Pipes Feed Preview: money-stuff & canfintech & cardsFTW

  1. Money Stuff: Robinhood Wanted B*ts on the B*g G*me

    Tue, 04 Feb 2025 20:19:00 -0000

    <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xmlns="http://www.w3.org/1999/xhtml" style="width: 100%;"> <head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="initial-scale=1"/> <title>Money Stuff</title> <!--[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/bPX7wx0TXVb93BS9Kj_5wQ~~/AARGbBA~/v684XA7rvlbfzqti0FSlUy13tlEz0hII3E2xuv7YWJ7xavzrQw7uIDGvGhUvX9phSS65XTFQzytkVS6j_cw9pp8KDZNVYZFVq6lAz4qs_qc~" 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/e/eo?_t=f574328d4d0c4c359b90d8e49b10e21d&amp;_m=f22444562da94f129993de945d36efee&amp;_e=aJX7g-jJcSkbO9QtIIxNqD1grPAnvQx9ZSHzhRLYR_JagoFCrtRDuQVEr_sl6IQKu5YXt-psAYFpSfakw92rQqQZ6WDGWY7MTwu-1gZx69Q1pkAkicBJvpDnTLEZUA3CZe36wh_bGJC6ZLF8hkGcBVX6zIgS8Ubwjtl47UeKGzI%3D" 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;"> Programming note! I am not completely sure, but my best evidence is that the first edition of Money Stuff, in the form of an email newslette </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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC35_2QodtcahRiQl6Oj9P1O7y6kvPa5sALmGdTz2UcJJFFmKNBfnxZt4N4QHsdp0pPQ7eRSoKB9cwUcV5FfSlf_dkQ8N2cmcBRRLThQpsa8bHBbbEfIuhT3WdEDcjWHF0ShVOyAmGPqrVB_KB79red7_zxArBM8455j5GGe_fqqPQaXXrg7lDSecGW5vLBYKvNOu0NzlTIfscbvtxzps6kLD866cs8kVGatCUZDUopi8eCT8ytyTxK-QCENOALVVCglWP_tQCE2JeVMkI2ZXcHvo4AMLzzpKWJS21zmJFogp-ZMViIEkAb6Gk5IQFR0nJg%3D%3D"><!--[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;"/><!--[if mso]></div><![endif]--></a> </td> </tr> </table><table border="0" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCz5GkvGfaEAjcAZxReIiMizSxIuNUEAOedr9IosWRXhdYFveCdrWRkyOu5ou-lf3UucJO-oTQ4k0ONDkhgYdX9Hl21xNWK0JTsdsHjyRoaB8-lrvbdlGOXAM-mA7RtUtN7lzdXf6N7XYpN0KDJ6tuStgwCtAL2uLU45zYTP2RVnmzg-5NjC4XMB1CF4ZPRJBYxDiVVF7XeMcXD3I_j3yxmse4DALPT36bkezRu32nqG1tIJlppCrFudWAvQMgv9upw8vwaKDUUpC-Vt39nJj4gmFDvT_LCGTxOfqWjbiUHszO4v_kOyiO0UPeLdkFAN31A%3D%3D" rel="nofollow"> <img src="https://sli.bloomberg.com/imp?s=825881&stpe=default&li=12513767&m=c869f5c3f0784f1d3b0577b4456d769f&p=02042025" border="0" width="108" style="width: 108px !important; display:block"/> </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;">Happy birthday to me</h2> </td> </tr> </table> <p style="margin: 16px 0;">Programming note! I am not completely sure, but my best evidence is that the first edition of Money Stuff, in the form of an email newsletter with that title, was published <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC2dcSLLsZrBb3DYh_lE9HXmBD0n5V3jiJ-XaqASctQDQnwNre5H3wEGqi86Q2ABZLUulLXdRbOSvaJ44QNJfkz9-094EvyhV7pmqWcUD9CppCz84ZUHbrDDS5XqW09isToEKcXVrnhv1DaTM06rLokBS0PcBwrSBFA6CsUt6_EkyWA-O6UmYrwJs8HBhr_5cHl2ZMo7FtKN81eO0ICPmCPbLlfiYv68Fbajd8Vdr6GkIvdqJ7eRVvfGHFKMnOQwf5pteRIOgc9q-p6Kfo6rzZ2ZXy5zVDgYtlxcAIE61tMdbd04qFdz0KMBGxVjhvnUvHw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">10 years ago today</a>. If you had asked me then if I would still be writing this email newsletter a decade later, I would have said “huh, that would be cool.” It has been! It has been an absurd privilege to get to write Money Stuff, I look forward to doing it for many more years, and I am intensely grateful to you, my readers, for making it possible.</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;">Sports betting in your brokerage app</h2> </td> </tr> </table> <p style="margin: 16px 0;">I guess <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC0xE_gclWTwU8vxCO4DNWqdfGbb8gHB5eMGOW0BEaOKPveOqL_ZB9EQdt_oLYYyH4KqkE7nvf2pp1INm4hHJUgNdrNiCfB6ZAl46tbyB63SjYejox1ybyWrtPOoij9wlnimwDhSWu1HHBDhvxyK-Q3bL7T3vMJf_AdmjzFkx2zux6zLR0-1j043s2YlhkicOvma-lcCWsQW_Tl9vVZp7QH5bXXuqjPIeZVTscRDm4FC8lAFZF5sKlbU9HRbgO_dGFDpElhrXynbyJAK0e7MlYmFC3a3Vs259L8SRXB8ccSaFxS-DMjOJeDYyzUGocNUfjQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 was inevitable</a>:</p> <blockquote> <p style="margin: 16px 0;">Robinhood Markets Inc. is getting in on the sports event contracts craze, offering retail investors the opportunity to place trades on the outcome of Sunday’s Super Bowl.</p> <p style="margin: 16px 0;">The contracts will be available starting Monday to eligible customers in all 50 states through the derivatives exchange Kalshi Inc., according to a Robinhood statement.</p> <p style="margin: 16px 0;">“With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports and entertainment,” the company said in the statement.</p> </blockquote> <p style="margin: 16px 0;">Though perhaps <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCwoMn0Ra6B_dsMKZeg4IwpG-wNtP34HdgIlPEYmvhlcPDM6JsvDvvnGGuM6udOVLMfFPP0ZuN87mpvo0_gwWa70MZ_FqUT3zFOaGGiCN_6o2ZLxQOrHJj52jzgjl94oioioozHCxXS0EVKm5ZTUqQnHWzY6hFZ1a3yaL3ABpc2eMTZTxaTY_PhsMFnxJzWnEeQ7sH5Hk40M1Xo77AlgLCMcHAfzdxysRnuvkbKe2qjy64Aa2MZ0x2Ud027T5OFnij9ZJtqyBcUt0HGC5bVg1D2GljdqsgyTP6-WIR576mJal5AOdFNWscP9dF_NQ2HC_cLX15jlgqeEYwgIg32_P4rNXD1Lcbn7TUygWM5YrD38rKtwHkpbcvumqJmnXyD80i4dJAuXHuemkStIaTAyW2On7DzXsNBYgu07RfjsL823J7YgBqQ5ciOebxi1LeXudtWeZ5lBBsgLNkm8cos5gYzYRGnvvxBP2vTGMAfJIdi0Z0xe8Qrwc_Q6un0zaBvMzFWEI8E8UJ4-79OrDZpDEPcI%3D" itemprop="StoryLink" itemscope="itemscope" 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 was also inevitable</a>:</p> <blockquote> <p style="margin: 16px 0;">Robinhood Markets said Tuesday that it was withdrawing its plans to offer betting contracts on the Super Bowl, following pushback from the Commodity Futures Trading Commission, which raised concerns that the contracts might be illegal.</p> <p style="margin: 16px 0;">“We were in regular contact with the CFTC prior to launching this product, and we believe we are in full compliance with all applicable regulations,” said Robinhood General Counsel Lucas Moskowitz. </p> <p style="margin: 16px 0;">Robinhood said it had been asked by the CFTC to stop offering its customers access to the sports contracts on Monday afternoon, just hours after it unveiled its sports-betting plans, a move that blurred the lines between regulated financial markets and gambling.</p> </blockquote> <p style="margin: 16px 0;">Robinhood has a history here — it once <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyK_9ydzSMixkNec9ZBTthQbasAn334tIm95Eej6CLBeDN62etpsC_e0MNzAVoFQZds04a-1NPmnkLzKn3q9C5wRQqM50O6j_hhlY8OrJS7abhp2aP8lJbBl0-BNWMMECey64ZKtsMw5PlfTZkxd-b_iEiPZHY6XuxCo8GvDF67yzpfK5XIKfLloVlTEdkUSEksdqLH9OPirKLa-9Ei_tIfKmKkk_It6AaBkz_TxY6jh61Tvp7FbgyU_-eXTYXd1z1Ei1j-AeISB5umJrvYgKBvEr7coAYGnealin4-XlYmpvA7P3RwusD5v9qBP0oZi1A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color:#000000; border-bottom-style: solid; background-color: #ccc;">launched a checking account</a> that also lasted roughly one day before regulators shut it down — but it was a nice try. Here is <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC9CnS6vmaBTPlv19F253hlVAqKe9JznVyUWHWMb075ROoneBCK8xh-uczm7uuEFN2wL3tmwj5AZ0otXVRAVrivLymEhA_9PHHy98LwLjZ89uJ3LvLhMvXHyLkkWSdp0OnAKOQ_29b-pb268tQFQQGEr62sE_JHF5PDIv_XEXDnBbTNNhIrCj1M-PAPnrCBXOsCoXDMsV-lG97aG3y9xobBlomnnc8I4MRaFig_BY3mpVRDv4VlEW9gdW9NnU3z759eZUTg0QgHQBUVZZKqIgJZk2vrCmiiHdWhWZow__E5M8gRxtySlzWrCKdi1HFxqy-aBjGaLZ6oAAoY-NnqZvFRTbms952urIjdxvsoahq7pLXL9A6GRQUYVAq7K9gCCcrP5m7cR1DAsMIsaXFsLCmEPcSQUawE3jgymgRKEt8pn8" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Robinhood’s original statement</a>. With things like this it is important to use the right euphemisms. There are two sets of euphemism here. One is the standard hilarious American problem that you are not allowed to <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC8rQ8UyjAtoVmwXJnNKfWu5MePdujhk2NLwkwQ3ZQc4yI3kLs21upNYNlI7BVAZJ22WEEsHRHzwO5ooHu4dGzEvOubJHFVOMj_-mor1NnzIb2PYEKQk8sQnxpniQ3vcftkc0MQoatsFa3fzkW01yN_sK65BEnf6vkt6Y4etYf3_zAUYYzCsQof3RAWKq3ot9VekjCad4xCSEKIGYkZ0iISBc-TDWb5FiHuFtqzTSuEMO3cY3n1l3-5lpb7xAUTks8iEes58Dr16YFuBihMedhZANqrAs_6zQqhfWn5DXWaorye6IWoSKRlPJbgeISBnJa0M7883w8XnHLbEO_geORd-1ur4U_dPOJwm_w1ExQBnbpfrgXHuItT96gbbMnQzoRnQx_7-YbrBMOzT08aZIc3QDI6DtyuZrsUzMAB6qpwU-jA7oT-JhcQJdRzlAzr3M7cGGwa4TgD1jHgFplj3iuUY%3D" itemprop="StoryLink" itemscope="itemscope" 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 the S*per B*wl by its name</a> for commecial purposes unless you pay the National Football League giant gobs of money, so Robinhood did not<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a>:</p> <blockquote><p style="margin: 16px 0;">Today, Robinhood Derivatives, LLC (RHD) islaunching event contracts for the Pro Football Championship, allowing eligible customers to place trades on the outcome of the upcoming showdown between Kansas City and Philadelphia. Event contracts for the Pro Football Championship are rolling out to all eligible customers starting today. </p></blockquote> <p style="margin: 16px 0;">Yes the highlight of the US sports calendar, the Pro Football Championship. (“The big game,” Robinhood also calls it on <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyAo9qXpM3b77Z_KaFxn5oDD2jSLlg5n0ujB8dl1bN3BhCqURHt-tGD7-7jEGzI-nIhmWpkZ5-2TNvcUi5PO8QLOscGV-UpRh5D1dGNDlsNajzvtpcQKhoOwY_AOzXWWbTYKUI1ZqHZT3HNPant3cg0EinvEXOYzknD7UAvFVFkNq3xIdOLUSNOoLTAvJTm5QO31sfJ2AXP90_wFF4y2M8nd8OPysNxOBEtPe5VhvgoxdnMhP5PHmbYSw7Xk-FCuRIkEPC23tQ5m_LL5ECTnrTcw-8Ewysg5XZX9xP7WkPH8YUybrBue0lOjOZOCUCdhqFT9D9kFu1DSaO0-NRPHwZZxtCsBK_mftfKTgOju4N4HyzGtfVh63eXCpHZc19zYkw%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 contract page</a>, in lower case, presumably because the NFL once <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC6212ZE0nglVXyt6g9c-LKdAehGxtLo1-2uEyO24pPJdYv2i6_F15W97hETG8e4eWvJsNtE7oAZCSFw9XI3xmutCGleRxETpqjbMAmnzVs5fQa3V42_kgkhOupx22Fz4i3TkVkWrDC6JxHbsnfyGqeaDJgPaXIiwdGo_gYOrTcY-mzNbShm18EF4WM31vwWJwAE_US4VbK3z8cSpWPa5wqVsAST8RBsdQsarQqPevEbiu2qlRNsgyP7ig-C8e5WLXKAT0PA6o_cN22NcZE68fN1K-ubl7ICZs5a2uH-Y4m7E7s2nKUjZIKBKh--aJqDxEA7c_nEv-OLJjx7m1AwfIxYo0tfDlrWMKHxKSQADG22i7qFLvXXqvz1ITtWzgXYtjNeEnwb5HDEruisH1YZqd2qAl3njXZxloUv5IeoH53RUBGqZU46H1zy2vasyPHdBzeCQftczvlagXwLrqyf0_V7VtRCmc_rGkcP9Uv0MZt-aTBhzx6QjCv7WyoR71EV0iSdPETL2DY1R0buuNHQaFAhxv5_Zp0-kQu8_KsfmQ8PSPJpmPZbzyPRfBwCmWK6iQN_lVECsSrOvB4JibL_ABQ_HBcibrBoEizXf8f2vPx56pNpcu-Qmkpri2SOL0i9swgJLwS1SZ2bSRVAet5j44Ou7-Btq75VIfXuMNlj0iYYW" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">tried to trademark</a> “The Big Game.”)</p> <p style="margin: 16px 0;">The other set of euphemisms is of course the use of words like “event contracts,” “derivatives” and, my favorite, “emerging asset class.” Robinhoodwill let you put in some money to predict that either the Philadelphia Unnamed Team or the Kansas City Unnamed Team will win the Large Football Contest. If your team loses the football contest, you lose the money you put in. If your team wins the football contest, you get back more than you put in. It’s a derivative contract, see? Are you <em>betting on football</em>? No no no no no no no no no no, this is an <em>emerging asset class</em>.</p> <p style="margin: 16px 0;">This set of euphemisms is designed to appease, not the NFL, but the CFTC, which regulates futures contracts. <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC8EeqssQYFI6meTegG_GsH7pVP5-YABMMW66f49HL-LUOdHq8lMb9pYG_8AANenFTHzxAmrTIPuUyQeXjyAzrknuHy18P6PIqTKO2fLOnrmtyGEqfs3aOgcBNMEFzDv3f-8i_7HSYTQ7sciIWJUY3BNHXusTHnxE8Ey5b9gvXmfB3m_6Vmv42AcyR32519fg1_NOLAiHl8uHOY5i5G-lEYZ_ZCdWfi5lg4XrZYnC4gf1MFl9UKwWQvSizv71FfxPYZEityFoRQet-Kyaq9rj7eEARdzsRlJ9vrJ4NOFS5Ki92hHRQSLnMVIxLBBn317rHLBlqUysHP0GAqv1s8yw5nWYBfkDstKkgmHEQMwf_OEnRiiTG1xVLPKt-uHqVaJ2Wg%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 law says</a> that registered futures exchanges (like Kalshi) can list new events contracts unless the CFTC decides they are “contrary to the public interest” because they “involve … terrorism; assassination<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>; war; gaming; or other similar activity.” Last year the CFTC <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCy-hSNa7Kukwot7puX9xWZ1aJZo6rPG40wskSEWct0x_QlwUq-vAxQbGOAY5dOyiD4q8W-_xwK2WN4VwO3NTEQRRI_QYWtYSCB8LjvZ0cjYWaS2721xIqJ4NAWztmARgkcfBEw0AeaxB17-b4zg6ZJCKLCd9xnzAPRyuyJazuIZ7OTKZ9TvwOkJDrON9O65NWRSIWucPVj6UwCUmiylNjxqPqj95UbSZ-QXylvCl9zvtcuNJQgI51bx0vwQLhBuQamasw2a3gk7nty5FBJ37Kda9bsFy5iYukdj9bJPYWjyDhy33ilj_A-GnaAcxKTkunAjMUO9EzX6eLXkhmCxXVseGPGvWw1uXc5Tl2HYLpOkEfzZEosVKgy6cASnyrXwIeWduGofhIOfm3-Bs0dsFIEo%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">proposed rules </a>explicitly saying that sports betting is gaming, which … seemed sort of obvious anyway?<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> The idea was that sports betting, in the US, is mostly legal, but it is done through (state-regulated) <em>sports books</em>, not through CFTC-regulated <em>futures exchanges</em>. Futures exchanges are for financial contracts used to hedge economic risk, not for betting on sports.</p> <p style="margin: 16px 0;">But those rules haven’t gone into effect, we are in a much looser regulatory environment, and several registered derivatives exchanges have announced sports contracts. “The Commodity Futures Trading Commission is asking Crypto.com and Kalshi Inc. to explain how their recently launched Super Bowl event contracts comply with derivatives regulations,” Bloomberg’s Lydia Beyoud <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC0qYKAAZgK2VDbfI-8xym497QFK77nBhv4wFAbfaQW0Wd3-HVUdmKCWOlZrZhAxQu-drk9aqEYeTR5m16y6oV5XuYOnT-ZnjGICORRDj3zrnL1KBVV0VDvO8831Nz3hcmYa3MeaQd22krkxGs3ErMejBr--6HxPJq6e3WGXVHk9zMQkQf3ilG_xUfKMLdmRWeoOaWNt-tRDzT4tHvlM81p2CZ2N7PrBNL4BoTWmyhpCo3bpmGcONdVSV5UuUQqCdji6L3yP9H9mB9NX43yb73qx5h_lL8Y2ZBy3UZdmQ5Sn2l0hSogEb2rIidMsb5mI5dQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">reported earlier today</a>, and presumably the answer was “pfffft what derivatives regulations?” But for form’s sake Robinhood did say “event contract” rather than “football bet.” </p> <p style="margin: 16px 0;">But <em>I </em>am not required to use those euphemisms — though I’m still going to asterisk “S*per B*wl” — so I can just go ahead and say that Robinhood tried to offer football betting in its stockbrokerage app. The standard story of Robinhood is that it became big by “gamifying” investing, making it more fun to trade stocks than it was at traditional brokerages, and this is the logical outcome. It is more fun to buy a stock on an app that shows you an animation of confetti when you hit “buy” than it is to buy stock on a stodgy brokerage’s website, and it is more fun to buy a meme stock than a regular stock, and it is more fun to buy zero-day options on a meme stock than just the meme stock, and it is more fun to bet on football than it is to bet on stocks.</p> <p style="margin: 16px 0;">The announcement <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC9CnS6vmaBTPlv19F253hlVAqKe9JznVyUWHWMb075ROoneBCK8xh-uczm7uuEFN2wL3tmwj5AZ0otXVRAVrivI3uq7A_MXczuSOTFCnhK2_aalbSP8G4Z3GSeudDbf-o3bsDUUdrcZIzVwK3c_a63medzxY1lGPtiOuALgQQpjZVW190zCOVVTUfysT-RWVmB2X2pkIhl44eXzVBT1kL5kEX8NVBJeWfHX29-OUbFV678Wkq18UI_sET4pITCJMLu1w3OIqXON28F5JA9ueHrKl0RsMf5p2zAPxB8JEPuNZbkhxMkhU7YOt-11yV7Fuq95krXAsh9HZzTOxmo8AMwQPfqpRDx-ZA8ZjwVYPFZMGv9ngzBEAEmD0z7VPyEzJi6TorNX3-dcAxKeYoxbNhpUtAKuBK5E3OpEoZX0Szf6_" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">went on</a>:</p> <blockquote> <p style="margin: 16px 0;">Robinhood’s mission is to democratize finance for all. With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment. ...</p> <p style="margin: 16px 0;">Event contracts for the Pro Football Championship leverage the power and rigor of financial market structure to facilitate greater liquidity, transparency, and price discovery. </p> </blockquote> <p style="margin: 16px 0;">“Our mission is to democratize finance for all” would be an <em>absolutely incredible </em>slogan for an online sportsbook, or a casino, or for that matter an old-time Mafia bookie. Robinhood surely <em>does </em>help a lot of people save for retirement with lower costs than they paid at pre-Robinhood brokerages, but in <em>this </em>case, “democratize finance for all” means “get people to bet on sports.” “Leverage the power and rigor of financial market structure to facilitate greater liquidity, transparency, and price discovery” also means “get people to bet on sports.” Rigor!</p> <p style="margin: 16px 0;">Is this <em>finance</em>? What is finance, really? I wrote yesterday about <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC4yKO3QaLe1-y3FJi69c4Ejj_Y2-J0Xwrukle_ojRn9NILznT6EuCYsq8dn2DGl2DK6s0NbEjYHkBsYed19gCNfuggAshVAugPNOZ4ZKNSxEYmtDRx78njcsxXWyotpIaju47uxVu0jxuoFXepdHiNv-xl8nc7MdhD1SeLxNCORPyHHyDVsDpl2NZiyEFzJXW_LqXEpEje7in_zLe3bA9vYcMKFosh76VNAb3IIPIkEBtU7i5fP9XrLIDMgl8a62Bs27srIzskrL1w2WGbgZ8YS1TYforvHc9Rq4N1k4-Cz9BZf6pRvX6MWugKAi8Rr0pA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">my theory of college savings</a>:</p> <blockquote> <p style="margin: 16px 0;">My theory of college savings is that there is an economy, and the economy grows over time because of technological progress and demographic growth, and you invest your money now in a broad range of businesses, and those businesses use your money to make stuff and help the economy grow, as the economy grows those businesses mostly grow, and your investment gets more valuable. And if you put aside, uh, frankly kind of a lot of money every month, and if the economy (or, rather, the equity value of publicly traded companies) grows at a faster rate than college tuition does, then you will have enough money to pay for your kids’ college educations. …</p> <p style="margin: 16px 0;">Obviously there are alternative theories of college savings, like “lottery tickets” or “maybe a YouTuber will randomly give me a million dollars” or something. </p> </blockquote> <p style="margin: 16px 0;">That first theory — there is an economy, and you can invest in its growth — suggests reasons to “democratize finance for all.” The second theory — random chance — suggests reasons for stock brokerages to offer sports betting.</p> <p style="margin: 16px 0;">In the broad sense, though, Robinhood is right, isn’t it? “We recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment.” <em>My </em>theory — that financial markets represent investments in real economic activity, while betting on sports represents zero-sum bets on sports — is outdated. The link between finance and real economic activity was always indirect and imperfect — lots of financial markets activity has always been speculative and irrational — and it is increasingly inessential. </p> <p style="margin: 16px 0;">All of it is betting on sports. Sports are sports, and entertainment is sports, and politics is sports, and crypto is sports, and stocks are sports. Democratizing finance doesn’t mean giving people easier ways to invest in broad economic growth, or to finance new business ideas. It means letting them make the bets that they want to make.</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCz5GkvGfaEAjcAZxReIiMiz_c0AbGJlZDhMawp6G0pt9MITUsGgM3WvgAvS9fHwNl5slABo6gLR3KWmhlCJYXRgRrmPCEKoP7p61v7-90PRc3hYOdk-NCYVfXFWt-RbSTLfOTPE_wzMopMek1LziMYrHgyOfYVzAcn6kE9hea5G8L2BZu0hl7o1LX6YSuubhjlsu4dp6HW7LevnXav-BvmKiY0BH5-8m8hcwhg01WjCmOt7E72kDJHok4rBIz-rNA293eA4Y3IbR75DFAhMGyFIYCOybPdIOLgWkKkiiR1qLk4CaL2DrNdC9xzC_7Tna6g%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=12513767&m=c869f5c3f0784f1d3b0577b4456d769f&p=02042025" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCz5GkvGfaEAjcAZxReIiMiz_c0AbGJlZDhMawp6G0pt9MITUsGgM3WvgAvS9fHwNl5slABo6gLR3KWmhlCJYXRgRrmPCEKoP7p61v7-90PRc3hYOdk-NCYVfXFWt-RbSTLfOTPE_wzMopMek1LziMYoNnUeezhkBXoWWJGEZK6Xpxp62YmBeVvdUkbjxMffcwQ9P6Or4jCQHL65Ce74r08mQovB3c4RtCjQJR6ythFavDBDolhZJyBCddFPBIq9GLEITSEVKb6j5B4C2vdd6H_xfryOrMtokTyyTAThJmpDUjVHDl0V7zbgGtUso6s__Lw%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=12513767&m=c869f5c3f0784f1d3b0577b4456d769f&p=02042025" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Stocks are dumb</h2> </td> </tr> </table> <p style="margin: 16px 0;">In that vein. In 2015, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3pO35kRtRt2V1VWZK26-qb2rI4Ri84On7XNvYXBx1I8SjwvsDcYhEU_-upsNPK4pEiBp_zuTxyRqM8wQN4zN2yxtZLh2IOYHCCxycqYDdmj1cKYKlgs08DKVc6gQ35IHT46ppwDrjDJXlIm45PY6mm0mX0U2ncRdLppc_sdIBvT8wzFPei9a0KTNVD9lwubIfOkqIJBoU9mpKL6dJSS-h4R701LlE_HA9ZhjrpSBSzef3wtPuvIhO2Nn39TuoOlOVJ46ux2cHzaJRq_LG7nqkguLWKIxhUxv2NiWbow4G33V2Xpur49jUa36nHxKmb09g%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I wrote about</a> bond traders who lied to their customers:</p> <blockquote><p style="margin: 16px 0;">It might seem like lying to your customers would always be a crime, but that is not true at all. Lying to your customers is only a crime if it is fraud, and it is only fraud if the lies that you tell them are “material,” and the lies are only material if there is a “substantial likelihood that a reasonable investor would find” them “important in making an investment decision.” Lying to your customers about whether an investment is a Ponzi scheme is fraud. Lying to your customers about what color socks you are wearing probably isn't.</p></blockquote> <p style="margin: 16px 0;">That was a long time ago. Here is a hypothetical case that I had not considered. Let’s say that I really like orange socks. Orange socks are important to my identity. I wear them all the time, and I tend to like and trust like-minded people who also wear orange socks. If you came up to me, wearing orange socks, and said “psst, vote for my preferred candidate,” or “psst, take these vitamin supplements,” or “psst, buy this stock,” I would probably follow your suggestions, because your orange socks signal to me that you are part of my social tribe and can be trusted.</p> <p style="margin: 16px 0;">But what if you <em>emailed </em>me and said “hi, I am wearing orange socks right now, buy this stock”? What if I bought the stock? What if it turned out that you were not wearing orange socks? Is that securities fraud? You lied about what color socks you were wearing. Your lie probably was not material to a <em>reasonable investor</em>, because this is stupid. But it was material to <em>me</em>. I care a lot about sock color, and I bought the stock because of your false representations. I am not reasonable, but I was deceived.</p> <p style="margin: 16px 0;">What if you knowingly exploit this? What if you know that there are a lot of people out there who blindly trust orange-sock-wearers, and so you run a pump-and-dump scheme whose mechanism is (1) you buy a penny stock, (2) you post on social media under the handle OrangeSockWearer420 saying “buy this penny stock, I did,” (3) the orange-sock community buys the stock and (4) you sell at a profit. Is that securities fraud? You are doing something … dishonest? exploitative? annoying? — but you are not <em>lying about the stock</em>. You’re barely mentioning the stock; you’re certainly not misrepresenting its business or financial results. The business and financial results are not, for your audience, the point. You are deceiving your audience about something that is not material to a reasonable investor, but that is foreseeably material to <em>them</em>. </p> <p style="margin: 16px 0;">Securities law does not traditionally focus on this, because this is stupid.<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> Securities law traditionally focuses on the reasonable investor, because we want to protect reasonable investors, and because in some sense we <em>can’t </em>protect unreasonable investors. But reasonable investors seem to be getting harder to find. </p> <p style="margin: 16px 0;">Here is a fun paper on “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC_G0Sq3rRVXaAZG3N5Wo2rM__hzBy7wFNoFwIMvZyT31LPUqhAYZBmILxFWo8imkvI9vO5fabGP8YnTlwqS9r1JPrs6u-mUhWNKE1rhlfbD4gI_NA9JB-aB2rCDUa1s6g38COV1FTFSxiTQjBVQ_-OrAbRWYmEfUOjYuY3evNia8ncx9zjbxZg-uc6lG_qkFINXqjaqfXJ9wjjWquvwuyzstJxDE04WStm16yLh-qELtd7fKI7X8w0aAQmAIEoD---oxHhJoRhv1ZsBcNRm0DbYHNi6thqZr8KSeZ1_9xwV3FdkmWMW5RFSuFf4CIhq7bxZFkzNx4mooOgeUWPt7T8e34IidWHosguWjPkDg5oD-83PfNaBHs5bzgC-LnklNELa-MwZvzXi9mhK54YVKsr4%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Securities Fraud and the Market for Individual Stocks</a>,” by Sue Guan:</p> <blockquote> <p style="margin: 16px 0;">As long as stock markets have existed, so too have those who invest for idiosyncratic reasons unrelated to achieving financial returns. Some investors may be motivated by personal utility, others seek to signal loyalty to corporations, some might see their investments as an expression of their faith, others chase the latest fads, and still others simply make uninformed investment choices. Yet until relatively recently, these forms of demand-driven investing have received little attention: most commentary has either dismissed the phenomenon as noise or attempted to absorb it into existing models of fundamental value-based investing.</p> <p style="margin: 16px 0;">This Paper counters that understanding. It argues that demand-driven investing can create a market for individual stocks that is distinct from noisy trading as well as from fundamental-value-driven trading. This is especially so as the voices of retail investors, social media influencers (“finfluencers”), and other non-traditional, values-driven investors in today’s capital markets have grown in volume and strength. It is increasingly difficult to ignore the investors who systematically choose companies to invest in based on demand-driven factors such as alignment on environmental, social and governance (ESG) issues, an influential investor’s commentary on a security, and preferences between cultural and political values—in addition to seeking financial returns.</p> </blockquote> <p style="margin: 16px 0;">The point is that if you are buying stocks for reasons of fun or values or social affinity, (1) lying to you about a company’s financial results won’t have much effect but (2) lying to you about something <em>else </em>might. Guan writes:</p> <blockquote> <p style="margin: 16px 0;">Imagine a finfluencer who tells a lie, stating that a company’s CEO is dating Taylor Swift. For various reasons, the lie appears plausible. Taylor Swift’s many fans rush to buy the stock, inflating its price. Evidence emerges that Swift is in fact not dating the CEO, and the stock price plummets. Yet despite the statement being objectively false, the question of materiality remains: is the CEO’s (fabricated) relationship with Swift material? If not, there would presumably be no recourse for Swift’s fans who bought the stock, even though they suffered financial harm. As one commentator has stated, “is the test for materiality satisfied in cases where market participants seemingly respond in a heuristic fashion to a falsehood by defendants? This is a powerful possibility. If something is immaterial, people are free to lie about it without any liability at all.”</p> <p style="margin: 16px 0;">Finally, recall the example of Ryan Cohen and his smiley face moon emoji. In other work, I have analyzed Cohen’s tweet vis-à-vis the materiality doctrine more fully. There, I argued that the materiality of Cohen’s tweet from the perspective of a reasonable rational investor might yield a very different result from the perspective of a reasonable investor who invests based on personal utility as well as Cohen’s identity—what I have called a “reasonable retail investor.” The reasonable rational investor might easily dismiss the significance of Cohen’s tweet; the reasonable retail investor is far less likely to do so.</p> </blockquote> <p style="margin: 16px 0;">Yes, the moon emoji. We <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC533lkQ-4RqA-4-fHrS2IqA5xfpgD-qKWXpAjtYD_1PtOF00ehZnoizr4sP8UIhaCHxaGOQ3fyEMUNakDSHd8h8lUHVk4MaWiM7-DhsYyKmVt4jNkgcH1GWpmYCwzNFLFgMMInn541E4G7v6mS8yjyHQwS755WmBgFnTlkryW93OlALb452NkVVf-PDDFnil3kV8VrvI8_S8aQqw1I4jP_8LL_kbqRfukTpvG7WmWDLZFfskA0LLSDYKx5ryU2oLKYKV_NqhZTmfP9AdBZDetcE24S9ZlpWcNi2uEBo1oTDLOzADm2cW_sDT0K2I1dmktA%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 that case</a> here too. Cohen is an important meme-stock influencer (and current CEO of GameStop Corp.) who (1) owned a bunch of stock in Bed Bath &amp; Beyond Inc., (2) tweeted a moon emoji about Bed Bath &amp; Beyond and (3) dumped all his stock when the price soared because of, I guess, the moon emoji? Investors sued, arguing that the moon emoji might be securities fraud, and a judge found that the moon emoji could be read as “an expert insider’s direction to buy or hold.” I was skeptical, but that’s only because I’m old-fashioned. I wrote:</p> <blockquote> <p style="margin: 16px 0;">Back in the olden days, I learned that securities fraud meant lying about things that would be material to a “reasonable investor.” Everyone understands that if you go around saying “Bed Bath has doubled sales this quarter” or “Bed Bath has signed an agreement to be bought by Amazon at $40 per share,” and you are lying, then that is fraud: You are saying things that aren’t true and that would be material to a reasonable investor thinking about the stock and the company and its cash flows.</p> <p style="margin: 16px 0;">But in the world of meme stocks, <em>there are no reasonable investors</em>. What matters is not cash flows or business plans but memes and influencers, and so the standards for fraud are … perhaps different? In the world of meme stocks, if you are a meme-stock influencer, and you tweet a moon emoji when you are in fact feeling pensive-face-emoji, then arguably you are lying, and arguably your misleading emoji is material to your meme-stock fans. They are not reasonable, necessarily, but they are the investors you’ve got, and if the stock doubles due to your emoji then I guess it was material.</p> </blockquote> <p style="margin: 16px 0;">That, I think, is roughly Guan’s view: Securities regulation has to meet investors where they are, and if they’re all into vibes then lying about the vibes is fraud. I’m not sure it’s right, though, either in theory or as a practical prediction of what courts and regulators will do. I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC1SlDoMyFV0ySgdSc4EaIxolEeZ-GdneAtGbZJzbIhH4MQKDYFhgcSkOBbwGRrMybA7BJ8A4IbeSd3hEEKbqXqbo5kkAiNQS2wDOYhi8AqQVy29rfTnn8Pfak9prijjNtbK_30D72hX1Y2auo1dNb1k8pzd00iTJYXf2aHXT5vqHdf1ZRnOyY1EdEND82P8b5jBzKbV0VQjB1FHtcfU3cDuou-zHiO1gDD3wQu79XYDwXzxglYNtYlWhysXc5Hs23TQWyZCGg-hwtjWcWbE7iv5qCHWS4RwxDQCrQb6OXB_SpiRigM2eGKwi4D1iMtgwaA%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 speculated</a> that there will not be a ton of securities fraud enforcement over the next four years, mostly for the obvious reasons, but also for this one. If financial markets are increasingly a game, if what matters are not business fundamentals but memes and influence, then maybe nothing is securities fraud.</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;">SWF? </h2> </td> </tr> </table> <p style="margin: 16px 0;">I guess the main points are:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Donald Trump and Elon Musk are both very good at creating chaos in financial markets.</li> <li style="margin-bottom: 5px;">Broadly speaking, their chaotic interventions have predictable impacts. When Musk or Trump endorses a memecoin, that coin goes up; when Trump announces a surprise trade war, the dollar goes up and the stock market goes down. If Trump or Musk called you with advance warning of their plans, you could probably make profitable trades on those plans.</li> <li style="margin-bottom: 5px;">Trump, at least, does not seem all that averse to profiting a little bit from this.<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a> (When he endorsed a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC-lIJhjwKrmqG2lIjpFnR0VGPxDkTcwT3oei71u9U_Csr8IJ8B4yDSU19iG_uFFpU4W3mfygQpnwqeZbVMnuYONmBFUuSVQurWDLutNgkCQroiZ-pgVmG5GDsvTw1v0vKyh_lJYZ2UCCjoZwCV2Bnwuyb0yExDTweY6zNcWNCHxyluNPtxQSS6UmjOLgIR0wWogxlnH0n4DAORgUptxlRhC-UQHHNl_hHXC99WDgSWN5AjDTNUbY9IWv6bYsMqYIlhk7uWN9j2Fzzr7pghzPq15kp4TgChJNCPW-RNKekJwBjleC-tPJQgHDwIna9cnazg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">memecoin</a>, it added billions of dollars to his net worth, just as a for instance.) </li> <li style="margin-bottom: 5px;">Nor does the Trump administration seem all that concerned about traditional ethical restrictions on profiting off government service.</li> <li style="margin-bottom: 5px;"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC9fcNpmyS4VuDCefdwn5CJ700EiXg0NVuHsxuTjEZwmqlIY-nszTEuVPE4D9WgsGsx2PTXrD2wfMoykyVjb5zCcBohVXUVmDxdrSP7XSIKmIrhyO0dqcZKBXMfog9p0QcHcvyN7V8Y7QX6wfsjd8XoJBGlg1L2QlJQBiIN6wQjXFGtczsI3-ousdILt9cyv3S7juHkAY_sxm_1XHzERZCnx1YFjP6JlFYje0N-C1CdWYFVALZdG37LfAXnFu68WtOh99xH_fKIsYgSgxqxd2xXIWWIFUDpSGtPUfY6mc9j1UxijhVPYaESi3slz7mZ5X6g%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bloomberg News reports</a>:</li> </ol> <blockquote> <p style="margin: 16px 0;">President Donald Trump signed an executive action he said would direct officials to create a sovereign wealth fund for the US, following through on an idea he floated during the presidential campaign.</p> <p style="margin: 16px 0;">“We have tremendous potential,” Trump told reporters in the Oval Office on Monday as he announced the move. The president said the action would charge Treasury Secretary Scott Bessent and Howard Lutnick, the nominee for Commerce secretary, with spearheading the effort.</p> <p style="margin: 16px 0;">Bessent, who joined Trump at the Oval Office, said the fund would be created in the next 12 months, calling it an issue “of great strategic importance.” ...</p> <p style="margin: 16px 0;">Lutnick said the US government could leverage its size and scale given the business it does with companies, citing drug makers as an example.</p> <p style="margin: 16px 0;">“If we are going to buy two billion Covid vaccines, maybe we should have some warrants and some equity in these companies,” he said. ...</p> <p style="margin: 16px 0;">Trump floated the idea of a sovereign wealth fund during an address at the Economic Club of New York during the campaign in September, where he proposed funneling money from tariffs into a wealth fund that could invest in manufacturing hubs, defense and medical research.</p> <p style="margin: 16px 0;">“We will create America’s own sovereign wealth fund to invest ingreat national endeavors for the benefit of all the American people,” Trump said at the time and suggested that the Wall Street and corporate leaders at that event could have a role to play, helping to “advise and recommend investments.”</p> </blockquote> <p style="margin: 16px 0;">I have no idea what this will be, and Trump’s plans <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3_PvyO7fPn-0VSxxF4pwJHOS-zagwqTD6mcwRU8kBTc_X05HIj9Wmd2krzj89V20cr06R6WN5LrKQCrPMPzNeOBFjqi-9kTTFO-VAl0UntfRtXi__WN40CvqkDw-HAbDi39zn2V2phbAl1YbEbDQefpulFNKwB23UGVGkbY0eDih0lfbh_KoiU6MZluo8NDojV_y5NUemOuA5hkdD0JoMIt0wVWlsxYsB_IWyKrZIFFGyx_xT15t23fVEL-aBfesJ52Q1LlXJsqOg6vA9zR4QRKLpIPyiFRao6Y3g53bVNLs0VAosxx62BHkreLM73V6F3oE6sdx-KhivMImwrwp-AQm_LcKT0cIeVqVrV7JhBGBIpI-WUorvKq0KVGvJe2EvIHC1ViG9TzmyovCT82PZM_XM1B7Y2cLlwzerXYvokPN9SfY3VO-Ui-ZMiphBi4xDEYyCXiCD6QFv-FYKD-tZ96s-hzvuU30_tqbY_5pbyMpLLFOUd9ajl9kZX9_6jWLfcfLGC4gGlBL8amoT4GiMM%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">apparently include</a> “TikTok, we’re going to be doing something perhaps … and we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people — a lot of options, but we could put that as an example in the fund,” so you could imagine various sorts of straightforward corruption.</p> <p style="margin: 16px 0;">But there are more interesting possibilities! Trump announced drastic tariffs over the weekend, the stock market fell sharply yesterday morning, and then he <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC8H9TqkMHt6_iLRXV-p9M5F_zZaQG6MGF05qTlWZ6kPAVkMkcFs69F1uiGzIrDyP4yea8aoassRzGW-FCEMs9HxsN3e9lTXyqr_lP3BkwLZUNq_nkluH0aXQhTiaAwN6oZqUH-GXWQmFlotFx3cEjGkKcWl6DmAe8mzDLC92FWSZ156PwPYVYK79p-oCgW24plmcWiFijKn3hwYBSmM14Ef6FX2WRXXSLOzXcVYTX8BRxf8EB1M6vJlvQ4VQGZI83dgW8kOvLapyW6KD_bSGgBL7Uy6tjp3OqebRImS5qOUObwc0kzhhI-4IeY8sZ8Q-Lg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">announced</a> that he was <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3taHMgAfdHEPG34fR_6-5NqCgyrPGfnscf1fRc8A09HEvyNuoH_ZstHnYVjfCSqGfFM9YisR-Ih83RG0eOqIi3RSk9da86QtXtCCZpkKyO6LjMUBeXOYSQ_8ogD1jx1m_Ez5s07b1loxHR6m-K5OZ372MpXDiR-yNPHN46gKIimtf5jJstxCvs6NkpMmdPxZc53Ml9WYJfL-l70qkhHNQ21CpHGjYSyiqLhUzB3n00iGWgC4rrW0dm1IWbvsjERbbudoCTNIfYyFPHlhKXcnr4HibDnlzwU_l5ZkpfreMfVspTX3lGRSdlRzzaBsf9v5Q%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">kidding</a> over the course of the day and the market recovered. If you were an aide to Donald Trump, and you sat with him when he approved tariffs and then listened in on his phone calls yesterday when he walked them back, you could have made money trading on the news in your personal account. But that would be bad; it would be insider trading; don’t do that.<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a></p> <p style="margin: 16px 0;">But if you were an aide to Donald Trump <em>in charge of the sovereign wealth fund</em>, could you trade for the fund using inside information about what Trump was up to? Every time he wants to do something financially chaotic, he tells you 10 minutes in advance, and you put on some trades? Not a traditional sovereign wealth fund — not long-term investments in strategically important businesses, not diversified investments in stocks and bonds — but more of a day-trading, insider-trading, market-timing, volatility-harvesting operation. Also so much crypto.</p> <p style="margin: 16px 0;">It just seems like a bad enough idea that it might happen. Here are two important objections:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">The people on the other side of these trades would be, you know, regular US investors, who might feel aggrieved about losing out to government insider trading. On the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCz049JQMAJ8zcyth_2cnyWgbBCcwg-McPxF_HJ_JZ9226wj010Hi6DFVm02Uwlzp42KkW-KdXSdOuBEuUdSMMaU7IdjEyDNcm82s9ZGLAuN3mdAM9finm3F-RAMz2IxwITZyCjINB5Uf-kXvDEEi3Uor3oZRPGJ7BHoNMWzkN4ceiK9vMNuuku5Nx8P2lMhlHhrNzbf-aJk66LAse-UQBU5PoxGFeM4uy9QA6kj_-a0MCc8kJstM3v95PVkB3KhuiaPKQcdMDLWulfEmdtd8grFdoklVtTVSw0JHmeWwxuhjn8Nw7jOlSxpwWZ05guFoUeZ_dRxwXPzO-Q-mwoQ3gxDWdyd1pSrswr4dO3sPoEM6ezOVl9gjEo0iaqRaSF7XjUuFPEZNXcvO-z0GYwc6s3SJxPTeikeQ8XGk-cRmPYQQKNfEyzx3BM5wux2sC8-Mb7XZ85smYdTkEXG2gMMwwohKQfX8jv-pvAPAU9H8DUjujvpERihNohaSgw9eDlWRhQFLGyfEanxHoq8fkCIjoAVI9zpLAX5IgLKALIQrB8t3KC_IZE84uV3DY4T1zgVPMl6a7gYJ4nHyRKyEtr2Ja-w%3D" itemprop="StoryLink" itemscope="itemscope" 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 podcast</a> earlier this year, we discussed a reader question about why the government doesn’t regularly insider trade on, e.g., economic data, and my main answer was this one: The government is not primarily in the business of <em>making money</em>, but of <em>serving its citizens</em>, and insider trading against the citizens seems like bad service. But I am not sure the administration would care that much. Arguably this is mostly a transfer of wealth from BlackRock to the Treasury,<a href="#footnote-7" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[7]</span> </a> and BlackRock is <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC0YMes7e9M07HHulENd0sUtneWVpHv8-6WnoCBDxKDfGRn7JjL8aupXshQt6CVnIx7_iBgnCtNVWwH7gEWjyehDaFks7piNDM2PWguiYCtCcvugVkCa577pAYxvrxiBqXpBaZw3tcmuEE3rLzEodhN204MD28nHjq4SaFAMTA8FxeQr1kPYIb33Hhz24WwXz0EhOpu-I1drI4qbENotPO61x-n6_1Ei4fYkJ4FAe-_b-YoV7Nt-q6_5ZGeJ5xhZ42iS3y93HXkRgmUBAPPby8127S8drIucJEnK1Pbt-H4szLyWkn60eEDmGVrhiw7mSsQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">politically disfavored</a>.</li> <li style="margin-bottom: 5px;">The more you do this, the less effective it is. I said above that “the stock market fell sharply yesterday morning” when Trump announced huge tariffs, but it didn’t fall <em>that </em>sharply. “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC2hhUhp2gdEhX1JDu81x8JAcmtwDQlPTkriNcaWbWYYWlGeEyFD4R9_p_lYY4cFC0lltzNIMx88YJU64sQztYnS1eq3aI3Ho7XCNA9BkBJXCfjfr2mO23B-ayq5bIk3EV_zb0SpPRAda-7ZapTU7xlEokB3r6zclvuqMG2NZfdldCfRLxHGvKg6xVUkT2jVGIJ62-OFXool70hFjx2F3ctQdD7lFNxj-eir-85JxR6Wkrfs_EGiyviZ45QOgorZEFZS5-mzgtbpsc7uougSLoiOgiG1EFiBiUFJ8P1lOYP_Pqxa4vE2n1wLOHrCxkzZuRw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">It’s Almost Like They Knew Trump Was Bluffing</a>” was my Bloomberg Opinion colleague John Authers’ headline; “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCwoMn0Ra6B_dsMKZeg4IwpFP1nab4UAF23rdjRfe_bcn1rXmJNtXGvDXjArzmCrI0kUzrnJuNpbCaKDTPUToFMMfavBfv1IDwuA6YMkxOALCKTTRC5NgZ87fz2Tr6e-v6Et3MRya38hLuzyEtP1uDuFfj8hAfbtAkper7o1T81dfcCsIPFI6YfHom6MszEtR38Kpqs1u8vvM-eqyoOGd0t905j5l1iGEerjWOwRIM0Ty7FtS_G62zIkRiYGFBJ0B5PVDWPigr3e9lkDPx3DQPDRdyglxtYfqnkMddqJNufa2hm5CBME-vdvR8JplPWgCT2Z-GAIVYiDqZ3f5MeoPPpgz6766udkQU4Sq4bLWKMj4vTf90_M5b86tq_GKuT28m3RmmBC19k_AivfDYl98Js1qQCwiWy4sQ54SL_n6z9sHziDGq0y_u6-N45M1YzjQcowb8bEfkuPdJUzbBzhxl53i8JECqQ9Oi8UHEVtdY8Ibv9Oog5J22GtncPdY9k60DMJPgyd2mIkhyFBhf1AzlTVKZke6rk6K3vSLG98SD3bw" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Markets Bet Trump’s Tariffs Are Art of the (Temporary) Deal</a>” was James Mackintosh’s headline at the Wall Street Journal. The more frequently you try to inject chaos into markets, the more markets will tune you out; the more you try to harvest volatility, the more you will dampen volatility.</li> </ol> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">1869</h2> </td> </tr> </table> <p style="margin: 16px 0;">Disclosure, I am an alumnus of Goldman Sachs Group Inc. But I never got anywhere near the <em>partnership </em>at Goldman, so I am apparently <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyEBiZ4tWeoW5bD7CXENx8hHUSrZg8GApzbIL91DCvgiuN_jQDn5xE29c8frF_qS4nMPjiiKIwOHrmDKk7K41x-AbLGYtIZsFTauPp2waarcITT6wrV0ftvYQnWEZqb7i5e3NpJcjb16VFoJv1qk5XrStgBnCO5Q4zyhZB0FLeUaC7KUwLvPzG4pRZ4BTe8XFsIT1cNZ8GnOcxmoTuAUuCcN7iB12F3-BngY87mr2THDrvdrdkzC2Fu7ey5JggMXzdbYJM54J9WVxLdUuj8XwaHn6iATup7l1nxvEdXDi6_BOBhsX0T_YOl3xD84cskcWfeLkIko0cZjdbBS4hUXu1r5oUv5Jvl7AqLp3k6p6siEzDxRzgBPF9m7AaV1EqeYKDPojMNITu1mK6AWt8wykgGerDnx7rzHf639YQzG1n4X" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">not eligible for this</a>:</p> <blockquote> <p style="margin: 16px 0;">Goldman Sachs has slashed the investment minimum by 90 per cent for a new alumni vehicle that will put money into the Wall Street bank’s private market funds.</p> <p style="margin: 16px 0;">The bank is fundraising for its 1869 programme, which takes its name from the year Goldman was founded, and follows a similar fund raised in 2022, according to people briefed on the matter. ...</p> <p style="margin: 16px 0;">However, this time Goldman has reduced the investment minimum from $250,000 to $25,000. A little over half of former Goldman partners invested in the original 1869 fund, the people said, raising about $1bn.</p> </blockquote> <p style="margin: 16px 0;">I have to say this strikes me as bad advertising? One of Goldman’s main selling points to potential employees is its aspirational partnership, “the most exclusive club on Wall Street” etc., with its promise of power and prestige and riches. That promise is <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC-Dzc2NrY8DLamWSZJeGMIRVBFasb4NEFIa3hXEEbjPIn3WOoIOrGE2zhK42KFdPCGcaMiE7nGCtQEO89UNOil8VyRCH_Tsr8ncTijI-KMSH8ZD0Cgtcf7uuLN6zkekJ7M2LU3df-bknPSiUsq3MkUrnVxESYUzy781imrD_CfbKf0CiRu7egAEiu-tnuNshFutKt_-Xfec5IhfQr32sCDu04F2V0P7gfQTvugBsYVOsSLRBqgSJUwKXgvYPfooq_b4YXo3aS-3H4TQwW6u76m7uscdVFB7XNEyeLManKpdqDZVi26tNfxtqdWLAVYxUgQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">a bit tarnished</a> in <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC7Wvry9b1nbOVsb7yvIHnbQYsbVbK3rmPL3wiZ4wNph1hxiAyg8jINSmhF4mVUZuqrcWHviW7Vr33mMJ5pmMWYlF7OJ0Ssrbs1VVMmGz5fAp1ArpQ0IXmXYDUYqSRuawL1uouVtiVE2MSIvnq7OgBcDXT6zsgCzvYv_tpCASC9s_tK7fN3NiLX_ovsQTpjRxSqVL8S7E4afmdUTD2T1_a3pKQk4ff_tqjBpnNgysXn9yBHBZfQxLLRVN-vYdGp3C7HD7ELNlDeHJtLbaKeVyPGNu57Nu9wlZfnDgltPnn4aHz0NKUt0ieK9P6dGmy8IL-A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">recent years</a>, as Goldman becomes more of a normal public company with power centralized in the hands of its chief executive officer, but the money is still a lure. If I ran Goldman, I would want to create the impression that $250,000 is pocket change to its retired partners. They don’t need a discount, they’re Goldman partners!</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;">Citi</h2> </td> </tr> </table> <p style="margin: 16px 0;">I suspect that there are some creative industries where letting employees work from home a lot is an important competitive advantage. Creative people often like flexibility and don’t like rigid rules, and if your advertising agency or software startup requires only three days a week in the office while your competitors require five, you might be able to recruit the best advertising visionaries or software developers and produce the best work.</p> <p style="margin: 16px 0;">And then clearly there are industries where in-person collaboration is really important, and if you let your employees work from home a lot, your work will be <em>less </em>creative, and worse, than the work done by your competitors who are back in the office full time.</p> <p style="margin: 16px 0;">And then the question is, which one is investment banking? There is <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyEBiZ4tWeoW5bD7CXENx8gasy5BQXUPIV8tfD3YisgPMadiVzeGVz9OOrG9H8hLJgmNqlj2Nd6QElDLVpZCLsG-6D8ILWawSHJiYd4Wo2l1GWolTZqa8mfXyruNw91kWOgdDi6DblyLi-6MYEubQ0I6duZsR1K-TR4rNAq5Nvf488yLm8UGT7aLZDBPZdAZat8YK-ZUc-FAtI9zxd3h_DvmSUt959mKdjLm9aKNQM8fSR4yTHkGb2KcJoMTfsiTmgvVricSI9dn4rWyv7xCO67f14byQNNeMXj1b5hJ6oGl3ulDS5YrMl-JrMJQJN_iA_jQYiWTCL7QEKXCZtLkCh1roN10QQ6CoXTtia6PEoO5NbXg_P90y1vQWehrvrnkDfQ8E52V8p2TWg4PtCACK3_ow7lB8e4hSG0FUg-xVsHU" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">an ongoing experiment</a>:</p> <blockquote> <p style="margin: 16px 0;">Citigroup chief executive Jane Fraser has told top executives that the bank will continue to allow most employees to work remotely two days a week, in a move that puts it out of step with some rivals and the Trump administration.</p> <p style="margin: 16px 0;">Fraser pledged to maintain the hybrid work schedule on the executive’s quarterly call with the US bank’s managing directors in mid-January, according to people familiar with the matter.</p> <p style="margin: 16px 0;">Citi is sticking with flexible work even as other bankers are upping their in-office mandates. …</p> <p style="margin: 16px 0;">On the recent management call, Fraser called Citi’s more flexible in-office work requirements a competitive advantage. It can be a recruitment tool for Citi to attract employees who dislike the more rigid approach at some rivals. However, competitors have argued that bringing staff back to the office full time is vital to foster better collaboration and mentorship for younger bankers.</p> </blockquote> <p style="margin: 16px 0;">Flexible in-office requirements surely are “a recruitment tool for Citi to attract employees who dislike the more rigid approach at some rivals,” but the question is: Are those the employees you want? That’s a genuine question. Probably in recruiting junior bankers you mostly want people who want to work long hours, be mentored and do whatever it takes to get a deal done, but in recruiting senior bankers you might favor the less rigid thinkers who do their best merger structuring in their pajamas.</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: 16px0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;">UBS Absorbs Tougher <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC5P-JNDfb0OO71RP7CDJpLU7IWr8yzSLsvlnNZuGXNaeXS_BLFbjx_wRb1iooEQV_x3tADOqn9gqa4jwAZZuR8VBmg6DjznDpnbQF782wqEXi2B323yrcxxEX9pVryTumFzBP_nj1n0NV_DbUIYPQ0LJ3oTMsg0yAnh6imnYNZh9yntTdYzv_j8kfzsov09xxeZIeBGN_zn5zjOd9JZQ5FnMtqqC01FPoCXhrC_KL39dI1pwB9QzFS_Y-ZEdqzhToVMnHPr1boUXuIGwtoShAv9KgYfOkpGy3UFVstOX7dFUfHZ9AEHSKa6yH0G--57PTQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Swiss Trading Rules</a> While Global Peers Delay. UBS warns <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyEBiZ4tWeoW5bD7CXENx8gleyiAD0uSDic8yOx13ov9U5lhtcRbpUJBrWSA_K7gNTEn5InlDoxWVdamXO6fZHmTZPugLm2e-1LYXdAbiRHCwnUqADPMZ0-5C6MEnAZ6mpd1vnaNgIc4LH2uEeAUOimUknl37kIylAx-JWjs1e1q2fi30fYBybqdgqs4Mi5xfdPO0h6sGPMncpMd4PfhNifpUPesCdhagqVqnTQ0HNd5-MTyt8LjAjMU55_a_A2Dj8s2UXj_rH0t0d_tkEGnBfxKMSsyx4oXyLx04jVHEIbLh3WL3LaEBLvtj4q7_bQTrS8mREjGL-PYj4NBiXxieIZf5BbVjEUiy83Yb1_D9aeQCi9adqikH6dkvJvFDj8VQiUveC4Frb6EPnGub6A3dUbx8bmA5CVTSSoaTx6ITbB2" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">$3bn buyback plan</a> is hostage to Swiss capital overhaul. OpenAI’s Sam Altman and SoftBank’s Masayoshi Son Are <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCwuIwcUkYJa8L17tDyWTRhgQH7i_6Jw2bAQkHcgUCuOgCJq7MGl3oBXTj8MRaFo-jLFLO259ZEROh_AMfbMxcN_aPUloUeJVXKpC8kJxtrg463Dj83tmJCc8E_UdWiyOVSOM7hRYivW5aJMNDUXYVQvEW0qkWY2NzzioE05XGhmtyBugYvOM4E-2Rmf69W262iV8reo-QGe6xAkTEYtaktmdY2M_yyZdSYuwEF9Pvzld51SmWnUrskhUnAZ3XGEFI5UtVdeQXtcTU48RYPARsSXI8gJUwXE67ws8YgMa6E_b2a-KRAHEyKIbp-ck7B_pKos1ujjROEyNzT0xt13rXUu08BXpmedF3aeLojKwfW-vjDj2_0iq8p9_BsAQSuMaoi1Vz172d9G35AZy6JmWs905E1gVnjlQViH1MIHMoJA-aMAoqVpOYpRFU0hb-9oZcWvhEf5vXr6DtYLeor2A9-B41Toa4b2uL8a4gbNlTYJ0DvcTtTbw9GV9IhtOFlzPlC3RISzLNAI9GBpqak6DjmRKr-3gsf81YinflgT1DGQmf55zMCVasZd1vPcD1jRW_Q%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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’s New Power Couple</a>. <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyEBiZ4tWeoW5bD7CXENx8jZcZPePDiU0d0xPTOKXx_A4xXT0RUQWZ_fJXFEduukqFn5ztLk7Hn9uFQZFARws9eKxzYIntXidDQqtdicJAuyOSsjLQmQYsPbfcto6eB6IoVZE_Yg3v9gXc1h8Dq_6AfYGz4ctDzQTpj7964m4LVZWdj9FCVFxoxTjrG9Ojds8-MCDlkv447IJY_yRRz_dS59GV6pvMBHIh72CA1uV4dLoa0NVBoXRU8doY7Nrp7pn5mb6Ejg6dL2nOwBWbm35OfYWkGDnAx8RJKNkYI0HnrwqL14KPbZjRQZfDm5XjPovFlrRm6i8-D9bNGq6RSakKLEyuan-TzRSye8Se6yamEHDQbXN9UNMDtcDXH1-JaEOICW32URD2B4upkU2Psl4Pd2-MKDvARxRrxY9HQRGLa-" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Palantir</a> predicts windfall from Elon Musk’s government cost-cutting. <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3_PvyO7fPn-0VSxxF4pwJFSBhkUH4iYolUxKQeYijWh2moqdsAlM1Sx8wjYmtsXnsy9jkyeQkLDv1IuqG5sIkjRaYtuAFE87N-6jAu83Y6JDR0A1LlW8W9LDQHJ55YjNmBeKgjGM7F64mjCQm4qCLWXPGoorY0L10bN1nbJg21YoeZswRW_psa4xkcLI8QXqqXojfRd33Hm1ow4HQAYCDo31_9uZ4dXJj0mczGA4GLRzr89j8ePMX4QQn_v17ItDBBTv-P97KPhvShbYOjsObx6wdSKQQPJieGXEZKmmDmcJc4niSOt_aRsP-VQqQXeVyQO6M4R_EFkgZR8BsTexVoojpLCZfLnBlvYjvOgBhBK493Ua_IPGR2cZjsJjBakMomiFmplht3RwZGOvURjOpuI8e_ZEnSawQAcZSbjjONFT41wGPU-CkeqcPnJ_peSIBv1evQ8EdwgFovleF5SMA5zUgnGb5Fipy-XQXxN0th0fX9s-XUkH4M85qkvfbVmA_SCUrOF9r7dibm4G45_grc%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Everyone in crypto</a> is ‘begging’ for a spot on Trump’s new advisory council. Apollo Raises Record From <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC1i70OcZZSfy4Ak1S9wQEnwXIC3xn5hfagdP-VlFhiVDsdr4B00M4k-7iGmW8a_yCRs1WKaVbX8LEso36AtwCtKTv_sgooDi5BuCp4wBhCcWxhCJRrFMj0BaB5ze4uVVZFo3X1hjcmqGkRReGG2a7JHA9eqTOKQGCfj2Tp8tGFSQ1Czip-0wefxHd3dnHdF0bL2EJjZR_ancricWFA8Ous-l_lZvydQkFPfvJ7xOHfxiI-sgZHQC5WuD8Z8OlUdmmyjyW1AOzvvDP2Qu4-J8MliSZhEOAqk0BrBfjNQABfrF0Ea73aKUXBZm94mAIMep8g%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Private Wealth</a> as Credit Grows. Apollo Builds $5 Billion <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC0xkqtxaPXodYpRWbKFYIS3UR8wE0cEHmIVAJvqrQtmPJa5CND8zcr1G7feYqwpMRYqhYfCN0jEFTemah8dAa9ybdS4_jZsK2k7KGzi9Q1WpTX9-ksOo96joOBiIUQn_HAfnY-u-oVmFnVuw4JMmlPIL2JxJCq_6QnaIFACtngRanERVCEVzzCPecdnxbUFMVcTQXDq_nwvhbsWYA6WodpEWQB3ZfhaH5u3WvaqjgijR3EtjKJGmiuq2t6AncxCJhCpNNgBKEMDifVCanDNkW2l5Rib8Jg4FBgfPD0-mHMDh3BRdRE3Vav5zq_oAE3I33A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Multi-Strategy Fund</a> With 30-Year Life. Waffle House adds <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC7P28r9IIpgAnCM4X_EEckSEaHaDZ7aqofbSffstxid27Y3-I7EyfdBvNWKdVFcW2g-kzNAQk9JO0Gnck1sNVb6FSw5ojyxHs0P390-SRAW1vmAplLbwefi5vGDjSvklROROuxABy0onXdPNPYhxrdfm2dC9Etra-4vS0oqUIL7Cyx1fo0NGeRTCpkngZtZkC39-Dh1JTwehlURkmmYEvMu_tUK7xjXGiHMET8LlUUglpKzcKtV7HMUYwd-u5ppmoYQPdcas33SAIPwSmSr-YZj7buuaQBkS6ctAGYgtcjs5VdgfkfiQbFzugLkAMkf2lsB_wKtqjsFzPjC096fL3CsHr1pieGTi1wdwbGOMSHAcWXvOjps8nJhbDo10cYDOMhqJ41zMR1WdZtJIqVy2JoLPiGO4aQEAkcH4qh_yPljk36jKIVK0z4E2KFh0T-unRPXNV-igUTPRH15CPskZS4mr990Vyl-yFw_hObGyP0Cj" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">egg surcharge</a> amid rising egg prices. “Olive Garden is under fire once more after a customer alleged the use of hot dog buns instead of its <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC6lCe1A_fGZuvNN1Ev6PBiqxdiGqslFSJBrzI5HsGXvc6qf76F87-7qONX8ayUdW8S_oiYYzjP4TuWjpnHHF6a5tPUfNzTJyT1DYNHN8VnIsebTZQdpRS0_xF4XB78ny4CGQkkIRIcqt6HNOqPUnizmICzQEn9i16QvQNRcDjvkGcywmrnI2JP_nWUr43WLzfmJpZuy60VU1vOubfJPiLCFEwODDxYUKJAxmgtzppU6IKebkayn9NB0Zju0lRyWJmSQMpTE3fJB7RpgZTRwRBDr0Vw3M8Sn5tpdp8guXUB2YbXucHqXVvKjh6LSs83tijYUjhw71wej09xt8ZknkrC4T-48SutKD0x3VLw5D-j3p3ctpkKOGPM4YTFQF-B9COBn-T-MW3maVAkcFu7jqQur7jhYhAp0J2AcjzjbldWd-QVW-fwPxJeZnDOcM881XdNE_6NU3rXWngYFZR40r_DGXF0uSLMu642A5TrSF5Tt9KwnwDTS5611gRgQ-HdfKIN5uzlXnT3J5duwj_6-hgcE%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">standard breadsticks</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=CU78rTA5iK63EqAFh57yXjoFMtX5_DUl1zFJpi9T4SiLiDRTQOmn5MV1-qsjabHYB8BsT0bkFn5nDRDbW3uQRuYtFRctDJcqsQgrxZU0ZdnXETHBUH2ThnMNyo0G51Q5jsZWSkfE-lGaOlvn6FuGFec3EzJvQy-GANYC2cE1EzPamm7pAis1hVGv7DRyKpFv4q5oS90A5kKhyhypAYIwlJ13N0umBk5AAlOzuXcXmVqYrqZyaxPOFq3kM_llQf3mZorAs0c6r82KQLHWKWeq613R46XCe-d_oqnqxrPohbDma8lfU1t7a5A0Ev5kHiPW9eiv_Fm-Bn5eBjE3D2uGGzSigziOEZIV44o1lyM4lYzEecZX2wHVjVnzHCFTbvgZ0t2QOJwi5C8HuMO4e0mCBVdlDNTEFtrLuwPzgbtQgQy7H7lC6YDjIQIV1qZ-2NaTRbwZQCCCT7semvjC5b27YO9lixHq39E-4sxr6Pd6Trp2lpczZHzi9dYaV_dZ_m17-KIk1-ErSTU9LsiGxRlw6PbDVToiM3n5GCyniYNAO2U%3D" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3MSM8do-aG0bTosv4z3dvz8PVQCMXmnI_TGLR4D05ar743OCiq-Jdry9odmE5x14X45lX5LOmzEqnM2udgn2XEM6uKs67pMae8Vmdin1G7FuRRgPaumgXQEJz1IwQHS_rYySBFmZWA4SqgFoKeOM5xwgZR1g2brpTKni3uxMRyJaIgtIVgi5WlsteQKfjqSm1h6TpveLbkVo9OeTO8P7W0Nni-Pqmkkhln1pzg__MpCDgb30Bin361KdGTT4fQgzB9lJVUYqvfw3peDXdy22v38kjaTaqWhhPl-TTe-Tdt6QWYUbl78RgsHsUSqUcfaTJaLxbUc6mgEbL0d8P7Wj2lHWupmn8-MQGy-VFaX1F4i" 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] The <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCyAo9qXpM3b77Z_KaFxn5oDD2jSLlg5n0ujB8dl1bN3BhCqURHt-tGD7-7jEGzI-nKhWVgirAl19_jzZw4PxIYs99C5ZQ1t7_G9z8YaVPrQ2fVzu3r4TueEJkj5SxH0JsO2guGlLtBX6HgIx7Tz4p3pAJC--GYvr7TtBTWzYjFhzgnONnS4PWT-mNduM5Wnrq655M4J5mIiCHCfxKl9vQJZbgPBrXiRzbLoBjR0pka-K6mzmJbvpjyW4bOyFVD_81LXk_rQum76Ly_y_qMK1iK3gr8ZB4vromcgV4xFs6Mh_Xi-bCac6I2PRe8mS6SCyB7YHY5uc8C0DRIWx5CpEojnudWj5TFtt03_IF409xXx1I-PcyWOC9gUQ_GaxfNK0qQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">contract specification page</a> links to a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC_jUD8NUlUJ4IDtbECQeoStvfQj4FkojK7LBbdrTiGQP0qpSBRu6UxTLkcvu6wrcdk-TqRAuFvuLQb9W2DSW8KwyhtFl14ouFopV_Iyd8YUZ0AjH7L8ITjM7s4mseSXO7MHIq0kde25tl5A_627jwBd1AsLEl5xl3nxtbMNYMfCXMIsjomUZpQM8JzdiKQgQrgkjm9lN1Kg9UHwgw3oesX0Q06RT-zeVp_IZHOITO7GWBGYo86cUy3p0R5JKeYgny4ukkb-k2L-gGAMsoJA88FHhp-MJJ9PRGur-b0Ytd2z258zlNjF-H5jyRLygZPgqMYf6B9WQdhtqvsupCXQCucM63XUgu5Pk4xkTTB2-nO-0ZDmcMko0vejAW2V6WZoux_OS3PB8-MzdMa82QnmgPbIrQHPFweONPqAjklDeZTCL0ew0gSbbro20PDw4uGJYrA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Kalshi document</a> suggesting that “Super Bowl” *could* be in the event description, but it isn’t. (Also the team names are trademarked, so the contract names only the cities, not the Chiefs and Eagles.) If you live in Philadelphia and have friends in Kansas City, you should consider betting on this contract, setting up a flag football game between your Philadelphia friends and your Kansas City friends, playing it on Feb. 9, printing posters calling it “the Pro Football Championship,” rigging the game, and then demanding a payout. This is not gambling advice and probably wouldn’t work, but it would be funny.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Hilariously Kalshi *did* list an <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC4xWvvozB4nT-7o8Oo3ORBNAdPDVI5cZCO4szHHLiv3dO-tuSVpC0nrlA44KuPULPT0DmRdnvoq5Ph1GfEuJtpn3nf4GAdk66XKyoaNa9_gq10Yd8XbgpTEe8KB6MpKZcF0ZRpjBAP6Pe-f0RE8mVM5h1fD1C60V-wFC3t_ziSGAHDgHMeTi1gjRSUarn3Hh3MnXoIivCLBe_zsL34t4-s5omReJ1HIv7uT25J4L2WIj5EPmyM_U8UPTiCsA9nrH1Ebq2wtNXZbeSxvnRB06WBEShVYy02oZmZzppva7TluH1UmThI4H3r9aLVs-sjvywujd4eFh99F2yWqu6AzVMI4tBTxxTGMop06Wl-wAusKttjeCtWo2RIiF-ElWw_lyV_esnp2uDoa83jMXIwH95JYinmoB9yQf5TH0iebX0sizFr9C3UYlKEPEYnzw8SkEsvb70cA4ycqDgvu2CugDorzSDq4Xlh3apcupYvZdTVbWABga0JziYHo1ZKzQQMMy4wAx7eBKHMlc82wl1tISWC_yL5t2RNWwfxVNjPZD_8oEib02hAoqIinFTzz_nssUCw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">assassination-related contract</a> for a while, oops.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] The <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC1PgjPHmPzW9jMuoPZzLR5QajQIcuB6cvkK0OxJKOntqJFaJ6ubkuMPUIv6frVaaU348fuY-VxCQdgxSSQCEipGc3ZXIyx7Scc1RQRqWa5XHke0cC0R4G1KuwW9WOOD53gp51Xl2cTHeddFFLoB9jJy2Ul2uAmUDvgyjaFIFbWEC_hDNA79xSuq2G4-mVWVzs5PAY8UKiKZCDftQ8OZFHgtUK5dHGTbxf8TBDcmfLNyKux9X0H0JCk3qIyVfYdGqInREvRzd06jLHdnvUNlevk-yim1UsjjlRX5TngoVr9wUS7rdcc7inuXAWixfvCwIXjVovEtbHL8HXSGuS3fBHlSNoSiwPNaNnKRBTP-Q8qeb_2qZ3EcthD_nEs2_c3zFdJJdrTbcR6ebKFOSBcanOGM4i4djJDcKycUbT7j_inCDio3JV_Gq-j0_HXmP4iUIGUFlfqM94LbdQW8LkXZE2lc%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">rule proposal</a> cites the legislative history of the statute, which specifically mentions the S*per B*wl: “During the 2010 Colloquy, Senator Lincoln stated that, among other things, CEA section 5c(c)(5)(C) was intended to ‘prevent gambling through futures markets’ and to restrict derivatives exchanges from ‘construct[ing] an “event contract” around sporting events such as the Super Bowl, the Kentucky Derby, and Masters Golf Tournament.’” I guess if you’re a senator you can use the name.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] That said, we have <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC_cLI_QRVgezbt7tlTuITaNbJLaDgGcQSHfILiCI7hEPoXevRraBmw9FwX6zgPtyylSyee2uHPpFK9v4KoBT0Qbt22dVVP3VxaKhjRy3TdI_vabCccmeMEM4HbBoXJGB_ZEo9LOhYaDGm0heBBtAJrqqmUuEQvZLtDt4pqLYmZyYnTytumacxY1Oxlstq_yRPpYXkiCcy-l14edj3BbyRervc2b60_0imWSJfFZIyTSIZT-rxRk0oAQADQRyM4ZKIxKgoIgXf_Iir8ko9H0oAjJNVKo_sPxN_38tMVzOQ2R76w-7HsF6vRkMUPMhD1DTVQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> talked</a> a few <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpCxVppKi3AEqT_Jp-9g3Tz-Tz88OL5AYqKtnm692rDmfR73tKs21pbN0hyz7WGoW50BAMZM1h2dHKM9O0luPFV-9DuRKQ-z1tjgQu5BPBB3DKblDK090SQRV6ZN6A02NzumGxXASyv_ym17lNo5DVpG_VpNGWLFVKQLoLnhdaxy0geDjLEP-TK-WMcAPuV0LptOabXSOKCGOud2bzZGjW3hnZuOyuqs1JXM9UDFtTUwrCFK2KMDnQma1sS-7dSC4H9YOedrdsIWbWzFyJI3DYqA6Y25B7YfH-CaIQ4XJdpQKL2CMH1xC84BPCpyzH3pIgJQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 the civil and criminal case against Andrew Left. Broadly speaking, Left is not charged with lying *about the companies* he was long or short; rather, he is charged with lying about his own trading and intentions. If he shorted a stock, *accurately* said that the company was a fraud, covered his short as the stock went down, and then went on television to say that he had not covered, the SEC argues that that would be material fraud, because his audience cared about his position, not just his analysis. Left was thus arguably misusing his position as a financial influencer, even if his actual statements about companies were sincere and accurate.</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] Musk seems genuinely weirder in this regard, and he <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC3Yp8pvFty7LmHv7RxzBBkR0Q50hpxVZq31Wne3Z7MtRXJ7TBuxQUFzOvLH28TdG80nc_EhjA4OOXBMcsp2NTg13U_z5p2nGoTvHR9nJ_mBizCBTnRz4yXk5NPORVM3L8fi3CM4Xv7qDyV0uIzJapnhSTG7hTOFSwAcuEezaBAc-fGzVE-hhQh-E2akV-89kkRqDAhqV1M3mLI3YXbVRVVFkqLZXIB56xFRN48PIkkqN4bI5AnteHDOjQnbevefrmYU47mupFjCdHOjqTPxjnXxSwJq6NN6O77aVJ8cLUt5xmdu361l3NDP6CPFVi-nSiA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">never seems to trade</a> all that tactically around his chaos, though I can’t be sure.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] Not legal advice and, you know, who’s going to prosecute you?</p> </div> <div id="footnote-7" style="font-style: italic;"> <p style="margin: 16px 0;">[7] No it isn’t, since BlackRock index funds don’t trade that much. It’s a transfer from, like, Citadel to the Treasury, which also has some <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC58zspvatw-f09tnPvZxKrlDZdrf56s5WmASJh9Sg0jB_yQOPhmW9wIv4p5cq1SPyIbK7zla59W5Ft3sBkxpPuGF9PkWxr8R8_RuHDAlYSonAixC0n82NspnpaPSqs3Yi1jv7ancWpKq-SHe8EhZjF2WGLA0kDt2lXxP-TrQj4776bZqseUQXgSCGvUMsvFueH_psRCcsxT918OiDPdaVFlYW31gIMMCe2cdjy9wd5n5igUDQSi2PcDvIpwjq4IngArwVroCqUpyBS3wxwwzPsaqceqs2D7ZO9LoZ6mHz8y_1aUenkITy8jghh9eMVxmew%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> political appeal</a>. Gotta punish the people shorting Trump Media stock!</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=f22444562da94f129993de945d36efee&_e=yKqjkMvNBFo-WS8smsYpC9PnkLRhfsypKHqITA2hOPRvxy2I0PLV_05Q5AMUzLBaUPSOsi22JPfNnVzpUvgugiFveIWid9PBZTisp-CEzuLoFzVN6poVxCcMA1hrVoCKOdNGH45Rr-ONxR6GixJ0-m3FEmAWLFQHAUTb2dujVPSLV_D8NsvMARz7OF14-VckngcL5LdYVjjlifD6V4fz9MjWXpW6r72znx6DRb0r_9rC5oPAZOa1qHjhlzs-WsBkQpzYwUoB-nATrAd4j_L2kPkfL0NUufFptsWdsajcJTLi-YDLFjZXBPoG1shhNfvJh57qWNoS54QJUdO4J7FVkHcAqcu0beOilE8njBJ9ebiWroMANjLZMcmQHeyQ5ye6t8aQTZgunBpKs-EeGevu0lWXWHsMg_G_lziz0g1Ksd0%3D" 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: Texas Tempts Meta

