 145,000 employees who earn up to $150,000.
President Trump signed the tax bill into law Friday. Since Wednesday when the bill passed Congress, a growing list of companies have announced plans to pass some of their tax windfall to employees.
AT&T and Comcast both will pay a $1,000 bonus to most of their workers in the United States.
Wells Fargo, PNC Financial and Fifth Third are raising their minimum wage to $15. Fifth Third will give $1,000 bonuses to 13,500 of its 18,000 workers, while PNC Financial will pay $1,000 bonuses to about 47,500 employees.
Boeing said it will spend $300 million on employee training, workplace infrastructure, and corporate giving.
“Compared to the potential gains from lower taxes, these gestures are trifles. In a very simplified world, cutting the tax rate by 1 percentage point adds almost $2 to the S&P 500’s earnings per share, according to Citigroup estimates. Based on a tax rate falling from 35 percent to 21 percent, that’s $28 of extra earnings per share – or $280 billion in total, according to a Breakingviews analysis. Pop that on the historical price-to-earnings multiple of 15, and the biggest American companies ought to be roughly $3.6 trillion more valuable.”
How low can it go?
Bitcoin is down more than 30 percent and is approaching $10,000. The biggest cryptocurrency traded at a high of $19,511 on Monday. The selling has spilled over to other digital currencies. Ethereum and litecoin are off more than 35 percent.
Such tumbles are hardly unusual for bitcoin, which is still up more than 1,300 percent this year.
But the decline has some asking if the top is in. Here are some comments from around the web:
Neil Wilson, ETX Capital, courtesy of MarketWatch: “Has the bubble finally popped? It’s hard to see the bell tolling just yet. We can easily see this market bounce back in very short order. Whilst there have been some hacks, public infighting in the mining community, lots of rumored forks and regulatory pressure building on some fronts, this is likely to be a simple bout of risk-off selling as investors rebalance towards year-end.”
Ross Norman, Sharps Pixley, courtesy of Bloomberg: “The sharks are beginning to circle here, and the futures markets may give them a venue to strike. Bitcoin’s been heavily driven by retail investors, but there’ll be some aggressive funds looking for the right opportunity to hammer this thing lower.”
Michael Jackson, Mangrove Capital Partners, courtesy of CNBC: “The vast majority of long term holders of bitcoin are still way in the money and have shown no sign of cashing out.”
Bitcoin’s “reality check.”
Where Bitcoin was on Sunday: $19,511
Where Bitcoin is this morning: $13,577
What Stephen Innes, the head of Asia-Pacific trading for Oannes, told Richard Frost and Eric Lam of Bloomberg:
“At the heart of the matter was a frenzied demand for coins with limited supply has now led to unsophisticated investors holding the bag at the top.”
What does a top look like?
Maybe like a host of companies rebranding themselves as having something to do with digital currency or blockchain technology. What gained a huge amount of attention yesterday, of course, was the beverage maker Long Island Iced Tea Corp. announcing that it was changing its name to Long Blockchain Corp. and pivoting to virtual money. (It will still maintain a beverage division, of course.)
What happened was predictable:
But maybe we’re not at a top. Shane Chanel, a wealth adviser at ASR Wealth Advisers, told CNN Money that investors may just pile into other digital currencies, adding, “I feel the cryptocurrency madness is only beginning.”
Goldman Sachs is jumping in
The firm is opening a digital currency trading desk, according to Bloomberg. The firm already clears Bitcoin futures, one of the few banks on Wall Street to do so.
Speaking of a Wall Street firm getting into Bitcoin, who said this late last month?
“If it works out and it gets more established and it behaves more like a store of value and it doesn’t move up and down 20 percent and there’s liquidity in it … you know, we’ll get to it.”
Boeing’s takeover of Embraer may have just hit some headwinds.
Michel Temer, the president of Brazil, said the government would oppose the sale of a controlling stake in aircraft maker Embraer.
“Embraer is Brazilian, it represents Brazil very well abroad. An injection of foreign capital would be welcome. But we won’t consider the question” of a change of control.
Boeing and Embraer said Thursday that they are discussing potential business combinations after The Wall Street Journal reported the two were in takeover talks. A deal that gave Boeing control of Embraer, a crown jewel of Brazilian industry, would need government approval. From The WSJ:
“The Brazilian government holds a veto over any transaction that would transfer control of the company, which was originally state-owned and still has close ties to the country’s military establishment.”