    Mon, 03 Feb 2025 19:25:54 -0000

    <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xmlns="http://www.w3.org/1999/xhtml" style="width: 100%;"> <head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="initial-scale=1"/> <title>Money Stuff</title> <!--[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/E9cFTdyFslYEXq00I0LXtA~~/AARGbBA~/gSYo8QXZ9-CkU4oEaoMOmc4gWIfAN3nfQbi4_P6x8ESdSoAU6hq8YcdxeuZ5gjoIJ3RUvw-SFnZlmSDNLVyirjSxi2aKeYs9Kp--zeIBAMo~" 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/e/eo?_t=f574328d4d0c4c359b90d8e49b10e21d&amp;_m=596126fa20ef405292ce89aa7ce8e573&amp;_e=ThyokNIAGZKmrT-L7x88je_6kSmQgBXGNenUyMyzy5Zk5j0IltmwtQ9TefJI4V0DOZzWATviiU8Ve3XjWdV3wKmn0o1lR1l-Bq4rOEpyyEIKXQn6QHpIV_UcTeHoRTQ8_WQVGSMrua-WgC9i9D0-WJ_8jadwHj4Rc4hm5mlJ5LE%3D" 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;"> If you are a shareholder of a public company, how would you like that company to be run? Here are two options: The chief executive officer o </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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnZzEsy6aUxEDymWH8FM6IaJ54ZpWP5KxBScB4K0hLVdjOJ4-0CwSfP4mPehpPs_olJt2-h3aWeiHMuL204OsdbJcSl8fWzX9jp3rTRlqcOvCNvfiZ0I8aiWPPrmJFoPMb_wpXMxshOYv6eS0HrABGIxWgCfVu9ZZe2CcrlbXzdQGsSrYxafV9nqRBt9r03TOuqNPWxAgue0VN9Or1et4Vm_50WFD0rOBD_tDHsVedT-LCoybzDTIsm4oc6ugdvk7aR0IUNx_xixvYM_PuQLvaPRb1-0lGpjThpwjMSWhOF8Y6yHjkL25iTP9F7wwXiX5lg%3D%3D"><!--[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;"/><!--[if mso]></div><![endif]--></a> </td> </tr> </table><table border="0" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevna_YJ7SJN-5ZfN8_-ESdAGRAqxH9Iq4gbw9vuTY3Gxg3kFh3wQOx7EjxAAPYTP9zc6hV7BL2wtg0xh3XDqtUdbriYzXDM3k2kVNfDyyEf5mesLFHBj1EiJXFvIlSdF1fJIOLJQ3QU3UVaF1wqtuoVGU0c3kSr20HLYtbJxxWQfr0UrL04b4tC4mVpzHyytcTrPsuI0Z-ujmD1coxBkpwcxnaRfjPaLpHryz5MjHXnOHRlb4o6YD7Gts45BdRnZizjOP6pStRuyqiOpKpfjvLtAwdmpQhESFCUDJU_ryhMxB-UhLLV_GSKcT92la8DJjxDw%3D%3D" rel="nofollow"> <img src="https://sli.bloomberg.com/imp?s=825881&stpe=default&li=12500861&m=c869f5c3f0784f1d3b0577b4456d769f&p=02032025" border="0" width="108" style="width: 108px !important; display:block"/> </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;">Meta to Texas</h2> </td> </tr> </table> <p style="margin: 16px 0;">If you are a shareholder of a public company, how would you like that company to be run? Here are two options:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">The chief executive officer of the company has to run the company in the interests of shareholders. There are rules in place to avoid even the appearance of a conflict of interest. If she takes the company jet to a morning business meeting and then spends the afternoon sightseeing, she has to reimburse the company for a ratable portion of the fuel she used. If she wants to acquire another company whose assistant treasurer’s nephew once played on a Little League team with her first cousin once removed, the board of directors will have to set up a special committee to review the deal, and she will have to recuse herself from decisions about price to avoid the risk of personal favoritism. </li> <li style="margin-bottom: 5px;">The chief executive officer of the company can do whatever he wants. He can take stock away from public shareholders and <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTdYJqKka-Sh1jc2FDNZIvr8uo95v_LEMw8Pc6WrBGJ9Ust4pnA_4wwj5CpmZSYqE-7KSdeQOl3hfLDRGGCB6dUlJWQeLL-HeKS3uZvrqSXa2vg8sofegu2HgPb-WEADGm53xUtLwCYhCxzD87lS6fRJ2trY1MOCxHY7rpemse7o8VX-KDSQF-D9abBWKsaqPNjMFITfFyf5sS-TBMqs2QfjLEfoK700h0EYZR7dbbNzvocA0NCFQZImvr0OOOZgEx8Srm9XzRxnXs5HKToIlzw9eoUYnGhJl38x8WHTfj5tsNC0r79YzOrgny9PyBeNug%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">give it to himself</a>; he can take a month off work to do ketamine and <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevncAXUUjKYsWmDkjITAZlPvoIuVYUcOmDrXPg5A1QXVO9lf4He1tXaIQ9UpPpGEnIvEXBBoqC1cA7PUiqoE9LoQGhf0hbPRRYmvd34ei78Pji8SM6C2xfZ6fvgabFrRhF6BNJr6LxG9V86VboIq9kBR99ogTADGV6OKQsilRsryLgy1fVUoUfMRegArCUzYbOMtAuJW2-EPbP4eD5CRwrEAS4A0Qty16ji5WtMXZdiC7hEW4L0PfPoshEeaJ5BkDCZpAAjysLAmRoPYoVjGqgduhsWAV1NPcz5qpZiv8HrsKD1XLIHGRoRhZSXTFkeBfR6w%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">party</a>; he can pay a billion dollars of corporate money to <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnQiQuSybipw3cRTNtZWwlH5Y0w-FtsvPycTTkdGlKtUgcpQLUJ0tHtAQZgcTvoNgECVyyVMDAHVQz37DB-_cuGmqlrF8CkFBF5IpxNODAZCeNvq-Q6sg8JTbH8aJZyTQ4gib1DDuQFIehba0vQFQZvZ4vTK7uUq8eyI3iZ-P3tn3_Zcd_0xuTHbIFe2KtsnyYGsshiLj40JGMCPRzYPLQ7uDWKq9k4LNUUSwGnIF3lc9w9DdUB24ujPeKLdelvnSrZ3Rr-67qNml-S0cXzjCwhRgrRtjzkJrJEKkXqH06HRo6h5udVGijbWb5Yaf4aG58w%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">acquire</a> his child’s lemonade stand; he can have the company build a giant <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnS_w5r4QkdTJ6OGs94lNa2nA-us65OpHNBum3jcTgitpgIJG2a4H9xtfF9umF-3aoaED40qQfOwzY5EhgYkV0a2Fvv6o-QnVo_8ZvFPmrcDhaKC4UplIW3YEP8uSMmH318A1qzyY1vwHOuc6kXVf-bomSp_DrFkOUbUEx2mw-VkK5F39Px6_1DR0g8Db0iIHxZs37AmC-YZlHl4p5wRuUKFOp9Ma1KBfPSgDh1Gtbh2u2chhpg1nzmunjZOZEPVkNa6Q9gFS0OlLPUaFryQy45Y_KCd1RLvHcehXo9FDOEjO0My5NMQfwCik0D5kJXAGTQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">glass palace</a> to house a giant <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTOObXD2rL_RScU47AiUhuw8Wx1-DLPfNIMCPFXGXBaiDnIuk5ikSoz9U45_xiCHjPoCg2h2U89jp3Z1v8aObmtV8ZImgKJ8zDr4e4kB5Crtx3Z602jN1obwsGPbisp_ofETWmJV7-FeUBnaT2uRpu-4GD-z68CzjtS7InVor8OBiDrLCUG2yzBg5SPa-RSWqyDuR6vOTSvTUuwip58i0_MNh9gsdH-vxB0qVuEWe-gIecUsHlJ3Jo7r9A3-qe-kf8iR7iRx7A1S-IPCPlEjrXfiKm1o-HzBkyFaclrIE878sLtNs8OcLeK9xyFmVRN7SQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">golden statue</a> of himself. Not in a “he is technically allowed to do this but he’s a good guy so he wouldn’t” way, but in a “he’s doing it now and we’re fine with that” way. And not in a “we grudgingly allow our CEO to do this nonsense” way, but in a “if he didn’t do this nonsense he wouldn’t be the visionary business genius that he is, so we enthusiastically support the giant golden statue.”</li> </ol> <p style="margin: 16px 0;">Which option is correct? I feel like the obvious answer is “it depends.” If you find a ketamine-swilling self-dealing business genius with a radical long-term vision, one who, almost despite himself, makes zillions of dollars for his public shareholders, you might rationally (1) give him money, (2) give him complete creative freedom and (3) take the risk that he might hose you and keep all the profits for himself. That’s a risky trade, for you, but you expect to be compensated for the risk. You trust his vision, and his money-making instincts, more than you trust those of other shareholders, so you’d rather give him total control than have him answer to shareholders.</p> <p style="margin: 16px 0;">But if you are an ordinary investor you will want to invest in a wide range of companies, some of whose CEOs are <em>not </em>world-historical business geniuses. So you might want a good set of rules in place to make sure that <em>most</em> of your CEOs are answerable to shareholders and doing a good job managing those companies on your behalf.</p> <p style="margin: 16px 0;">Ordinarily I default to feminine pronouns for my generic characters, but you might recognize that the CEO in the second option is a lightly fictionalized version of a real guy. Not <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXUjLsT_FZR2DZ0QVxnyj-SbQ5kD3W9suhhQL0G1XXpLImfo8MpgFozG3c65tmH4sILMpg2MyFXHdCYW7hF5ZgyARKMhxp3XHH7kK7WUkPKOPHclLFEBYM0UElc8-w3s9crNhK5Zzvll9iJwrrpWH5aivqufTSkejFgpyklF4rzGc9Gv10eKESwoaGcDqJbh3FuaUJbw16LJHE112ASgxFhg5RB1kf2e7GwbGNslmi65aqkYUo_NAfYiOF4XDVRD067ED-KP6W9qx6YYgUOHB22tQJFp2OivQtE5gj9Ueyg88NxeLrmWd8HVlki2tmw5bifetgpJ06rROwqpv790LK-Vst9pTfXKElpcb4o1lOKbY9jYBbCht-On9CwR-_ywImm191Ul6bEoif07qLYEhTCnYjJn4S2SPtLV5oyhaVtG" itemprop="StoryLink" itemscope="itemscope" 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 guy though</a>:</p> <blockquote> <p style="margin: 16px 0;">First Mark Zuckerberg moved Meta’s trust and safety workers to Texas. Now, he is exploring moving his social-media giant’s legal residence to the Lone Star state.</p> <p style="margin: 16px 0;">Meta Platforms is discussing moving its incorporation from Delaware, where most big U.S. companies are legally housed, people familiar with the matter said. Texas has billed itself as a better destination for companies such as Meta with controlling shareholders like Zuckerberg. …</p> <p style="margin: 16px 0;">Although a majority of Fortune 500 companies incorporate in Delaware, other corporations have also looked closely at similar moves in the last year, often following shareholder-driven litigation. </p> <p style="margin: 16px 0;">Executives and controlling shareholders of public companies have long expressed frustration with the Delaware Court of Chancery, which has become home to a thriving shareholder plaintiffs’ bar. The big companies that have reincorporated elsewhere have tended to have a dominant owner potentially affected by recent Delaware decisions. ...</p> <p style="margin: 16px 0;">Delaware, which works to balance the demands of investors and managers, isn’t taking competition from Texas and other states lightly. Last year, Delaware’s legislature made it easier for big shareholders to use stockholder agreements to assume powers normally held by a company’s board. </p> </blockquote> <p style="margin: 16px 0;">Honestly if I ran the the Delaware legislature I would let companies just check a box<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>: “Do you want to be governed by (1) normal time-tested Delaware rules of fiduciary duty, which give shareholders protection against managerial self-dealing, encourage shareholder confidence in the businesses in which they invest, and therefore tend to attract more investors and will get you a stock-price premium (<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnaCARLY-A1YT3bc6Jd0sw34xqQA4cgc9LHtFRHXbkZlesjVIb7g6TGpHgQvwrdkwTwZQm583g1qvgADsc6wbK2CZDB2aL_gUtROBvz80cV2KTRre7AvWQJQICYw_uH8T59nnuNNyhr-up86uoRH8FfzUkoonDxaK2iNoqSA1wwLJq61g9tNSDoTVoaMb3hAbb5E3wHxsAMouJMA9qLkS4_aIObxNWpzSTR9wkdY0x0gTDbOiOMTYuBcM1Vbj7edou8l9xPuy6pYRgSQsHUn0n_8b5RvjdDI2zC6TkLuOi7DPYSfdz4AgUdmlP1fF2bQgxyyrFkcdn3HY_51UPojWmLZzxVWVRwMCLYPhshhTxbR2eL_Qgn6eQTVos03PE06iWobGwmuFgX50q8woOw7haRZIAOcjNk_Tpuqs7Vq0UiIDY18e04tujV2liMULhIgJeB28ooW1dqefhnf7T6pu8lY%3D" itemprop="StoryLink" itemscope="itemscope" 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</a>) or (2) anything-goes rules that might be fine for you if you’re really good at this and/or if you have a devoted fan base of investors?” And then I’d require companies to disclose prominently what box they checked. It could be in the corporate name, or the punctuation: “Meta Platforms Inc.” would mean a regular company; “Meta Platforms Inc!?” would mean a weird one.</p> <p style="margin: 16px 0;">And then I <em>think </em>most companies would want the regular rules, and some would want the anything-goes rules, and investors would know what they were getting into. And for most companies, electing the regular rules would get them a higher valuation and better access to capital markets, but for a few companies, electing the other rules would help. “We’d like to give this company our money, but we don’t want the CEO to be constrained by pesky rules about answering to shareholders and putting our interests first, so we’d pay more for the stock if he wasn’t,” investors might say, about <em>some </em>companies. (This is sometimes called “long-termism.”) “I like that you’re crazy, but you need to be crazier,” Masayoshi Son <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnbOUk2LHmFyr1oxpuV63CQ54JLulVYTUj7KzvZGntPzYHSjYqengQ44pOdE8fQ-LleRcLLwaXxjeGNWQIpYEeyoCe3s__81pPPBDy-Om0cxM-x9oKnYCfNdwXlMNrlVtAPMhpSH2S5zGbsQrle1lOAlXx0MDbkOfQW3mCBZgyPFjFB4bu0fSZgQJOHIxETXCHp5t0sHk6Y1BsRPbDW9li-W-DhaiFVnPCFL2wAP5IHEM2X4Pdg-I9cIfTapFsYIXnS0Uu6YPa9L5bDYTszpGwDfP9quNDQn_QdkNJhUqmoBXdOLq6RsuI32fuGVGGAAKcA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">supposedly told Adam Neumann</a> before flinging money at him, and I guess he was wrong in that instance, but you get the general idea.</p> <p style="margin: 16px 0;">By the way, one reason that it would be a good idea to offer this option — and to offer it in Delaware specifically — is that it promotes clarity and certainty. Moving to Texas <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnX9mEbRXw7ngedk_aySMrIXfqESHRzSiJMMt08hCzIpmtT_dk3tbem3ME9PoysRzpUDrANcwfPKnSQ3xIIyirFHF_4x5zmmsolhMf1uRMLB_-J-8HLwdZLsSOtw_mGnqdABOaEsAHJAKXkDVwjb4p3D3R4n-dhHyGugQnrXrHpRrcRQEh7quFFb-s8Uk6r3BFwQutHU9WruAeC9fe0zcULitlGSSPEWIPN49t9w5WxA1Ykyp23vfekoJrLnx4t3_XPEj8SEQ-hElTuAkcm3oUD-knvX8J7iAfy9L1M6QC47ahcda0SPViW0F4eA3xoEnag%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">doesn’t accomplish that</a>! Texas is a black box! When Tesla Inc. moved to Texas, its board and lawyers could say, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnV9K8_66TWj3i99qM5y-4wkFechcBKcFPsYGE0xqy-dY4xNiydY9dIQMjsiT7WKNBmaBiMJGFdcA3EJ9Wr29kHBEAMvM0M-Gq1RVMxHGruakke3jMAph93-l6ri8hfZFyyfxrWNkhjNtNfbp4q5xHnbKOgMMpU1DxQBmw05So-dQ3_ZHrXmeDoeQBrIhaubDB3NyjLP7pU5tnLB0iYe1TcREYzy1z9Xr1Fl56smUh4NhaPxlD11RxoiwWNxK8UVAhqlilmu-z_skJqh2FEUmHiU7CNpndGDYootWnVfSCzzWp0vzaj33Ud_i7BDMLOZVkg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">with straight-ish faces</a>, that they did not anticipate any change in shareholders’ rights from the move. Maybe Texas’s new specialized business courts would be as skeptical as — or more skeptical than — Delaware courts about Elon Musk’s huge pay package. Who can say? They have <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXUjLsT_FZR2DZ0QVxnyj-SbQ5kD3W9suhhQL0G1XXpLImfo8MpgFozG3c65tmH4sILMpg2MyFXHdCYW7hF5ZgxXxPojkPzsEcZPeN2K0qqVsQ0krXmJoKFhcJNUIhvmXXmhepVFctmlUgHIL9XW14CAKjOR2CaA_f7igMgsAvSrHzI1Ynq1LJQf6lp6Zl3dNWWNpVTQmA4c0S9i3pmCKWIWjEh2734SgmhpqlOfyHFwMFRslfUEdacf0GBAmwyaSUxyjQjnBdqi2Kwfa0b0yNypEUNZmQuNAyBoCd2By39Gp2DJErzHirDhveVm_FFx_iaMcSb5B4tsZLhtqSvIwx7WBUAbG0PjWaJJSOSSSGbvFc6rUWDup_VhSgj9ZpA98SZnFf62LyLcQtKT8CyQPB-ALB61VYB-yb586dUDLHOs" itemprop="StoryLink" itemscope="itemscope" 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 precedents</a>:</p> <blockquote><p style="margin: 16px 0;">“The Texas state government is trying to send out signals that the Texas state courts will be more friendly to businesses than the Delaware court has been,” said Stephen Bainbridge, a law professor at the University of California, Los Angeles. “But there’s no guarantee that that’s going to happen.”</p></blockquote> <p style="margin: 16px 0;">I assume that eventually some retail investor with one share of Tesla stock is going to sue Tesla in Texas business courts over Elon Musk’s pay package or overall schtick. And then the funniest possible outcome would be for those courts to rule against Musk.</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevna_YJ7SJN-5ZfN8_-ESdAGQERnxQkbWRrlrm1r6GlWMFsyCaWHW0xPEt4WU8nZ5VS-Uw_LyO7Z7qFmuoLNU18nZqEx37wS9qi5d3ECJlCBLql0WkZRm_ifHgOH8h45bfycKFM-BfbzRKlgBgc4lSaCom9-aroJxko7lwUcumY7mpkrHapM8HFy75C-O5SVjFLQ3ldv3edXYNBvf99pfg7Db7aU5JjT-wicZlbDOJImN8t9eRF6AvxWbku0ndF-K2uZpAKH8Q3U8K5ObGa3h5EYhVSAdVWG-bfSkG9oGPyStXFdl5_WstfZe6nR3QXJ7Tlw%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=desktop&collapse_width=550&li=12500861&m=c869f5c3f0784f1d3b0577b4456d769f&p=02032025" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevna_YJ7SJN-5ZfN8_-ESdAGQERnxQkbWRrlrm1r6GlWMFsyCaWHW0xPEt4WU8nZ5VS-Uw_LyO7Z7qFmuoLNU18nZqEx37wS9qi5d3ECJlCBLql0WkZRm_ifHgOH8h45bfycKFM-BfbzRKlgBgc4lSaCrqBRbbXKsUUZSvy2XERKcQlctKlz4FmK-4Nn_qOlIpnk1tDuAXvxRWzsCdhMe20Sl8MGQh0UO8dr4eYvSLyMcgPC3jyacrBrWeTRH6eNhiEssUkVp8qIEV55hMbVUP7N-2ezj2xkFpYi6fvQjCAJBt9WuYMPW_HKCFgxiAw_NH5A%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&stpe=default&li_coord=mobile&collapse_width=550&li=12500861&m=c869f5c3f0784f1d3b0577b4456d769f&p=02032025" width="100%" border="0" style="display:block;height:auto;" alt=""/> </a> </td> </tr> </table> </div> <!--<![endif]--> </td> </tr> </table> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Bally’s</h2> </td> </tr> </table> <p style="margin: 16px 0;">I am not sure that this actually works, but if I were still an investment banker, here is a trade that I might be pitching to gaming companies:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Strike a deal with a city to build a casino.</li> <li style="margin-bottom: 5px;">As part of that deal, agree that at least 25% of the casino will be owned by women and minorities. You — the publicly traded gaming company — will own 75% of it, but the other 25% will be sold exclusively to women and minorities in a public offering.</li> <li style="margin-bottom: 5px;">You do the public offering at a fixed price: You just decide how much the new casino is worth, and then offer it to the public — that is, to any women and minorities who want to buy — at that price. </li> <li style="margin-bottom: 5px;">This is key: You set a high fixed price. The price that you ask people to pay to invest in your company is pretty aspirational, for you.</li> <li style="margin-bottom: 5px;">You, and the city officials, go out and market the offering to women and minorities in the city, calling it a chance to “create generational wealth.”</li> <li style="margin-bottom: 5px;">It is 2025, so you will obviously, immediately, get extremely sued by white men alleging that this is unconstitutional discrimination.</li> <li style="margin-bottom: 5px;">You settle by saying “okay fine, fine, fine, you win, we will reluctantly let you buy shares of this casino at the same fixed price we were offering to women and minorities.”</li> <li style="margin-bottom: 5px;">You fill up the order book with the people who sued you.</li> </ol> <p style="margin: 16px 0;">It feels like a sort of oblique Trump trade, doesn’t it? In this political climate there is a lot of competition for Trump-aligned investor money: There are anti-woke investment funds, there are Trump-themed memecoins (and Trump-themed memecoin exchange-traded funds), there are right-wing social media companies. “We have a special investment opportunity that is only open to women and minorities” is a differentiated way to market to a similar audience, once you settle the lawsuit.</p> <p style="margin: 16px 0;">I once <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnaUPFXDT1KjKHFUh4AmpIgQXmabmcCAFcTl54jI8ErAAfGicTI2ep3y7yltzqiqwxg9_J1y79ZBsA9ReMWZGtsLTtO9vbhx3o33aW7GMAyYZ0R7KCsNCGUi3NZYT_FHFqM21fQ6eTNqoeJUr3rKuR3xgKkGpggyYsYMU2DtnI_MTEZrODJel7Ju20VDaVezbQ0ghK8h7G2IyC_ZMCajmBF6tPcKJRGuc6w-6RR8QFWjCzwoiAEFuCMkcImRaY_hLJM7ndU76twjzoXHH4rm_KfqOZxg6t03TFmvFe6TfmmtNkaxDqSPAnADqDvnQFiv_8A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">described</a> Sam Altman’s approach to his investors as “business negging,” and I suppose this is a different sort of business negging. Get people to invest in your stock offering out of a sense of grievance, at you. There are various problems with this approach, I cannot entirely recommend it, and I am like three-quarters kidding, but <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnYDhNI39Y1MHjuQRfRuuhwQDjcY--sUUtVQt2e903pa-ENnVST0gf2d0cWKWOoK7UuGCMvxz6quyYCtQt7YXjE6YNucin-dB3bLkVM1gXQJ5yNyWCKFvyzSWEOM7aaAiseecDbjd2KjTeouO0zL_q_rHAg3GB6fNxm0hWykVedJMC4E1Pbao46qAkr66KQBmWJEjE_pcnEpoc04JbFVKLr6t92-nbfUKDTF-nk-dREJnwIH-eYPnfnC6AB2X7akxmc3K0dejbZM_foj40yV2XTxf9TEiF5IFesSpJWTd8UQLjAS2sjzQ8AB024jwUmXkGQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 you go</a>:</p> <blockquote> <p style="margin: 16px 0;">Bally’s Corp. and the City of Chicago were accused of discriminating against White men in a lawsuit by a conservative legal group challenging a $1.7 billion casino project that offered a 25% ownership stake only to women and people of color.</p> <p style="margin: 16px 0;">The city violated the civil rights of Richard Fisher and Phillip Aronoff, who said they were unable to invest in the project because they’re White men, according to the suit filed Wednesday in federal court by the American Alliance for Equal Rights.</p> <p style="margin: 16px 0;">“We’re not trying to stop the casino, we’re trying to stop the race discrimination,” Dan Lennington, a lawyer for the plaintiffs. “The minute they insert race-based qualifications into an investment, that’s when it becomes illegal and invalid under federal law.” …</p> <p style="margin: 16px 0;">Last month, Bally’s announced the initial public offering of Class A shares that would provide a 25% equity stake only to women and minorities. But the suit alleges the limitations — which bar initial investors from reselling their shares to White males — are illegal.</p> <p style="margin: 16px 0;">Fisher and Aranoff “would like to be dealt in on this offering but are excluded from the table solely based on immutable characteristics,” according to the lawsuit. “In short, defendants have stacked the deck against them.”</p> </blockquote> <p style="margin: 16px 0;">Yes stacked the deck against <em>them</em>. From <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnWd5dgBuBlmHcRZASnQBa-9lKOVz7O7qK6ebbIpErxKDBMv58zIRE5gdgknd8dV_QrdqP-2fBsQ5fgh6-XcjXKrZfC1rvfigu1AdRrbg22bhveD0z171NG1lfBBfD2MDIvIF3Sp5lgleHewDjYc_dZhrkSJAAKnu-6Le73-4L-bXeFubRZJaVvlV5W0SKeRw8rtk4DNw1mIHDij0yAqG1JDdP8C48cZUdAvaChvw-S8xCHdz6kFfWnDhcSjp660NkXRs4o4Dzk1U5-57f2QbIra3GiN_M9zzQm5Q0FMLO0oHp_EIyBMtP-mP5ww6QyrujLSHCteRLLER5plO6qk09UIABMLKkQBU8BkLMIvWFZrnDRbuPuG7CRUOBlKXou5u0m2LqI6O40exNNnQaDQlZNnXbhkyeq897Ta9UYroUTO_" itemprop="StoryLink" itemscope="itemscope" 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 lawsuit</a>:</p> <blockquote> <p style="margin: 16px 0;">Bally’s Chicago, Inc., a new corporate entity, has advertisedan initial public offering to raise $250 million. Through this “Class A Interests” offering, Bally’s Chicago, Inc. (and its investors) will own 25% of the Casino.</p> <p style="margin: 16px 0;">Chicago leaders have touted this offering as a fantastic chance to “create generational wealth.” At an information session, Alderwoman Ronnie Mosley (21st Ward) said, “[t]onight is about a new opportunity on how to participate, about not just being a consumer but to be an owner.” One resident of the Auburn Gresham neighborhood called the offering a “no-brainer.”</p> </blockquote> <p style="margin: 16px 0;">We <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTWlwLJABSWWYesmoH8CXxfk1YVHncZYig-Y1xGlox7kNQOi5nEB_y0F0tKnOR6sevM5PXzPMqJGng2g7NnpZkkmszO0Zp7u_se0-omyhvxndgVroETsEfCS7vk-t0_97dWDCOBPnv0OjUTaCAkiIDu5wwZNoEeVTGXDP3tNc4L_V79AgpnyaWya5dadM8dbV0WZH6uiC38EhsxX_FBqe44dCN78hGshRSE5JRS5tgCmlkRkLw5UTqmtuWGPLwbR2tHLlz_UOanBlJXI9gxqmnI0-ezIDK2lTCKknYNCKIwBf3Ia-1C6PVOL2jFdXs8Dzw%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 this offering</a> last month. (“Awkward timing,” I called it.) There is some interesting structure on it: The shares cost $25,000 each, but some are being sold for $250, with a 99% non-recourse loan at 11% interest. (One rough way to think about that trade is: You’ve got about a 1% chance of getting a $25,000 stake in a casino at a 99% discount, and about a 99% chance of giving Bally’s your $250 and never seeing it again. Not investment advice!)</p> <p style="margin: 16px 0;">But there is also just the fact that Bally’s is out trying to raise $250 million for the new casino at a fixed $1 billion valuation, in an offering that seems to be marketed by Chicago city officials. Is that valuation right? Here’s <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnQ4W0ch_dKOJYXCXpHWPgka_L8RTpB-j_pCsXNbTc1dAueR4Z30z3-waegreIXgL5rp742y4EFQQLGMurHAdZ3aQTBg0mFS4TqGc3XyIb8jeCDig9j930K20pi6GW7i89gBYXgAVwKYZiT21dl5JeexIh4y9J430qrh2jOZlH5nK0Fgl1B27RQ6jOYURNwFKY_o05tKYxS7OJTb2dOrotyvGu1QQ6Imnb-W1-tDCngiCBpA9qSJ7X9WKpUWq32zno4RDSY37tf2T__6kuwFwAyal0mOcqf3iB_aS8fR1AsiQ6ZLIaJZ08TxxXuY5fLEZxEkX0E5566zNHvcj-KSJk3W33245GBsaeNt_Rb9KcgoyEOb2XpiivKkD6ir_biYyWX2ltdsALPWGWUTLzZV59khz4ZFWUueqAX2bKVz_c7C8kNxgSl13tvr7qeGbx81W2A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Patrick McKenzie</a>:</p> <blockquote> <p style="margin: 16px 0;">The investment case implies that Bally’s is intentionally giving takers something for nothing. That is, they must be sandbagging the valuation they assigned to this bundle of rights: it’s not really worth $1 billion, it is worth e.g. $5 billion. Only you favored Chicagoans well-loved by your alderman are able to buy at the non-market price, leading to essentially free money. Not merely small amounts of it, either. Generational. Wealth. ...</p> <p style="margin: 16px 0;">Do I think sophisticated investors would agree with Bally’s that this bundle of rights is worth $1 billion? Reader, I do not. …</p> <p style="margin: 16px 0;">If 25% of this bundle of rights is worth $250 million, then 75% must be worth $750 million, right? And if an entity owning 75% of the bundle, Bally’s, also owns 14 other casinos, online gambling properties, and similar, then that entity must be worth a lot more than $750 million, right?</p> <p style="margin: 16px 0;">The market does not agree with this assessment. The entire market capitalization of Bally’s (NYSE: BALY) is, as of this writing, ~$1.5 billion. What’s the difference between the $50 million average imputed value of the other casinos and the $750 million imputed value of the Chicago casino? The $750 million is <em>made up</em>, that’s what.</p> </blockquote> <p style="margin: 16px 0;">I would probably be a bit kinder than that. Bally’s (the parent company) really is putting in $750 million in cash<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> for its 75% equity interest in the Chicago casino, and doesn’t seem to have too much in the way of senior claims,<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> so that’s sort of a check on the valuation. Also Bally’s total enterprise value is about $5.6 billion,<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> so the $1 billion valuation for one (not yet built) casino is not all that far out of line. Though here’s a story <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnevJdfj43--q-6gYTZNmHqLmloRfNWjXNzcc3ztKtznIxh9NzXjnKq6MNNl--IItTCqV3v292rmo4xypC9uzNZnwmvaZmAUcgJzQtXad7-dHY_zCbF8iox_ptEf8VekQXqMt5AMqplbguv0CLUWrCkAT68YacDJTo_wuMa_ESIO1nhmwhV9yZ6SK_UW1PieUPuY1pB2Hsxcus1j8tbsG0qDBBxeupWbz3HMfzPyIEMdaRIHMXXLpmAL4FHsveD57eAfhEd5pT360wjR0otGSFnvvyuKYg0pMXiFYJpVlUJIjBe6HgwSSrSJAuDMNXAk6SZit6v6gvtxLp576PoRC4LyTf69Qu_hNoj3ffREMQdlwD0Gm6pkmJeNzYskitYtVOCVJJpu92RVVgxO6aw5M75HgCWybgAbssiNLUKC9K-NpYD_Jtp50yVoQbH_7wCsb9wGPsnY9lo4W4jWERknE46g%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">citing the deal’s investment banker</a> saying “that investors should not expect to see any profit in the first five years of the casino’s operations.”</p> <p style="margin: 16px 0;">Anyway I have to assume that Fisher and Aranoff will quickly win or settle their lawsuit. How much of the stock will they buy when they 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;">MicroStrategy</h2> </td> </tr> </table> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnT5bPi2Ct7Xs6UxhzLSLRrowLrHH2NjtRXKI9wl4fv2lpbQ-5Aqw0eJ1ziM0_6nkcOxyYXaMq9YgKqOhdoalc_zvdTriwk--LdTCglbnGLZZP0AXkhuCtRwoVieBn6YkfXkz9Ou_8kzuyURArg7OHvjW9lq7VYEtseaxDEXu5I6jse5-CcgGcD8-Zv-0QK7bV7b7MThErJ1ORk7mWFmyNJOj74kNlLt-1hBjIp40hikFBbRTY0LZ7eC5U53LdKlnpB0ce9Fi_oz7_wkkUBovWVbTXr32jTJxwX-9CMLqooFlchNeDjGAM3X_FPZ3n2TkzA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Huh</a>:</p> <blockquote> <p style="margin: 16px 0;">MicroStrategy Inc. said it didn’t buy any Bitcoin in the prior week, halting a string of 12 consecutive weekly purchases that began in late October.</p> <p style="margin: 16px 0;">The purchases had coincided with a record-breaking rally in the digital currency that had been driven in part by Donald Trump’s embrace of digital assets and the subsequent industry-friendly agenda in the first weeks of his second presidential administration. MicroStrategy bought more than $20 billion in Bitcoin during the period, increasing its overall holdings to around $44.7 billion, or more than 2% of all the tokens that will ever be minted.</p> </blockquote> <p style="margin: 16px 0;">MicroStrategy had, for months, sold a bunch of stock every week and used the proceeds to buy Bitcoin. The company is at this point mostly a pot of Bitcoin, but the valuation of the company is roughly twice the value of its underlying Bitcoin. This means that it is extremely lucrative for MicroStrategy to keep selling more stock and buying more Bitcoin: Every $1 of stock that it sells buys $1 of Bitcoin, which makes its stock worth $2 more. When MicroStrategy announced this plan in October, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevndhX0tD5B0sEV_vWAKdD8v0dDehXqy7xvDTe_pxUsCN_7Fh_N_31vmdVsPUcWBSGVTxWQTfj0TJZ1vlDB7y0ZIarZv9BMv00wZCh0WMkg1a1NO-ZtWxm4v5QhKbDDSH0ZzSItVvPo8_4h_nCTpLgYYj6WcdVEO6IYoYmKPfNjCyzmBJKNgi2ylqLkH9MtPFEM6n5idwUWWo90nMNFvK49mMHSsNmrayfeFYJGrUiCMUvJ4RDBmtxXhWDRgf2a23G3KVYAr8PMzPaJkrUYaU5zUzYGSZZqn1nVQN2TQC16NBhI41RaHpr-P7BEvCaGbBvsA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">my analysis was</a>: “If you run a company, and people are paying much more for your stock than it is worth, you should sell them as much of it as you can.” MicroStrategy did. “A perpetual motion machine,” I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnVQgZC6YQqvZctRbhhtE57qoua479nxa-Wufj3xAD3Erxm2TyP4KvxLqVxr8FeM4_HPtbud_mq9ujy6e9Sm-IigjwcUoyen39Qx2OQNZsw4quIELbYyPBVM2GyFIuXUHHKQwiTpX9e9MV70MyyFx1arcayal-CWhI9UDnmJarwwjpEBHYz1ciiC08SvaZQWCmtBEIf1XHSN3ChlwXni13su3E5GzzaGaZ3XBjdUT_amrVeB-ypurixbVXQHiv_rls8ls4eGIG8hIe4aCJYU7hoRtysXWWgrzcFOpTyxkPj86dXxEjkcXS4sIVhyBkMp8dw%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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</a> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnYjcrGa-Ygvm_BMZWDYWpXTniSyN_N7LyZ0duVnb1WA8WeW6phqWRFeJ3jyhA6KlichFzITRgT4oNEeTJRAFkHFr8biP37r_K17DLNAp9GdudufFjzMAD5M0-skNhkQsYKoBzxUaC2fNxseXFXJpbJj_Fgm-g8R8DtAgeXFfvDkXDEwGGsqzWD0321R8iny08rK5HAvJHiEi0eAWL3Z3oKv7o25USL5CshSLRLtWFEFm5qGiohP4gpVynXs4Sa-0LAwfD1_8qcke5KFLk8UiSYKX4DwEQCe5BaCjNL-VrU2pbOu0zNG9U6gE6lpl4ZzYCA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">called</a> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTWlwLJABSWWYesmoH8CXxchiB4O7RHPhRsJUXKt81jCAL2-ix_mQMzoYF63T3hoEShzOkQId1P61y4rSA6qfFQxR3QVNJu9hQFmfXUhErZFltOYcTsJjglCsFNu7xJknKBC6_7b8gemEpseEn4cIqXqmIj6myMrEHy-e5hDc-MbLc_Gu6ks73ogo74MJqRh87gWQU6GehO74NZHgMJwFoxZ2yLbskq1K5mfsOiTYh0-dXVt19mnAaTrA9imuQzgRU9dWMgGD2Y0i496Mi4rgzIwFVRwWuxnslGh-cFBfijUkp_eh8eHmp875JwiW2BGmw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">it</a>. And then it stopped!</p> <p style="margin: 16px 0;">I don’t know why. MicroStrategy currently has <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUIbfAs7Qw-FOwkxreQbVWZ1TnCWm8Q3neMRGQ-YMVaksg86KSmVNIayPHFszqeFiUMyaCAaPEqTSdvIjoPtKGEOsmAUhvpiNsL46a-Kf8Eq6JuK-Bdw_3uQNmwdXGmL-1yr_1rj0__Mr8sabD0OdVNmcYI7bkmIgtpKW5LIfpCsz6bB14UT7c07_6zlV3x2UcumFCSlf6LcVB_ExFWDRe0rUmm42rg8YHKP8wIZ8PQuW1pKmdT8NFUZoPTNt-2RzJCQR7-uTqU_4v7ufx5uPPxS1ADGys9te6Qy0uj1wY4XSfdBre0sUq4Lw2411jR81kDuSVQsFO5ogMJk5BRlZv4oiWjgx8VsPKtQxXCTPOK4_6cdTpOLMfLB8pSmj-3Qn_OmFbqg_RLRtyy5he7_4klSSDymM11ih5M32P3pkb6CAPEnRbx84_E5SiHHcR4sNjhRsQt5106VyQwuo3hbqgICqniIPrInTCaqh-Ll6Dgor3YNQAizD9CpKhPt6GJuHQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">471,107 Bitcoins</a>, worth about $47 billion at $99,000 per Bitcoin; its market capitalization is still roughly double that.<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a> The premium is still robust, and the trade still looks extremely lucrative for MicroStrategy. The <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXH8h7ipWrMT3uTtyN7psQtgFdhYZBosXATGpUDMbXp9t255kU8bA_LAMdX6iOewNhxgcGSK2iu_d1W_7JWJAHU-e1nrT3-qtIHd-eSUIddPNlKQrC__sXL9U0g354NcnMck9Mjni8iNx5N0HXqIurSx1n44DTko6Dfsikpxb2ilE8-lRTFUOryYxxLRTTgr11fFjBSHKLqoBvxTLeiI-Px_u6n8Uy7mQneNvZr4WIJkiqoiF9uc5EPylOrotCIulmuxVaIqKpAAT7aSKPxJ4Gw8v4OyJWzreP8oEsIKQ8XnVmoYT4iSkv-S_fYTLLiJHR6w91ikVvHJ0oceV4QJ63JO5r9PnqGOkuFU8u8cyHdexZUnM6Mf-lRMnghYb1iwntbzxUF4SN1o3iLgNidtSK33-EsmOAH-NH6eE5sOB_V5foNglSV4YCoS6BSaTDqwik1mI7GbjlG8xizTzncpg6AvCEAcpgk5eGBGYmMtLQPWoW3bBzN_VWxB7AR7Yk_XqfOM98M7UKv6nki3LB9HGYut0x3UKABocR6YKSI6LJcUzVeSfHkvfxpQ2z53C_Uv2Wd93sxUG17ehAHhSdARbvtVfuSCatmg7wDupmXF_6eKfruw3-AFvOC91LUZPMKdefsvAI3ibrVZM17-PoHgpXg-1cVHUFDNEZpFJlIusKbgAdPUD9yFj8zhLjuTDwAhXeyYIs3v8-_4X0uGBhKirj3Kpf3IUNZPJJK-YXYWx46uaValQQ54Yiaovox1Kg9YqVkg3dJclJErrNiCtrWrDZ3MYhHKAftFFah4jnchv-0Cy_CKkgl8Yg5Lg2nrEJ4TxAahmMfHOBSYaHhGWgtUTio%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">announcement in October</a> was that MicroStrategy would sell $21 billion of stock in at-the-market offerings (and another $21 billion of fixed income) to buy Bitcoin “over the next 3 years,” and there’s still <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUIbfAs7Qw-FOwkxreQbVWZ1TnCWm8Q3neMRGQ-YMVakiiub0vsZGcnrNYGZDVmgt6prcfD3WyCU3PxguEtxJ19XDqln4W4yv-PZrpeigTMBSnp71fOmVWhQbc9pfkDhebITBd7p1oKy6dorGjafq9agXtrars15M4-PHM1oa31ssM-WUFbIWBOGPWpJEZl5HvItLYdPMWb6Ip5rfFNRYlH9edsQ_vSfDQUrz2xdF3oWugK6YqFrybw0AvL-F60oi2njssCqrc1AsQvI7R8A4Z_hE60iZapOPTSbEe_QmoUcHH8m22-yG23Gv2BMstfSIyfZSfrHfpkGbbL2FTt2FAMEO3bXiF3bvO641Qkg8zYLi5G6rGiIB6mzmQqziTkhD1AQrYkUnvlWZM8Kgf2cpm8f_DYAlcukqTT1LzwLqYE8RJl3m_wEJNjBg-qmKhtWd_McE4627ElSMyJwm_wjIJGLb3zwgOedkIzmvZJW9kZD" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">more than $4 billion left</a> on the stock portion. I suppose they paused it because they were distracted by <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUtzmQZyk5cNq9-VCCW-zQCoZ5AIQLj_l1sUqE26mmpO_zUiZD_P9f0gkTMWoDGIJ_HCOQuZC-snfrSNIa0aIKLy243JNJ4puH4691DcuB029WjzBAp011Dps6BfCzeEH_fI1SIfnEarBYEUttWFOZ8XRnzvFHPVNzUPsGKMbJSJcsvqxQHfKv_0eJj9PugxOZ-AcfiYEaKmhdo2czah_31-ehT9xiY2d2Wqd9An3dMC6QhKrheEuMp3yLyIOobbiFBRLVZ9RKE4K-Jum7a8F1m506rHgeIOm4CapAcs_k97VUbVdmI3yr0lWYMYjiPqlg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">issuing preferred stock</a>?</p> <blockquote> <p style="margin: 16px 0;">MicroStrategy Inc. has raised $563 million through a debt-like equity offering to help finance its purchase of more Bitcoin.</p> <p style="margin: 16px 0;">The perpetual strike preferred stock was sold for $80 apiece, below the liquidation preference of $100 per share, a sign that the deal was more investor friendly than when it was initially pitched to retail traders and institutions, according to a press release Friday. The stock will pay investors an 8% fixed coupon and carries a $1,000 conversion price, which would require the stock to nearly triple from Thursday’s close.</p> <p style="margin: 16px 0;">The deal raised more than double the initial target of $250 million. MicroStrategy announced earlier this month that it could use perpetual preferred offerings to raise as much as $2 billion in the first quarter.</p> <p style="margin: 16px 0;">The structure is a novel offering for Michael Saylor’s company, which has used more traditional convertible debt and at-the-market share sales to raise cash to buy Bitcoin. The offering appeals to a wider range of investors, including those who are seeking a relatively high yield, particularly compared to its recent convertible notes that carried 0% coupons.</p> </blockquote> <p style="margin: 16px 0;">Here is the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnVV4QNo32LBVytlveB8BJ6oh4GDkUv3OQxmqTrhxtKUMuw9QxRSgAvx2U2JYrgeFmwIEdmAwlPkrh299vbaEzO6bJMzdMOBEc_M3B4VKI3V0G5MJk8C57KTEhkpMhMJEkr2DKiPeWJCjkvrEpD3mwI9oZPLN93d_3NarJlVIX_u_4EhbtK_EhgWfoFZJJjJlDwt-Ohxcb808BiRFKQ2QTLSNhTtjV9rlZxTM7BdsNsP7HHUKY_K1heExyAs78CjIiWmmgc-pjZ0WvQs1SxJUVWMBTUqpyuh-m__AboCjnu95A4LH-4XtAm04lXO0VPtytcsupRcTV5V4e2uDBiQzuVcuLrXAOZuNs3xCkope0Jr67lrRDKX4nHWFd3wwcytkVtleQxyv9wzeaXuzBrqQlSXcF8II69mY7yMi0q7I5ydmBU58graCPw_8cDug6M-Mceqrshq2gHHFL7WEZ2I7Kf7Ww1S8OV6OV3KdYNlZxpGtR_x74rSRyJxmqS-owCmACm5B4K2Mr1cPHZSZLdCPKZH2mmUQpSZTgmY2nZBWnA3fmNiUrZAkzDtlB8fI_jPWIw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">press release</a>. I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXE7ba96nF_OuC7x3vRpC6qW224he7_3y_T3jr5A91hmAUe8BlY24ym1UFfcJms-bE2HFEw92-mUjdDaSqfR9ddM3dJt3MdNCSg_i9O6-WUio5QMNNcrsDWZirFNv7BLHvhSR2t6qzJM2AB5fwpmVDCllGMD9yfUv76QLLsfm_vn5OAu98K9zkqGQf6FxbG6umgXuDRcutVG6_O0UFz7fyzg9Eqdmz_W63_A27a76ZdHpUMhtsuEWFD3BiCrhCAjpYOVYgJaE0ZxYeNzynvqEC5lKl44frOKDAANOkOv-qKNRUog1kXvL0CT1XwJp2LJJQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 month</a> that “perpetual preferred stock of a software company is not exactly a traditional product,” though I guess this is really a convertible preferred (but with a very high conversion price). But, yes, you can buy it for $80 and get an $8 annual dividend, or a 10% yield. I suppose this is a way to market “Bitcoin exposure (from the conversion feature) with a high yield (from the coupon)” to the investors who want that sort of thing, and I suppose MicroStrategy has a lot of investors who want that sort of thing.</p> <p style="margin:16px 0;">Why does MicroStrategy want it, though? MicroStrategy has about<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUFI3t4YxomrdcwlsaOoU6SdUKMueW9Vr7KC-ufb_I_dzzi5MHG3KtCiJnHVYgKMB7A2ZACWjJyX8EyP-7kC4AamLu9UEEakg-kXYHRBQtt9goLPB0Z740RR7mLFksYQ3oquON6fNQkdHq_qs5Lv1yN9GTmejTpA3jQ5pkW6T_pRgu8MgBOQHkfWa9OYkwOj_mzRcldN1RrZnoXD2SYy0dR6pUwvxcJltxUWLEq561Ohmh5JFExWPc7Iw6-QHpOETiK2UzV05N2-XmA5IkTOFTZa3djcPn7cdd__slJ_c7UcSpUz8QVxL3i3emQijZ05Pw5_0OFhRO9EOIQKWJVw0X83CY-zkLTQtGUgywbbyYDWt5mBRnGmoq_zzbutGPIylj3ms_dEaeaxJ9x9ar2uQCVlZl2USK_0g30txepNr91EGLjzo93OhXOZe3lmGKNgqGX4-JFtvZN0bLpcswclKuvSKO1AegOh9J0UaYAaa8Ka" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">$46 million of cash</a> (in dollars<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a>) on hand, or roughly one year of preferred coupons; it had negative operating cash flow last quarter. The preferred dividends can be paid in cash or stock, but still: Why pay $45 million a year to preferred investors to buy more Bitcoin, when common shareholders are begging to buy stock at a premium? I guess if you are a full-service Bitcoin treasury company you have to offer a lot of different products.</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;">Bitcoin 529s</h2> </td> </tr> </table> <p style="margin: 16px 0;">I don’t know, man, my theory of college savings is that there is an economy, and the economy grows over time because of technological progress and demographic growth, and you invest your money now in a broad range of businesses, and those businesses use your money to make stuff and help the economy grow, as the economy grows those businesses mostly grow, and your investment gets more valuable. And if you put aside, uh, frankly kind of a lot of money every month, and if the economy (or, rather, the equity value of publicly traded companies) grows at a faster rate than college tuition does, then you will have enough money to pay for your kids’ college educations. </p> <p style="margin: 16px 0;">This is not a particularly inspiring vision or anything. It requires (1) economic growth, (2) college tuition not outpacing growth by too much and also (3) you putting aside kind of a lot of money anyway, because college is expensive and stock market growth is not a magic cure for that. But it is a <em>sensible </em>vision. It links your ability to pay for college with some <em>use </em>of your money, some productive activity in the economy. “You invest in providing goods and services to others, and in exchange you get a service (college) for yourself.” There is some basic economic trade.</p> <p style="margin: 16px 0;">Again, though, (1) not inspiring and (2) college is expensive. Obviously there are alternative theories of college savings, like “lottery tickets” or “maybe a YouTuber will randomly give me a million dollars” or something. Anyway this article <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXj7nlP49UU37BjokBz-u7gicLDWAwbD5X8NWPjbv-3tatyatmklN4r1c35MY7llQcFYOrucHbwKP86_TsmMa4Q0zn-3HvUdLtaa7Wg-7pH5HTgd9ZOjZQrFpH9FETQWI5bRJXcsRS9lKKSAY3sxha7tiwHHUsEqu67VmB_epv5OOcAMuaBoSE49t5YdnqOGCWw6ENkUA4yG0HAIQUQ2GeN8428_Gf9wimceWywT228akKrWFVdbcQ46XjX6TAraCyhRv-eB71OkdpB5zVHNx4-3mzgxws0FosduO4JWgsPCuvmDxzxim26SCnmqjz-7WQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">stressed me out a lot</a>:</p> <blockquote> <p style="margin: 16px 0;">Most parents typically worry about funding 529 college savings plans, brokerage accounts or high-yield savings vehicles for their kids. Now, a subset are eschewing the old ways, pushing instead to pile up enough Bitcoin to help their children in the years ahead.</p> <p style="margin: 16px 0;">Some say it’s because stock gains aren’t good enough. Others view it as reasonable diversification. Plenty are true believers — convinced that, despite a more than 500% gain since the depths of the last “crypto winter,” Bitcoin’s climb has only just begun. The world’s biggest cryptocurrency surpassed the $100,000 mark for the first time in December, having changed hands for less than $16,000 in November 2022.</p> <p style="margin: 16px 0;">Still, these parents argue their children have long enough time horizons to stomach Bitcoin’s intense volatility. …</p> <p style="margin: 16px 0;">Some parents are turning to crypto to supercharge their college savings. Returns on traditional stocks just won’t cut it, the thinking goes, when the price tag for a single year at a top private university is approaching $100,000.</p> <p style="margin: 16px 0;">Travis Headley, a 43-year-old physician in Louisiana, first got into Bitcoin about four years ago and now converts his entire paycheck into the cryptocurrency. He decided to go all-in with his kids’ college funds as well. After about ten years of saving via tax-advantaged 529 plans, he pulled the money out, took the tax penalty and put it all into Bitcoin. …</p> <p style="margin: 16px 0;">Professional soccer player Alex Crognale feels similarly. When his first child was born last year, the 30-year-old knew he wanted to help secure her financial future. But the past returns of traditional 529 accounts left him underwhelmed, and he views Bitcoin as a more flexible source of wealth.</p> <p style="margin: 16px 0;">“The math is pretty clear to me that following the herd and doing this 529 plan will not put my child in the most opportunistic position in the future,” he said.</p> </blockquote> <p style="margin: 16px 0;">There are a lot of reasons to invest in Bitcoin — “I think it’s incredibly risky to have 0% exposure to Bitcoin,” says one parent in the article, reasonably — but the least appealing is this “have fun staying poor,” “returns on real economic activity are too low” approach. It might be the case — it <em>has </em>been the case — that the people who are early to magic internet money can get incredibly rich. But magic internet money cannot be a source of general prosperity.<a href="#footnote-7" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[7]</span> </a> Not <em>everyone </em>can get rich by being early to crypto. Sometimes you have to work and save and invest in economic activity, or at least in casinos, to pay for goods andservices.</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;">Prediction markets</h2> </td> </tr> </table> <p style="margin: 16px 0;">My <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTHqRRoOi3LmXiOTa1VBVxVodm7l-OaKUAveGUIFlkHyS7MP3ZYJnI_5PiHLP79n2T_S3zFGK3sRZDlcR_cSWQTys1C5Zkxqb4M0Vrrqu3S1O6t0dWvkVu004Nt-1WF4MB4zQ2ZRc13vLG038gdjpm_kHLwTInUpfi9sFzESpYI9dIsFm51-ku0kBG72fgZQxygYHt2Mxu8yAfritvB4JpUWmHIHOfV9JfouCzW4vKCYfbX2suxmwHJ557qgVHvjFVQruntmgtRE9ULvXMa9Oi7zMynYfNxm9fFumMz01wsBV1W5dZx1DM79GjfPuTC7gg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Fifth Law of Insider Trading</a> is: Don’t insider trade by <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTD2xLWmhu9kJSwOdGjDc72OdqkFht2sZ6OwfutmGqqzFZCowfltPHYM75aGPxYXZp5fxF_W2YzdzbEzCJg2BZGDaPmLtMFlGImoHoJjflbjo2r_3p7FRo1AOgt_FuzyO0Bh_rTg2HF5MiHAntpLVH96E2sNwBuVnj7QCJVTrr7I6jFVI14h0LluC-A_vOHoWOhZlmx-qQZ196Db1CK11Ne005z9EKIjuuo8nZ28O9DTwfh7F-ncbbmJQsiloT1WnCFOavWtZu3M3CXzQ2ZBZjwxmosoSY_Pf8qqey_Plk7CBOE8c6kgQbW-RYV22fTDJg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">planting bombs at a company</a> and shorting its stock. (These laws are not legal advice, but honestly I strongly recommend that you follow that one.) This is a law of insider trading because … it could work? This is a real temptation? The law was originally inspired by someone who allegedly did it, shorting the stock of Borussia Dortmund GmBH, the soccer team, and then <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevndmF9SO6Tg8d2vV89ZPZeMhwLpPX3zf7iih_Z-eXJmhqj5HcoMt9guaDOKUPyNHQazE7Hno1HSK4hBK5wu3AQpIs0uKcO9VyxtpPGY8q4MHT3dlvJdhpaO-QGBXV2o_r0xcwSAWJev5KQ9e6cI0kvg6avJhBxw7zoTx9AdCvjZdy0iGfqvfLQ3QVXTuHfjbr2w0rulzS3IvX362YqLDgXh7RRM8ExSeIO7QZcGnjX5gfBRiUX2XxtY24pHQAM39wAFnPeaRBGZnf36IYQU2yEP8QjdsbX5ic9MxFWMd6GwL-FSMi2sUjmSTaSKHAP-hEUw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">planting bombs</a> by the route of the team bus. And we have talked about other speculative applications including <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnXFhsa7Syaysv1CsEkHReal1Xcr2TqBTUZ6wvESX5cVyHygQCTEks0ITChAgCL8PHi0CQM03b6YkncY_8YV6VfGGt54hBEJuRjrdboHKLDF2HZ-yA_YOlovLG4ZzyBfCciEQ9FMS9xLZ3m3XIVZ01mtGcUAzpIrtmJV48ijGjXCwdC6O3lNjG0nXhy-qJutewA3CnpPv5cBnj4q7AI2z8vuH2-myq6dJoysSt7VYuiHycaNsuEX0OYzmJhhrbafxf_1R9EJ2QurJ6NpWLIcpi_D3Y9z-pQAhgbX9VKzFe325uuv1MU3_Qi1lSLRa0DAtSg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">hacking</a> (hack a company, short its stock, announce the hack), <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUkz_woGxfPAt7rBuutGJNLX2uWet1bUgwep0jgNUakSMJKBRHkaNPiEaCNAvZXm1CFNtKDcy2bV-aW6Z8tok4lH3a59Jn5skcDwUvlvsqVwFE_U97lsEWNGcItF-OYe1gECRvTqWQa1Nob7jcX9rl3cGBLj3W2gAgBJocJXd29I-nrUo8geEJ4MpLY9aD6BA6SRek9Bz_JZrnGQ8qCnltjgSb9JyFtnEMtSvaCOM2rtllZFHtf25w1pviNWC6UavIkk-rJqAtu1TJSpsDStawPux17WTkCtbLzbvGWCeXx-XqZyg0PKVC-ZqbSkeIvZDA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">terrorism</a> (there was supposedly some short selling of Israeli stocks before the Oct. 7 Hamas attacks), or <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnTj1K1G0w_WKFg-mgdk9AsJkwh_ESPoQeGD18vPdJyCTaxl3plxlP2nHRgfSNxTBk3wa6TB5NOxwcUyBkFudZg0qp-1q2L_2DVLrTXvcayxQqos-7KCJoPBfuBxlX3ZexIUZFI1_NFiAdauwS4qelYIbieft3KZ5OCHTLpzMahQRBi9pS715fXglIimDlw9NKCepoOOXjh4VcdcozCS-enp-uA6wdrMX5RXHEym21W8gm3_G3sXI5LBOdLAfA2l4TjqjrCqEsd931BklF0xkykNSg4wiRzTux6qqNeUFMMfMMnYIBhJ9AH57qPpIcXoOgQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">medical-device sabotage</a> (hack a pacemaker, short the manufacturer’s stock, kill some patients). Again, <em>don’t </em>do these things.</p> <p style="margin: 16px 0;">In each case, what you are doing is arguably<em> </em>insider trading or market manipulation,<a href="#footnote-8" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[8]</span> </a> but it is also separately some other crime: If you hack pacemakers to kill people to profit from a short position on a medical device manufacturer, the trouble you will get in for insider trading is not nearly as bad as the trouble you will get in for murder. Still, I regularly say around here that “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnaIT1ybJ1EVVLqcw0f-8c-dYS95GFMM-qoDtusJ3wwxJUATeBG4XI-FtGC4Ch1kS1etgf968mk8nPPwBp2eF5hq7duxLoUVQcOAlDCbwGQu5cU8T6XxA1hcAoTeS4OBAu9l9CtcvVhB3vBEPhvwzRYWxuq9PGloKca6vskiXejpbSPcZvVBfIPbO5cLx4SVCj6mzCcQDNTMFqTBlbybFDBoWsedrbApef54_S-aSxk21cDVPq4ocQg8RCNlq2u9cH9GHWLmhb5ijHWfCLm73zzobX3kFAlHH30qDlMrIS4IxvdbgKgjxY85F_CaELlzFSQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">everything is securities fraud</a>,” and that securities regulation is a form of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnU9sTf89uuUeTj3mDrJum49dV5pAF4MvRebUpCNwCYbUKtd-12OfggwGz27ehqT_vqBj_YiGvGTxzICahb6ifOg4MjYStY522PPp98LnzSSgrA3nZWzl9AYtGTkiPABN06_Hdljkn_swHp_8dXGjWJi-kSbVEdPLtUubdgP5XTZRmZPUxSDi1j-n3bTyvsD6oGQi_JMC7ibAVACPp87bS7eFZ48hw0louSh-Yia2RBHWHtr06Eg1-bcAsO86wyv3L46SzyMD98U2g7tVYXU-sGj-I9gOrYeDhsqxD-aXKPmLXb48L_lzgEhuIwiOhSqebg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">meta-regulation</a> that covers every sort of bad act, so I suppose one day someone will do a murder and be prosecuted for securities fraud. “Ladies and gentlemen of the jury, the defendant undermined the integrity of securities markets by killing all those people.”</p> <p style="margin: 16px 0;">In the stock market, insider trading is frowned upon. In prediction markets, things are more nuanced: A lot of prediction-market theorists and advocates and executives <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnU4E8xmjmxOGkGgk9KdbdjJFkTxoxpr6Fd9F7cyA-xDTYpgS9PHpXu_wVcgMVNSdezCSF64yiJnNxrXOpoTc9XmmJf3ZY5ElWqOuUjF6UebRv3KF0RFB04u0w3eRdGGnGlQR1Sy40K3LMxEuvizaYW9W3maRhV3CHpKES-ChVeddW-cyu1ULPHa1VYbuJzXtTnwwt63vfwXRN5L50qECAtP7aYdyGZ5Jvg253phvMTd_qEKycUwxsU0lhml33FAzWBN5mzh0tAlNXSib0uVB3FDIQBayjOa5QQF0V2Mja5jpnjOGRlrc5MAZ48vdGhhBMw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"><em>like </em>insider trading</a>, because the social purpose of a prediction market is to make good predictions, and insiders might have better information — and so make better predictions — than outsiders.<a href="#footnote-9" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[9]</span> </a> You, uh, see where this is going.</p> <p style="margin: 16px 0;">Prediction markets these days are still pretty small, so there is not a ton of temptation to buy a “terrorism will happen” event contract and then do terrorism for profit. But I am mentioning it here because (1) there’s a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevndGBu1LMiZM8R2FgdJorbY5hHb2_hRIJGmxvs5VSwntA6SbUnHvI1eb9NHJ39_6F04Jc8eFmNejkGXeg1YZ3RsDoehujacejT2cOTNyfhGqFe8PZZRPqsqaNnQDAIyDOEudG9ZAg_5Ajn5-YMRbk1Z0DCBhARNsjkGsn4pFs5MFl_92QJrRAKBki06OCwliVHzgUuQbZ7wPjdmji1SKRqBgho2aUjOOJhVJJuMdDZaWP1iSG4vUbzKVPdl52EoXM-D1jlVLxHRWYo9GZS9zUNr4MVVJ5a7mkUA3hvDAnm9i4sPMdPEB57KYsYUsM3HxeKBbiEmtgFDQC7ry8I05U8Cyjfvbf9pNIyON0gK-hLQYx9y_oKLatSHuE61PvlY0cI67rkdGrgqnPXCBfiz3CpuaD2ZR3wRMqiMbZW2ntbuvWvDByag_pUN1k0RbXcgmi2hrY9K2eMsagI6yl3Bccf5amSBRrhiKAK1SG2QtLsmI2i-DbjMl2wDZ_vetgnbK2NQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Wall Street Journal article</a> about prediction markets on California wildfires and (2) as prediction markets get bigger and more mainstream, perhaps we will have occasion to revisit this point. From the Journal:</p> <blockquote> <p style="margin: 16px 0;">In January, as deadly wildfires ripped through Los Angeles, Polymarket allowed users to bet on when the Palisades fire would be fully contained, whether it would spread to Santa Monica within a given time, and other questions about the disaster.</p> <p style="margin: 16px 0;">A columnist for the Los Angeles Times slammed the wildfire contracts as ghoulish. Another observer—Molly White, an independent researcher who studies the crypto industry—argued that the contracts could encourage bettors to engage in arson for profit.</p> <p style="margin: 16px 0;">“It’s a grim reflection of society that there are people who see a wildfire and decide that they should try and make money on it,” White said.</p> </blockquote> <p style="margin: 16px 0;">Yeah I mean that’s more of a critique of society than it is of prediction markets. Also: There are famously already ways to engage in arson for profit, and there are laws against it that don’t involve prediction market regulation. (Arson is a crime!) But, yes, prediction markets offer the possibility of more complete markets: Whatever future event you might want to bet on, you can imagine a contract for it. And then you might be tempted to make the event happen. </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;">Vanguard’s Average Fee Is Now Just 0.07% After <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnbS7g-f-m9XsE1z_fCG8pwLF-nfrJInXfvIF8OPwuz1u3eTO9ivHR2cCKOaYlFg-H8PcbDnBgxmRh1hsIC4uiNZWDQEujRJ8BCDiL1BiOHOuMa5L36EwD1aVt85dkTCGr8UVZSDW7hUmts4sTX2lDNIPt81vUkW9tH--Fjj2RM0SAB8R7HV7jR-CqldHAoM3Cen4uH1D6ucr7w-yLJZiWSYeTsU7Up8lhe9fLFCHwBjPhXIZWeadcmOSIuiqR3EsFYmTJCw6AfWFhMbD6H_ftEn3RmoL_mLf0bPvlLOCBW-1_oq7HbOOr-oqrCtiIqC3-A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Biggest-Ever Cut</a>. Corporate America <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnfYZolIxIgAE5CxPiG0UlJ1xYpNC2kWgRPTNf-NdcuDhjJVtjFKt2VK3fUK-dotjiseblous1JLBrIbGKFShmc5RRlPSJ_0Yb1aZqCkaDcA40w0tInePf1s2TSjV1dXu9u20mJHIPCUbWgrz6bqHNYrYCulqaGzwPP3xjy-IgCyUn7wy3GmmS5f0y3BByBarHu1yc5_XsnRKyyeqtcVtq-pY5VRkhzgdHKGMffTaRen2cjJ5w0qvVKDbbv3WdSckRc1zUKyTOJzziA8ZCy-yPA0uwnlBF2N12GM2LXTvbaMhmybtjOiBwSGj9MBl71GzU4brXJRqwJXjK5PzhtmHEXHpFjbM7h5AX9B8Noudm7_ix6Q_8ckgssHmSvuKW2OaCbuixEBnb-WVbYAFrhODoT3GMCJSDAx5CSPnf-BCJAC5" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">cosies up to Elon Musk</a> as billionaire deepens ties to Donald Trump. Musk Says DOGE <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevncL2fTUGlFsS9iQ7-oQXi1oHbFnPyT4UVjkrd92VusvpewsyHA9edyPMEMS5GQkmkLSrzMkSE9Pu32dMRMmzJqwZ90tx4uclDXZdXOfbtj-3ugN-2zey9x8JIxNf8HNDjqnz-AxKkpv_QM7JPpjyJplMl7a51VbAFF5pml31b_GxtMmgydvWEc-uiv1Nh02P42Zsq4tVuSuy_HOnOJ0xq4T6429lZxqZQKwib_zu1ijERYTXvx2Msnu3zzlOcKgSURHXf0VDP8GdljPH_F1nQZARFTlcjOU4ByP_fw2UNxXeXsq8T-cuV7NL9lIbSD3RZw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Halting Treasury Payments</a> to US Contractors. Musk’s X Adds Nestlé, Colgate, Shell, Other Brands to <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnbmJ5Oe0OOhO-sc_jo5p7Lak_nnbYAkYJNMJjoTIKgbLBJyqKZbZpPBCUg10szHTbUxyuRCK0YP8gmKxvAC97IaqsFa6u_3khSeisbPhg-srxs37QO2UM7-vUmdMDPkmMM6UAjbO8KBOMmLtCCGCbb1eVrxtTYJ6I6tvyZGIT5ywZCgKxymWweIdpb6u0uNs4abjI8-iMrZH6svBjw3qn4RfFzgxg4sNnT1QIcOh0YIhi1OQ-6CwulCh3TV7VxBQIO3IOEPDVaETmIlbXlvg4jbkfXFVRsojnickmTbSN-A5xzX0hLlKQoIMMwa2qp5UJvJRr-H3Y3a4RDTEMgYb0KNy4BDcW4xax6R84kaMSurL7jDDpgzS7IcEh45jtZtId-JvrzWs7YxCh_X-eki1YuBXK9sw9PvEQx_0qOpMMTOtov0rYZKOfsfcnyURLkypnPdxUR-GXUXLEgstULzUDXEddmGR4Jw0gckvm_4Sk0a7WR2oUcvTxPTM_-luO06msd0fMi3yDTT0bfypRlyPt9dRPzWupQStk3MtwZRuEBrE0djd7dATha_dhfLxm4JwVw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Ad-Boycott Suit</a>. “Expensive nuclear plants financed in complicated ways offer a convenient way to <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnVhx69quRQu5xqRz5Zz5r4-wOB5G3jTmh-NmfDDn1QBsSlkdTIzwv_iyFWbby9IDyUWVj72_AtZJMxKPowJxCfhbMs3JtmkHXlt0eE1wDWv5gyrey6GenRwHC5x2-7O3-H5qzQsQlF1R7HuEw8wwHv16rWMbz_wkcN4ZEUtKZGops4_gluXR_EmaxRr56GdtoWKhibyN952oKmPSW9-ciTpfqEz_VXegpocJZ8q1ZSjoSrvxQmtlCqIZueotq4qB85RGFhB_q38sAcDNod7w61Gi1d0kAuwXrDCDNeb63axGzmuVWHGma9HC1CMALl7ecorHSyoPFi3xHNG7PrxAfC2AI2jt1UMhtd3S1GbQR9FPwf28NiysmoGt0jFFNPT4ttucQtAdS9p4wqWpjE71P5G7QWDhiwh4stmQfW3BK90K8oKEZDjXTnrba9HmkQOx7Fhqqc1zupzgh8LmOlpqyYkNKUXpw_HGg2hkmdeLcRVQPxhMABIvuCYGVTQZyEZUytaXjG1lDsCbKNRy_C5ew1NjW3-TpGeRkeQBNrTmT-D_DTVsemThirCspVJOxC5Xozk9M9yxjWtYM1HC21ndVhds0P19DlgllyoFM27thJCrfh_MBZCIvfHm6kNt119EMx2UOvc8AMW2Mdl19U7Sfhc%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">conceal money</a> moving for other reasons.” OpenAI Releases AI Agent Designed to Act Like a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnW4prmDbrL2BUPUcN0GwlAsu7CwQpQ_xeyPIIZJr0auV9Yxn_-26GSKjQfs1cXE0pt6I1Q27lMHdrVN-0tQtmBxKMduQam4JHwtMxSrhhzr6lRjT8lL451_fVnoS0DUk5KpdFwaMGSwQgNunCQ8w7CS2se9NvFzm89tc9I2pqL4gHDx4IPMJMl9bRmDeOmH7vInWOkBSLi2s5bsVWTZogN6x9gQcv6Kwl0pykr3Lt5OTgSZkCb_cIvuDH2laq7uwaJok8NFMDs389JRAbh1SnjJ33761GEq8LCfmyQwll9H-xmxIUzyFSuAUeDKtnx8s5g%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Research Analyst</a>. Samsung chair <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnfYZolIxIgAE5CxPiG0UlJ3gqDSaN9fXlbsr0qB8rfUhVF2ysj9Xz5XmgTdQ6JyI3pqtLkhHAiFGq4ELKRzyJfaXn07e5RLWnmeJ0RZbMkUGIKT8q0chU4PMBMhRGu_bD7ookcxRshyP-FZ3ET1odkVy6pdFaethbDjdbz-Ucloyw65PV4s5ygCFZy-aWRdruVf3w8P0R6BICFGwbJze6LLHCr_5AHrkU6X208MmxyWp44PMMrUvjeUM-_ama7cUamXGa5aCAbUCkTo5eEk9W87d0Q3ox_iwHKui62HnWKaGm_4zSsCQvvuPSse_4eCi9_4S9iA4yhEf8QpBNnc1Athit52uhqc9xn_dTW5An40yLsjinlBvx2q-0qzpABSNkGtQ8rjJlYMU59O9SM1LkEIe-X2gj6VYqhAJnT26AVXp" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">cleared of fraud</a> and stock manipulation. After Banker Dies, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnYrdUsKxgKZF1o5S32Bu8vYIjunpkviWbLogAA5t5vSOHxLw_Lx-WDBqA6YDXDEJKIlWd7ptK9rxRk5IO3BDZKx0b2sNnLXI-VmHl6LxWAO3cfu4JeVGKr05McNFI8ET6t2iVL1Krc2oZzhOa0t5S1XSy_Ow9UauD6fdEjxNj__uNr9PAVwNwfvT-94eWmnhJwXkB4l-6msOm8U7eJTfdhMCipKVHP24fKWFn7srwVTFsBza2QWqoW9Mj7XRRW8M4dTlSxXuPk94YyHSOhwil6Tw2jMO2PfntTwVqua2cJRLizCqLKqJgQv4hzPXJiJltA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Jefferies</a> Vows Support and Slams Online Venom. Sam Bankman-Fried’s Parents Explore <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnefkHztu4ZwRYCVVXmoAiPb00stYHOquRfDBa9s5Ajir3Y9WHbwsAaekC5KznzsFYh4BjzDEByt9TiSgZ4ipBv0IkuXEWog6ev0u2C1Sab-Mmt-5N1ORzfR3jyY07LMLdwuR_MyjWuQz8BOixjtqm7JGDp4fJYwJj_SkukG5UvIj6FqaGje9uFBnrV0xAEezuqW5bedWdow62gMcOzihY47MRwzz63myKm8KWkC4ndmEYF3PZ7sM0U2525B0lwcPYGF2uQXaRGIq_HuX3Hqi0SNwmo-0OhJfa51g6xLo9vpb_huWvM1lpRIAOL0d1OGwkA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Seeking Trump Pardon</a> for Son. “It is a funny sort of nihilism that <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnX_XTWFf4fh2iExYV-9h1No9PQO3CfN-nF7Ze_yl9lM55_HQDcoK0_zbszAxGkVOhb5I54OfX5Iq_5EqWLgHoG-a1wO1HX8bAfNtOIA-T3ZbuALrzHGU0vi2W3ZKcpoG465w6FzDm1mEr0Y5swnZTktg1JL8vaSJVy9R-Y1Udg5ScvhoUlI9520KhagJElYjqxjy1h7bFbRW2l2DpZzBt5jXMa2a8HmuqHqF_fhEvz2IQLL-sxA9cjcYLOEL3jBb3slHeh5nLz8IuhC_DPHtk5J-Rn9SgS11ZfZw-EvQm1xxud3YchgruLSTD35wF0TrbxNPX4gqI6a3Pl6JYB1dn2KeqOsdo9jccaT-OIWczy25qgTs21nJdRf3Cn1RfmmqVz0TbPAIa3WkBjhELkVjplWmvcqjKycmQoFNINpJPh0Wfw7fZ3Rr9AVhJ8uR-mZbjHWpflYxxZbkAfNu-iZv_GE%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">believes in nothing except belief itself</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=9TclidW8EbGjRsbTqv70Brx4Nd1TM2s0QebWHqhxX1qYuf2bMgqbs6c7fm5SBqM-uJ2XDGUKXxFGlKSQtfEz9K6L5i8hb6Kbf8mqNkNHrZ82Bo2b1vmIyhheuXsleVFYL8yrV41QMqdVCvPl8lRzEAcVdqZbEJYS4JyU3C-S-KCY2iCtU6O5oiPyDSappp7tKBN_u3GX_I5f5vAsFK5aiLJSpYGgZg-7v-rqRfcfTloh7dLwBCaimb2TlA3AN1ndbxU-OWoaJpY8EAbl7ntqJveIkm_-_KtuQhRO_tWozK3nsqziIiEQ8SfDzBnNBYgF0UfHL7pp2arPKrOnVvRCZ6J6RnxSGSd0NzV4cJcLZ-hWWO8YZIViDDZ5YI0THFPhJOBHZHYOnhxNraCDiryIZ_B2LmLQmeHpnXB4lZqMw0pm3uTjnqn7bedIcVb7mCnyZBR5NGSRoA7SdNqx_xkKIApDJk6jBmQ2hc0ePqYqC77m3oqKI-FWoHjPTI-RapWiltX8MnHix4wMA8nDaMNVoTGJt_LrEBYLc39pmtRMUOY%3D" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUBUVuL99pVotLldusdpHhI5dVRSV36_GccoKbPaFNDzckQxxZQwjTj3Bg81sAu8z3jSzOroGzGG1KbWjg8boX8npzhNW9JWQiObGCIphulBYc4tl14VrACQHvH-JS4Xb7fLJWPRHnOYPyXTerrpCNu3W9bky9arf29SaIVZjceUTAbbr5bEERtQIvRV5oceAmRgUE3IEhjf0zhPL226DA3e8HP7wcoY6iOVq6H771NYj7tl3gcHHUek1yIRnDU4y9l1GSRcoNbms9IUbAHZ95BLR-bC_xla05K8Hc8p6FR3kN9eV3lY3LiGoyqYQOU1HfN80Mk172rUXyjZUdG4BTGxtXlGXug4fTT_oi6lju4M" 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] You could check the box at the time of incorporation. If you wanted to do it later, after you already have outside shareholders, there’d have to be a shareholder vote and a series of vicious lawsuits. It’s still Delaware.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] Actually a lot of it is in the form of canceling (at par) $631 million of existing intercompany debt (see page 20 of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUFI3t4YxomrdcwlsaOoU6SdUKMueW9Vr7KC-ufb_I_d8aC5nn7_HIn4g4gswmChvMmH3FCpXCkZVVWanbmKMUF_jp7LN9Z4hM9nDWS9iNuVT3j36ByTAlt4ulv-XmAZcCuhz516P7IZvB3QmH-aWg1xrODz9U2ujrucBsiIUa4GliQw2EUD6A3MSWymblICKL-BIKqesnoyMsQ_yIwez6QOHonhTsPVAVSSNMQiHyLuh8DibOKC9-0WO1aY5CIQAG9fZPLRHB61wPqJ1_h2cENOCTrT7c79FgjGh3AHfIhoM_4b-YVL8OtQ5L8qi_b5hNtVoKzQT8CLIIw5vtn23GhMgT7IRKrOr9KuNPcT5Co0ms4d-YrL-NuDvc_y-L0q0AzH95dtbL-_R7E-tbje5S0TBlsZ3rppLcmY5TDlz8x6K2MVcL9ZouoGVxtd665urUvqB49kBCp9YNUhkGHMnOeu5IJ7Ds9MQPPpNjUkQoTB" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the prospectus</a>), but I assume that that debt was incurred mostly in exchange for Bally’s actually paying the costs of development, so ultimately for Bally’s cash. Also to be fair a lot of the cash is a “Post-IPO Capital Commitment by Bally’s Chicago HoldCo to provide to Bally’s Chicago OpCo up to $369.0 million in additional funding" (page 167), so not cash *now*, but still.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Not *too* much. See pages 166 to 169 of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUFI3t4YxomrdcwlsaOoU6SdUKMueW9Vr7KC-ufb_I_d8aC5nn7_HIn4g4gswmChvMmH3FCpXCkZVVWanbmKMUH1RBf2X38BEMJXIfgB61kfMkZZ4kiKkrPdog4uBO_dZTHJJaFALv-Xw8SU7ruAVqleZ6KOVOqtv-Uk3SDs6vp8K7fh1cytvXLFCOYQVpFqZg-s5jhLOYK1asPlFmLB0NsTeqJk4DJq8Sb0PdME3xzsucdcuAeB3gMTUPYQz6KLW-RLSCw_58LV2056xf67lO0VpvPf01cjzOVp47PBIZYxPb3XT6E0wESxfIY2f3UteBRs1G0vs8rOXaGqPhi7msgfF9_ILLcbK6GYHiCXvpmeZTstf_A1q6VqTKShGx3TIJl7IX2m0kF6InsLqa2NFNGINeJQUwZgbMG7DZZLPqYJTQYnMdWWsWGoEfFJJzXGYEIIsqopsKBCJPoCsdTo5cGOO5IcBhg2UHLsXrGMGsVT2m112fIG9VdZ2fS6jT7e2Q%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">the prospectus</a> on related party transactions. My point here is that if Bally’s loaned the Chicago casino entity $500 million at 30% interest, and then had 75% of the equity, the loan economics would sort of swamp its (and the public’s) equity interests. But that’s not true here. There is a subordinated note for the $250 discounted shares sold to some investors, and that does swamp *their* equity, but it’s a fairly small fraction of the equity. There are also some management contracts with Bally’s (page 166), a temporary one for $5 million a month until the casino is up and running, and a permanent one for “general business support services” at cost plus 6%. So Bally’s certainly has some economics that are senior to the equity, but from reading the prospectus they don’t seem all that extreme.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] That’s from Bloomberg page BALY US Equity FA EV. In October, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUFI3t4YxomrdcwlsaOoU6SdUKMueW9Vr7KC-ufb_I_d47xWCLqrSjYuLSCWA79-HShszsZ1PeakcKVxXrT3r9YzQyT68aBtk8qfHN2B11VhtA4j2mpmgkWDygLkf9xvwAKfju_dLEP4607XRHxk6LDuqoT2URe0lPihzerWJs8C5BpS0NG8JGa9GReyuMGZ65TQP6hKNs5nah0rKENt6CfftPdQIIv600Z88epFn97hA9lUTl9ulRVrlpyKCAx5kf2g56zGeMLRACBcILrNb97YF1K1awebi3izd61YBvGQ-biALy7--4-GL22ca-ZD0dR_HnC8diD5GANpZznF3xK31iMmqqMJ-kPND3rgW1MYkcyK611NJRFd63H8TiVpaLnwSDjbJvlC32cuhWx3AJJp_17QCHYGLuZLH9O0kIYrGOax0VgP0fgYr9mPIkyMmZTBtu1e8z2jVtGrd_LD_ZPaTFJ48zC3eXWKBsKM-qBX" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bally’s estimated</a> “adjusted EBITDA” of $555 million in 2024, $615 million in 2025 and $699 million in 2026.</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] In its <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUIbfAs7Qw-FOwkxreQbVWZ1TnCWm8Q3neMRGQ-YMVakiiub0vsZGcnrNYGZDVmgt6prcfD3WyCU3PxguEtxJ19XDqln4W4yv-PZrpeigTMBBzB-Kv9OqoVdjBV05qn6rMgns9tvzd4Uf8dbAu0dKJyE6SWyQxwZZE2Omx_LK7Q5nHyPa1eragigJ05CAuirrldZdDRQtdkPEI6L3CToZ7_ZAgisNJ6jAhOnLK1JK95S3f83NnuRNSg1i2OpZs57pkM7RBG_Jc5kMju6uLlLQLxRiOfFs_7JPTuCxUFskIxZ9kBPD7_2rNOzKxcABFEebOLVYYLe0S-o6itqs10AYINaNZXS3USdad5AztnC0Hq-8uE-7Agddy1nkRsGk1qnwB_Z-NakWdnBg3sOR_KQp1fWDhC9Z8Vz_xtd8T8ScEjqcMLgdWggMHEQYM42sr0r1NpDDO0FfhLIjNEgbfoelsY3xJ6C4exgcqTys_sBjRB1" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">most recent report</a> of share sales, it reported 281.7 million diluted shares outstanding and 245.8 million basic shares as of Jan. 26. Using the diluted shares and today’s price of around $333 per share, you get a market cap of $96 billion. (That’s not the right math — you’d want to use the treasury stock method for the convertibles and options, which would get you a somewhat lower number — but it’s close enough;the basic market cap is $84 billion.) Since then it has sold some convertible preferred stock, so a slightly higher diluted market cap.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] It has, again, $47 billion of *Bitcoin* on hand, but selling that to pay dividends would defeat the whole purpose of all of this.</p> </div> <div id="footnote-7" style="font-style: italic;"> <p style="margin: 16px 0;">[7] Maybe <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnUv1_w6kClLQvbW3SyXC4ul5RpqwCDh0fmbdwuIOJ7dVguMvVH_pfTwjd6b89Es3XAky1hT9lkKcprkl_-T28j-hEhsfS_KBKBwgVcuLYp6Q_cJboczZCkUF73wzvQuNKElv3qm7ev9yvZFnVNicoVTnA_DwZwEnffH8fdxypMLXeWwhaznfhW6d9HrD3yydV_qpwH7IbBwPI24SFjuAZZO6ZmzTPzO1rsVtrNegxC2NFTD88sTz1r0_LPXgypvQ6jxNFOU4Q3ExkEestAaHMgSA06nKWSSeC3UdEZl5I0YifGplFf2zubyYlHVleTV0gg%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 can be</a>???</p> </div> <div id="footnote-8" style="font-style: italic;"> <p style="margin: 16px 0;">[8] Arguably it isn’t? You’re trading on your own (bad) intentions? And you are not manipulating *the market*; you’re manipulating reality? Still. I feel like if you did this and got caught, the US Securities and Exchange Commission would come after you for some sort of securities fraud theory.</p> </div> <div id="footnote-9" style="font-style: italic;"> <p style="margin: 16px 0;">[9] *One* social purpose of a stock market is to produce accurate valuations of stocks, but there are others — to let people save for retirement, for instance — that cut against insider trading. But a lot of people think insider trading should be legal in stock markets too, to make prices more efficient.</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=596126fa20ef405292ce89aa7ce8e573&_e=-DqyfivYdbX85GWuioevnaIG64WDynOv8nGuUadZTXr-71obIKltkv3gtzL-o1kOvaKDfhiQExq5LBvjo7gJfZUZlvaMoRXWZ7u2EXPS9tEd46S7kxRYLRS6r72Fb1DiBj2EzAbQlOKK9akEO8kuNkcL2KgOD6eZRZ29fdWo6c7FSov86S6J5VTxK0bneOeB-CoQebq_DGAy7WbBs2zfBAzL0X_yThA7j2BmzaYAKBkGgbkku1SpyTFlRdxH56PC6gNOz-oKjySeG0FKUP65AnqV9N-Qv4abdlhinIAMvzo9XxJSyuL-DtdCtDbNVd7yYLLiU5QDV2b2ayUlEqfeU9TmOqTBf_UiAPjHb4q6x7lEd4DhwafoGVawwZzWDp98WAT-aeB3DaSgiWSOpx0ynZr_YFfyCKsYREr_Q28CasQ%3D" 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. Canadian Fintech: RevOps is Hot 🔥