AT&T and Time Warner extend their deal’s deadline
The companies now have until June 21 to complete their $85.4 billion transaction, according to a court filing.
They pushed the deadline back after a trial date was set for the Justice Department’s lawsuit to block the deal. The court hearings will begin on March 19, which wouldn’t give the two enough time to complete their transaction before the previous deadline of April 22.
— Michael J. de la Merced
Qualcomm rejects Broadcom’s slate of directors. Oddsmakers take a beating.
Who didn’t see this coming? From the Qualcomm news release:
Broadcom and Silver Lake are asking Qualcomm stockholders to turn over control of their Company now to the hand-picked Broadcom-Silver Lake nominees based on a proposal that dramatically undervalues Qualcomm and is not actionable due to its significant regulatory uncertainty, which may not be resolved for 18 months, if ever, and lack of committed financing. Broadcom has made no commitments to resolve the serious regulatory issues inherent in its proposal.
Expect a lot more fighting between now and March 6, when Qualcomm is scheduled to hold its annual shareholder meeting.
— Michael J. de la Merced
Does Google still need its “secretary of state”?
Eric Schmidt was more than the adult in the room during the early days of Google. He was the technology giant’s person in Washington, Brussels and Beijing. But does his departure as executive chairman next month mean that his services are no longer vital?
It comes as Alphabet, now Google’s parent company, and other tech giants need friends in political capitals around the world — and Mr. Schmidt’s connections to previous administrations like the Obama White House may not be as useful.
From Dai Wakabayashi, Katie Benner and Claire Miller of the NYT:
He has been eclipsed in Washington by others at Google, including Susan Molinari, a former Republican Congresswoman from New York, said some of the people familiar with the company. Google also has new Washington staff members such as Max Pappas, a longtime political operative who has a relationship with Charles and David Koch, the billionaire brothers who support conservative causes.
The personal angle
There was no mention in Google’s announcement about why Mr. Schmidt left. But one issue that has hung in the air is the executive’s well-known personal life — including the bringing of girlfriends to corporate events, the World Economic Forum in Davos and other occasions.
The Information reported recently on how the hiring of Marcy Simon, a marketing expert who was in a relationship with Mr. Schmidt, at the company’s Android division caused some consternation in the unit.
• Shira Ovide writes, “Google isn’t in desperate need of more adults. But the rest of the technology industry might be.” (Gadfly)
• Jennifer Saba writes, “Hiring a strong, independent chairwoman would reflect well on co-founders and controlling shareholders Larry Page and Sergey Brin in more ways than one.” (Breakingviews)
A fight over a government shutdown is delayed to next year.
Or, put another way, government funding has been extended until Jan. 19. The deadline was today.
Yesterday’s votes in Congress to prevent a shutdown prevented Republicans from suffering an embarrassment so soon after passing their tax overhaul. But here’s what will confront lawmakers when they return to Washington next month:
• What to do about the young immigrants known as Dreamers
• Long-term funding for the Children’s Health Insurance Program beyond March
• The future of the warrantless wiretap program run by the N.S.A. and the F.B.I.
The Washington flyaround
• A federal judge dismissed a lawsuit accusing President Trump of violating the Constitution by continuing to own and profit from his business empire, arguing that the plaintiffs didn’t have legal standing. (NYT)
• The bonuses that AT&T is paying employees because of the tax bill appear auspiciously timed: Under the current tax code, they amount to a $70 million deduction for the expense, while the deduction would be $42 million under the new tax rates. (WSJ)
The latest in workplace misconduct news.
• Ford’s C.E.O., Jim Hackett, publicly apologized for nearly three decades’ worth of harassment by employees at two Chicago plants, an issue that was the subject of a recent NYT investigation. (NYT)
• Six symphonies have cut ties to the famed classical music conductor Charles Dutoit after four women accused him of sexual assault. (AP)
• Major League Baseball had pushed out Bob Bowman, the longtime head of the league’s former digital platform, after knowing about accusations of dating subordinates and shoving and verbally abusing colleagues. (WSJ)
How much juice is left in Apple’s recent surge?
Sure, the iPhone maker’s shares have jumped this year, pushing its market value into uncharted territory above $900 billion. How long can the tech giant continue to breathe that rarefied air?
Putting Apple’s market cap into context
Courtesy of Jeff Sommer and Karl Russell of the NYT:
• When adjusted for inflation, Apple’s market capitalization just recently surpassed Microsoft’s record high. At the heights of the dot-com bubble in 1999, Microsoft’s market capitalization peaked at $647 billion.