    Mon, 03 Feb 2025 13:20:26 -0000

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} .post-contributor-footer .post-contributor-bio-copy-cell, .post-contributor-footer .post-contributor-bio-controls-cell { display: block; } .post-contributor-footer .post-contributor-bio-copy-cell { margin: 0 0 16px 0; } .post-contributor-footer .post-contributor-bio-controls-cell { width: auto; } .post-contributor-footer .post-contributor-bio-controls { margin: auto; } .post-contributor-footer .post-contributor-bio-controls .button.primary { width: 100%; } .post-contributor-footer .post-contributor-bio-text { font-size: 14px; } } @media screen and (min-width: 768px) { .post-silhouette { padding: 32px 0; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-title { margin-top: 10.44225025px; height: 120px; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta { width: 75%; } } @media screen and (max-width: 650px) { .post-silhouette .post-silhouette-meta.with-byline-image { margin: 20px 0; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { padding-right: 16px; } } @media screen and (max-width: 370px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item, .post-meta.alternative-meta .post-meta-item { font-size: 14px; } } @media screen and (max-width: 650px) { .use-theme-bg .post-meta.alternative-meta .post-meta-item.guest-author-publication, .post-meta.alternative-meta .post-meta-item.guest-author-publication { display: none; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item .post-meta-button { height: 36px !important; /* important to override in-line height style on emails */ } .post-meta .post-meta-item .post-meta-button .meta-button-label { display: none; } .post-meta .post-meta-item .post-meta-button > svg { margin-right: 0; } } @media screen and (max-width: 370px) { .post-meta .post-meta-item { font-size: 12px; } } @media screen and (max-width: 650px) { .post .floating-subscribe-button { bottom: 20px; right: 20px; } } @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { body .markup table.image-wrapper img, body .markup table.kindle-wrapper img { max-width: 550px; } } @media screen and (max-width: 650px) { body .markup div.youtube-overlay, body .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { body .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { body .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe { padding: 0px 24px; } } @media screen and (max-width: 650px) { body .markup div.subscription-widget-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.subscription-widget-wrap-editor .subscription-widget.show-subscribe .subscription-widget-subscribe .button, body .markup div.captioned-button-wrap .subscription-widget.show-subscribe .subscription-widget-subscribe .button { padding: 10px 12px; min-width: 110px; } } @media (max-width: 650px) { body .markup .tweet { padding: 12px; } } @media (max-width: 650px) { body .markup .tweet .tweet-text { font-size: 14px; line-height: 20px; } } @media (max-width: 650px) { body .markup .tweet .tweet-photos-container.two, body .markup .tweet .tweet-photos-container.three, body .markup .tweet .tweet-photos-container.four { height: 200px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-img { max-height: 180px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-description { display: none; } } @media screen and (max-width: 650px) { body .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { body .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-text { margin: 0 0 12px 0; max-width: 100%; width: auto; text-align: center; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwMjAzMTMyMDAwLjMuYmJkMDM2MDA4NGQ5YjBhZUBtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOjE1NjM0NTI5NiwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3Mzg1ODg4MTUsImV4cCI6MTc0MTE4MDgxNSwiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.rBgQhh1wVg2rMR7SevY7YExXJZVyt_gWV2XEIG1GnN4" 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;">TD launches disaster bond. Hardbacon assets acquired.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; 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Hardbacon assets acquired. </h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: 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data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/34f501fc-3f2c-4318-b19b-5e3a62455f1e_2000x1125.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:819,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:256870,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:&quot;&quot;,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" title="" width="550" height="309.375" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F34f501fc-3f2c-4318-b19b-5e3a62455f1e_2000x1125.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 11,931 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><p class="button-wrapper" style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.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.5L7x8-oANEsAn4V4nDbHgSeyZBgOWguIdFqdvxBEU0E?&utm_medium=email&utm_source=subscribe-widget&utm_content=156345296" 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;color: #ffffff !important;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></p></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>FLiiP</strong><span>, a Montreal based vertical software for managing gyms (payments, payroll, booking, etc.) </span><a href="https://substack.com/redirect/487d89d3-a875-49e7-bfa2-b876f3fd6409?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $4.4m from </span><strong>Boreal Ventures</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The company competes with </span><strong>Mindbody</strong><span>, a publicly traded US firm</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>OneVest</strong><span>, an embedded wealth management platform, </span><a href="https://substack.com/redirect/4220906c-2f56-4173-b006-ecf94f603237?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $29m from </span><strong>Salesforce Ventures</strong><span>, </span><strong>Allianz</strong><span>, </span><strong>TIAA</strong><span>, </span><strong>OMERS</strong><span>, </span><strong>Deloitte</strong><span>, </span><strong>Fin</strong><span> </span><strong>Capital</strong><span>, </span><strong>Luge</strong><span>, and </span><strong>Pivot</strong><span> </span><strong>Investment</strong><span> </span><strong>Partners</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>OneVest has raised $53m to date and </span><a href="https://substack.com/redirect/da5d5504-d1e5-4c7e-a15a-c93117a54d38?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">expanded</a><span> into the US last year.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Nue</strong><span>, a Toronto founded revenue management platform (billing, fee calculations, pricing, etc.) </span><a href="https://substack.com/redirect/3f6d3eb0-3809-4d3e-8da9-2eaa34bb8a07?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $29m from </span><strong>Inovia</strong><span>, </span><strong>Information Venture Partners</strong><span>, and others.</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;"><strong>Inovia</strong><span> led an </span><a href="https://substack.com/redirect/5886a554-c43a-4fc3-a114-5bc669fa4cf7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">investment</a><span> into </span><strong>Vasco</strong><span>, another RevOps platform last month.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Offstreet</strong><span>, a Regina based parking lot management software, raised $2.4m from </span><strong>Conexus Venture Capital</strong><span>, a fund backed primarily by </span><strong>Conexus Credit Union</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Cinareo</strong><span>, a Toronto based contact centre staffing software </span><a href="https://substack.com/redirect/3abe67a4-dc9d-45ef-957a-6ae98db41e00?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $1m from </span><strong>BDC</strong><span> and </span><strong>Accelia</strong><span> </span><strong>Capital</strong><span>.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><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" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/8559fe85-5fe1-430e-9385-8534a9f1c436?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6b6d9548-baf2-4d15-85f6-8254d0492443_6912x3456.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:728,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:1635067,&quot;alt&quot;:&quot;&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" title="" width="550" height="275" src="https://substackcdn.com/image/fetch/w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6b6d9548-baf2-4d15-85f6-8254d0492443_6912x3456.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Plutera Capital</strong><span>, has </span><a href="https://substack.com/redirect/020882fe-586e-4eac-a213-bf0ffed7735c?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> the assets of </span><strong>Hardbacon</strong><span>, a free budgeting app that made money through affiliate marketing.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The Montreal based company filed for bankruptcy last year.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Nuvei</strong><span> expanded into Japan through the </span><a href="https://substack.com/redirect/f1b4e18e-a9f4-4c84-a02d-f2a1ff953679?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquisition</a><span> of </span><strong>Paywiser</strong><span>, a Japanese issuer / acquirer.</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>CGI</strong><span>, a Montreal based IT consulting firm </span><a href="https://substack.com/redirect/f7c7ade1-2802-429d-b51a-d36d2c3a80e0?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> German competitor </span><strong>Novatec</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Equisoft</strong><span>, a Montreal based provider of wealth management and insurance products </span><a href="https://substack.com/redirect/58afb497-1603-4dcd-ab5f-e3257a3a36ec?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> </span><strong>VisCalc</strong><span>, an insurance illustration platform. What are insurance illustrations?</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;">These are basically visualized hypothetical scenarios of how an insurance product could perform in the future, usually in order to help make purchasing it easier for the buyer.</p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="484" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/817f6e3d-bb48-4413-ba75-9a1fb2a5539e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/055f1559-942a-4c57-9d8b-53f737ccc774_1024x1024.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1024,&quot;width&quot;:1024,&quot;resizeWidth&quot;:484,&quot;bytes&quot;:485678,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/webp&quot;,&quot;href&quot;:&quot;https://www.linkedin.com/in/talbschwartz/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" width="484" height="484" src="https://substackcdn.com/image/fetch/w_484,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F055f1559-942a-4c57-9d8b-53f737ccc774_1024x1024.webp" 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;">What I assumed insurance illustrations were before writing this newsletter</figcaption></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>TD</strong><span> launched the first Canadian bond designed to spread the risk of natural disaster insurance payouts out over a longer period of time.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Alberta </span><a href="https://substack.com/redirect/72357c76-c90e-4db0-a502-d522d172b6a4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span> a new crown corp to oversee an investment fund that will diversify the province&#8217;s revenues away from oil.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Clip Money</strong><span>, a network of ATMs for depositing cash, now offers over the counter cash deposits at various US retailers through a </span><a href="https://substack.com/redirect/90f645ca-1e07-4e8d-89ea-92fe67ca2cc5?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">partnership</a><span> with </span><strong>Green Dot</strong><span>, a fintech and registered bank targeting low income Americans.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Clip Money went </span><a href="https://substack.com/redirect/ba5e0371-417d-4283-a1a1-4cc16e576a0a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">public</a><span> on the TSX in 2022.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>KlearLink</strong><span>, a Kelowna based credit bureau for US payday lenders </span><a href="https://substack.com/redirect/37c6b819-a2f5-4127-a912-aed6ae679cb1?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Arteria AI</strong><span>, a Toronto based platform for banks to manage customer contracts </span><a href="https://substack.com/redirect/7907c829-847e-491b-942c-abda18ca6062?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">launched</a><span> an AI research division.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Arteria itself used to be an AI division of </span><strong>Deloitte</strong><span>, before being </span><a href="https://substack.com/redirect/9e5a6e31-b68c-48b6-86ca-50f8d23bfd67?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">spun out</a><span> in 2020.</span></p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="488" 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auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/ac47ce9d-46d7-47d5-a0d7-a452d6b15371?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/6f824ce9-a2f9-473a-b85f-8b9ab6746589?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: 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  4. Money Stuff: The Podcast: A Lineless World

    Fri, 31 Jan 2025 17:05:02 -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" xmlns="http://www.w3.org/1999/xhtml" style="width: 100%;"> <head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/> <meta name="viewport" content="initial-scale=1"/> <title>Money Stuff</title> <style>body{width:100%;-webkit-font-smoothing:antialiased;font-family:Georgia,serif;font-size:16px;line-height:24px;margin:0;padding:0}img{max-width:550px}@media only screen and (max-width:480px){.lihide{display:none!important}.lishow{display:block!important;width:auto!important;overflow:visible!important;float:none!important;max-height:inherit!important;line-height:inherit!important}.email-ssl-image{width:100%!important;height:auto!important}.body-image img{width:100%!important}.logo-image{width:100%!important}}</style></head> <body style="width: 100%; -webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; line-height: 24px; margin: 0; padding: 0;"> <div style="color:transparent;visibility:hidden;opacity:0;font-size:0px;border:0;max-height:1px;width:1px;margin:0px;padding:0px;border-width:0px!important;display:none!important;line-height:0px!important;"><img border="0" width="1" height="1" src="https://post.spmailtechnolo.com/q/-8CymwFWCssB6Qruq7nV9w~~/AARGbBA~/7Ok7Ynbvt2oKUb0X-oDJPXfPC9dqoZYJYsK__xk1v0NICfliftfjvqprryvewVkRCd26cmuJDpsgKBHbTrtUesRZkoLLPc7i7WHNI75xpFg~" 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/e/eo?_t=f574328d4d0c4c359b90d8e49b10e21d&amp;_m=121bb0c6a29b4f7faa3cc50db8c372b1&amp;_e=7dfXa_zEaMMxFX7RJYvpVemCALVuoW47l5AlsFJmbPY637RuZAH0eBOHeKQjGlNmNh3hIPrEc6o1W-0e7DHUZGG0Q9GvrvxV7WkiCz02ceu1pUOdQrhKnyMQROF4wR-zoKd_J46fXUysLc5wbH92ypesi3BB5SEB2zrcIwsqazs%3D" style="border:0;width:1px;height:1px;border-width:0px!important;display:none!important;line-height:0!important;" width="1" height="1"/> <table id="wrapper" width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="-webkit-font-smoothing: antialiased; font-family: Georgia, serif; font-size: 16px; max-width: 550px; width: 100% !important;"> <!--[if mso]><center> <tr><td> <table border="0" cellpadding="0" cellspacing="0" width="550"><![endif]--> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <div style="display: none; max-height: 0px; overflow: hidden;"> This week’s episode of the Money Stuff podcast is out now, in which Katie and I discuss cheap artificial intelligence as a macro event, dist </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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cyv4krlIUcf_snT4JNSIgBShNEl3YMAyT-y5x58jw0Da0LMNwcDsVLl1oCk5IbwoppcEP3gcpMEyQr1tn05LKuEt-hwP6QYxmUcUaZ6w2mWcH45BOeIJ5PqUC9yC5CRt8gjtLd7q4ABQ0prpUePdltujVqFakW6s3ZE1Bunyw1xhIstSPrkrhbnZp8kh_ZwWrNHd2T1v-BJtvQXrmKmhVNZ5okKsqQIlPP7NdxGD9piX4cZ2oEnF1hFTLaxa2dgmZHhlKS7T-IxBiqnKNFCXLvbDdzeboeub346wGKLC24ez64Wgt-mXMlJT0Sd7-w7laGg%3D%3D"> <!--[if mso]><table width="550"><tr><td><img alt="Bloomberg" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img class="logo-image" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNRFZUq6PpLs/v0/-1x-1.png" border="0" alt="Bloomberg" style="max-width: 550px; width: 530px; display: block;"/><!--[if mso]></div><![endif]--> </a> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 16px; line-height: 24px;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-family: Helvetica, Arial, sans-serif; letter-spacing: -1px; font-size: 26px; line-height: 28px; font-weight: normal; border-top-width: 1px; border-top-style: solid; padding-top: 12px; margin: 20px 0px 0px;">Podcast</h2> </td> </tr> </table><p style="font-family: Georgia, serif; margin: 16px 0;">This week’s episode of the Money Stuff podcast is out now, in which Katie and I discuss cheap artificial intelligence as a macro event, distillation as poetic justice, sweet X debt, sweet xAI collateral, Elon Musk buying TikTok, politically exposed persons, dark pools, hedge funds who don’t like high-frequency traders, populist market structure and double levered Melania coin ETFs. You can listen to this week’s episode <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cypB_n7uSZj1V4K8beGPv69_fLrAbrjWqz7wlouIOzlOdSZNK1gHfrHGGUhQ1uvzCeA6-k7n5fdl4fZOEOjH86gSIVbA_ysju3p7c4HARJduQeu_ZCqH6a0INXE54iAwNNuuRP0sI-j6ZNdpnZPRUDQMw9dJ41EjoY9vIxeBTHmZ7rIIudjYzGf0OaToYFSagV7-IgabqJj3Q5gGMWf3Rx2j0IGeVE7L1e-HvnCy9I_P-fozwz3j_ddFFnkveBjpPyqEIEyBcmbgdNmEVUYYFHe2GrILEqX7h36XP0ng5Y_ewQJUlfky7deRaEZfo6LEmdejBHYoPZ5M3J04e7dX66tA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank">here</a>:</p><div class="body-image" style="margin: 20px 0px;"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cypB_n7uSZj1V4K8beGPv69_fLrAbrjWqz7wlouIOzlOdSO7WkjieFnAQMtsN4RtXM6bEyxeqEAhnPeLZRIcjtii_rC68Ks5tRdp8dKRNqIO3CuZHpPY5aWfBLgVNf97-qHFZL9-qu6skjlirNXRBEzfBCKgE6hBGNn91FnqQ7YBMjd-dmyWNNCKaGUL9pJqYCIqkrPS_d5yAu4itrWnRP4-txc_uhXjUtk-6CvtkabqOJrwemeJsfZODwnxdV-KfJFxeUJx1WM3kA01xEF5fjKaw5EdOvYj4_mJMHaLJxZ8vv3q_np6uwyom6Ki6NbA-mBPbneUAvDeaF60Mhlxe1PQ%3D" target="_blank"><!--[if mso]><table width="550"><tr><td><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i0F.Nv8OIOqI/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img alt="" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i0F.Nv8OIOqI/v0/-1x-1.png" style="max-width: 550px; display: block; width: 530px; margin: auto;"/><!--[if mso]></div><![endif]--></a> </div><p style="font-family: Georgia, serif; margin: 16px 0;">You can get <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cypB_n7uSZj1V4K8beGPv69_fLrAbrjWqz7wlouIOzlOdL4mbWJBBTxa3LD4ULH5ovZ6ogqniSQulAa1H_dhW4lK2FIsC_PsRguzHbGOqiH-nA80nFyeMqLAPRyfZMqPT2mZzhRPzZFjlpYv6doYn9NpfYvlvl3uZXwmhtWXCCDCs_h6tkUdsDQaEGknoOmnR-eDxDrfb-rWE4fadPyNXsyxi4q5e08CkwYY3dJxoQiM5fwo3VGKGc53CBz45PCvXfwqa0x2tWLsZmTvCPuGwRUNsk2bEm_gBM7QYtqujQVaO241w6gVHKe4jP_y46Z5usGBICGUGmhi4HCTl9xD8xBM%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank">Money Stuff: The Podcast</a> at Apple, Spotify or wherever you get your podcasts. We’d love your feedback. You can email us at <a href="mailto:moneypod@bloomberg.net" target="_blank">moneypod@bloomberg.net</a>.</p> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> <strong style="font-family: Helvetica, Arial, sans-serif;">Follow Us</strong> </td> </tr> <tr> <td align="center" style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cysT7trRZ2c5XNgfL5_jiwF05o2a7xEqLeNqypTAYdbEYpTC46oxb3UayZjl-qA5bffaexJHHm5wKJqeCfVNSy6KrmYHuSEpT8huXVSWfSGO4zHuavfcGskynhZUsJ8bRvNpJd-ioBlwF19LirY-NZfah4kc1kbymqWxrlCz5UIDZbUTvSgiEA626syAsnP0fW8MNLaQ8QVB1xrr5xWgZ5zYoEDAzr_bfIzI2QBaBZ1RXBDa00LMByFCuWxszlJIAcyNl6tvLdk9_dzofLbAVOMDRbbTGAKD7o2tjJ7LZr_oKlTAVQV1ZQNVKbgJ2c8CK0UYjJcAORrxLPYapU6kj3l3u_yAZMDSUrRMW9kUdjBWo"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i74qcvoJlmqM/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cys-cTSwxu7-OZlOiEopSR-ewtXcjhespM7VeqnrjIlZDLijE6dTD4Ox5L69CFiqsoerZVfJ4uV23R4Puv6B8tdOgPaU4x_JVyrJxQsJSVBgVwlYcKaDq4vscyPMyMXvjJL1O_ykeoUbrFwM0Fk001aH3DlCl9sNOSgXw-_DDpZuwujMI-jvI4juF8R7teX_Qk45eP8xy-YKHfgfNtRL9S8W-k6Esz4s-h6yL0knSe0hcczh-cJaaVL4xWsMdOL-AFGWZCWQv3yUMRI3zzjd-0vtV-mYg3DlMuHxMxPViRejVLr5RbipILgCifr0jXrq_D0wquqnj0gUeHVOosMxgL8LCXgbnKmkTaEurXVgGOoes"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iJGFAUI9aUUg/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=121bb0c6a29b4f7faa3cc50db8c372b1&_e=D861YBGPTGf4OCmOsf_cyloAsvnDXJxWirXvl7OqqWqFzldP3BFUgBwinfwRommpvirTkbZ9UZSssVu4cGnOF_qeocBCt6p-npk2IoSfhWJ78DhYpaJ_pnBdXsKm__4Jse-7y6LQSWYKuXbLwnHinHPtuhUWH7xlYkwYW54y3O04ezUP1pPxDme_Q-ZPQInrNepza9P-m8tCFIwIWFmrlOO49d2kn6rvqQrizQ-e16NWlPLAfQIUVZCJ9tq6cMGXl4ssq7HZy6WOFfgCYMdRKSPaCFFZewILcgEMFI0kt6-Inh6KpUGD7cN3PoEVHLzjrzvSn4DE86hsDm_qrYlqlA%3D%3D"> <img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ijPrci.tuuHU/v0/-1x-1.png" width="39" height="39" style="max-width: 550px; vertical-align: middle; width: 39px !important; height: 39px !important;"/> </a> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 20px 0px;"> <table width="100%" align="center" border="0" cellpadding="0" cellspacing="0" style="font-family: Helvetica, Arial, sans-serif; font-size: 14px; line-height: 150%;"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding-bottom: 10px;"> You received this message because you are subscribed to Bloomberg's Money Stuff newsletter. 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  5. Money Stuff: How Long Do You Have to Be Short?

    Thu, 30 Jan 2025 19:16:13 -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/OsU8tPnnyENWP7Lla3wQCA~~/AARGbBA~/3gTMnUMcKFG1CoGVe2IZaHEHIdoqS8SgF8IfUOpCTd2BBTUuwuNoD0CQFU_UKd6xvhevrlTS_xDmd10kAE-r9qZlZxmm-N6BnDd6joZL-8E~" 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/e/eo?_t=f574328d4d0c4c359b90d8e49b10e21d&amp;_m=c6a1f664069e4793abdd2bb9cd6e0b30&amp;_e=vWmpx7HJVTsXLI_FFA2C1m-TJZTswbw8jgnJGknrReXf0hw-6UkRsYpgoAePSP4Dd1BBEsiWOjp6fFoRLyRkTkprJaC8htx0cYtDsCofOSCTen0qc6AO7sn1kl2b2ytY9wEj0xJhn8ziSHIFEW3BcINZwM_7M9-0x3nEijDYKyY%3D" 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;"> Here’s a thing you can do: Research a company and decide that its stock looks good. Buy some stock. Go on social media, or television if you </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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDUXE2eHvRSAZDIgP_8hPFKiCVL_8mZ_PopIzLFlGiwnUSw4mKy--LcH-WOewku49psTR0sgsa14enJxhk8IECLsQQyMsfMFNvI5NvfUk0GCwon8fTb5M4B0wKDgWj2EG83sszx5YS5tmqgiyCMMmmIJ5s5ujOHhYNZQdpjTZRuM7YsJycg_wx0CVnhbP_VepO4JZEC0vHCtviqTY1M67Dmg%3D"><!--[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 border="0" cellpadding="0" cellspacing="0" align="center"> <tr> <td colspan="2"> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDfA1wRnrfIEWOP6EJLmFjNt3aLNbv7BrpfwapMH4kOg2IZnPISBCyNNnBmXPU6-kWlQEih83EsvCd0YlpLq8FeEUMdY9aTJKrLdy_emtx9hIuzbE2QSVybsznjsm2WSiH3Ohja8b5HQQ0Oabtctn0REQawYjkIY8bkrbcUOqc_tlEDuMu6__rKYJCJiT-o0vxrWdG87FJK_a29tneMGnXurCDU07TotG2sg3qaOAfz-v35eVj0ZWk0n2YlPjwImlX7JXR8zMeWPEOQd9Q2mKD2W6O5cq101Tzk5FXYSi5ID5rectuH9_HTlBvcI6JVmn-w%3D%3D" rel="nofollow"> <img src="https://sli.bloomberg.com/imp?s=825881&amp;stpe=default&amp;li=12468728&amp;m=c869f5c3f0784f1d3b0577b4456d769f&amp;p=01302025" border="0" width="108 !important" style="max-width: 550px; display: block; width: 108px !important;"> </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;">Short rules</h2> </td> </tr> </table> <p style="margin: 16px 0;">Here’s a thing you can do:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Research a company and decide that its stock looks good.</li> <li style="margin-bottom: 5px;">Buy some stock.</li> <li style="margin-bottom: 5px;">Go on social media, or television if you are famous enough, and say “this stock looks good, and I have bought some.”</li> <li style="margin-bottom: 5px;">The stock will go up, as people see you on social media or televisionand say “oh that person knows about stocks, I should buy some of that stock.”</li> <li style="margin-bottom: 5px;">You sell the stock and make a profit.</li> </ol> <p style="margin: 16px 0;">I mean, maybe <em>you </em>can’t do that. You need a reputation, and some social media following and/or the ability to get on television, to pull this off. If you don’t have that, maybe you can bootstrap it. Go on X, tweet “this stock looks good and here’s why,” back it up with some good analysis and compelling detail, and maybe the stock goes up. (Not because people read your posts, but because you’re right.) Do it again next week. Keep doing it. Maybe someone will discover your X account and say “hey this person is good at picking stocks,” and it snowballs from there. Eventually you can move stocks with a tweet, because your tweets have a track record of being correct, and you have built up a following.</p> <p style="margin: 16px 0;">Here is a precisely symmetrical thing that you can do:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Research a company and decide its stock looks bad.</li> <li style="margin-bottom: 5px;">Sell some stock short.</li> <li style="margin-bottom: 5px;">Go on social media or television and say “this stock looks bad, and I have shorted it.”</li> <li style="margin-bottom: 5px;">The stock will go down, as people see you on social media or television.</li> <li style="margin-bottom: 5px;">You buy back the stock and make a profit.</li> </ol> <p style="margin: 16px 0;">Same constraints: People need to pay attention to you. Same way to bootstrap it: Write <em>good </em>tweets about stocks that <em>do </em>go down, and eventually the stocks will go down <em>because </em>of your tweets.<a href="#footnote-1" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[1]</span> </a></p> <p style="margin: 16px 0;">Here is a question. How long do you need to wait to do Step 5? Well. If you buy stock, say “this stock is good,” and wait five years to sell your stock, then in some sense you <em>mean it</em>. You have made a long-term bet on the fundamental business of the underlying company: You think it is undervalued by the market, and you are willing to wait for the market to comearound to your point of view. (It might never come around: You might be <em>wrong</em>, and you might eventually have to throw in the towel, but if you wait five years to throw in the towel then you were clearly <em>sincere</em>.) Over five years, what will matter to the stock is whether your thesis is correct: The stuff that you said about the company’s business will either turn out to be right, and you’ll make money, or wrong, and you won’t.<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;">If you buy stock, say “this stock is good,” and wait five minutes to sell your stock, then … what? Like you tweet “hey Stock X is good,” people read your tweets, they buy Stock X, it goes up a lot in five minutes, and at the end of the five minutes you sell all your Stock X at a profit. What does that mean? Here are four possible answers:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Markets are — with your help — extremely efficient. You thought the stock would go up a lot over the next five years, you made a strong case for that, the market read and digested your argument very quickly, and within five minutes your case was <em>priced in</em>.<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> After five minutes, the stock’s market price reflects all of the good things that you have uncovered. The stock is fairly valued and you can sell. </li> <li style="margin-bottom: 5px;">Markets are — with your help — <em>pretty </em>efficient. The stock price, after five minutes, does not <em>fully </em>reflect all of your positive expectations about the stock. You think it will still go up more, over the next five years. But the price now reflects a <em>lot </em>of what you said. The market read and digested your argument and said “yeah, this is pretty good, we’ll buy some stock to reflect, say, a 40% probability that it’s right.” You think that the probability that you’re right is higher — maybe not 100%, but 80%. But you got halfway there in five minutes. Do you want to wait five years for the other half? Your rate of return over those five minutes is much higher than your expected rate of return over the five years. You can sell now and free up capital for other trades. And your capital is not unlimited; you are just some person on social media. There is a division of labor<em> </em>here: Other people have a lot of capital that they have to invest somewhere, and you are telling them (with your tweets) the best place to invest. But <em>you </em>have a lot of <em>ideas</em>, and are capital-constrained. The market is effectively paying you, in five minutes, for your advice on where to invest over the next five years. But you don’t have to stay invested for five years. You can take your paycheck and move on to other things. Your work here is done.<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> </li> <li style="margin-bottom: 5px;">You changed your mind. New information came to light that made you think your thesis might be wrong, so you changed your mind and sold the stock. This one is probably important over <em>some</em> time horizon — if you sell a week after tweeting, maybe you changed your mind — but seems implausible over five minutes. Could happen, though. Maybe you tweeted about the stock and a follower pointed out a math error and you were like “ehh never mind.”</li> <li style="margin-bottom: 5px;">Markets are — with your interference — quite <em>inefficient</em>. You are just <em>lying</em>. You tweet “Stock X is good,” your ignorant followers on social media are like “ooh Stock X must be good,” they all buy the stock, you think “hahaha suckers,” you sell the stock and move on to your next scam. You had no good reason to think that Stock X was good; you just thought it was an opportunity to trick your followers.</li> </ol> <p style="margin: 16px 0;">The fourth answer is traditionally called a “pump and dump.” And the analysis is precisely the same for the short trade, which also has a catchy rhyming name, a “short and distort.”<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a></p> <p style="margin: 16px 0;">The fourth answer is pretty clearly securities fraud. (<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDT2XpQMdBYUBtbGaleE117p8mxuKDjLibVl5GBsRY3sY5p7ZgM3WLHusLp485r3mqLRkELba4IuHfCuyzccHJPw3tG85SFqeCtrihAKefY0aTIMchiG0W8Aa5Ys5lZIWmMWBUvxqGQnYgY2_yaFIFQmK84wtjRkU7-hEvQqXoq9O7d24KT48l16G50PhxtlLuTPR_bcsjMifEmg_yx7RL2Y%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">There are weird legal theories that it isn’t</a>, but I think they are wrong.) If you lie about a stock to trick people into buying it, and then sell to them, you will get sued by the US Securities and Exchange Commission and also maybe arrested.</p> <p style="margin: 16px 0;">The first and second answers … I mean, I think they’re fine? (The third answer is probably also fine, but more awkward.) But you can see why they might be a little problematic. How can anyone tell what is in your heart? Sure you <em>say </em>that you really believed what you wrote, that Stock X would be a good stock for the long term, but then you sold five minutes later? That’s pretty suspicious.</p> <p style="margin: 16px 0;">How do you deal with this problem? Well, you could try to document your reasoning so that, if the SEC comes to you and says “hey why’d you tweet that this stock was good and then sell it five minutes later,” you can say: “Here is all of my research about how the stock was good. I think that you will find that it is accurate and sincere and reflects a lot of hard work and careful thinking. Clearly I was not pumping and dumping. And then I sold because the market rewarded me for my efforts and insight, and I took those rewards.” The SEC might not like this! But it will probably grudgingly accept it, or in any case will have a hard time proving in court that you were lying. (Not legal advice.)</p> <p style="margin: 16px 0;">But if your only research consists of an email to your colleague saying “lol let’s pump Stock X to make some money off of suckers,” the SEC will sue you, and you’ll probably lose, because that’s good evidence that you were lying. And in fact <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDdSGuI49DZBtzMSauF64uTX37xwvc-gYWnw9oKHN4-wQrfIMnrE5n5V_EU6eumQupe8DWScyMeQGZRkbUI5j0b4rSAjb-7xdFjfQmzrevh1C3mdTfhMqBuBrL6xaGicYp-DNMD4Yxxpi-WGBUUO1KCyFE0jACmSRAm0GsKZlGwwlD9Djan-MwLTz6vc8XGQ3TjexClFuJASrSz5LPC9T41I%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">emails like that</a> are pretty common in pump and dump cases.</p> <p style="margin: 16px 0;">That is, the way to tell if you were sincere or lying is by trying to figure out if you were sincere or lying. The fact that you sold the stock five minutes after tweeting about it <em>raises questions</em>, but then you and the SEC try to <em>answer </em>those questions.</p> <p style="margin: 16px 0;">You could, however, imagine another way to deal with the problem. There could be a <em>bright-line rule</em>. The SEC could just put out a rule saying: “If you buy a stock and then tweet about how good it is, you have to wait at least 24 hours after tweeting before selling it. If you sell within 24 hours, that’s fraud. If you wait more than 24 hours, that’s fine.”</p> <p style="margin: 16px 0;">Is that a better system? I dunno. It’s more efficient, I guess? It doesn’t require any inquiry into your intentions. It would mean fewer SEC investigations, fewer examinations of your emails, fewer court cases. Also it might <em>work </em>pretty well. A lot of pump and dumps have a pretty short window of opportunity: Tweeting lies about a stock will often move it for 10 minutes or an hour, but not a whole day. (Often! Not always!) Making scammers wait a day to sell their stock would make scamming much less attractive; making serious researchers wait a day to sell their stock would not make serious research much less attractive.</p> <p style="margin: 16px 0;">Anyway. Andrew Left is an activist short seller who tweets a lot about stocks under the name Citron Research. He’s had some pretty good calls, he has a big following, and he can move stocks. Last summer he was arrested, charged by the SEC and federal prosecutors with doing short-and-distort trades.<a href="#footnote-6" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[6]</span> </a> The <em>main </em>evidence against him is that he would short stocks, tweet that they were bad, and then very quickly cover his shorts. “Andrew Left Wasn’t Short for Long,” <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDShMvRVpwGUPGKjgzsozq2v670Gv2c-W_gP6QNMyYQE4vvTPllYMoDxS9GulW0cLXiWlqRrUxixn3feICPDJOqzdUpcp3NPQVmbiKS4R2wI8e7mJSoAdVQsWR1FIgIVqn5HESsY37CQCbQDB4GwFE_xReLTXKBtbupVbTfHQ54oSfkb0WVR0-bt-BOywBUm6ZwhGxrKiazg2EVXEeJGCItM%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">was my headline</a>. </p> <p style="margin: 16px 0;">There was also some evidence that he didn’t mean his calls all that sincerely — he messaged a colleague things like “I have a hot voice in cannibas. Let’s take a vantage [sic] of it” and “It’s OK to be wrong” — but also some evidence the other way. For instance, the SEC criticized Left for shorting a company called Cronos Group, tweeting that it was “ALL HYPE with possible securities fraud,” and then quickly covering his short. But the SEC <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDRtHClJuuC-Ghwg7lOuB98i8Lss-X7AQ9qCxO3xNBBIBVpNRPE5amKXX_hu6v1-0dzRZuvMHNnMqnyAwTOxq0T6j8IyQOhmVR7BGomtgWdCOKQxyqpUMqNqXB7_dk3ORe8Ze8LkrGrjLShnn2sbEsVM34x03dLqL2FgF1hZ4G4IFGDHYLZ-XYoWbr2nR5WbhMikStIvM23hZM15MbRgQH3I%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">didn’t mention</a> that Cronos did eventually trade down to, and below, Left’s target price, and also that the SEC itself <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDZDGHgEnu7YHWJ8LJUrTxkhOLIJmMj2DH4Qjf9mxOI8NJmeCuk-qD6DOd0jdUg2KD5zUIwSLNAKLTFiKkkzf9J7ZYgB89vZxgnVruAjeoM7lkr8w7tqaLNxJyL0Du9gtXJlotzm6qJK_ux0IXTyzO_pZIKGfJFOe1_74UY0NLHR-Btsb2ykVP4-tE8lWs2iyzvA2jVaeVSZWxh86WggUGrZNaUunpnNTxCqUHPH_BqMt1lTTRgpsd5sMfcooNbxAzA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">charged Cronos with fraud</a>. Left’s report about Cronos was <em>essentially correct</em>, which makes it kind of rough to say it was fraud just because Left took money off the table.</p> <p style="margin: 16px 0;">Other activist short sellers noticed, and <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDS9v5k4Kr1KxC94U_NKCatAfrQVcyc6_uIuR3wqYID7iSTN2Yy6IWz5kC4LhtNcVZq5UiDiH6ZDfDlMGJGNJVRRAc1WBiWV6x-c9vcqRpWcOyE7JxZD_Kdbt6OR7zO13vBaF0Rdqvd04vlWCVDHUh4Gl2kuA7d1Hn5K6eq7jN_0KUlIA7INSL0HsAcdoUX6AwA3GnXf2bU8RyDLSpuGZMDY%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">we have discussed</a> a trolly disclaimer in a Kerrisdale Capital short report, saying “in the absence of second-by-second trading updates and so that investors don’t feel wronged that we may close out of a lot of a position very quickly after publishing, just assume that that is exactly what we’ll do. Then, you won’t be, er, defrauded. Or something like that.” It <em>is </em>pretty common for activist shorts to take some profits if their reports move markets: Is it fraud?</p> <p style="margin: 16px 0;">This week, Left’s lawyers <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDapRILHjqP6mAC2C3TyXCGC2aB7msiUiAQfzj4LdeRIgLgS_rH63XGY4JgsKgUHl3IVty-MV93pzg5a4TEzw33VrEjZfqPM2V3iW_ccD67-rmj8n_5Ks0a4WnKPVlrjLZXUazzG8wFr0u1EwOZMpKUyMuLCQAvFgNEe3HRkG-ODOumOsQX6wB7dv0cOuKn03yPi3UbOuUQ7vP18QUaWxUc4%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">asked a court</a> to dismiss the criminal case against him, arguing that “there are no allegations of an intent to deceive and cheat others ofproperty in the indictment”: He sincerely believed all the things he said about the companies he traded. Fine. But Left’s lawyers also <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDWUue_mi1_ZNqT9lw5ldodqiTN9ImavHrmqPm1Qjxzudhu60A9PK0e6VQAo8oMp0U_5vlTe8sXWuiejw9hhCuchti6pUdTF7KG9mYA5T9fZPme1v-_u_d_fDIzBdedy5zBs2FWH31tkkDXVtIdf9OPOQoU7tknXjDT92ZlGsK-JHpj2hBaWgj9o3XXLhS96BL7X45suqDZZUCCJ8_xKBDWlcd41qME9xYma7-UDLKWDm52R0QhpLkZ0lBp14nPzikg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">sent the SEC a petition</a> suggesting that it’d be easier if there was just a bright-line rule:</p> <blockquote> <p style="margin: 16px 0;">The SEC’s lawsuit against Mr. Left, which raises core First Amendment concerns, has caused alarm across the investment community because it injects vast uncertainty into how the SEC will view individual trading decisions of non-regulated market participants juxtaposed against their various public statements. No longer will individual investors be free to “take profits,” reduce the size of a position, or even cover a short position without closely scrutinizing their prior public statements and attempting to figure out if the undisclosed trade (no matter how small or how long after a statement) somehow contradicts a previously made Tweet or post. …</p> <p style="margin: 16px 0;">The SEC’s recent enforcement actions raise a host of serious questions which the Commission should answer through rulemaking to protect individual investors. …</p> <p style="margin: 16px 0;">If an investor provides truthful information to the public about a stock or crypto-asset, and advocates for a long or short position, how long must the investor wait to effect a trade?</p> <p style="margin: 16px 0;">For example, if an investor posts on social media that they believe a security will rise in value, does the investor need to wait for a certain number of days to elapse, or for the security to reach a specific price, before the investor can sell shares of the security?</p> <p style="margin: 16px 0;">Likewise, if an investor with a short position predicts that the price of a security will go down, at what point can the investor cover their position?</p> </blockquote> <p style="margin: 16px 0;">This is also a bit trolly, but I will say, it does fit with the spirit of the times. Securities fraud enforcement <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDVIl9tmVER-uv2RD9dNemr5FUkzNtWpwgiM08dN5lddnDhg-owFM3gSWFSH5ib_ed6WHQV2Kmb-ivZ_i2NVsfs5HCGk3lPqRKebujh4efx__X4ltHxX6UCcDWbL7v1ZCqP1qTrmZm2Zzfexypn-HloNHCmgre_KkjHDqzVcykXeaXGSyLcN6ZxEFfrawO6y05nH1X6gAVC5Yc2Kuwnra3og%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">seems a bit passé</a>, but “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDYj9yIg9gQ7quOZvnNTe6B3gyNNMZ4Xzvdpm6VaDV8XCmov-XfaV8pxMLH6dPssF5hGZs_8L66bQELM5yn6Supo_UP3oLeyI7YG36Fp-g6NG-KRoRuC6DBx2mBlSR9QnUJXhPdNVjvCgHa3tqi1qXM1xNjhTxmyefeleqM2mNme1JnygMMReat9-tXuUE0hhJGH5Kgm6HP9g_3iqWGsFfRA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">regulation by enforcement</a>” seems <em>very </em>passé. The way that the modern SEC has mostly operated is that, if you do stuff that seems shady, they will sue you, and they will show the jury your shadier emails, and maybe you will lose in court. “How long do I have to wait to close out a short” is the wrong question; the right questions are “did you have deceptive intent in your heart” and “how bad are your emails?” Not everything is a bright-line rule; a lot of things are “ehh I know fraud when I see it.”</p> <p style="margin: 16px 0;">This system actually works well in a lot of ways; in particular, it is somewhat robust to financial industry gamesmanship. But people really don’t like it, and it is philosophically unappealing: You really should be able to figure out in advance if what you are doing is legal. The <em>crypto </em>industry, in particular, hates this whole approach, and has been <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDVq-1yNVspMeiJ9hqri9o1eT9n9V7srgayiNrOS8devCZXRQpvmENcA4HgwfEPORPIebKzK2ooi7SI5bPH-krpYSQrx2nC9zfY-y5adRN8IicM3eDPH_zAZ4M7rgYIQeBo_sBOm6xBpwQxqmzceCQ4AZ8vFnpd9X2eSNT21nvZ_HzxA7uTj66ajO2R0rz85O2BxAZEsFS1hr-LHhTHPgleA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">begging the SEC for years</a> to write clear rules about what is and isn’t allowed in crypto. Donald Trump’s election win probably means, among other things, a shift at the SEC toward more of a bright-line-rules approach. And why shouldn’t activist short sellers get in on that?</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDfA1wRnrfIEWOP6EJLmFjNtnAORPdEit6HScBfAkOW_St-GS3RATvEnpEVj06juqYUF3zAY7dNpZleke40V4Gwlj_-Hbxb76H6pcSJH8s_aa42QdtG5rTKCf2thRb-tm8dRE5LRUe48tYichWyTvGXCc_96c8_4nYkTn-db3xGrjFpBL8HLQkQlR-DQ_5s4zQukkT1pzKVGLRC1DHuKOSxdT1mRkbjGaOr79lRbC-73QSao5qugKFJafAMl5STFGEZA9WiactcoN3cfHxJhwB5vKGNbOHYSknydZaUpc3aHXO63So6LUq5IpzAyklI1tDQ%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&amp;stpe=default&amp;li_coord=desktop&amp;collapse_width=550&amp;li=12468728&amp;m=c869f5c3f0784f1d3b0577b4456d769f&amp;p=01302025" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDfA1wRnrfIEWOP6EJLmFjNtnAORPdEit6HScBfAkOW_St-GS3RATvEnpEVj06juqYUF3zAY7dNpZleke40V4Gwlj_-Hbxb76H6pcSJH8s_aa42QdtG5rTKCf2thRb-tm8dRE5LRUe48tYichWyTvGXA3jpFHwHAva_R8awi3FK4jr3JIXdg1UfgrOlEUif0pSy6vL5ShcakpY-Gbzos9cDlBjOCiap_ISpOO24YhxJRfE89FaEZpwU6vFzgxr6YqZEsTxCRSbt9qoEfmF2hF-9oFQ832cRkhtQwYhGM2Y_0pbwePWgxPwx_CvIPa5EbXiQ%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&amp;stpe=default&amp;li_coord=mobile&amp;collapse_width=550&amp;li=12468728&amp;m=c869f5c3f0784f1d3b0577b4456d769f&amp;p=01302025" 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;">PM hiring</h2> </td> </tr> </table> <p style="margin: 16px 0;">If you are a hedge fund looking to hire a portfolio manager from a competitor, how can you tell if she has investing skill? There are two main sources of information:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">You can look at her results. If she was up a lot last year, that could just be luck, but if she was up a little bit every day for the last five years, that probably isn’t.</li> <li style="margin-bottom: 5px;">You can interview her, look at her resume and ask about her process. If she worked at increasingly fancy hedge funds with increasingly fancy titles, those are good signs. If you interview her and she thoughtfully describes a surprising but intuitively plausible investment process that seems like it ought to work, that’s a good sign. If she’s like “I keep flipping coins to pick stocks and it works great,” that’s a bad sign.</li> </ol> <p style="margin: 16px 0;">These sources are complementary. Good results backed up by a good process are encouraging. Good results with a bad process could be luck. Bad results with a good process <em>could </em>be bad luck — her luck <em>has </em>to change, and you can get a good portfolio manager at a discount! — though they could also indicate that you’re wrong about the process being good. “She went to Harvard and worked at Point72, so she must be good” is perhaps a useful heuristic, but it can be refuted by performance data.</p> <p style="margin: 16px 0;">There is a problem, though. You can look at her resume, and interview her about her process, to your heart’s content; she’ll probably be happy to talk to you. (Perhaps she cannot disclose proprietary information about her process but, you know.)And you can ask her about her results, and she’ll probably be happy to tell you, but you can’t <em>check</em>. Your competitor fund is not going to send over a spreadsheet listing the returns attributable to her investment calls. That’s <em>definitely </em>proprietary information, and they don’t want to help you out. </p> <p style="margin: 16px 0;">At Business Insider, Alex Morrell and Bradley Saacks <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDQMZCVtdeCAIpwawyFHJBQSm8k1FirzETXNPpQI6ISm5q8fyGK1DOAmdhhSPd9csqDntKZieCZEL4Q6IprN3yNaPmV9SRJby7tp7vQkdZ4wF-48mRkYsR_ptLKk3KNKJP1cZNj3S0tMa_7F_28bdoF-UCr7OYAp2Hqj8wG3atnoHRcOl2rJDR679ZWTDrEm-t85rWoo7Xy1a0WYt_rPWaAbGWrXRXEB_8H2Io6JU7aGEhah1WvHCMvQevNGiog5b-R7awMyk2rM9RMbeA593hbTLVWSg6C8KkxnRP3JYSWbr65UK0wtoSIq_CBHCvSc5tw%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 a fun story</a> about this problem:</p> <blockquote> <p style="margin: 16px 0;">Multimanager funds now regularly fork over eight-figure deals to PMs, with some coveted stars receiving packages north of $50 million. But firms often must take it on faith that PMs claiming tens or hundreds of millions in profits at their former employers are being forthright.</p> <p style="margin: 16px 0;">The dirty secret, according to conversations with nearly two dozen portfolio managers, recruiters, hedge fund execs, and business-development professionals, is that many of them aren't. When it comes to performance, traders regularly prevaricate and exaggerate; it's just a matter of degree and audacity.</p> </blockquote> <p style="margin: 16px 0;">And possible — but also problematic — solutions:</p> <blockquote> <p style="margin: 16px 0;">Last summer, a senior headhunter who places PMs at multimanagers saw a change emerging on the hiring front lines. Before finalizing multimillion-dollar deals to hire candidates, funds were making a bold request: direct, proprietary evidence of the PM's trading performance. Some, for example, asked PMs to jump on FaceTime or Zoom while at home and pan the camera over to their computer screen to show their P&amp;L in their company's internal system. Others were meeting candidates at coffee shops or going to their homes. ...</p> <p style="margin: 16px 0;">Another senior headhunter said he also observed a change starting around the summer, with multiple funds asking candidates to bring their laptop to a café, log onto their internal system, and show their P&amp;L to finalize a hire. …</p> <p style="margin: 16px 0;">"It violates all the confidentiality agreements," another PM who's worked at multiple funds said. "I don't think reputable firms would ask you to do that."</p> </blockquote> <p style="margin: 16px 0;">I wonder if there are any cases of a hedge fund asking a PM “hey please show us your firm’s P&amp;L records,” and the PM saying “sure here you go,” and the hedge fund saying “no that was a trick, we expected you to say no, we only hire ethical people here and you have proven that you can’t be trusted.” I bet the answer is no.</p> <p style="margin: 16px 0;">There is a simpler solution:</p> <blockquote> <p style="margin: 16px 0;">Perhaps the most popular and ubiquitous way of corroborating a trader's performance is by obtaining the candidate's pay history through W-2 tax records and deferred-compensation statements.</p> <p style="margin: 16px 0;">Because hedge fund payouts are formulaic — most multimanagers pay a standard percentage of a trader's profits that's typically upward of 20% — a PM's compensation is a direct indicator of their past performance.</p> <p style="margin: 16px 0;">One multimanager exec said he asked for W-2s and screenshots of P&amp;L, describing these requests as "the same thing everyone else asks for." But many states, including the hedge fund hot spots New York, California, and Connecticut, have barred employers from asking about salary history.</p> </blockquote> <p style="margin: 16px 0;">If you tell a potential employer that you are making $100 million of profits at your current firm, and your pay stubs say you are getting paid $200,000, then either you are on a <em>very </em>bad deal or you’re lying.</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;">White knight</h2> </td> </tr> </table> <p style="margin: 16px 0;">There is a book — one of the very greatest finance books — called <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDQ2UmSaZaVcCZuSW1WTptFCRbe6XLu40gaMaeJ0vE--SJAuyBR7MlRIcxPrf3eGe8MpWbbFQR37DaOl-6A3qoIHCFWXAH_0xvlEu6Fi_8b9WlwDHojXuR7W9jV8Pxeu0V23Y2x8aaFQ-9lPwHzJT3LyMxJqPpSjcpLhZTUBgopn7C1KbjgOqBHXR6G-7VKZ5YTvw6veQ1_jqEWQRoa3HaQT1bTxlsP74HAs5ty09fl4cEWJL01OxpxUvaobHpvQDZS10mxQkwyVjabXU-WWujSXZdjnbD-UPm8-4yQTm8NGJu9hIaH-SO98oICX6bsNeHw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"><em>Barbarians at the Gate</em></a>, by Bryan Burrough and John Helyar, about the 1988 buyout of cigarettes-and-snacks conglomerate RJR Nabisco. The <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDbAhcsNtVBH1zowj3WblqDCnfiHvcbrI8kwOQYU6D7w9OgBucDM6V54o4hC8yG9Lt2BD1Xh8bj5KUx_c5-z_AxzzdhtHMnPAj-mldJcAMkMi3C2uDa2-gInjYWQLd-rjmovy20N_woXZDeLVMzxwplBlK8UiL3ofJK0_p9dh0F_jf8Y0Q0r2uSpJKOgocgd4Kg_qVdVtSekPdHzcWlePgXKhZMWPdzmKulG85vczkL7Xs26zWlnQtfna1YayVy90eg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">barbarians at the gate</a>, in that book, are what used to be called “corporate raiders,” and then “leveraged buyout firms,” and then “private equity firms,” and now “alternative asset managers.”<a href="#footnote-7" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[7]</span> </a> More specifically, though, the barbarians are one particular LBO firm, Kohlberg Kravis Roberts &amp; Co., which bought RJR Nabisco over the objections of its managers. (Who were trying to buy it themselves.) The managers found that barbaric. Was it? Did KKR load RJR Nabisco with junk debt, sell it off piecemeal and lay off a bunch of workers? Ehh <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDbAhcsNtVBH1zowj3WblqDAl_sxYZsjeq3nveQMa9hF54Hgd3mpS8HtJLKICKZXhENpowQZjY8t1_bqJ3zl8tJfS47Ot6Mbj2p9HbNsOz4dqqjwzp-7Nyoabwh9uUmlQl6qegdkqWi7-YXij_i297aE9TiP7Qpg_aFlp8_frYx4bgL4y8mqGFhvWLXdDoHSgbopB1DQ3qQvGSVzWJCY-56WnqpACU-y2tsp_qTNUTOWlTCY399W6ebq9KEskdRnNYA%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 a little</a>, I don’t know, it was a long time ago.</p> <p style="margin: 16px 0;">In the 1980s, the traditional way that corporate managers tried to fight off corporate raiders was with a “white knight.” If a corporate raider was trying to buy your company, you’d call up a white knight — a nice strategic buyer, or even maybe a nice private equity firm — and ask for help. The white knight might buy your company (and keep you around to manage it), or it might buy a big block of stock in your company to prevent the raider from taking you over. You’d offer the white knight a somewhat sweet deal, in order to prevent your company from falling into the hands of barbarians like KKR.</p> <p style="margin: 16px 0;">At the Wall Street Journal, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDQD97rssMMb00On8Dm03Z8QoriLi70TNF4HGsfzK5zC_uWHVhNYFqloPNk0ANpru4AdVgLvrn2zBtBneTaGefHM9OGx6S1VATMyJ9OAxD7wUTZK2ThaZcOMgMf7vXZJ9CC8mo2LzzTugmACTDXUHFQk3WlpEznorGl4jEQYzYtCr47Dj2YMI9JJkeV-WSPwhU6fWzfMJ7sy7_Mm_rNd-V0m56jj22PgbjCAraTvyhSysBZcoPJi9XuOQQIFPykQqONEV6_af7YVbYPHB72UiQlC02eKiJlOkFPgvWsAz_ic9DnAdn9r4Npw9aRv7NYypiXu6uNcDCEbnCVdmqHvbgj4%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Miriam Gottfried reports</a>:</p> <blockquote> <p style="margin: 16px 0;">The private-equity firm KKR has taken a big stake in the medical- and dental-supply company Henry Schein and plans to work with the company to improve its operations. </p> <p style="margin: 16px 0;">KKR has amassed a large stake inthe company and announced a deal Wednesday that includes increasing that stake to 12% with the option to buy up to 2.9% more in the future, confirming an earlier Wall Street Journal report. Henry Schein has agreed to give the private-equity firm two board seats. …</p> <p style="margin: 16px 0;">The Melville, N.Y., company has been the subject of an activist campaign by Ananym Capital Management, which had been focused on CEO successionplanning. …</p> <p style="margin: 16px 0;">“This is a role we can play, being a long-term shareholder to a company truly under attack from activists,” said Pete Stavros, KKR’s global co-head of private-equity. He said the firm would be open to making similar investments in companies beset by activists if it has a good relationship with management and can secure formal governance rights. …</p> <p style="margin: 16px 0;">The deal represents a twist on a traditional corporate-defense strategy. Companies sometimes work with a friendly buyer to keep a hostile buyer at bay. Rarely, if ever, has that “white knight” role been played by a private-equity firm. </p> </blockquote> <p style="margin: 16px 0;">I guess if you are successful enough for long enough you become the establishment. “Who will save us from these barbaric activists,” corporate managers ask, and the answer is “KKR.”</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;">CBDC</h2> </td> </tr> </table> <p style="margin: 16px 0;">I have <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDZhll5LUrSoNoOcYsFrXFcMqByHktMKFecGeJTnbLSAhRPrrg94bvcN3i5hF-NMt4zgLZUiofbfHsu-_p7tmZme27gZN9XQ6c1cIDDhwUI91FyVksSc08FSzqyQgd-mQUBY20JQZl8q2AlFQOY7Z6LhStbY5nR3RNxOFtpegqQEGcRmjEa5tmN_1--Lu_EsNoC23orztLWqhuj34_ImgUGw%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">always</a> found the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDdILIwtcd0RV-Xvkkh6TrFnAMAfxDUIVA0mA3paAhP7YOZyTZX0DJH_xADcYqeA8Da1gDlXO5rsEnvGl66h3dduw91vixBhnici6u1M1Ry0DdSWBWoHCC1_ngELAG4XFr3iYCK13k7WtpcaGWsPgdvonTbh3s3Vfbz3eRaLN-LLUYxf1UysAKxiwLYHOZcRljsUF0iEhSdchiqjGLr-JupA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">term</a> “central bank digital currency” annoying. <em>Dollars </em>are a central bank digital currency. The Federal Reserve issues dollars in the form of digital entries in the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDUYl3UMi8mzuo-kJikuWX3HYHZrNE954sUxQuK41kizVWJOKle7gc9J1K686GrB8S9lAIf6vHgIIp6A3igAHCwbVgo8bVQMeGJggOcWjxElPDvCdJgyA7S9es-qEkusjufxii3wHL_wLvFqoIzpowJ9g2TwnwUlj6hINuuTSFGxCaL6-qQ2h9UpAVV9v9FoLz_hXji1vkucPYXpQ0EwlrfNfdSZPyF079Tr_3STztsPXw2QAszaPRRMnNn5Uj42G5kyrtoHxPnpNoquXXn4-Src%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">reserve accounts that banks keep at the Fed</a>. <em>Your </em>dollars consist of electronic entries in the ledger of some bank, not the Fed; your dollars are not exactly central bank digital currency. But your bank has some dollars at the Fed, and those dollars are digital. They are central bank digital currency.</p> <p style="margin: 16px 0;">Of course ordinarily when people <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDb_UYJhC-CtMO5sVcVuTEKB1KN2XbUyWrWadjPeu0GUjVkJFZ_mU6QFfvk7UAB4qQA-vInvz_HK1Zs2zzvN0OniEGc0klBXlHzKm7FgZBEvVNCyZm0j7bHDSfPu5jjZYtqaX6koWBCGAxhqWDF4YJ-QMzK3mCxWMaeFhdFDYBnmwEvvrNjUIoc6M7pmLKne3enscOoGjlF3AlAgGYT682_o%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">say</a> “central bank digital currency,” or “CBDC,” <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDUYl3UMi8mzuo-kJikuWX3FcTOZqCAzxXsAvnIJBSfgr0C1BcfL6f-y2YJPeQiMdyev_Uy2npn-N9gmK5ef99c4ImtHYzYqU7jGrMDXhaxP9ZsX5bLRwRyR9xZ9o1SGkYzRSd6jNwXOctiUAg39foq5J-dC-jmh-ieARnBj1YZ9a7FGgC3EuTU9B4GhqKHKCeVXZtFS2PO6VDRbuuPjcuExDRqmdw9An2CUpHYLGB68vNBDif_k5b906vG75kASIHc1YaJFlYSrE9TwN7PSkvIkgmBECbteoyBwaIeM1G5KK" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">they mean something slightly different</a>. They mean that the Fed would issue dollars that (1) are on some blockchain and (2) anyone — not just a bank — can hold. In this structure, CBDC dollars would be liabilities of the Fed (not of particular commercial banks), and could be transferred freely on the blockchain between banks, companies, individuals, etc.</p> <p style="margin: 16px 0;">Now perhaps my annoyance is petty. “Widely available, non-fractional-reserve, central bank-issued, blockchain-based dollar” is probably more descriptive than “central bank digital currency,” but it is unwieldy, and everyone involved in crypto monetary discussions understands what “central bank digital currency” is shorthand for. If you are <em>not </em>involved in crypto monetary discussions, it can be misleading — “wait, Fed reserves <em>are </em>central bank digital currencies?” — but whatever, you can figure it out.</p> <p style="margin: 16px 0;">Still sometimes one wants to be a bit pedantic. This week I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDWYLBYIiuVTdX158rh28zh2SqPcUi-myCuc7y6MeiUwouSkYsOGj3_wRdlHn_vCjrl0wh-y7DHCiWptHsp1EfggviT5VSP6jxXb_6W1oyGUTLT_ScpjROv-ydS7yyLN-XqK5zdGofCzn2aZ257oWXgeWcWskccIZN_196B7btS4Za6i2nMme55RRiwX1zG_xJZg8S-NNm9rX91QUtAGuFOo%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">mentioned</a> Donald Trump’s <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDcLGoRqxBPqlXpoVKLq7k1jWY4gKXfFHTIxsdH1lhkDo-uCkyQnWDHtbfiBtECjgkjsTjkMtOEvNbbHC66LqyuWqUhQ_qfItBvHIc7huONoijRf4b0bIDpT8auQyrsKJDzs_D5rwbtNqyWhcaR9g0q-Gq-F_FYoX6-mCVBkYr7UENxPHFq5IAU8CC7pGevH9KIOTHEShf-f_3svj9F7X18vJk90Ee-mkSR4Bs-euzheATfoFrBfm1QAp2nXLmqk03FlU-T9dKc5rkRIImdt20c_qg-3lBNM0Bzou-bGN5MuFjkSH8dZw-lojGi5ZhMgIJsBa3xKQfWsfPdCijc_vDuY%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">executive order</a> on crypto, which among other things prohibits US agencies from taking “any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.” This is a plausible policy choice: CBDCs have potential weird effects on monetary policy, and crypto’s techno-libertarians oppose them on techno-libertarian grounds. (The Fed could track your spending or seize your money, etc.) My impression is that the Fed was already pretty skeptical of CBDCs anyway. (And some of Trump’s team are <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDRSOUxabp_WcsT68UeiuebKHYcd3pqmsxIN8lxFRn4vX0wCfAEbdU1WQ2oKtyIFti8HXwekCt90GWpcb_OBFlFv-6O6Gohx2zfrZCqndad8Qx1fJ8-rMndVzSTq_l8yVXazkS6jsPGp9aLjHSWPyiysoo2AHKl_qoajtPMnJnAzUrKL70jA1FQEBd6aOLfJfd5qB4dn09nZML_Bb_Cfc_iw%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">close with Tether</a>, which issues digital dollars, and perhaps don’t want competition from the Fed.)</p> <p style="margin: 16px 0;">But! A reader emailed me to point out that there is some concern in the market that the executive order <em>prohibits bank reserves</em>. After all, it prohibits CBDCs, and defines CBDCs as:</p> <blockquote><p style="margin: 16px 0;"> “Central Bank Digital Currency” means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.</p></blockquote> <p style="margin: 16px 0;">Right no that does seem to include bank reserves. Ehh I’m sure it’s fine.</p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Enron??</h2> </td> </tr> </table> <p style="margin: 16px 0;">Last month, someone relaunched the Enron.com website and @Enron accounts on social media. They were, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDehdwFSP19RWxJypEXvfV69aAzhJe19cA2afjSWi36qdeSNeAYrzng0Kr-mJIvUHXQFoZhQLbjyhqDj3kUfL93UHVgaR50RXN5HFN-ml0wrHA0Z8Qhsb2tiqhwvFjXF_3C82IqGy00Ip7HufpwkwuwSobdOJyC1G_Xrj3WqzQI2rbThn7r08bngPw-__JYnr2Dd-uNW17LjrNswp8VlIuts%3D" itemprop="StoryLink" itemscope="itemscope" 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 figured</a>, kidding. For one thing, they said that “Enron” now stands for Energy, Nurture, Repentant, Opportunity and Nice, which is funny. Also the website included a disclaimer saying it was a parody.</p> <p style="margin: 16px 0;">But in 2025, what does it mean to be “kidding”? What is the difference between “a parody” and “a meme” and “a financial product” and “a viable business”? Are all the best businesses parodies of themselves? I am sure I do not know. I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDehdwFSP19RWxJypEXvfV6_FFdJBzR5qECdrkWxKyeRpqj43g73qES09HA6VsTqifyJNO0Qi3e_kDnsgHsp3l1kVs8bK64cC_RTletOwpD3i3SD77TwcZkPu2RFqPS_-EgKN-azKXNYH9eJybdk4M4qanpmx-Gnqh1FCtPkluiAhsHGXz_b8-DObTUp494nGyrKhctX7S4gJq0nKiiIbhs4%3D" itemprop="StoryLink" itemscope="itemscope" 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 at the time</a>:</p> <blockquote> <p style="margin: 16px 0;">Things are different, standards are lower, and people are up for a bit more fun. If you launched Enron Corp. on the stock exchange today — even without a business — the stock would go up, because that is funny. “Synonomous with willful corporate fraud and corruption” is the sort of meme that, in 2024, is <em>valuable</em>. … </p> <p style="margin: 16px 0;">“The information on the website is First Amendment protected parody,” <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDVnq49RjGx2TNygmlMhkfXz2WhaX8kJc338mQ-S2nq_dc7F2dVI-DfdAbz217KXOVVBGhlxB5pB9rQZd3Zyi3HWUbIB7z8wT3yURPVqLIw29CbY5ThyLTtu6-4eA2-LoirFmL3l8z9IceS-WpUixvLWQvFwCYy5Kcs9TYhHjAgsVsyzYepyDIJArZRDvTy4HiAGk1aAMxfXkMZts7OC9tw_aMlNzvHogAPSX3nywQ3HM" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">says a disclaimer</a>, “represents performance art, and is for entertainment purposes only,” but these days you’d say that even if you actually were launching a crypto token, or a meme stock, or for that matter an energy company.</p> </blockquote> <p style="margin: 16px 0;">Anyway <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDVTDCqJdVr6luRpVQGetzCnwnM22NJbbfyggvriV510uQ7Vi4bI5MJik0IJLHl81p_OoBR91IbcU6ggT4ViS8UEAooT8vUxiTZjch8LmzqJ9SvOb7GBwIq1mXD9alm_j3zWgP2moe9LPJpbglqKEOava4iHT6iZn-Wluyq8AWlh5xZmsxMXwu3cMNxjlmKQvo3TqJftM7NB-H31Rpsv4L3ATbCDXvMATPMbl_Szhsbne-zUXsQUGdetxCkh9SYoe5f9n0qGwATB3a8iabUX5RQ-xA_kfZp1zd3VFqGC9AWecZYnijKBiaLLmMvTzJQsy7A%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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’s a Houston Chronicle article</a> that is like “Enron is sort of kidding but also sort of not”:</p> <blockquote> <p style="margin: 16px 0;">It’s not hard to see why skepticism runs high. Enron’s social media feeds are filled with outlandish posts, including Impossible claims about an egg-shaped nuclear reactor capable of powering a home for a decade. The company’s 28-year-old CEO, Connor Gaydos, also has a history with Birds Aren’t Real, the internet’s favorite satirical conspiracy theory from 2017.</p> <p style="margin: 16px 0;">But a subsidiary of Enron, Enron Energy Texas LLC, recently filed to become a Texas retail electric provider. Gaining this designation would allow Enron to sell electricity plans to Texas consumers — a move that, unlike the Enron Egg, at least has the appearance of sincerity</p> <p style="margin: 16px 0;">Gregory Forero, one of Enron’s newly revealed executives and founder of a legitimate company known as HGP Storage, submitted signed and notarized affidavits attesting to the company’s intent to become a bonafide energy provider. HGP develops utility-scale battery storage farms, a resource that has grown rapidly on the Texas grid in recent years.</p> <p style="margin: 16px 0;">In a Wednesday interview, Forero again emphasized to the Chronicle that Enron is not a parody or a publicity stunt. Residents may soon be able to choose Enron as their power provider, he said.</p> <p style="margin: 16px 0;">“The retail energy provider business hasn't changed since deregulation,” Forero said, referencing the break-up of Texas’ electricity market into three separate sectors in the early 2000s. “It's stagnant. The user experience for residential is suboptimal. It's AOL dial-up technology, basically.” </p> </blockquote> <p style="margin: 16px 0;">Okay! On the one hand it is weird to launch a Texas retail electric power company and choose, from all the possible names in the world, <em>Enron</em>. On the other hand, I mean, yes: These days Bad is Good, Actually, and having a name that is synonymous with <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDbAhcsNtVBH1zowj3WblqDDB7R3sWLeXWYktEpj3Vr6-Gr5LzjJjE3WmIKtJaOGc91Kh5bYTCCZfzaWjEYnSLWUFEt8ymSBtEgShEP80Pmp-CCLmUhoVf8peoY_HbQ_zQDP49q6Se_Sz4tb3eOkBFxWVGR-r9yUwp0FFcwKic51dZ963dtWbupiWJaxCzuDR5_9guzHOfDma9WwUy7vORbtLSPVu_J9r6qS89eNgpIJnCiN7DYkVU1WuTnM0K8uhIg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">accounting fraud</a> and also <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDbAhcsNtVBH1zowj3WblqDBeARsmNZmYONEEsK6OGv56gGGPKoDP17hGRpJT1mNrePh_nvbHROsFDi3gIcROHZtn-FX_YHPQyhrx-Vk1iapW7NOLjPmlpBtmatBjEo85-5xaXtJwAl-DroN_NJr-xSJstqkHy1n3ShVMZj5NWq_qw5mMphEkrQIF3S565AXw2huNx70wiJgspsR_EysNUDb9zHCu9FLBosxi20_V7OmfBk3cR7o0ScaNRPgUHxKLp25unI6G4oE10VKfPTWhlpt0zJyQAnG1qCwv57eQ6MWP" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">manipulating markets to gouge retail customers and cause blackouts</a> is probably good marketing. “Oh man, I remember Enron being super evil, I’d better sign up!”</p> <p style="margin: 16px 0;">On the one hand, it is weird to launch a real (???) retail power offering a week after you launch a fake egg-shapedhome nuclear reactor. On the other hand, has that not been Tesla’s whole schtick for years? I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDZwfK1YewgsFWcYmrTogAjCUIIJzRoukmhfgTHTZGNF5_chuiSOk_uKUeGc54XOG1Ka2wQyQi258QAEcLxNlvrfQhAXStQnlqwT_ruHAcQMem5EiexY_KNc3ZFRrGugQ8jgE3Ip9vAd8kUUHZGrS2tZu4RT0jjZGqp4MKolZVaPOLUUWyaGxY0b5I7trwxAJi7FZ6zdu5iMrkqwIXAMefC4%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">think a lot</a> about the time in 2019 that Elon Musk <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDboXCLbiNdA9Jw8yhE3jTZoF4gtz7ltVRflsLzBVEoId-oqv24dWXe8DI7CN3I1F7XfSxIoL1KetZENxiW2zRYEtyfaU1XPibT2iH3H_qTjDELZnFDpktLgqD1JyQCq_7bF4zV5RXI5iMTC3o8HoQsZ7jvkO2xuzBSkuHUcBEcFyUMnrUVoUSvhhVCYmGewM1syYvNoH0jJkk1GwMthYTOo%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">announced a rocket-powered flying Tesla</a>. There are also real Teslas. It’s fine! Your business can be half real and half jokes, and you can grin coyly whenever anyone tries to figure out which half is which. Enron is back, in the literal(ish) sense but also in the spiritual sense. </p> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt;"> <h2 style="font-weight: bold; font-family: &quot;Arial Black&quot;, Arial, Helvetica, sans-serif; letter-spacing: -1px; font-size: 20px; border-bottom-width: 1px; border-bottom-style: dotted; margin: 0px; padding: 16px 0px 5px;">Things happen</h2> </td> </tr> </table> <p style="margin: 16px 0;"><a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDWZVck2amGpDMERuXLx-sb7hymhhGFIvdm-RwFOYWea6DOjUIhpfZMhiTCBp3fgl6h7SgurW9dSB6wcezvuaPvai9mG4cyR5bpwttZlYxXnbMGY3cHogwOIkVaHy8vWRncYLUWhHqEmIQOMgLcJcSEF97aFhw3iFIJaYE0bDiOXIRTYH1nXOpRAMjAPkUG1lNMde0jX3BEcz9PKUQfpQTl8%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> SoftBank</a> in Talks to Invest Up to $25 Billion in OpenAI. Compute <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDV1vcA2V6k08m0gMVyth2KczpZAnA8nti5dHApmLw3iEyaPw2BzqqEBkv-LD7k-ssxIwsxubXRbf53tIa-f5oREzl0-m8irJcWnskibAHj98KWi7gZ7di2pR-JIxT7weSnhmy-ggk9jAOAmiWrhHnOr_3zft0K8N4QxtaL5Wkkkbx2e4-KP8RhCBbah_qKpqsui_L0frfz6MpHxp-SpXC08eY_wEMMAmWkhbe4lT4WQ18UDuMSPfEre7etEvOdndqo2a6EX6Mrw4N-bzHNg_2bHVB6r4zaJVd_VBnixtwKSL8KRt8XD9pmNjSCzKtkoq6d4MBCLCEgDNjl1S8rcHlNQ%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Exchange</a>. <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDU4_8nuRHUgSnkEbA9WYf5ESVParV2znfiOM2Gr7bCHDkcxyP39GgfilD9bbYFTWC6o1UZEJ2QUayrmvHAsWMtiHwWk4qdEWdk9lhb3rDIkNy65IMJj15ErypK2yytIeBNv_YttJFDzhyCLF7MEUNSpDShkiqvG80GXNyh4pwOJ_NiKwoMzDgLL9KorIqtjL2UegDSuefbh0zh-KePZfUZ-axJSOyi4GiH81bxRiH3MdWw1jzPoTwwsRaK1MYfRzvQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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</a> chief says ‘nothing is off limits’ as profits plunge. Blackstone defends $80bn <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDU4_8nuRHUgSnkEbA9WYf5E5v-NBWztAHkXqUsK-AtafNhPdQp6QMhaYK6sjXkfP6gSIoQhedgxxdJ9WzHkpTJaI7bfaRF2dM5gX83KDWLT7qhlIKee5l9ESLtxiZiaZC-_YOW45P3CLH8HG99YIhrDUXAMrj-vPi-YseMD9vZRhtxVrrJp-IeFBBptdsQSrJzcriRvJAu3vKQoKmM1zahCT3aMvT660GuGEu_MpHt2PtAYZ7upzsTdrCzgxrVUPcw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">data centre investment</a> as DeepSeek shakes market. Blackstone Set for <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDfzbM5Z-JllDpp2WSgBtvjNeNbMQQAo9u9xGCZqxbkcd4ukxipupcyklVKNZNdtwKb3SHcZQ13xBJ7p_0ld6lPKRcDxhBHBOi6xYR97NfUn4x8Nv0FCkRYL-JqwCqjV9xfCoft9B3msdBRV5U8klwZwCfQxI2NGhAZ9ZjPjpYixCCrChkN8B_Bz-V79CZxEXuaHvrEB0sRn-_TIZqyqIVns%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">New York Office</a> Comeback With Midtown Tower. Goldman Venture Buys $300 Million of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDbaI_nU135DEo_NisJgEQqxNhoGZHwaPUSeY_s8T0IUGZeqlcLiX0u9Hi-4G-XgAtxCTVRTDQ7FWBEIlJ2PaHxlHjMVEm-Iuq5M-6O6HtLQQHu2wXFUIba0F4ROtZBfHX-mdpETrrAAWcK3YmS1P99TS506PQEfOQtRzQJZFfQDD6ZtgYhyhht9tBnAPiWn3OC9KyuyHxGZh5sUl-yJuOPs%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Warehouses</a> From Blackstone. Fortress Targets $1 Billion for Latest <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDRm_s9sBIn9ppKGDGivSH4WF9-ArAhvi23ShiVeJ7EQ9awJD3MKJf33ac2m4MJs_fPoq7AiaITxXMpSWPl9YnCE-LKBKWK5WoQASGlj0WUrrtQ_8s82qOVXSU27FxOvrJs7IWWl_lAgRexHhsjpV2o2guEVaNpww22HzVYXXc_h1HQFXcMOrxT_CMIKbp_VZmWxpBLkIjQNrV2AJkj61fvU%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Litigation Finance Fund</a>. Blackstone Turns to <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDb_pvCe47uZRliWcnVnUM30uFoFRYW3_-Pacs-IgNLb5xhGYQAxf42GEILj5ENbpTEqyQkHT0LzwaShtgHHWPgMswlhtOXJSENw05n0YYd2yPcbGOVVZWcody4oG8G3rJbG3_GuCUhWItzOUZ3Db-NQ3jYrJViWnZ8a6y4--w4HUG0LdSVoR264WNqDCeBYvUvJ4N1d8PWNckjwc-9I6qbs%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Canada’s Wealthy</a> to Broaden BXPE’s Reach. Major <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDQD97rssMMb00On8Dm03Z8RnKalXfat6NOKy4-aqhBIIEfa5u7tJNWRa7FDtELVOL0aEWmVLSlDS566VT9e2sfDpax_P3ASZFRoWt7nuPRy71yTX--aqqipxwBXDZ3l3c18UQyMIHTTrGzTFU_INqlhcFVJvV7NIqFj8YYPzSLKEncydBGkvMurjAFJ9ZkvLkaft1vWBraF37jUwXi6nxgSuqeWzxITjEOw91fOLswua2TpI4SRyG5X2HMKqFe_AcXl7Dlhwpp4uSj1Cfcu1MRubn1ugDE3vtm4uUvGfGSb6_dvdLV0rHlyPlVEGqcmqXw%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Penn Entertainment</a> Shareholder Launches Proxy Fight. “Barnes &amp; Noble has become something of a gathering place for <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDUCGUboTWrj69tmYDgKVeF5OeDBVtnazZ3Tw-g4azhaYGkkU_TToTtyc87au90A15dMVki1gJIjeO4KOEDeHKKRBGc_LypllHfE7nj0tLbnMNURTRaBTjc64qHVpQVu6eJk_Xz7KEax3OhflPQrRihuzF8A-gCj0uJubR8RnEh7waes9Q52IqRp7v1vpmGAnZ5DyZ7ADVlrLriCWkz2JfyI%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">book influencers</a>.” Deutsche Bank has <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDU4_8nuRHUgSnkEbA9WYf5G4bG0ZWyNm9RrRgoSyylldfugwcjRJ-hNRQudCjmfEY3ZzoYXkf7FTsyKCPNSKb468UI4Q-WsSnOSmcmsUvGqcwizCmgnfG7xLDV8kxR32_excoLNUiOZqBvuxqmBgEm_nS1YmxmAjwwgi-h0H84NL61pwl9f-8ZyHJWV34M16BvKjThGy71HgT-6i2Vo-DU_MNF9EGKwhRz8POys-NtmbUf1CiZtUs_3ncha4qIkSjA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">published a bunch of memes</a> about DeepSeek.</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=6i1KkATNFLGFi2wW_n_yJlixCHHhnDakOVHk0Gu7m-C_x_nooMXGZmECMshByIaz5Q69-kqE4B585Rr8EL78bB6eztCEQ2Uc_OvVniUjhXTNSCyvouSKLzexpLeK0EJFqsmAyuvdWIohYTnHNNA50YMuZQbhHK9DYknMG-wQQuxKSN5VirfoxptQa-gwDFhLOh3hNHYM5v1Ile2IsEBDJHkBAZR8j7HcILlTsuEdaNeMUI2T7rWxzAKoKRaUM1hpt3PISFPOCr2IfGFI0_1OM3P-wE4ErGp6u3lkl_a681RQkmQZ4nyrJ2i7bINukbkUEyqL9hiv3RDi6cHHJrYTTA%3D%3D" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDaoj90C37mKbSerdjUC3an8wRTndZBuDGMfGQ4ogXdyjXXHg-bYmcA6BD_spEIrTYdj2Z63I6Log4BoNPkzBat6QByoXcFCm7-_asjnZZ9ZZSpq4YMjLd8NlsSquk4G2DXIXi97Wa0yDvq9LGt2hMjeIOEiIp_7qfFuVVHeWKdpyLJrXQhs4kpXNnhf9_3KvCCcMs9zeWUGjr1p1nQBMullf0Z-VjEgVMXizSLddM8v6" 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] I apologize for typing out the two different versions of this — the long and short versions — because I think that they are identical in every material respect. “You make a bet on a stock, you tweet the bet, the bet works out and you close out the bet,” where the bet is long or short. But I should say that some people seem to disagree with this: There is a popular view that short selling is inherently bad and therefore the short version is market manipulation, while the long version is fine. </p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] This is oversimplified, and it’s of course quite common for your thesis to be right (or wrong) and to lose (or make) money anyway for unrelated reasons you weren’t thinking about, but you know what I mean.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] This doesn’t necessarily mean that the stock price is what you said it would be worth in five years. It means that the stock’s price today equals what you said it would be worth in five years, discounted at some rate that reflects the risk of that prediction.</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] I have written about this model of quickly taking profits from activist shorting before, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDShMvRVpwGUPGKjgzsozq2vSgBrzx3s_-1ctsXMPwfXYzQ5Ug33LmNqyg7SS_Jn9bQuIsAzNk19X3a72F6Wv72QfE1xY30wjHSeWUhQVNOmmzhw4VUE6ihg7CyEObLTX9rbnLvJA58DJu1eiX-5fMidtJRLDQSEpcjIUghVjTM3dv6EYIsemYFMlWLDX_Td20e1EGf_VuYX0A-gixmi8U1I%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"> including about Andrew Left</a>: “Citron is in this model a service provider to the market: It informs the market that Company X is a fraud, the market saves a lot of money (by not buying Company X at $100 anymore), and Citron gets a reasonable cut of the money immediately. Citron is not a long-term investor that has to ride Company X all the way down, and it doesn’t have to make 100% of its profits on any trade contingent on being 100% right about Company X. In the long run, all of its profits are contingent on being right enough about enough of its trades that people keep listening to it and prices keep going down.”</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] This one is considerably less common, but it exists in <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDUS6yLr5VLpo0oNUUqExBk3QdzOzGW_zHuy4V03Y8CWpvyI_gMOTU8aVjtizfCKloLDckFxqxNL6VuK3NrBmeQOfTuVgUejHdYhBbhUP36eqMBd8zTvz9uipZi4rUcwXKGnXWOkJtzFG2YP86tezVpOyLzlNcDQZllFxsVq2Wf8fFf4IToh4UOrL_A4-HAhi0EbJ6cJW6jQu_V6dGITCRPiiaB55609m0FdM_0qFlBUY2YFPWUbtIoEcVzJkwSjIRlIFCSZC7hGxbW0dvP5zvGu2CDgcKDtfJPauNg4xtx33" itemprop="StoryLink" itemscope="itemscope" 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 academic literature</a> and has been around <a href="https://web.archive.org/web/20090510054046/http://www.wired.com/techbiz/media/news/2002/06/52785" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">for decades</a>.</p> </div> <div id="footnote-6" style="font-style: italic;"> <p style="margin: 16px 0;">[6] And some pump-and-dump trades: He was not *only* a short seller.</p> </div> <div id="footnote-7" style="font-style: italic;"> <p style="margin: 16px0;">[7] This is a very slight joke; you can still call them “private equity firms.” (Or “sponsors.”) But all they want to talk about these days is private credit, so the more generic term seems more correct.</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=c6a1f664069e4793abdd2bb9cd6e0b30&_e=iQQ98R9QJA9orIL6kCsqDa4l1iiPOoIo1OsjAmdXqI4u5xNInoMmKb5_jvjTuRGVheS4EHM4iNYrGZSRuOiQLVI0yva-8gXnFjHs_VatR4seTp2z4g2iOxy627TWjETPZ6E3USsXu6pzk90rnA-tLmNiSA_t41TUsQPTUWPXCBaRtqBLvKjaMFkm39AieHwxg7yl4J5OprhxpVbWmUGfQxy9F1vMog_XxOizWwJKST1e9Q-CRvpIBAI2OLCUhHjdip0gkQfU7PAclYz2Y6vQPA%3D%3D" target="_blank"> <!--[if mso]><table width="550"><tr><td><img alt="Listen to the Money Stuff Podcast" src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i6H.ue2bNPOA/v0/-1x-1.png" width="550"/></td></tr></table> <div style="display:none"><![endif]--><img src="https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i6H.ue2bNPOA/v0/-1x-1.png" alt="Listen to the Money Stuff Podcast" style="max-width: 550px; 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  6. Money Stuff: OpenAI Doesn’t Want AI Cheaters