• Apple’s share of the total stock market doesn’t even rank in the top 20, going back to 1925.
Is Apple doing better in China?
Morgan Stanley says that the iPhone X is helping stanch the flow of customers defecting from Apple to makers of cheaper smartphones. In a research note, the bank said that Apple has a 57 percent retention rate among iPhone users when they upgrade. That’s 20 percentage points higher than any other brand in China.
Why is the country important to Apple? It accounted for nearly 20 percent of iPhone sales last quarter — and the iPhone accounts for more than 55 percent of Apple’s sales during that time.
The battery controversy
The tech flyaround
• Facebook signed a deal with Universal Music Group that lets its platforms carry songs from the music label’s artists, settling a long-running dispute. (Bloomberg)
• Qualcomm has gotten a permit to test self-driving cars on public roads in California. (CNBC)
• We knew Furbys were trouble: The latest model, as well as other toys, could be vulnerable to hackers and identity thieves. (NYT)
The M. & A. roundup
• Boeing is seeking to buy the Brazilian aircraft maker Embraer to try to gain a bigger foothold in the regional jet market — but is awaiting the blessing of Brazil’s government. Separately, a former Embraer executive pleaded guilty to U.S. charges of bribing a Saudi Aramco official to secure a sale. (WSJ, Reuters)
• Roche agreed to buy Ignyta, a maker of an experimental cancer treatment, for $1.7 billion. (Bloomberg)
• Royal Dutch Shell has agreed to buy First Utility, a British-based electricity provider, for an undisclosed amount to expand its non-oil business. (NYT)
• Mark Ein, a Washington-based investor, said that he would buy the Washington City Paper after its current owner put the independent newspaper up for sale. (Washington City Paper)
How JPMorgan got caught up in the 1MDB scandal.
It did so by completing transactions with the controversy-ridden Malaysian government investment fund that have now gotten the attention of the Swiss financial regulator Finma.
The Swiss agency will install a person inside the bank to review its money-laundering policies, “given the inadequacy of the bank’s controls.” JPMorgan said that the activity had taken place years ago, and that the firm has since improved its staff training and surveillance operations.
Potential more scrutiny ahead: Finma said it had referred to case to the U.S. Office of the Comptroller of the Currency.
The heat is rising for HNA.
U.S. lawmakers are calling for increased scrutiny of the Chinese conglomerate from the Committee on Foreign Investment in the United States, or Cfius, the WSJ reports.
The Treasury Department, the Justice Department and the Defense Department have endorsed a bill that would make it easier for Cfius to reinvestigate past foreign deals.
In HNA fund-raising news: The conglomerate pledged part of its stake in Postal Savings Bank of China to borrow money as concerns about its debt load have started to weigh on its finances. And it still does not have approval to buy a controlling stake in SkyBridge Capital, Anthony Scaramucci’s investment firm.
The Speed Read
• John Schnatter, who blamed the N.F.L.’s handling of the national anthem controversy for Papa’s John’s declining sales, will step down as chief executive. (NYT)
• Vince McMahon, the chairman and chief executive of World Wrestling Entertainment, filed details with the S.E.C. of a sale of $100 million of shares to fund an exploration of opportunities in other sports, including football. (ESPN)
• MetLife hired a law firm to investigate how it failed find and pay pension benefits to thousands of people. It said it would hire a specialty firm to locate these people. (WSJ)
• AC Milan, the city’s oldest football club, is struggling to find investors willing to refinance its more than $300 million in high-interest loans from Elliott Management. (FT)
• Timing is of the essence when making stock donations, as Michael Milken, the former junk-bond financier knows after two gifts to charity just before the shares plunged in value. (WSJ)
• The online gambling company, GVC, will buy the British bookmaker Ladbrokes Coral in a deal worth as much as 4 billion pounds, or nearly $5.4 billion. (Sky)
• UBS has to pay $903,300 to one of its former senior strategists who accused it of illegally firing him for blowing the whistle on attempts by commercial mortgage-backed securities traders to influence his independent research reports. (Bloomberg)
• More American universities than ever are sitting on endowments worth at least $1 billion, helped by heavy investments in stocks. (Bloomberg)
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An earlier version of this article misstated the surname of a marketing expert in Google’s Android division. She is Marcy Simon, not Schmidt.