    Wed, 29 Jan 2025 19:17:30 -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;"> As a person who writes columns on the internet, I have a lot of sympathy for both sides of the artificial intelligence copyright debate: If </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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bM8Apzim8ISBTs4r_5kfUeUa3K2gjADOURDrZADUX5o7Vm0k-JIvr7ZKYD0ht7Yjo6fFPLQii00_H8RHomtXOJnoP1Ku2Ta7FlSfWuAYzOoL7FnCYCIppIIrkkyVpNevBYdwZhYLc2q2N6U4H5k4hIS8DVOsM-9VlQW9vd-5Q0i5KYOTk4mv5cWQTepAMPei1JngJg4Bmt4LxrmWgFfZUGY%3D"><!--[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; 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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;">DeepSeek distillation</h2> </td> </tr> </table> <p style="margin: 16px 0;">As a person who writes columns on the internet, I have a lot of sympathy for both sides of the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bLF0F_zfAWvA7b8yDl03SEubXLhWdivmUrjmwl1WgHvrQO8_lreoCTzdA5t2sxOly7Xi3eQbXnihXlnG5jWsxOH3abq8C7SKEVf8s0sGyym6OFdFGi9gm39UhcFrEMZfz3JtzYOsf_8IkkIV1Gdn30gcjfFI2VP4KXZftv7_6-BL6-Go6U9YfH4GYyYUIlDnmNsyKd54_Z6RebBVToXZERuv7TkZ81s2FyZM0sLz0LPm5tg_2eOi6mRrPpqhkTFej4C6Tgaj7_l6YenD_8Z_ec8aLnigPL2kKof4_FdETgr2" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">artificial intelligence</a> <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bKGEP6O6CNw9onQcFsf_ykH7D7EW9WxBnp2iZF1LpJf-x1yNThMAm0cxRIVbjUA9USJ5zUw8llhbznusVTUndZJrWQda1EgJt_81L50iYa81yrMzIkmGy1YSX6xfmtRdYftGSG5dWSz9I-k_Cwc33OGcUIRutrCuBOTUr1rN7MYDajR2u7C-jz0j_kbtPG-g9HfzGRHYExxbysIe1s1x1Zm3LWXVntgjTC1h15P7oC-IfJt_JtYDG-87PjLB0jVfAWkBN1DDivLwNg4pUmQfZrM-6Ar8-LWaapS8Q6KPUddJKODKIGwI7DoCZ8LVNz_tCw%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 debate</a>:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">If you publish words on the internet, you have some proprietary rights to them. If somebody else just took my columns and republished them, under their own name, without credit to me, and sold ads or subscriptions against them, I would be annoyed. If somebody stole my ideas and changed the wording a little, and then republished them in slightly modified form, I would be equally — maybe more — annoyed. And so I have a lot of sympathy for publishers and writers<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> who say: “Look, our words are on the internet. It seems that OpenAI and other artificial intelligence companies trained their large language models on a corpus of text that includes our words. Effectively what they are doing is remixing our content for their own commercial purposes. This has the potential to destroy our livelihood — if people go to an AI chatbot for information, instead of to a newspaper or a financial columnist — and has also made the AI people extremely wealthy. They should have to pay us!”</li> <li style="margin-bottom: 5px;">If you publish words on the internet, people can read them! If you put your ideas out into the world, you should expect — hope — that they will influence people. My columns are influenced by the ideas and reporting of other people: I learn stuff by reading, and the stuff that I learn goes into what I write. My writing style, similarly, is influenced (consciously and unconsciously) by other writing that I read. The way I write is that there is a network of neurons in my brain that takes inputs (words I read, etc.) and produces outputs (words I type). I do not pay royalties to all the people whose work I read, or ask them for permission to think about their ideas. That’s just the way discourse works. And so I have a lot of sympathy for AI companies who say: “Look, we have trained a sort of artificial brain to read all the words in the world, think about them, and then produce its <em>own </em>writing in response to questions. Our artificial brain has ideas that it expresses in language, and those ideas and that language are influenced by the words that it has read, but that’s true of all writing. If we were <em>directly plagiarizing</em> other people’s work, that would be bad, but we’re not. We are just <em>influenced </em>by their work, and you can’t sue us for that.”</li> </ol> <p style="margin: 16px 0;">There are some factual disputes here — how close does the large language model come to someone else’s copyrighted work, etc. — but mostly there is a philosophical disagreement. Does an LLM mostly remix existing text, or does it mostly <em>learn </em>from existing text and generate new text? Or are those are the same thing?</p> <p style="margin: 16px 0;">Intuitively this seems like a dispute between humans who write and publish words, on the one side, and companies that build AI text generation models, on the other side. But that is not inevitable: It is just a fact about the present moment, or rather it is a fact about a week ago. In the future, the dispute will be between companies that built AI models that generated outputs, on the one side, and companies that build AI models that <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bIGXpSnQaQSnFpOnQ3kx_JkqiLh8lPVBAEcCbbNntRAKhs63ASiR6v-VwraZZSVOK-7qvYtHAorIhn-HrbktFfW20s9XMyLd1mOtJblOEosertNXYVLYAJ8jeCPEkJJb-8MrYfZ1kkJ4SeABSvq9pVOgJzdmQ4rTngPl4RruWyfU_kgmmK44YJLWhi0k_dl3aNs1NTalE48H6JEohK4Ef-sz09muMhag8sVg9eL48VsEllP4hz0Qd4M0ciJB5--kxCl0Vx_5Zms8KbZgNGigZ7UORj9OCGeikDimSIOQetTp" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;"><em>read the other models’ outputs</em></a>, on the other. <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bDqjm5Dv-5qrT93NqEc7gVXLMC7lL_7X0AO3iFsJabD_gkQpbTl8wUi4px5QoSLZwOlC-tPRKopn1Kzvlp_gPzuPKu_bg6a96pIPoP5KJ83A8pQ5IYDTag6H_1CIYBgfAypLj-tgN6ftu06ezmTzy3qjf92WIbXsqt7NMoicqyCOPy9QBDKFwPkl4-9ZnssT7OVm5H_TWt26iyJhtMbmGxA%3D" itemprop="StoryLink" itemscope="itemscope" 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 future is now</a>:</p> <blockquote> <p style="margin: 16px 0;">Microsoft Corp. and OpenAI are investigating whether data output from OpenAI’s technology was obtained in an unauthorized manner by a group linked to Chinese artificial intelligence startup DeepSeek, according to people familiar with the matter.</p> <p style="margin: 16px 0;">Microsoft’s security researchers in the fall observed individuals they believe may be linked to DeepSeek exfiltrating a large amount of data using the OpenAI application programming interface, or API, said the people, who asked not to be identified because the matter is confidential. Software developers can pay for a license to use the API to integrate OpenAI’s proprietary artificial intelligence models into their own applications.</p> <p style="margin: 16px 0;">Microsoft, an OpenAI technology partner and its largest investor, notified OpenAI of the activity, the people said. Such activity could violate OpenAI’s terms of service or could indicate the group acted to remove OpenAI’s restrictions on how much data they could obtain, the people said. …</p> <p style="margin: 16px 0;">David Sacks, President Donald Trump’s artificial intelligence czar, said Tuesday there’s “substantial evidence” that DeepSeek leaned on the output of OpenAI’s models to help develop its own technology. In an interview with Fox News, Sacks described a technique called distillation whereby one AI model uses the outputs of another for training purposes to develop similar capabilities.</p> <p style="margin: 16px 0;">“There’s substantial evidence that what DeepSeek did here is they distilled knowledge out of OpenAI models and I don’t think OpenAI is very happy about this,” Sacks said, without detailing the evidence.</p> </blockquote> <p style="margin: 16px 0;">Ahahahahaha I can’t believe that they used OpenAI’s work to train their AI model! How rude!</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bLsOBRgAoMTtEyX2XE8xUkKgiuQa3km1ZLLsJkV6320M9IIsRyFx9t9auNtHHJUBxM7ksaS_HwDeTtKoeTZKxCT9Y7W1I5-cqk6SLMMZipQTITcxVpScrJ4t3xgsQE14nmN6zLnTQ6ZRydeMVnXdnPlZqBE5WKvLLG9MnE4YBW2RpmTO9aa5c-JBkghQWGUo-XRJgBeWM4LERSekkj1pJbM78zm2qhAuc7EO35S-Y7hs6P3_1aU2DRu3Dz4ZCJk7SXtfCSidNnUABEgepENRBkA2ITC5uZxHo9Ppimzk9Om1-ypk_dagcONv46BKn3IqWw%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&amp;stpe=default&amp;li_coord=desktop&amp;collapse_width=550&amp;li=12455598&amp;m=c869f5c3f0784f1d3b0577b4456d769f&amp;p=01292025" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bLsOBRgAoMTtEyX2XE8xUkKgiuQa3km1ZLLsJkV6320M9IIsRyFx9t9auNtHHJUBxM7ksaS_HwDeTtKoeTZKxCT9Y7W1I5-cqk6SLMMZipQTITcxVpScrJ4t3xgsQE14nmN6zLnTQ6ZRydeMVnXdnPmAmVJO6Gg6G2ZqnXaJhK3Cm3avQNBOweBWrHEoiYqw863P_JKzuwBSj5-UnPkq9GJNY8T1nilpDDDg2udE5FREV1TyKdtW-OpL4R698h7QUdjf9Tnj-luEQ_wgxP1Hvc6ogN0vLUhLsAJWVzDCdVYr4n1fz57cMmmWJVf2glHleg%3D%3D" target="_blank"> <img src="https://sli.bloomberg.com/imp?s=868432&amp;stpe=default&amp;li_coord=mobile&amp;collapse_width=550&amp;li=12455598&amp;m=c869f5c3f0784f1d3b0577b4456d769f&amp;p=01292025" 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;">The DeepSeek short</h2> </td> </tr> </table> <p style="margin: 16px 0;">We <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bMCNycVJ3OaHpgXm38nknxr3UwNRAMNjuZq_zQD2bDupJFID3q8_O34TVDegs3I2hnvPmlITEY4QMxmulpviBhxC-hoDXCgyjfVmBFGpPYgwvGmLuqpM3rUThEo9Y73xpKZHEDdLcFysiR6YnZp8Re6K8tiLYvg_nfa1kwu9f3pHQUDLB2pzQbdtdcRUzEuucthg49wWwS-ilddYWpg18mg%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">talked yesterday</a> about a very funny hypothetical business model for DeepSeek, or rather, for Zhejiang High-Flyer Asset Management, the hedge fund run by DeepSeek founder Liang Wenfeng. That business model is (1) build a cheap good AI model, (2) short all the stocks of all the public companies that are bets on the rise of expensive US-based AI (meaning big tech companies building AI models or providing compute, power utilities providing electricity, and most of all Nvidia Corp., which makes the expensive chips for AI), and then (3) announce your cheap good model and watch as all the stocks you shorted fall.</p> <p style="margin: 16px 0;">I don’t have any reason to think that Liang did that. He <em>is </em>both an AI founder and a hedge fund manager, but he’s a <em>quant</em> fund manager, and making a big fundamental bet like that seems improbable. Also there are annoyances:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">If you do this, everyone will complain “hey isn’t that insider trading?” I don’t think it is, under US law — I don’t think DeepSeek or High-Flyer have any duty to anyone not to trade on their own information about their own model — but (1) that is not legal advice, (2) it’s perhaps less clear in other jurisdictions, and (3) people will get mad anyway. (Here is Bill Ackman on X, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bLjE8gId3qWGAhxavvq7JH59m6fiO7Ig6CFTTCaLwSgSrFMgh55mp2J3s-diIB2hga2M3QG-ZnBZWjpDak4T3msbVROLgPPWIrNBKRHxTU3X4LpI72LaWoFRAqL4akBJhBcDBpX1Xo_noElfyKjexN0jq6cnUr21tCRb3QG1TGD7VCPDDP7qRMzk_nQAarmBFqiY8sdn3vwUVma1wSWF-v5Np5QiDP66uMNz4r_siVTu" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">speculating</a> about whether DeepSeek’s “hedge fund affiliate made a fortune [Monday] with short-dated puts on @nvidia, power companies, etc.,” but <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bLjE8gId3qWGAhxavvq7JH7zRnpF-P581jDC8Ceg7_rXPbkUSbJBaXtlRk44RUyZmv9z3JQn9m13JpRdxz5_lLEquYoH_0ZPB_93kSrfISYK-TvoxXXMUxnFk-Ws73LoHrHNk-bDKB-7Ttcd4WsgTwxAQzegoIQu8pV-sn4kTyMEKqic5b6zUsSYXi8q5G9zt7-NLGDRm3pm76DX4qYtllHGEQRwYO6or1tNLIju9GHi2SCszauJLhhu00R107xkQQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">adding</a>, correctly I think, that “it is all perfectly legal unless they lied about how much it cost.”)</li> <li style="margin-bottom: 5px;">As Ackman says, if you do this and you are <em>lying </em>— if you are misrepresenting how good your model is, or how cheap it was to train — then that does look like market manipulation, and people will get <em>really </em>mad. Trading on your own knowledge of yourown business seems more or less fine, but trading on <em>misrepresentations </em>about your business seems like obvious fraud.</li> </ol> <p style="margin: 16px 0;">I still like the idea: If you intentionally go about building a cheap good open-source product, shorting your competitors is just the <em>right </em>way to monetize it. But I am probably in the minority here.</p> <p style="margin: 16px 0;">On the other hand. Why did DeepSeek crash Nvidia on <em>Monday</em>? DeepSeek <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bIGXpSnQaQSnFpOnQ3kx_Jn6EEGyiJjKxWqoKG9wRoihFgBVwec2mZ1OObCut_0ebTZDcbA5ta0HJFBz9CON4kokjZiko8iYNAMEXDlVjJBZt2wHegzJpokVN-cbCdtI5VEJ6ydaB1Aoyhf1qVS3xXr3GR7_hioSk1kOpSIgqTzV6mQbeDuRpMaOjJ8QEmI1Uaxd8h9tdMEwAPszybxVc71qRovFM8uSXgLD3rLCNq98Ju-lxYhqO9I3FHq76fDkGg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">released its V3 model</a> in December, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bHJ9xhWt_JB6N2oD_DUvDvbzddi_uiMEz4Od1_kvdYDhDOSgrL1E9-hC4YlUdWd7XUvEsSXip11T9_NVctNEp_9Wyn2mhUPGfqrMukLhHZ2zxRfrYC3my-jWzdcbavlX7VuUqVnHS1B7i_cmyeo7jegHEMmkXUcUcCdX7eEyjh5Q4vAtxFlkCo6020dGaTkt4VHWgDWiDgCT7lwyxCtkDTEfio4Mo1Xe4FN0_U5JRoGk" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">released its R1 model</a> last Monday and <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bKVg5ww-djsgZ7j18dcvpdmhTbLVR7Hvfihw2-m6S3X-Hqhb0NdkiKOLOd9mjntnFbQsDuUwyxeoCFbxRKL_aVEH60ZIlbhsjHxTcMiUqDgLbmKJe1RdrD5VoOaPyE5y-iB1ZHlk4zdgeYa4T6w9n39nB2QCfWvyoheMaOVqttanYUSULBNHkOhjBIGWDsMXZ3TUhdEDsSKChTvBp8rKbRA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">published a paper on it</a> last Wednesday. It <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bK0NKOUDy0fkYQWHPpv6GIfdVSD6dWbc7D3FLyP445R13MVXAaai0IB7GRuEWx0s9zuJIhyLqpzEUyiWyllCBURYeNFUeT4NRzyOO_1rwc0uhLjh4jN_bjVP74w9h1X6pRTIQ6BNqkM7UXPCSI1lKihCYTzqwsFF9a9br1M9tNr4xomhc0w12lG0HtREIe1F41A_op8IQFZQTTBY981ECD3UcW4imzyEt_1-ErF6zR9R" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">got</a> a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bE5YlQNvzFVbO50SsVq4ziQlNVYqEU9wBe3QM8Ja0A0-p7Ps6c97rhxz9BvanAVyQfvjITMyNRD1r0fUrXTTCYGVn-MZGeB2vz3_pUuHSzQvr0PevD0XfUPldVs3ZVF9AHqezrYSIrXDQgDM7sYQdP1shUWFjs40CGXP5xjJd-p6-L_tXQeiJpwwPzIb7qYlHU8DKi-vEjOiPM6iSeTddmGza3IJnsWAYIRHyg2R_T1asx5wR8m2Q9DCy4Yx6oeC7w%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">lot</a> of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bPzZ4PLt-nm8J9fkKG4C7Vfujw3qxLDjKq-GG1kI8pHaei19qQLiI29U-eqiRkG2vwoAIE5yL7Cz5L6A7YlS7uXC6twxAJpHyAqTE0am8bMN_Mxxf9bHTYDJPDo0BQyfIUUdQT81O4cI8sSbq8bSKWTsGROx1n-3Q6eaGNTwzJfXt1YHikgHXUDuUBfa781poyQ3zC6gpEiwBLnOCSYty9U%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">attention</a> — along the lines of “this is a good cheap model” — last week. Nvidia did fine. It only started falling this Monday, after the market had some time to digest the implications of DeepSeek.</p> <p style="margin: 16px 0;"><em>How</em> did the market digest those implications? Well, a weekend generally helps. But I have seen <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bBz6Et0cgYV0UcsBa0f3I-s-MBnn8SAHPXmh7ZSwPN_j159w7NFWCfU9rak5ApCWu8AW6CzuoGJXvb5az5cnKSYwnQ7vnm2SziH0MAF5okJSt1fP7LnIfE1kge2gWj5sdqUgSNRO5C1TjZ0V19CpJAq08CpmiqcAF8wdYpgFsSY5cY4ZIoyc1WiwrnFXh05sX2VbEIeUjnOleJz7oOzkUKI-fi5UXiTk30FCjUs5swNp-YoqWL9MLigAKyaSz7rG6g%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 argument</a> that this note on “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bFNKMBhwoYOjixVPSzgE4HHQccAPU-DszEKvCRkgeBwsuFsj5J5sZCtOGElNeFnyCMdoApkDlSW4azUHKFUXuX-3ILP2Vm1fUGH0WlaNTu5Tjcu9J4I6DtHYKPPgOXNwZ2dM6QiUrwjHruWZcfntzsiww_o8kTmrxjobxsT6w4k-z8iV1sWut_Pp1Zw-ndNVfUaSslryyltpDEvCdAS4cGWfIs3guUhbVHLxi6n1-zVYSbWnbP4ic7o5SiufyvQ0SVjy0F1zksoUyQac0zAcOs0%3D" itemprop="StoryLink" itemscope="itemscope" 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 Short Case for Nvidia Stock</a>,” published by developer and independent analyst Jeffrey Emanuel on Saturday, was an important catalyst. It’s a long note, with extensive discussion of Nvidia’s business and DeepSeek’s breakthroughs, concluding:</p> <blockquote><p style="margin: 16px 0;">Perhaps most devastating is DeepSeek's recent efficiency breakthrough, achieving comparable model performance at approximately 1/45th the compute cost. This suggests the entire industry has been massively over-provisioning compute resources. Combined with the emergence of more efficient inference architectures through chain-of-thought models, the aggregate demand for compute could be significantly lower than current projections assume. The economics here are compelling: when DeepSeek can match GPT-4 level performance while charging 95% less for API calls, it suggests either NVIDIA's customers are burning cash unnecessarily or margins must come down dramatically.</p></blockquote> <p style="margin: 16px 0;">This <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bEGloN79hpMdIhHe-ZpOQsXoV3KbbITgyxcCPHm5uyMjYijFm9yMmWhmLGassizcU8sx0brDQ60IKFDAIHUTqU5YatTI5nyqDLAK9sc-5vycA2C9o4XbVJymoIlFzWoS4RdCKHScnGrR7j3DvzSSo425MyOsif2iTgYSuUYRDjnyxaQqvXfXdluRFTDzOsVLjJT9BqSjGzOv_prJTvT8JU0NOH9KtJL9eyV4KiqkQxSQUJWBBRTYPLH2F3tQ-sJBnQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">got</a> a <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bGEmXAhAFQlZkxMOxvgTL-OhAw5yXkzew6i9cY6DV2xYOIHa21RL2-gxkI8fgTEmiaT-VeamH4N5reiEkP2N0AiC1QQ3XOe8SKQ6jcs4ttaaWrVWhMXdhe4OkjTTqZ5jguZsUuT5d2jeRLU6l7s9lDI75wHhck2MG4UvCOw0fLFWV3iUq5FAKW6Rx9fH68lvVEEp3X-RHyQCRlxhWXbzA3kfCj16T1Ir31Dhxri2BRvat_yjIXwuyIuqrtDt8GX1nQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">lot</a> of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bJRk_TcoONhJ__qe213N0lyTKAmsPcel47n57_wHA8yDc6TvD9CumyKfYM2MvY_yzIgmWveBBzDdpRjzdXdYNRlERCUegbAVloA2deho0sJWEhatneJiP1dADnc_cLFlkV84yMbI5WeHtmeeenvapPeajNjdSXrnXixVSH7rKNuWxJA1Dt8ZZvyba9aIS7QytCNw6hNrDUNK_3hNbs1ZcPlgBCtjUhYnpmMNPwT-xbcJfyvXDCdySZqB6PkKO2s-dA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">attention</a> over the weekend from various tech and venture capital types. And then on Monday Nvidia <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bFU59VDerUDN-0QXS7NrlKoYuKleZQxzb51SuKDWwqDOH9Ouy_vCzWDKcbx7PL8XbIIzp5rjHluE8-uzLUzZ0ZfOWth2F0bcCPDJC8_WCRrQDi5GjXLKnTKmAQKnTsCkEt5iopPQWa6ksV-wKI9k0pwQngFIaN-7Vf2LBojdv4T1E1fxxeri5YCZHtiM4hwFSRq-UeeE4wLWecAJs7ZMbTk%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">lost almost $600 billon</a> of market capitalization, and other companies in the “Nvidia’s customers are burning cash unnecessarily” complex — the customers, the power companies — also fell. It is a candidate for the most impactful short research report ever?<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> Emanuel tells me he did not actually short Nvidia though. Ah 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;">Tokenization</h2> </td> </tr> </table> <p style="margin: 16px 0;">Man, crypto is so back. Back in 2018, <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bAUiCip43wqPHkUc-ZDXxQDndrMqLDidfLCsRJrzUOQIRoLaLz7LbiZppUZs8intpBrAcveVcx2-oydttOsZOZ6muelCZ_WVZNQlPuvkCGP-VAT6r9GddGefxkcYFkc-Z7xJgPtdFZBb6wr0umDSYwpZvErkQNqmJsHTpD5iaDcAgqpxSabJdUMSnJwSkPPqJbY6DfEAmojYjHf2qMdJzjA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">I wrote about</a> proposals to tokenize real estate. I always found these proposals confusing. They seemed to conflate three questions:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Do people <em>want</em> to buy fractional ownership of individual houses or office buildings? Would there be a robust market for that?</li> <li style="margin-bottom: 5px;">Do we have the right <em>legal </em>regime to allow that? US securities law regulates the issuance and trading of shares of companies, and the natural way to sell fractional ownership of an office building is to put the building in a company and sell shares of that company. But US securities law has extensive disclosure requirements for companies that sell stock to the public, and it might be inefficient to file a prospectus for every house. In fact there <em>are </em>many tokens of fractional ownership of real estate that trade on US stock exchanges — they are called REITs, real estate investment trusts — but they tend to own big pools of revenue-generating real estate, because the costs of complying with securities law are high.</li> <li style="margin-bottom: 5px;">Do we have the right <em>computer technology </em>to trade shares of individual houses or office buildings? </li> </ol> <p style="margin: 16px 0;">It seems to me that the third question is — “trivially easy” would be overstating it, but pretty easy. There is already a big company that <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bDnC0QvktjdshQtYLVHqGbK_WNP4q9DJYjt82Qk6SPF7iOshN4k91giHiJzr_CwiaKS7O-onRC0-sz9U11goeKPmd2K3P8kUTsOz63zXCX7YuQ47miUVLbH_qP4hxkCLi9pnP_UcgpfZpCQOicID1nbqapU7mhh6SLIs5XV8GPV8pmtC1PgDoq9WupZUq0QVkiirRQMW0R3svPVZZVIS654%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">keeps a list</a> of all the stocks and who owns them, and brokerage firms are generally pretty good at keeping a list of the investments you own, and stock exchanges match stock trades up pretty quickly. If you had asked in 2005, before the blockchain was a glimmer in Satoshi Nakamoto’s eye, “could someone, with today’s technology, build a computer system to keep track of fractional ownership of houses and let people trade shares with each other,” I think the answer was obviously yes. The technology is, like, a database and a website where you can trade.</p> <p style="margin: 16px 0;">Crypto, though, was extremely gung-ho about answering that third question. “We will turn fractional shares of buildings into <em>tokens</em>, and those tokens will trade on the <em>blockchain</em>!” Why? The problem of keeping electronic records of ownership just isn’t that hard, and doesn’t really require a blockchain. There were various arguments about the efficiency and immutability and openness of the blockchain, which I won’t rehash here, but it always seemed to me that they weren’t the point.</p> <p style="margin: 16px 0;">The point was that crypto provided implicit answers to the other two questions:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">“If we put fractional shares of buildings on the blockchain, people will want to buy them, because crypto has encouraged a ton of speculation and financialization. Crypto will change <em>behavior</em>, so people will <em>want </em>to trade shares of houses now, even though they didn’t before.” This strikes me as directionally quite plausible, though I am not sure about the magnitude. Crypto does seem to make people want to speculate on <em>more </em>things, but maybe not on <em>every </em>thing.</li> <li style="margin-bottom: 5px;">“If we put fractional shares of buildings on the blockchain, and call them ‘tokens,’ then nobody will notice that they are shares of an investment vehicle, and we won’t have to comply with securities laws.” You get huge efficiency gains by “tokenizing” real estate, as opposed to just putting buildings into a REIT and issuing shares, but those efficiency gains come not from <em>blockchain technology </em>but from <em>ignoring securities laws</em>. Is that good? Well, if you think that securities laws are worthless and do nothing for investor protection — or if you just think they go too far and are too burdensome — then maybe. But it is an odd sort of efficiency gain, a pure regulatory arbitrage, just “we will save money by not following the law.”</li> </ol> <p style="margin: 16px 0;">In 2018, that last point — “tokenizing stuff allows you to avoid securities laws” — might have seemed sort of plausible. But then there was a big US Securities and Exchange Commission crackdown on crypto, in which the SEC argued that most tokens are securities, and a lot of this stuff went away. (And was replaced largely with memecoins, which do <em>not </em>represent any sort of investment in anything, and therefore are not securities.) And then the crypto industry <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bB601a7eI9d8rs7Q1MVBDWCTj4GnlU9b6aZNcTmbwcOgHV4ncnQJINR-GcOLRcf782HV5CpAQYLWZp5-_eL8Gok7GVSVQf1cth2uH-WlAu4GhFuFH2lMonBOq9dldtwUWUOpfjT6R1OkLvyG_UApDqaRxxeYsVe9AQ2yS6rT-VajMfw6UBS2mNuvUe5K8T9TWOOX8Wm5aO2qbww6jggL_-k%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">won some cases</a> (and <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bFMDvufWqUVyUtFECvPYJ-DFdzdvaQ-sTJoSexvDlg428vzES7uqSxBZbYVdSWLNeB8zxZOqoZl6Gsz0-Qi1m55tbRJHAmL2_829K16sKNieYey4ErL8oKgTKEM6T8NdpOgasSKDLkHxsCJQeYRDBWDUeloFid8Blm_sB3ze55475EC9WGW_3MxSqrJrh8C_3WTOsmQxcgF1PuI32vit8tY%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">lost some</a>) in court, undermining the SEC’s view that most token investments are securities. And then Donald Trump was elected president, promising to rein in the SEC and unleash crypto, and now all bets are off but probably whatever you want to tokenize is fine.</p> <p style="margin: 16px 0;">And so here is a wild <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bOQKSwdc8-DsyDH13TrUEMpgs0lrnJNfNjtkJqTiAViEPPUY6VriEkqQlUVPBjgeGZeG5xRbvC6ILuU30SAV0umss37Ov8tjkEatDO8hnFgQ5eaXHO472B5B5-RX9NDzdEG8foQWz5WYR3FMA6xfho8Wr2kq6J-NpmODBtmh-Xo_UIw6dpHK16SJIWEa0vCWHqw_DJynMDzipygZSqLO7X4BvRusneC5HLPQuVU_MJynQ-k7NnOyG2uxYJB9ghSEjFbZWrZ3ixYLbqWaE55NQVDdiMCRaRCxXH9b91HE2aZV" itemprop="StoryLink" itemscope="itemscope" 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 op-ed</a> from Robinhood Markets Inc. co-founder Vlad Tenev:</p> <blockquote> <p style="margin: 16px 0;">When many hear “crypto,” they think its chief use case is meme coins, whether of presidents, dogs or frogs. To understand the coming trading revolution, however, we should start thinking of crypto in a different way: as a technology that enables the partitioning and trading of all assets, including real-world ones like private companies.</p> <p style="margin: 16px 0;">Here’s how this can work: Crypto’s blockchain technology allows for the fast, easy and secure creation of digital tokens, which can confer ownership claims to something of value. The power of this process, called tokenization, lies in the flexibility of the technology to divide and distribute rights to almost anything, so that they are tradable like a stock. Real-world assets, such as private companies, can be tokenized with only minor changes to the existing legal documents that govern ownership claims to these assets.</p> <p style="margin: 16px 0;">Through a similar process, you could tokenize a Picasso, the Washington Wizards, carbon credits or a favorite musician’s publishing rights. Anyone with amobile phone could trade any tokenized asset in any quantity 24/7 — a technological step change improvement over our current stock markets.</p> <p style="margin: 16px 0;">That’s where the investing revolution begins. Tokenizing private-company stock would enable retail investors to invest in leading companies early in their life cycles, before they potentially go public at valuations of more than $100 billion. This would also benefit the companies themselves, enabling them to draw additional capital by tapping into a global crypto retail market that is growing increasingly more sophisticated and investment-savvy, without sacrificing the private-company protections they are used to — such as employee vesting and stock holding requirements.</p> </blockquote> <p style="margin: 16px 0;">What. But. I mean. The reason retail investors can’t buy private company stock is not that <em>computers are too slow</em>, or too centralized. You do not need a blockchain to trade SpaceX stock.<a href="#footnote-3" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[3]</span> </a> The reason retail investors can’t buy private company stock is:</p> <ol style="list-style-type: decimal; padding-left: 40px; margin: 16px 0;"> <li style="margin-bottom: 5px;">Whatever you think of other crypto tokens, securities laws make it very clear that <em>stock of a company </em>is a security, and to sell stock to the public you need to register it with the SEC and provide public disclosures. And SpaceX and other private companies have decided not to do that. That is the thing that makes them private companies!</li> <li style="margin-bottom: 5px;">Separately, a lot of private companies don’t <em>want </em>to sell their stock to the public; they want to have control over their shareholder base and transfers of stock. If you went to Stripe and said “hey good news, because of the power of the blockchain, any retail investor can buy your stock,” Stripe would say “no that’s bad.”</li> </ol> <p style="margin: 16px 0;">Crypto simply is not a technological solution to any problem involving private companies. But just as in 2018, it is a way of obfuscating the securities law point. “Because private-company stock is already regulated as a security by the SEC,” writes Tenev, “thecommission is best positioned to swiftly modernize our securities laws andmake tokenization of real-world assets possible.” I think “modernize our securities laws” here means something like “allow private companies to sell stock to the public without disclosure.”<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> Our securities laws are outdated, because they require companies to disclose financial information before selling stock to the public. But with enough enthusiasm for crypto, we can fix that problem.</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;">Trump Trump Trump</h2> </td> </tr> </table> <p style="margin: 16px 0;">Man, crypto is so back. Back in 2017, which I now think of as the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bChXnhGl-DFnH3IHEUZlgYC7HyIcggLAtZbx5bXdbXVlDOg7aVyEWJUkhOvFaIJsAg9jT9aeHaKrK8bJGYsZG2fYvHGoK_1QDrQZiyzRdECdpL52hyl9cmW3j2sABjShrHLjL44AgtCmS-qptBsEyUL-PNYtj2GkMcXyOvOfHHITv7ekCJsD1_e0Wgs-TPGdepnWVTduTfC3rTHkpj--8JQ%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">absolute high water mark</a> for a certain sort of crypto hype, and which was also the first year of a Donald Trump presidency, I <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bIIlPiyiUJ5TuH4iYn85yKCk9EPLUijoNIRSizKJXfsXQhu0guckX9YEwyKoFhwwQZ6vV3irNwcv9FqxfwLRunYhP-PzH9B0k1zaX33vzjCzpMX7zKL3IVmd7gU6dPCf3zoeLhC2o5GS_NcAdmT3d-0-ekYUL70SJFJcSmxHVPnlM2J-x4jd2dZWMjaAZeyhXf1LyitWWOZUtdNlfUTP7OE%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">wrote about Dentacoin</a>, “the first Blockchain concept designed for the Global Dental Industry.” I said:</p> <blockquote><p style="margin: 16px 0;">I am becoming increasingly convinced of <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bJQy3zBYabADSSBArHYWVY9NglVa4-fnhzWfZWjkM9s15qQHrh1ekCwV0QVeYGiM7ePSJUXF92BIq7H0jjurcy83RAN8ChQGJLy61y4IYESJ0Lrm9GI_1uz5j2x1b8RumKBzy9KmPT178vGU7yypBMdD4RaF-VjCQ6YEBvzF3d6R1KtqtOviQYludEBENxOxc3GWndFYPH1qkHncw7EBW1k%3D" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">my thesis</a> that the story of cryptocurrency is not one of <em>re-learning </em>all of the lessons of modern capitalism, but of <em>un-learning </em>them. Here in the 21st century, I assumed that the purpose of currency was to intermediate between different goods and services, to make them fungible and commensurable, so that people didn’t constantly have to negotiate the exchange rate between yams and goats, or between goats and dentistry. Who decided that the problem with dentistry is that it <em>needs its own currency? </em>In 50 years, I will reminisce to my grandkids about the olden times, when there was a single currency that you used to pay for food and rent and cloud storage and heroin and dentistry. “Wow, grandpa,” they will say, “that sounds ... actually really convenient?”</p></blockquote> <p style="margin: 16px 0;">But in crypto you sometimes see this sort of assumption, like, “you like X? Well, you’ll love a special-purpose currency that can be used to pay for X!” Why? No. I love dollars, a general-purpose currency that can be used to pay for many things, including X.</p> <p style="margin: 16px 0;">But the crypto people are onto something.<a href="#footnote-5" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: none !important; background-color: transparent !important; display: inline-block;"> <span>[5]</span> </a> The special-purpose currency doubles as a speculative vehicle. “You like X? You want other people to like X? You want to proselytize for X? You want a world where everyone is constantly buying X? Well, buy the special-purpose currency that can be used to pay for X, and then when everyone is buying X they will want that currency and you’ll get rich selling it to them.” </p> <p style="margin: 16px 0;">That case is not super appealing for dentistry, but for Donald Trump fragrances? Oh <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bHav_5iGtSQKRruAs5iI7np5yKX6-iCntI_nHjE71TPy4EIMZA2NlxqCo1YmwR8Yp3BCTtVX4B1-5wdzhBaC3yejxB-dtePWPhGue3xY1yuQD4v2b_Al2hK_cPi3e0WqnauiIEt3NyuoDXfiPOpi5BFOQkz5ipU9biESQOdA5zhxagmD6Z3_BITljr5ZspCidkMPtfZPAeN6Lz0yfYKlt5Y%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">sure sure sure why not</a>:</p> <blockquote> <p style="margin: 16px 0;">Several websites selling Trump-branded products have started to accept the Trump memecoin for payment, in an effort to win over more of the president’s supporters.</p> <p style="margin: 16px 0;">GetTrumpWatches.com, GetTrumpFragrances.com and GetTrumpSneakers.com — all of which license the brand of President Donald Trump — are now letting customers checkout with $Trump, along with credit cards and Bitcoin.</p> <p style="margin: 16px 0;">The “official” Trump memecoin was released on Jan. 17. and the president promoted it on social media. The value of the coin has gyrated over time, and is now down significantly from its peak. But it still had a total market cap of $5.4 billion on Tuesday afternoon in New York, according to the website CoinMarketCap.com. …</p> <p style="margin: 16px 0;">The payment options offer one small response to questions about what the president’s memecoin might be used for, other than speculation. </p> </blockquote> <p style="margin: 16px 0;">Very small. But, sure, the people who want to smell like Donald Trump will also probably want to buy a symbolic electronic token of support for him, and vice versa, so the whole $Trump economy vaguely hangs together.</p> <p style="margin: 16px 0;">Elsewhere in the $Trump economy, “Donald Trump’s namesake memecoin has likely generated <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNKj19SVn7Xn71-eGtY5oIi7_nKgO6Dqgsji-vgE2sJOZu4afBmVaJ247DUCfDIQMm4naqzZyH9oyWSXQV_huxPExwEQ6zZvjz_7YGtdo36oHBDCxiroSn_EhuOdb_MrMQWzMtr-phF5r9orrS5C3I0VICeq5CpV-ipRjZM7nCt3VujIUQH69y7TitUX_uBRUr5rT0s5mcYRE5En06sGcac%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">at least $11.4 million in fees</a> for entities linked to the president since its launch just before his second inauguration.” If you want to trade that symbolic token of support for him, he gets a cut, and I guess it would be weird if he didn’t. Your symbolic support for him is also real financial support.</p> <p style="margin: 16px 0;">Also <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bGeZAP0K63DU-llkasxgUIo2VVCBa9-mWLP327_nYvqZV-Txx3GIghfjhlIlQTJpvrYXcAk_nYAkKfWONZsbVu51KyoVH3uvb4K_0ymqwGsIPK7hJ4h3JONxKs2izefni_YIzdxaIg1XPo_8Kyq_p8k-bJLE5Sbq6AptcAOKzWIJ_e9JLQR8jLq_uHHsdFlAi5GCgcuW3xOPj4_8eNqNVrI%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">whatever this is</a>:</p> <blockquote> <p style="margin: 16px 0;">Trump Media and Technology Group Corp. launched a financial-services and fintech brand dubbed Truth.Fi, with a focus on crypto and customized exchange-traded funds.</p> <p style="margin: 16px 0;">The new offering will develop separately managed accounts, ETFs and Bitcoin in partnership with Charles Schwab Corp., which will “broadly advise” on investments and strategy, Trump Media said in a statement Wednesday.</p> <p style="margin: 16px 0;">Trump Media said it will also invest as much as $250 million that will be kept in custody by Schwab. …</p> <p style="margin: 16px 0;">“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking and privacy violations committed by Big Tech and woke corporations,” Trump Media Chief Executive Officer Devin Nunes said in the statement.</p> </blockquote> <p style="margin: 16px 0;">Okay. Here is <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bAHWy32kwYpz9LP0fhelbI_97NPHTTXmkxax2juiEtannCcQWhZsg5GHtF_ROdtFNnKuvmsjrD5hnWmfJYmJadOsB73N_12gkkpgYUYXsBAjJJ7Q30vKkvU42L5n7Z6GQm9LaiHOyoz3gR8SX-k6QLm-J0bwxNEn-x3oV9FDxA7lJlsIdtnWrltVHWndDTj5SiNuoEXuG1ntevjqXcTlaSPKv-Y4Dne8tx0-sRLIW_i32Ow_uQyAgKXxDJPtaIEQSKmwcylaxPMNmk0TGltbN6QdvdKtQW3ulieb19PZgW3q" itemprop="StoryLink" itemscope="itemscope" 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 announcement</a>. I guess the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bONDRRrl4i5K9wQeJT5QkSL3seVa28aW9YQZvw5o_jkF7M80hDv33DNd_scLlYvNGYgHZVLw1o1n5o11UXGIll5pBfFzPeCIthD0IbPsTa9NkHWdQzgC0hhpvsgy8txBA4l5z8YXzEJCnj73mdwNFnD-S9eylxR-xbGzIw8LNDh_jR1kkzh0b9J3jqXWBTzHqMMju1-hHehgz34PdA__PlQ%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">“Trumpcoin treasury company” lane</a> is open.</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;">Sports correlation trading</h2> </td> </tr> </table> <p style="margin: 16px 0;">The Wall Street Journal last weekend had a good article about <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bGaacsMoBPKEBx_1V25t70SI6nmQJ444W__1uQmMLWg85AJfui38eHG-rfO6a1KtGUjCPobET5vELgcZIrc5FAODlz7Ea4hJ3ueECmexvfTyLD6tFQhQa3-ZlunduVc9KCgvc2NvDWImOOYuY1ldgIzeKtoGmmm32sPJ7hLP5vhLnwd9mrkARuJYOoedWocNQ8eOEaIIkbYwsFEtCOIAMY-COdJsU6QC44i-3jr_l5e--mm6ZXqv_tfFCJo-tI5m5GKE5A1BCBWnvI3EW6tdOFGXjcgNiklL7H-NVyB1z3aw" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">parlays in sports betting</a>, where you get a large payout if several different bets hit and nothing if even one of them misses. I always just assumed that parlays were a straightforward way for sports books to maximize revenues by offering gamblers bets that (1) would probably not pay out, (2) provide excitement and intuitive appeal (“of course if I like the Chiefs I also like Travis Kelce to score a touchdown”), and (3) manipulate <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bJhXfLfEFH-x57NQ-8PvydZ3OYe86ts_ndmDLVd5xdkdcWT1dJvjKgGav28_pxeSvWAIsdGiprJMqHw-gqBgpI_r56w0qY4y_OLSnI4huAqiSpe7tLmdAKgzYAvIjFq0RiLADl0YaKMy4VEvQkpPfkdc67dfCip6uLNnh9KiUWMLJQcjZJ2n_26hjZ8eTWkdqdkAEVsALnBDs6GS3_QvxDbc5QEyVkrjUP5yKaap73Lc" itemprop="StoryLink" itemscope="itemscope" 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 conjunction fallacy</a>: “The Chiefs will win and Kelce will score” has a narrative appeal that might make it seem <em>more</em> likely than either of those things individually. People will pay more $50 for the chance to win $100 on a coin flip, but they might pay $5 for the chance to win $100 if the coin lands on heads five times in a row, or 25 cents for 10 times.</p> <p style="margin: 16px 0;">But a lot of the action in modern sports parlays is not a series of coin flips — not a series of independent events — but rather a correlation bet. It is in fact the case that if the Chiefs win then it’s a bit more likely that Kelce will score. So the sportsbooks have correlation desks:</p> <blockquote> <p style="margin: 16px 0;">The parlay craze got its start in the U.S. when Flutter Entertainment imported one of its hottest products in Australia. Parlays—known as “multis” in Australia—had been available for betting on multiple events. Then a bettor asked Flutter’s brand in Australia, Sportsbet, why he couldn’t place a multileg bet on a single sporting event.</p> <p style="margin: 16px 0;">Flutter and Sportsbet began an effort to crack the math needed to fulfill that request. The math quickly becomes more complicated in a single game because of the knock-on effects of how athletes perform. How well a quarterback throws the ball in a game, for example, affects the performances of a wide receiver catching the quarterback’s passes.</p> <p style="margin: 16px 0;">In 2016, Sportsbet launched a new product that allowed customers to make single-event parlays. Three years later, Flutter introduced the same product in the U.S. on FanDuel as the “same-game parlay.”</p> <p style="margin: 16px 0;">“Everything needs to be connected to everything else, so the math is complex,” said Conor Farren, FanDuel senior vice president of sports product and pricing.</p> </blockquote> <p style="margin: 16px 0;">One popular explanation of the 2008 financial crisis is, roughly, “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bB8PlKF0zGWdhECo14gHpm323EY-YaHQgaTvG4-X-vxAHDTGbcQEIEaGxvSK9LAnPEq7eGNSqZWsTJHNTkZYBXCdbft4AodIiqBrtuFYy3xgrIrLWh2L6y-aM_BSJ-t3te0xNWuFP8MMP0ktAymaJ09pgmYuWfSZ1h0FAqknDyv8Xe7nqOPT4cTEriVzeT5-AR_7oTersw4V31q6lZn4zTUa_E6R4YbxDSF9qSykQozF" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">mortgage bond investors underestimated correlations</a>,” and as sports gambling becomes an increasingly huge part of the economy I look forward to the next correlation-based financial crisis.</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;">KKR Eyes $190 Trillion of Wealth in <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bJDVSdhllolv3XnJO52374wiIYd7gS1M3V0zEAjm1c6zcLZkv6wVLWQ9nLugkLp4pw_aEijWiiiDQXVx4YfR2wdPbj8ciHtrLMWgrpW6DnfhQ3o5FucpXAeiOM47JxVV5EXVLVNiby4wp2Gk8l1g51RsYjWtVBnlljszrPXBBAhoqAQcFLPRYuGY_nd3gbgl1tYHBkSj8jl4g2YZxnDm2SA%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Private Markets</a>. Apollo’s Wealthy Customers Want In on the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bPbqIWTtmI3pKN8GGe1nsv5RuMgqIjvvUQv7k1nQjaQN6irnIXqkwp7pXEgT1IQwsu12E9kPLA1xPQ6cJM2XgVnHeVHM-xEUFd98JNViHkyZu7mReFIIUjNVAh76Tfo0PpGYMRa5V_2n1K0hxIHIkQNVYUXP3epsGWPy63B1SJOg5YX8Hp3vs0AKZw2GjhAMSPMru1W61AbK9Y_ZydyzF7E%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Private Markets Boom</a>. Tokyo stock exchange looks to protect small investors as <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNBARX4CeisomGuMzYqDuQy5se8sP6Ndw3fCNQ8_W4Q4xx4jYys6YJW01QlVWVaRlx8ZgadF-MPKcYx5xxGn9a_jXd5FIJsGorzX6iySqeKzLR1f8IXd_uZNHoNTc5ZUhn9Ay18L_qqY2yTU4lRXahCgzS_wMjGAlfTC3apDVeA6mRIz8gqE9zlipW7joJjmQuxFt8C6EWNgj4d_rO6GXcbT8zuRH_YVMI4qYSKI_GXGfBw__clxSGDzp8JD875unA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">buyouts surge</a>. Alibaba Touts <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bFee577gJaPW_CiQxJp3stO06pupZQMkz47grbB8zlseoQ-CVVQjBUMvKeG-GmRU-S7ilwJv65HjBpCUP5IJOJs0fNwsluAqcvdwr_y3uOXavWwVXRnUA5blz1-BHp2eQK-WwhclzbLOFPOb7LUW_vQG2XYWzD8W0cvPLt0n4p3NtMFYxQoD2Fk39bUpcXFrvfa6wivqqmU9YtjQIHj3Eqs%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">New AI Model</a> Superior to DeepSeek’s and Meta’s. US <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNBARX4CeisomGuMzYqDuQyR9ZvTWrZ5ZcZvRDqSxuDkjZlZ28Kth762ZB_XMwhnNBBqhEEOZqyBhIJPAplMunwaNVMDe8C-AhZiaSmpVaSKwhzlGlL0KgpkjJ3NRy8Cjvm0XBYpIKrZO1AN8p7SfiBy2wUbYc8jogSkQA6PyZEalIkFY8yPm6PoQBaBtk6ox2aed7k2FWWhuSeKlE6z-XB1URs483aANveOxzLrnKLOj-N_XwT74SXGo4-7RnrnwQ%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">nuclear fusion start-up</a> backed by Sam Altman and Peter Thiel secures $425mn. Exxon foe <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNBARX4CeisomGuMzYqDuQy5HZPg6ZqZbKMSmt2-l6h0n5GDeK8D1nqIQiaSDXs0MO0Wx2t9N5sKb347oq4ylPrqiKyYZYrzaRojiIkW0ORVWRFrhMFX3XL-L8eD43tYoLRtEvPPJPhqt60oirwY7Ew6HkQm2QJNh1joT2ynoLRNGP4ns2rwIugG7Edy_E8J9EffBcf15JoVdKVH0bJ3alwIdcEzPX4RXK3QIkEhuGvO0gO2uPd0Za0Zm9gJ25Q3sA%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Engine No. 1</a> to build fossil fuel plants with Chevron. Shell dominates <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNBARX4CeisomGuMzYqDuQw0s0wBDm0Ze0ERnl8RwtbS44rfHMaR80GDtyWP8jRlkBOPeFnz9bwupO44E3b-TyFb25HyY_GqdU28wInC-Nnejfo7b-7Ha01lGPbXdl5Z_jwDTTm1JPY0mW8pF5DCvCihQ6jnlOOwJRbRkw7CkWYqkTzVOIjV7sP3b3KLR4udzyJS4UZtkI7yVXIkQNNTIHhVKbXDvQ0_K_PLHn1Sx7e1vkvO7DG018VoG4-nz3F4kg%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">carbon credit market</a> as clean energy spending scaled back. NYC Subway’s <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bCsQXHP59e4YkVH2zSAakhlb6FR_qNWIOL07o_wRSOgStwPx6JiUHL7Zh-Dmaq8FiRmnET7sp9HbzI5AAS7ppRkYjEeTPOqwUmnMUtmdUiNzpi_MSwKjFH60692izn2JdherLdmF6DXQ-kcm0MP4K040XsigkfHp7kd9U429zNpiRlE1m01I9xiLT8fOGNMWXqKNenteLaM6olk-5W4A1m8%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Most Dangerous Stations</a> Are on Lexington Avenue Line. Was That a Real Van Gogh at the <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bAndBka3Umy70cqHY8RCnlNxMjB_Xn7Ns8W3a1q76H1Pvy4gw6dO5u7qmBx_Gk2B0HGYpB6fK4zJS57uA1aK2ovPCBdf3_-lwkwgQ0BhUBpshyK2uUmkQi_SFRWqWc-Brpj3h3pKRcJZEEGliUabq94-02r1jNs-DxA6yoftx8LJKrN7fKCVP6Z9Urs4Itj6WiFU5R1Cv64EozJFQh9OfxCurqBpQlXPEWD-wUEKpXmWpAB8yufQ56U-GoMem9RRjQfA2tvTKZ5gxcDYAgVZSHDVymh6kSOLviB-GrHu72fT" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Garage Sale</a>? Swimming With Sharks: Unique New Course Teaches <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bD6DuQWEL7fMjy2skNLkTVaWf2Xck7p2k6QuhJkjj9M5JBTdZ2VX7lvoTzSYd_55JtbUjN7s5NZbTVkczv9PYOU7DUHuaJCJlP6oodFScxXXAayMkg5oXh5ba0VD7tz4AI35GZHxJCPS4lnMHtRIdRX6sC8-6F3DPGCXp9o8Jv2EOD1NxK2CzvAOcK_SD2h0NMawyqfEB_7vgtxpQ7PcEBDUoUdL_BXCy-UCEiSdy-A6itSlFsdF1zML5PzT3XhPVD_UihC9R2Q4fRmSzhKYmmsBWHdLULKO0wwBkQH1sEXda5OVX2AcVUT6lH1nH4bz9A%3D%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Legal Financial Arbitrage</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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=WmwnK0F3inrsla3BjsQKuCiuHYgUpSdM_FjZst1njOOM5KIciVCuyt6EVoHM1NRpwsN4O_H3eNFTDhzBDETUZlvw4o7aEcT87AIYrCmH9-uGm3UvLVB3Kge6Ayil2OM84YomSmaHYco8kv9KEsi6MQ0isUEa3UNi3WnKnUdtM05fe6kADmXgUtaoubLaAS1r2yx6E86IlRdw_26zKwoW1-MbAPG0zztv2CxzbSfudXAybM02Q-xjB48sYfuc-6qCZ6FJosrl0wYD3vX9PjiiPPB_H8bhXWrJJyAQi5rGZFCHgR-HoghcRc4SpChmu4o98xI-01q4GM9WTCAXq_qSAw%3D%3D" 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/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bAWGnoCQN9v4vhbA9gE1Ygmyw38vKxyMphosbmYXheLvVIYNiex7AtqT7sBFaTzWrMdTwvhyRJUd9E5Lb_3ZbmKF1Mhtnm_wtfg8GoDZSsKhXfpP8_9a-A4rdKRC1IbIH8H3_0Rda9EK8jYOJmee30RyGnEY2b_lmZdQRsTldYU_59YHLHf8w9AFSNLxJwaa1WVn_o8jtKHcOrADufmMZ25Rz_-cdONObghl2_LS6LOg" 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] I am mostly a words guy, but the same basic problem holds for visual artists, musicians, etc. Any sort of generative AI model takes human-made inputs and produces outputs that essentially *compete* with the humans who made the inputs.</p> </div> <div id="footnote-2" style="font-style: italic;"> <p style="margin: 16px 0;">[2] I have no idea what the ranking is. Hindenburg’s Adani Group report is a candidate — <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bFP-Jaa1VzgyAS5w-dJws6DYUFxahQ8wx6fWx6OfRJJGEQZ4xCKsUCIA27paotUlmKcOdEUzZg2YCOArr6DRiANhBOdBQVJT-kVVnfCnuXhKDO_CD_ItT3vL54T28cUCklkO1lcpuPtVm3v8tTLR-7CdHNxn0-GJRfeuss7M4c9bNX7X322MI_ChXjrOUvPHT2T-tvz2cButcej_l0d_Vww%3D" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">Bloomberg called it</a> “one of the most impactful short-seller reports ever” last year — and Adani lost $153 billion of market cap, so $600 billion has got to be at least near the top.</p> </div> <div id="footnote-3" style="font-style: italic;"> <p style="margin: 16px 0;">[3] Or here are some <a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bPfbE7GeYMrPyId_xM3ULBm8i0DU4r1d3jX9R4QSw5ZL0FxK4E7cvK0lG6qXxfyPiR9sBCtpLmTRJksx-vksjJG8tuk7X113BfwO-TD7wKg_40qwqzxP31vpViOzyZPooUqzMEGw5jW4bfG2Yq0XFgq9L4IGAIYTw1h8SwTbmAaQld1LN_BLI_Nuhfpr1cZ7oNZn-j_ffPD-zR4soOTkZZsC1D_hudUW18hlvs7eT5EJ" itemprop="StoryLink" itemscope="itemscope" target="_blank" style="color: #000000; text-decoration: none !important; border-bottom-width: 1px; border-bottom-color: #000000; border-bottom-style: solid; background-color: #ccc;">puzzling claims</a> from BlackRock Inc.’s Larry Fink that tokenizing stocks and bonds would “simplify things, make thing easier … save more money for more people, bring down the cost of ownership of stock and bonds.”</p> </div> <div id="footnote-4" style="font-style: italic;"> <p style="margin: 16px 0;">[4] Tenev also writes about regulatory problems with crypto exchanges: “U.S. laws stipulate that securities exchanges, clearing agencies and transfer agents must register with the SEC and regularly update disclosure documents. There are several issues with this when it comes to crypto, a technology these laws don’t account for. For instance, these functions are often not performed by organizations but rather by distributed, open-source computer software running on thousands of servers around the world.” And it is true that if you wanted to tokenize private stocks, you would need to be more accommodating to crypto exchanges that want to trade securities. But if you just wanted to let Robinhood customers buy private stocks on their phones, you don’t need a crypto exchange!</p> </div> <div id="footnote-5" style="font-style: italic;"> <p style="margin: 16px 0;">[5] I’m being a little unfair; this is not a purely crypto thing. Here’s a Financial Times article about “<a href="https://links.message.bloomberg.com/u/click?_t=f574328d4d0c4c359b90d8e49b10e21d&_m=2de19f4eeb8c4ceeae9f22cfbac93a33&_e=uAjbDZjoyuPWbDgzysf4bNBARX4CeisomGuMzYqDuQwcDbLtbiwSXZGFmVmK68FXok6171H3mP85Lhigi0A9pFBimOxkz101-SedyGHlSzGCAO-Kx2eo5yUbp6O84e3gRGDXtNdEkh1AlhruMJxmbgbvRvqdC4Miv0bhDOREYrb7y3Zbys6AlD7jZWHKjdgosSYoxpHPqyGV5SzMkihsTVHe4Ar8Knajfz96fws3m5v4z19FDeI_VpXZhzsPY2-2SryWEmgQx6UJ7ZPoy6puRg%3D%3D" itemprop="StoryLink" itemscope="itemscope" 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 lucrative business of airline loyalty schemes</a>.”</p> </div> </td> </tr> </table> </td> </tr> <tr> <td style="border-collapse: collapse; mso-table-lspace: 0pt; mso-table-rspace: 0pt; padding: 0px 10px;"> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="width: 100%; border-collapse: collapse; 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  7. CardsFTW #140: Costco Card Changes

    Wed, 29 Jan 2025 17:16:07 -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 #140: Costco Card Changes</title> <style> .post-title-link { display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; } .post-title-link-left { text-align: left; } .view-online-link { word-wrap: none; white-space: nowrap; color: #738a94; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 15px; 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border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Card Portfolio M&amp;A, Peyton Manning, and more</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/46f9bd35?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/575425da?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #140: Costco Card Changes</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">29 Jan 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/7c8b0343?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/7d883362?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h1 id="changes-to-citibank-costco-card" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Changes to Citibank Costco Card</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The Costco credit card portfolio is one of the largest co-brands in the country. Citibank took over the portfolio way back in 2015, from long-time co-brand partner American Express. Costco&#x2019;s credit card is a unique product, coming from one of the country&#x2019;s largest retailers and bringing with it a payment network win: Costco only accepts credit cards issued on the network of its proprietary cards.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Upgrade to paid before February 28th, and your subscription will turn into a donation to the Eaton Fire Fund.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/74a57692?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Starting last week, the Costco Anywhere Visa Card by Citi will earn 5% cashback on gas purchases made at Costco, which operates its own gas stations. Gas purchases at other gas stations will earn 4% (no change). EV charging now also earns 4% cashback bringing another growing spending category into play. Accelerated rewards on all gas and EV,-charging, Costco and not, are capped at $7,000 in spend per year, after which it drops to 1%.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The card&#x2019;s other rewards remain the same: 3% back at restaurants and travel (which, in this case, excludes timeshares, campgrounds, bed and breakfasts, and train travel), 2% at Costco, and 1% everywhere else. The card carries no annual fee, although you must be a Costco member, which does, of course, carry an annual fee.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Oh, and they also redesigned it:&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcxIxOUKgNMyQU1Rv6277a2jBMs-SE4sruQGiMSIi0rYJ2mG3KVmojBSeT_FjTEVL6F9J3PzWMZpD5ZUOQ5T3jA7JMLnOuPOtX9CGNmH4llDCuhullAPFxl4iNflGR9L_T0V6u7cg?key=_loLbo7kPElmCgEKA36PAn7S" class="kg-image" alt="A Citi-branded Visa credit card with a black background featuring a modern, wavy line pattern. The card has a silver chip on the left side, a 16-digit card number in the center, and the cardholder&#39;s name, &#39;L WALKER,&#39; below it. The Visa logo appears in white on the bottom right corner, and three red lines are visible on the top right." loading="lazy" width="341" height="215" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Kirk Land</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Frankly, I am very surprised by this design, which does not include the Costco logo! This card looks like a generic Citibank card with all the new swirly bits they&#x2019;ve been using lately. Disappointing. I wonder if consumers don&#x2019;t want &#x201C;Costco&#x201D; on their credit cards because the name of the game in most co-brands is &#x201C;How big can I make this logo and it still fits on the card?&#x201D;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">One big downside of the Costco card is that your rewards are issued to you once, annually, in the form of a certificate that you can use at Costco. This mirrors Costco&#x2019;s membership rewards program, which offers 1 or 2% cashback depending on your membership level on all your Costco spend, to be redeemed via a certificate in-store. It&#x2019;s like a check they send you. Also disappointing, because maybe you want to shop online? You know, with the Internet.</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/2025/01/FTW-140-6.png" class="kg-image" alt="A lineup of all Costco credit cards that have existed, featuring an American Express card with a green-blue gradient, a Citi Costco Visa with a blue design, and two Citi Visa cards with a black wavy pattern (one lighter, one darker). Each card includes a chip, card number, and cardholder name." loading="lazy" width="600" height="314" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Talk about evolution...</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">While I am a fan of Costco, I am not a fan of this card. I live too far away from Costco to buy gas there, and I can earn far more using other cards that offer cashback rewards at warehouse stores. My Bank of America Customized Cash Rewards Card earns 2% cashback at all warehouse stores (or more, if you have BofA&#x2019;s <a href="https://www.cardsftw.com/r/351a019b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Preferred Rewards</u></a>, up to 3.5% cashback). Plus, I can auto-redeem my rewards as cash to my checking account.&#xA0;</p><div></div><h1 id="ally-leaves-its-card-behind" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Ally Leaves Its Card Behind</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Ally Financial, the spin-off of General Motors&#x2019; finance arm renamed in 2010, went big into credit cards in December 2021, <a href="https://www.cardsftw.com/r/b8343780?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>acquiring</u></a> Fair Square Financial for $750MM.&#xB9; At the time, Fair Square had 693,000 cardholders with $816 million in loan balances. Some of you may recall Fair Square as the Ollo Card.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Last week, Ally <a href="https://www.cardsftw.com/r/214fb229?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> it is selling its card portfolio to CardWorks, a leading issuer and card servicer known for its Merrick Bank branded cards. The portfolio has grown substantially under Ally&#x2019;s leadership, almost doubling cardholders to 1.3 million activations and loan balances of $2.3 billion. That growth wasn&#x2019;t enough for Ally, which has new leadership as compared to 2021. Ally CEO Michael Rhodes said, &#x201C;Ally&#39;s decision to sell its credit card business is part of our broader strategy to pursue a more focused approach, enabling us to simplify and streamline our structure, prioritize our core businesses, and drive improved returns.&#x201D;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Credit cards are hard, and we&#x2019;ve seen Ally retrench in a few ways over the past year. Industry analysts at the Nilson Report listed Merrick as holding $4 billion in receivables at the end of 2023.&#xB2; The addition of the Ally portfolio will grow the portfolio by approximately 50%, landing Merrick in the top 20 issuers in the U.S. for 2025 by my estimate.</p><h1 id="peyton-pushes-plastic" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Peyton Pushes Plastic</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">U.S. Bank is investing heavily in its new Smartly Visa Signature card, which provides enhanced rewards for U.S. Bank account holders, based on their total relationship volume with the bank: they hired Peyton Manning as a spokesperson.</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/7f477236?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" 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/GTfbyCsrLGg/hqdefault.jpg" role="presentation" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-size: cover; min-height: 200px; background: url(&#39;https://i.ytimg.com/vi/GTfbyCsrLGg/hqdefault.jpg&#39;) left top / cover; mso-hide: all;"> <tbody><tr style="mso-hide: all"> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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=GTfbyCsrLGg" 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/GTfbyCsrLGg/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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Cashback on a pair of binoculars? I could get a new hat!</span></p></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Peyton is everywhere: he has been a spokesperson for Nationwide Insurance, Gatorade, Papa John&#x2019;s Pizza, Buick, Bud Light, and DirectTV. He has also been a spokesperson for Mastercard, but that must be over now! U.S. Bank&#x2019;s product is a Visa.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Who can forget these classics?</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/4d24a8a2?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" 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/4FlwJwL6kdo/hqdefault.jpg" role="presentation" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-size: cover; min-height: 200px; background: url(&#39;https://i.ytimg.com/vi/4FlwJwL6kdo/hqdefault.jpg&#39;) left top / cover; mso-hide: all;"> <tbody><tr style="mso-hide: all"> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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=4FlwJwL6kdo" 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/4FlwJwL6kdo/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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Let&#39;s go credit cards, let&#39;s go!</span></p></div></div><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/251f87ca?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" 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/pjHazHg0CoA/hqdefault.jpg" role="presentation" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; background-size: cover; min-height: 200px; background: url(&#39;https://i.ytimg.com/vi/pjHazHg0CoA/hqdefault.jpg&#39;) left top / cover; mso-hide: all;"> <tbody><tr style="mso-hide: all"> <td width="25%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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=pjHazHg0CoA" 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/pjHazHg0CoA/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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">I wonder how many priceless pep talks Peyton had to do after this ad...</span></p></div></div><h1 id="me-elsewhere" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Me, Elsewhere</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I joined Mary Wisniewski from Cornerstone Advisors on her podcast, <a href="https://www.cardsftw.com/r/e17e9f56?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>Money Isn&#x2019;t Everything</u></em></a>, to discuss our shared experiences in Los Angeles, given the fires this month. We did manage to dicuss credit cards, though. Don&#x2019;t worry.</p><h1 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">CardsFTW</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/da8cfbfb?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/f4c3f354?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit<a href="https://www.cardsftw.com/r/88bfd053?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/4d527b1f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p><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;">(2021, December 2). <em>Ally Financial (ALLY) Closes Agreement to Acquire Fair Square</em>. Yahoo! Finance. https://finance.yahoo.com/news/ally-financial-ally-closes-agreement-145002695.html?guccounter=1</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">(2024). Largest Credit Card Portfolios Worldwide. <em>Nilson Report</em>, (1273). https://nilsonreport.com/newsletters/1273/</li></ol> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" width="30%"> <a href="https://www.cardsftw.com/r/51d2355c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; vertical-align: middle;"> <p class="feedback-button-text" style="display: inline-block; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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/eJwszktuhDAMANDTTHYg24ntZJHDQD5AC40U0qLevlI1y7d7OVqPltmUiGo9KgRRU67lOKcjR9GwCLkqjlgYCmshJlSzx-QI61ptkhC88uptEKh1UfCwildzRAJiQAqoKMBzIERf1DoLIUmAl4Nrm9PS813HM6d2mR7Hw_j7Mba8n3enll8Ovspzn2WM0ufecmlmxPX7_Jz-l2bEbW_3eOsn0l8AAAD__1WrPeE"></body> </html>
  8. Canadian Fintech: Central 1 Finds a Buyer 🛍️

    Mon, 27 Jan 2025 13:32:18 -0000

    <html style="scrollbar-width: thin;scrollbar-color: #dbdbdbrgb(255,255,255);"><head><meta charset="utf-8"><title>Canadian Fintech: Central 1 Finds a Buyer &#128717;&#65039;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media screen and (max-width: 650px) { .typography .markup div.youtube-overlay, .typography.editor .markup div.youtube-overlay, .typography .markup div.vimeo-overlay, .typography.editor .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { .typography .markup div.tiktok-wrap, .typography.editor .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { .typography .markup div.embedded-publication-wrap .embedded-publication.show-subscribe, .typography.editor .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; 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} .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwMTI3MTMzMTI2LjMuYTBmYzc5NjJmNzNlOTU3ZkBtZzIuc3Vic3RhY2suY29tPiIsInUiOjE5MjU2OTUxMiwiciI6IjA3NGRsNWt1ZmZ2MzA0b3VAbmV3c2xldHRlci5yb2RlbyIsImQiOiJtZzIuc3Vic3RhY2suY29tIiwicCI6MTU1ODMzNzE5LCJ0IjoibmV3c2xldHRlciIsImEiOiJldmVyeW9uZSIsInMiOjY2MzM1MywiYyI6InBvc3QiLCJmIjp0cnVlLCJwb3NpdGlvbiI6InRvcCIsImlhdCI6MTczNzk4NDcyNiwiZXhwIjoxNzQwNTc2NzI2LCJpc3MiOiJwdWItMCIsInN1YiI6ImVvIn0.xa8uVAxMjs8Tp7ml2h37w8zclXY452Nf9helqCzJQ7E" 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;">Shopify CEO's wealth manager gets acquired. Hopper IPO?</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; 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&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;"><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: unset;text-align: right;font-size: 12px;line-height: 16px;text-decoration: unset;margin: 0;"><span class="pencraft pc-reset reset-IxiVJZ" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">Forwarded this email? <a class="pencraft pc-reset decoration-underline-ClTkYc reset-IxiVJZ" href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jYW5hZGlhbmZpbnRlY2guc3Vic3RhY2suY29tL3N1YnNjcmliZT91dG1fc291cmNlPWVtYWlsJnV0bV9jYW1wYWlnbj1lbWFpbC1zdWJzY3JpYmUmcj0zNm5mbDQmbmV4dD1odHRwcyUzQSUyRiUyRmNhbmFkaWFuZmludGVjaC5zdWJzdGFjay5jb20lMkZwJTJGY2FuYWRpYW4tZmludGVjaC1jZW50cmFsLTEtZmluZHMiLCJwIjoxNTU4MzM3MTksInMiOjY2MzM1MywiZiI6dHJ1ZSwidSI6MTkyNTY5NTEyLCJpYXQiOjE3Mzc5ODQ3MjYsImV4cCI6MTc0MDU3NjcyNiwiaXNzIjoicHViLTAiLCJzdWIiOiJsaW5rLXJlZGlyZWN0In0.tOhx36QKCaqp4PqMxT2bwAcb5Yk6Y1frTGs6ovaInr4?" style="list-style: none;color: unset;text-decoration: unset;margin: 0;-webkit-text-decoration-line: underline;text-decoration-line: underline;">Subscribe here</a> for more</span></div></span></td></tr></tbody></table></td></tr></tbody></table><div class="post typography" dir="auto" style="padding: 32px 0 0 0;font-size: 16px;line-height: 26px;"><div class="post-header" style="font-size: 16px;line-height: 26px;"><h1 class="post-title published" style="color: rgb(54,55,55);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: 0;line-height: 36px;font-size: 32px;"><a href="https://substack.com/app-link/post?publication_id=663353&post_id=155833719&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=36nfl4&token=eyJ1c2VyX2lkIjoxOTI1Njk1MTIsInBvc3RfaWQiOjE1NTgzMzcxOSwiaWF0IjoxNzM3OTg0NzI2LCJleHAiOjE3NDA1NzY3MjYsImlzcyI6InB1Yi02NjMzNTMiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.U8BTZdWaIcTHghve4BqAX-s9D3Xo3CUFPOL8mziwXGc" style="color: rgb(54,55,55);text-decoration: none;">Canadian Fintech: Central 1 Finds a Buyer &#128717;&#65039;</a></h1><h3 class="subtitle" style="font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 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;">Shopify CEO's wealth manager gets acquired. Hopper IPO? </h3><table class="post-meta" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="margin: 1em 0;height: 20px;align-items: center;"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA custom-css-email-post-author" style="list-style: none;font-size: 11px;line-height: 20px;text-decoration: unset;color: rgb(54,55,55);margin: 0;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;"><a class="pencraft pc-reset color-primary-zABazT line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;color: rgb(54,55,55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact',-apple-system,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset color-secondary-ls1g8s line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA" style="list-style: none;font-size: 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="2025-01-27T13:31:41.649Z">Jan 27</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/@talschwartz"><img class="custom-css-email-avatar avatar-QIQ5yR" src="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ffc852364-628e-41e0-b9bb-8ebb278dc171_1902x1695.png" style="box-sizing: border-box;border-radius: 500000px;max-width: 550px;border: none;vertical-align: middle;width: 40px;height: 40px;min-width: 40px;min-height: 40px;object-fit: cover;margin: 0px;display: inline" width="40" height="40"></a></td></tr></tbody></table></td></tr></tbody></table><table class="email-ufi-2-top" role="presentation" width="100%" border="0" cellspacing="0" cellpadding="0" style="border-top: 1px solid rgb(0,0,0,.1);border-bottom: 1px solid rgb(0,0,0,.1);min-width: 100%;"><tbody><tr height="16"><td height="16" style="font-size:0px;line-height:0;">&nbsp;</td></tr><tr><td><table role="presentation" width="100%" 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;"><table role="presentation" width="38" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td align="center"><a class="email-icon-button" 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Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 11,860 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><p class="button-wrapper" style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.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.CZSs958ODicB-MD-AWT-QBRPfXWalinmmpi2VZmda7U?&utm_medium=email&utm_source=subscribe-widget&utm_content=155833719" 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;color: #ffffff !important;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></p></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The CEO of </span><strong>Hopper</strong><span>, a Montreal based travel fintech company </span><a href="https://substack.com/redirect/661683b2-9706-43f3-8e75-2fd853da2fa7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">announced</a><span> that he&#8217;s looking to do an IPO on the TSX and Nasdaq that would value the company between $5b - $10b.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Novacap</strong><span>, a Montreal based private equity firm </span><a href="https://substack.com/redirect/ae89233e-3002-4b52-a28e-3b088ef19e07?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">closed</a><span> a $1b fund to invest in North American digital infrastructure - payments, wireless connectivity, data centres, etc.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Novacap </span><a href="https://substack.com/redirect/82da7b92-69f9-4b18-a1e1-f2104b993e33?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">owns</a><span> large holdings in Canadian fintechs like </span><strong>Nuvei</strong><span>, </span><strong>AGA</strong><span> </span><strong>Benefits</strong><span>, &amp; </span><strong>RateHub</strong></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;">Novacap raised $2.4b for their sixth fund in 2021.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Torram</strong><span>, a Toronto based infrastructure for building apps on bitcoin&#8217;s blockchain </span><a href="https://substack.com/redirect/2d90845f-d3ac-4176-adae-c3b038cf94f7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">raised</a><span> $710k from </span><strong>Draper Associates</strong><span>, </span><strong>Boost VC</strong><span>, </span><strong>Side Door Ventures</strong><span> &amp; others.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Street</strong><span> </span><strong>Context</strong><span>, a Toronto based email marketing platform for capital markets companies was </span><a href="https://substack.com/redirect/9f5a49ce-66ab-439c-82f1-f7c53cec3e2a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>BlueMatrix</strong><span>, a US based investment research publisher.</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;">Both firms help investment banks and brokerages distribute information to their clients.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Divvy Homes</strong><span>, a US based rent-to-own home buying firm, is being </span><a href="https://substack.com/redirect/9d9cfd2f-3b06-4ee6-abf3-1af5ac150f76?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>Brookfield</strong><span>, a Toronto based asset management firm for $950m.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The deal gives Brookfield 3,800 single family rentals.</p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size:16px;margin: 0;"><span>In Canada, </span><a href="https://substack.com/redirect/5ce7cd8e-6604-498b-aee6-004c1e5283be?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">similar</a><span> home buying fintechs are </span><strong>Key</strong><span> and </span><strong>Requity</strong><span> </span><strong>Homes</strong><span>.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>PWL</strong><span>, a Montreal based wealth manager was </span><a href="https://substack.com/redirect/ab266df1-37dc-405b-9d37-cb8f784de919?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">acquired</a><span> by </span><strong>OneDigital</strong><span>, a US based financial services consultant.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>PWL manages about $5.5b across 2,300 clients. The firm is popular with </span><strong>Shopify</strong><span> employees thanks to referrals from Shopify CEO (and client) Tobi L&#252;tke.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>OneDigital is owned by Toronto based private equity firm </span><strong>Onex</strong><span>.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><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" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/eb8cb001-d204-4140-9b4e-39b68558cfe7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6b6d9548-baf2-4d15-85f6-8254d0492443_6912x3456.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:728,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:1635067,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" width="550" height="275" src="https://substackcdn.com/image/fetch/w_2912,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6b6d9548-baf2-4d15-85f6-8254d0492443_6912x3456.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Central 1</strong><span>, is </span><a href="https://substack.com/redirect/738938e5-ce93-4d0c-a757-1f73bfe1b06d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">selling</a><span> their digital banking products to Indian firm </span><strong>Intellect Design Arena</strong><span>, a few months after </span><a href="https://substack.com/redirect/0e8cd091-9bba-416c-b131-e0d86e106cf4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">announcing</a><span> that the products were winding down.</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;"><strong>Central 1</strong><span> services Canadian credit unions with payments, treasury, and (previously) digital banking services.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Below is abreakdown by my friend Doug Macdonald of where their clients are moving to. </span><strong>VeriPark</strong><span> has been the largest beneficiary so far, however presumably </span><strong>Intellect Design Arena</strong><span> will be able to retain a majority of remaining customers.</span></p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="545" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/7a434e21-47e4-44c1-bf59-9073e91744b9?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/819b63f4-f398-4891-b6a4-7717baa61b84_545x460.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:460,&quot;width&quot;:545,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:85347,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://www.douglasmacdonald.com/insights/the-credit-union-digital-banking-race-key-players-and-what-comes-next&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" width="545" height="460" src="https://substackcdn.com/image/fetch/w_545,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F819b63f4-f398-4891-b6a4-7717baa61b84_545x460.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><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>FutureVault</strong><span>, a secure data room tool </span><a href="https://substack.com/redirect/d6d08fb7-8a58-4f1d-bc0c-15f0a8ebd907?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">partnered</a><span> with </span><strong>PortfolioAid</strong><span>, a compliance platform.</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;">Both Toronto based companies target clients in the wealth management industry.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>CapIntel</strong><span>, Toronto based sales platform for financial advisors, has </span><a href="https://substack.com/redirect/d1540042-ff70-43d4-8666-10f96bea7828?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">signed</a><span> on </span><strong>Canada Life</strong><span>, an insurance, retirement and wealth management provider.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.125em;">&#9878;&#65039; Policy</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><span>Every big Canadian bank, save for </span><strong>RBC</strong><span>, has </span><a href="https://substack.com/redirect/6f49591b-d84d-4e6c-87ef-4b8eb08ecb01?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">left</a><span> the </span><strong>Net-Zero Banking Alliance</strong><span>, the industry's largest climate finance org.</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;">RBC says their membership is also under review.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54,55,55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>TD</strong><span> is </span><a href="https://substack.com/redirect/3dafc799-f45b-4c33-8176-206646613400?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">selling</a><span> USD $9b of US mortgages in order to meet their enforced asset cap as part of their </span><a href="https://substack.com/redirect/ee5f9397-2ae6-4e9c-98d9-0dce1b74da96?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">punishment</a><span> for money-laundering.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/8c5fbc6a-ce19-4395-8ced-5ae98a84682f?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/94d2e016-68c9-42f1-a8a2-ba4fae3ad254?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Want to get in front of 11,860 fintech decision makers? 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See ya &#128075;</p><p style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;"><span>-</span><a href="https://substack.com/redirect/b51c2e6b-21a3-48a7-a710-635be6cff2b4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54,55,55);text-decoration: underline;">Tal Schwartz</a></p></div></div><div class="container-border" style="margin: 32px 0 0;width: 100%;box-sizing: border-box;border-top: 1px solid #e6e6e6;font-size: 16px;line-height: 26px;"></div><div class="post-cta typography markup" style="font-family: 'SF Pro Display', -apple-system, system-ui, BlinkMacSystemFont, 'Inter', 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;text-align: initial;word-break: break-word;margin-bottom: 32px;margin: 32px 0;font-size: 16px;line-height: 26px;"><p style="color: rgb(54,55,55);margin: 0 auto 20px;text-align: center;width: 90%;line-height: 26px;font-size: 16px;margin-top: 0;"><span class="pencraft pc-reset reset-IxiVJZ" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">You're currently a free subscriber to <a href="https://substack.com/redirect/270d2625-30a9-4e34-aa57-fbfaf85fc5b8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="color: rgb(54,55,55);text-decoration: underline;">Canadian Fintech</a>. For the full experience, <a href="https://substack.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.CZSs958ODicB-MD-AWT-QBRPfXWalinmmpi2VZmda7U?&utm_source=substack&utm_medium=email&utm_content=postcta" style="color: rgb(54,55,55);text-decoration: underline;">upgrade your subscription.</a></span></p><p class="cta-box" style="color: rgb(54,55,55);margin: 0 auto 20px;width: 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href="https://substack.com/app-link/post?publication_id=663353&post_id=155833719&utm_source=substack&utm_medium=email&isFreemail=true&comments=true&token=eyJ1c2VyX2lkIjoxOTI1Njk1MTIsInBvc3RfaWQiOjE1NTgzMzcxOSwiaWF0IjoxNzM3OTg0NzI2LCJleHAiOjE3NDA1NzY3MjYsImlzcyI6InB1Yi02NjMzNTMiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.U8BTZdWaIcTHghve4BqAX-s9D3Xo3CUFPOL8mziwXGc&r=36nfl4&utm_campaign=email-half-magic-comments&action=post-comment&utm_source=substack&utm_medium=email" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: inline-block;font-weight: 500;border: 1px solid rgb(0,0,0,.1);border-radius: 9999px;text-transform: uppercase;font-size: 12px;line-height: 12px;padding: 9px 14px;text-decoration: none;color: rgb(119,119,119);"><img class="icon" 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href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9vcGVuLnN1YnN0YWNrLmNvbS9wdWIvY2FuYWRpYW5maW50ZWNoL3AvY2FuYWRpYW4tZmludGVjaC1jZW50cmFsLTEtZmluZHM_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.hGrrZF5Be6MLN_GA_ZfkreuKxLhdJ045bNyUzHTBKGs?&utm_source=substack&utm_medium=email" style="font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';display: 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style="font-size:0px;line-height:0;">&nbsp;</td></tr></tbody></table><div class="footer footer-ZM59BM" style="color: rgb(119,119,119);text-align: center;font-size: 16px;line-height: 26px;padding: 24px0;"><div style="font-size: 16px;line-height: 26px;padding-bottom: 24px"><p class="pencraft pc-reset color-secondary-ls1g8s size-12-mmZ61m reset-IxiVJZ small meta-B2bqa5" style="list-style: none;font-family: system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';padding-bottom: 0;font-size: 12px;line-height: 16px;margin: 0;color: rgb(119,119,119);text-decoration: unset;">&#169; 2025 <span>Tal Schwartz</span><br>221 Clinton St. Toronto, Canada, M6G 2Y4 <br><a 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  9. CardsFTW #139: Deep Dive on Rewards Structures

    Wed, 22 Jan 2025 17:16:07 -0000

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padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/89484948?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/d4b1b854?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #139: Deep Dive on Rewards Structures</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">22 Jan 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/1dd4edce?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/a0fd6268?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h1 id="rewards-systems" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Rewards Systems</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Designing a rewards system for a financial product is both fascinating and challenging. It&#x2019;s all about balancing customer satisfaction, operational efficiency, and technological feasibility. I&#x2019;ve had the chance to build several rewards programs for myself and my clients, and I&#x2019;ve learned a lot along the way. In this post, I&#x2019;m diving into some key complexities and big decisions you&#x2019;ll face.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The foundation of any rewards system comes down to how customers earn rewards and how they redeem them.&#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/size/w1600/2025/01/Screenshot-2025-01-22-at-11.02.01-AM.png" class="kg-image" alt="A flowchart that illustrates how rewards are calculated based on purchase categories and any eligible offers, with earned rewards stored in a ledger. These rewards can then be redeemed for goods, travel, gift cards, statement credits, or discounts." loading="lazy" width="600" height="320" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">A simplistic view of rewards earn and burn.</span></div></div><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Upgrade to paid before February 28th, and your subscription will turn into a donation to the Eaton Fire Fund.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/d31587fa?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color:#FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h1 id="earning" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Earning</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Cardholders can rack up rewards in a bunch of different ways: on-card spending, hitting a minimum spend to unlock signup bonuses, rotating spend categories, off-card actions, and more. Before you get to building your reward system, you need to solidify all the ways your cardholders will earn. Every decision you make here will shape how the system is built and how smoothly it runs. It can be hard to retrofit a ledger with new types, so I like to think expansively here.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Most programs start with the simplest approach&#x2014;rewarding spending in specific categories. For example, a card might offer two points per dollar spent at gas stations. This is usually done using Merchant Category Codes (MCCs), which are standardized codes that classify businesses like gas stations, restaurants, and more. MCCs make earning pretty straightforward to calculate and implement. Many large issuers use MCCs exclusively for rewards. But not all categories are that simple.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Take wineries, for example. When I was designing the rewards program for the Grand Reserve Reward Mastercard, I found out that &#x201C;wineries&#x201D; don&#x2019;t have a dedicated MCC. Instead, they can fall into a variety of merchant categories. This meant there was a real risk of rewarding spending that didn&#x2019;t align with our goals. To solve this, we tried things like curating merchant lists (which added a lot of operational work) and using regular expressions (which added some tech complexity) to pinpoint relevant transactions.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">One thing that was useful about wineries is that they are licensed, so we were able to purchase a list of all licensed wineries in the U.S. from which to start.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This experience taught me that a big part of building a rewards program is figuring out how to identify merchants accurately. Misidentifying them can mean over-rewarding or under-rewarding customers, which leads to frustration on both sides. To avoid that, we relied on transaction data, matched merchant IDs, and fine-tuned regular expressions as part of the data model. Even with all that, the process required constant iteration to handle edge cases.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">One way other issuers solve for this, specifically American Express, is they list qualified merchants. For example, American Express has had the concept of major department stores for certain cards. American Express has a specific list of these merchants that they reward.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Things get even trickier when you start adding complexity, like signup bonuses that reward customers for spending a certain amount during an intro period. That&#x2019;s why it&#x2019;s so important to step back and think about the whole program before diving into the build. Every decision&#x2014;whether it&#x2019;s earning structures, thresholds, or timing&#x2014;affects your data model. Getting it right at the start makes everything easier down the road.</p><p style="margin: 0 0 1.5em 0; line-height:1.6em;">Once you start testing, real-world transactions will throw curveballs at you. For example, merchants sometimes misclassify themselves&#x2014;a gas station might appear as a convenience store, which means customers might not get the points they expected. To handle this, we built a rewards dispute process. A simple feature in the customer portal lets users flag issues with their rewards, creating a ticket for internal review. This resolves problems and builds trust with customers, showing them we&#x2019;ve got their back.</p><h1 id="burning" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Burning</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Of course, earning rewards is only half the equation. Redemption is where customers really see the value, so it needs to be seamless and engaging. Offering a variety of options, like travel redemptions, statement credits, and gift cards, makes the program appealing to a wider audience. But every option you add brings complexity. Financial redemptions, like applying points as a statement credit, can require custom API integrations to make sure everything is accurate and smooth for the user.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">One of the biggest decisions on the backend is whether to build the rewards ledger in-house or use a third-party platform. Providers like Ascenda or Talon One offer solutions that can handle a lot of the heavy lifting, like managing the ledger and processing redemptions. But they aren&#x2019;t always a perfect fit. For example, while they might be great for travel rewards or gift cards, handling financial redemptions like statement credits often requires additional work or custom integrations. It&#x2019;s all about finding the right balance between what you outsource and what you build in-house.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Building a rewards system is ultimately about finding the sweet spot between simplicity and sophistication. Third-party platforms can save you a ton of time and effort, but they usually need to be supplemented with custom solutions to handle the unique aspects of your program. By staying flexible and planning for challenges upfront, we were able to create a system that worked for today&#x2019;s needs and set us up for future growth.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">My work with Grand Reserve Rewards reinforced one thing: thoughtful design and clear communication are everything&#x2014;whether it&#x2019;s with your team or your external partners. Designing a rewards system isn&#x2019;t easy, but when you get it right, it&#x2019;s an incredible tool for building engagement and loyalty.</p><div></div><h1 id="me-elsewhere" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Me, Elsewhere</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>This Week in Fintech</em> published my second piece on wealthtech yesterday, <a href="https://www.cardsftw.com/r/79e847bf?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>The Backbone of Innovation: How Infrastructure Fuels Fintech and Wealthtech Growth</u></em></a>, which explores how infrastructure has driven the explosive growth of fintech and how wealthtech is poised for a similar transformation. From the pioneering days of Venmo to the rise of API-driven solutions like Plaid and Alloy, the article highlights how infrastructure innovation has reduced friction and fueled growth. As wealthtech takes center stage, new opportunities are emerging for startups in compliance, data management, customer communications, market insights, and risk analysis.&#xA0;</p><h1 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica,Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;"><strong style="font-weight: 800;">CardsFTW</strong></h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/fa2941eb?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/1ee928fd?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit<a href="https://www.cardsftw.com/r/9ac6aca8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/2514858c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" width="30%"> <a href="https://www.cardsftw.com/r/3152eea4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; vertical-align: middle;"> <p class="feedback-button-text" style="display: inline-block; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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/eJwszkFuxCAMAMDXLLeNsIMNHHjMxjZJ2qRIhDbq7ytVe5zbaJkTzETOCsQ5EjMwOztf-_HctXDMgFEqByQmbxQNA2d2WxEg1MqwGHtJkbNVFGFFzRKrJbcX9EgeECEC-zBRwiQqXlOmJBwfwZ_rJK-uVx33JO10vYyb4PdjrLodV8emj-C_7L4OG8P61Jtac6Ms38fn83_pRlm3do23fgr-BQAA__8IKz9p"></body> </html>
  10. Canadian Fintech: Funding for Float 🤑

    Mon, 20 Jan 2025 13:38:55 -0000

    <html style="scrollbar-width: thin;scrollbar-color: rgb(219, 219, 219) rgb(255, 255, 255);"><head><meta charset="utf-8"><title>Canadian Fintech: Funding for Float &#129297;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media screen and (max-width: 650px) { .typography .markup div.youtube-overlay, .typography.editor .markup div.youtube-overlay, .typography .markup div.vimeo-overlay, .typography.editor .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { .typography .markup div.tiktok-wrap, .typography.editor .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { .typography .markup div.embedded-publication-wrap .embedded-publication.show-subscribe, .typography.editor .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; 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} } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwMTIwMTMzODMxLjMuZGY3ZGI3M2IxOGExZWUwN0BtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOjE1NTI0NzUwOCwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3MzczODAzMjMsImV4cCI6MTczOTk3MjMyMywiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.pP1CThgfdLSCsv_qFI0swWsuVpzpmavt9waO1sOp-rQ" 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;">RateHub expands into personal lending. Borderless raises from Cohere.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; 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&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;"><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_14k7g_1 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_14k7g_16 _size-12_14k7g_35 _reset_14k7g_1" style="list-style: none;color: unset;text-align: right;font-size: 12px;line-height: 16px;text-decoration: unset;margin: 0;"><span class="pencraft pc-reset _reset_14k7g_1" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">Forwarded this email? <a class="pencraft pc-reset _decoration-underline_14k7g_283 _reset_14k7g_1" href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jYW5hZGlhbmZpbnRlY2guc3Vic3RhY2suY29tL3N1YnNjcmliZT91dG1fc291cmNlPWVtYWlsJnV0bV9jYW1wYWlnbj1lbWFpbC1zdWJzY3JpYmUmcj0zNm5mbDQmbmV4dD1odHRwcyUzQSUyRiUyRmNhbmFkaWFuZmludGVjaC5zdWJzdGFjay5jb20lMkZwJTJGY2FuYWRpYW4tZmludGVjaC1mdW5kaW5nLWZvci1mbG9hdCIsInAiOjE1NTI0NzUwOCwicyI6NjYzMzUzLCJmIjp0cnVlLCJ1IjoxOTI1Njk1MTIsImlhdCI6MTczNzM4MDMyMiwiZXhwIjoxNzM5OTcyMzIyLCJpc3MiOiJwdWItMCIsInN1YiI6ImxpbmstcmVkaXJlY3QifQ.A91Im6aLys-D52_vFWtaMFkWxa5zZGJaAkFdqAWJoTo?" style="list-style: none;color: unset;text-decoration: unset;margin: 0;-webkit-text-decoration-line: underline;text-decoration-line: underline;">Subscribe here</a> for more</span></div></span></td></tr></tbody></table></td></tr></tbody></table><div class="post typography" dir="auto" style="padding: 32px 0 0 0;font-size: 16px;line-height: 26px;"><div class="post-header" style="font-size: 16px;line-height: 26px;"><h1 class="post-title published" style="color: rgb(54, 55, 55);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: 0;line-height: 36px;font-size: 32px;"><a href="https://substack.com/app-link/post?publication_id=663353&post_id=155247508&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=36nfl4&token=eyJ1c2VyX2lkIjoxOTI1Njk1MTIsInBvc3RfaWQiOjE1NTI0NzUwOCwiaWF0IjoxNzM3MzgwMzIyLCJleHAiOjE3Mzk5NzIzMjIsImlzcyI6InB1Yi02NjMzNTMiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.s-DLlr1fZiEnlnQPkQBJix2P9VpfVzerIdPrzyGLIpQ" style="color: rgb(54, 55, 55);text-decoration: none;">Canadian Fintech: Funding for Float &#129297;</a></h1><h3 class="subtitle" style="font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 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;">RateHub expands into personal lending. Borderless raises from Cohere.</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_14k7g_166 _line-height-20_14k7g_80 _font-meta_14k7g_115 _size-11_14k7g_31 _weight-medium_14k7g_145 _transform-uppercase_14k7g_240 _reset_14k7g_1 _meta_14k7g_440 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_14k7g_166 _line-height-20_14k7g_80 _font-meta_14k7g_115 _size-11_14k7g_31 _weight-medium_14k7g_145 _transform-uppercase_14k7g_240 _reset_14k7g_1 _meta_14k7g_440" style="list-style: none;color: rgb(54, 55, 55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact', -apple-system, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset _color-secondary_14k7g_169 _line-height-20_14k7g_80 _font-meta_14k7g_115 _size-11_14k7g_31 _weight-medium_14k7g_145 _transform-uppercase_14k7g_240 _reset_14k7g_1 _meta_14k7g_440" 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="2025-01-20T13:38:35.588Z">Jan 20</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/@talschwartz"><img class="custom-css-email-avatar _avatar_1mh60_65" 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Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in the industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><span>For those of you in Toronto, on Jan 28th I&#8217;ll be </span><a href="https://substack.com/redirect/15119dcb-4a3f-4c86-b64b-b57f0f4f65b8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">moderating a panel</a><span> with the founders of Loop, Borrowell and Yield Exchange. </span></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><span>Also if you&#8217;re looking for a short pod on Canadian fintech, I was on the last episode of the </span><a href="https://substack.com/redirect/ce46b3c3-167a-425f-9a77-1eda84cce4d4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Fintech Fuse Podcast</a><span>. </span></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Was this email forwarded to you? 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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;color: #ffffff !important;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></p></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Float</strong><span>, a Toronto based corporate card and expense management platform, </span><a href="https://substack.com/redirect/695d609e-f3b0-4d3c-ac49-597d7d367353?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $70m, led by </span><strong>Goldman Sachs</strong><span>, with participation from </span><strong>OMERS</strong><span>, </span><strong>FJ Labs</strong><span>, </span><strong>Garage</strong><span> </span><strong>Capital</strong><span> and </span><strong>Teralys</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Float raised $50m in </span><a href="https://substack.com/redirect/2760898c-4f70-4f8f-83c4-75cb4153146c?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">credit</a><span> in 2024 and $37m in </span><a href="https://substack.com/redirect/184cc3b2-1e94-4434-9803-7df7c04e8fc7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">equity</a><span> in 2021.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><a href="https://substack.com/redirect/bb0ca244-fe46-4389-8e77-715afdd9bae4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Here&#8217;s my breakdown</a><span> of Float&#8217;s product strategy.</span></p></li></ul></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="942" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/d2463d06-59ee-4647-9269-5c00879b5f80?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a8ac2bef-d557-4455-bbb5-8e624f14921f_942x623.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:623,&quot;width&quot;:942,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:626205,&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}" alt="" width="550" height="363.7473460721868" src="https://substackcdn.com/image/fetch/w_1884,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa8ac2bef-d557-4455-bbb5-8e624f14921f_942x623.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><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Ownwell</strong><span>, a Vancouver based marketing automation tool for mortgage brokers, raised an undisclosed pre-seed led by </span><strong>Conconi Growth Partners</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The company is very similar to </span><strong>Homebot</strong><span> in the US.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Gumloop</strong><span>, a Vancouver based tool that automates tasks like processing email invoices and contacting recruits on Linkedin, </span><a href="https://substack.com/redirect/0ed18c9e-910c-469b-be12-8d2838056d06?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> USD $17m from </span><strong>Nexus Venture Partners</strong><span>, </span><strong>YC</strong><span>, and </span><strong>First Round Capital</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Gumloop </span><a href="https://substack.com/redirect/6933fdad-0b1b-49f5-86b2-c061eb479acb?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> USD $3.1m last July.</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;">The company is now relocating to San Francisco.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Vasco</strong><span>, a Montreal based sales &amp; marketing analytics platform for b2b software companies </span><a href="https://substack.com/redirect/699c07ae-4a8b-47e3-a7bd-f9f4fac27c6e?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> USD $6m from </span><strong>Inovia</strong><span>, </span><strong>Framework</strong><span> &amp; </span><strong>BY Venture Partners</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Sellit9</strong><span>, a platform for shoppers to trade-in their old products in exchange for cash, </span><a href="https://substack.com/redirect/d377452e-f875-4d94-b228-2d46955afdec?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $1.5m from </span><strong>Drive Capital</strong><span> and </span><strong>Northside Ventures</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><a href="https://substack.com/redirect/81098059-72d4-44be-9425-26b166ba7f2a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Here&#8217;s a breakdown</a><span> of the intersection between fintech and supply chain tech.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Borderless</strong><span>, a Toronto based HR platform for companies to hire international employees, </span><a href="https://substack.com/redirect/07944b7b-a42b-4705-afd4-b4632b7d1861?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $5m from the co-founders of </span><strong>Cohere</strong><span>, a Toronto based AI LLM company.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>This is an </span><a href="https://substack.com/redirect/8c2b83fb-85a4-4f86-a142-f82b5bfbb344?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">extension round</a><span> to the $24m they raised last year.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;">The funding will be used to build more HR automation tools like searching through corporate policies &amp; guidelines.</p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>QuoteMachine</strong><span>, a Montreal based platform for merchants to manage quotes, orders, inventory and payments was </span><a href="https://substack.com/redirect/ad5139e0-87ae-45a6-9e4a-963077d832a4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> by </span><strong>Lightspeed</strong><span>, a Montreal based payments company.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>QuoteMachine </span><a href="https://substack.com/redirect/e08aef6c-2fa5-4a5f-ad4a-d7f97a45afdd?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $5m in 2023 from </span><strong>Manresa</strong><span>, </span><strong>Clocktower</strong><span> and </span><strong>Precursor Ventures</strong><span>.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Blade Labs</strong><span>, Toronto based company which provides staking infrastructure for Solana was </span><a href="https://substack.com/redirect/0ed6fafd-ee9b-40ef-8479-050fa1b7c106?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> by </span><strong>WonderFi</strong><span>, a crypto exchange.</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>Bench</strong><span>, a Vancouver based bookkeeping startup that was acquired by </span><strong>Employer.com</strong><span> after abruptly </span><a href="https://substack.com/redirect/27717efb-c6a2-49bd-baff-8c5005852ce8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">shutting down</a><span> last month, had $94m in debt </span><a href="https://substack.com/redirect/f23ddd09-873c-47e7-ac20-458210c7e00b?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">and only</a><span> $4m in cash.</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">Canada&#8217;s Largest Automotive Finance Conference is on Feb 11th</h4><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size:16px;">Hear from executives at Canada&#8217;s largest auto finance companies. </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" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/5dfa70e5-d4fe-4306-849c-992b5169cbd8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/9e6f26dc-89a4-4b96-bf8a-9b2c322b9315_1990x1190.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:871,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:1150928,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" width="550" height="329.01785714285717" src="https://substackcdn.com/image/fetch/w_2912,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F9e6f26dc-89a4-4b96-bf8a-9b2c322b9315_1990x1190.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 class="button-wrapper" data-component-name="ButtonCreateButton" data-attrs="{&quot;url&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;text&quot;:&quot;Tickets Here&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button primary" rel="" href="https://substack.com/redirect/5dfa70e5-d4fe-4306-849c-992b5169cbd8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU"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;margin: 0;opacity: 1;outline: none;white-space: nowrap;color: #ffffff !important;text-decoration: none !important;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Tickets Here</span></a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Ratehub</strong><span>, a Toronto based mortgage comparison site, </span><a href="https://substack.com/redirect/8d91da94-04bd-40d0-a33f-eb0e47ca1165?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">expanded</a><span> into consumer loans.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Ratehub also owns its own mortgage lending business called </span><strong>CanWise</strong><span>. I&#8217;m curious to see if they&#8217;ll launch a similar personal lending business now.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin:0;"><span>Ratehub was </span><a href="https://substack.com/redirect/3c3553e4-a5d8-45d2-89a6-6a4e211f1e5d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> by </span><strong>Novacap</strong><span>, a Toronto based private equity group in 2022.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Ribbon</strong><span>, a Toronto based back office platform to register and manage small businesses </span><a href="https://substack.com/redirect/0b0d8305-eb34-41fa-a0e5-1b9c19b2122a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">launched</a><span> features for tax filing / tracking &amp; for employee reimbursements.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Sagard</strong><span>, a Montreal based alternative investment firm, </span><a href="https://substack.com/redirect/e1bb2d2b-4617-440b-a01d-7ea170a709f7?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">launched</a><span> a private fund for retail investors.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Sagard already has a b2b2c retail distribution partnership between its credit fund and </span><strong>Wealthsimple</strong><span>.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Brookfield</strong><span> and </span><strong>BlackRock</strong><span> have launched similar offerings recently.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Venturevest</strong><span>, an alternative investment marketplace for retail investors </span><a href="https://substack.com/redirect/463a9c0e-7def-4184-8915-caaa863e58d0?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">launched</a><span> in Montreal.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Transcard</strong><span>, a US b2b payments company has </span><a href="https://substack.com/redirect/5788b911-13ce-43ca-a62b-2a27478e9d77?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">expanded</a><span> into 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;"><strong>Finix</strong><span>, </span><strong>Transact365</strong><span> and </span><strong>Lithic</strong><span> have </span><a href="https://substack.com/redirect/191058dc-19e3-482f-8cb9-523dbea7a803?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">also</a><span> </span><a href="https://substack.com/redirect/ed506449-49e2-4002-8a23-646d95fca4f8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">expanded</a><span> their payments businesses to Canada this year.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#9878;&#65039; Policy</h4><ul style="margin-top:0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>BMO Capital Markets</strong><span> is </span><a href="https://substack.com/redirect/505cf918-86ee-4674-acda-e6eec7a307d5?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">paying</a><span> a USD $40m settlement over SEC allegations that it misled investors about the construction of its mortgage-backed securities from 2020 to 2023.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>CCI</strong><span>, a trade group for Canadian tech companies </span><a href="https://substack.com/redirect/c80e91c6-84b4-48b9-b4aa-5a7669707396?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">launched</a><span> a think tank called </span><strong>Canadian Shield</strong><span>, to produce policy research on Canadian &#8220;economic nationalism&#8221; like national security, tax policy, and promoting homegrown innovation.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Like CCI, the group was founded by Jim Balsillie of </span><strong>BlackBerry</strong><span> fame.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><span>TD&#8217;s CEO is </span><a href="https://substack.com/redirect/a992f25d-c24b-4c88-ac9c-75e55b475da6?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">stepping down</a><span> two months earlier than previously </span><a href="https://substack.com/redirect/2c36f0ba-5037-4e3c-b5a2-f70a48258742?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">announced</a><span>, following the bank&#8217;s guilty plea to a drug money laundering scandal thatresulted in a USD $3b fine.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Several board members are </span><a href="https://substack.com/redirect/ff581a92-049f-4bc8-a79e-d00a472a0baf?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">also</a><span> resigning.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/dd1fd121-d6db-4d01-baf3-7b08013a5051?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian fintech?</strong><span> </span><a href="https://substack.com/redirect/e1630c1d-4fef-4540-978e-98e0264e7b12?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Fill out this form</a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Want to get in front of 11,790 fintech decision makers? Reply to this email to become a sponsor.</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Have a great week! See ya &#128075;</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;margin-bottom: 0;"><span>-</span><a href="https://substack.com/redirect/0f5899b5-a3c5-499b-9cc3-bae8628cb974?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Tal Schwartz</a></p></div></div><div class="container-border" style="margin: 32px 0 0;width: 100%;box-sizing: border-box;border-top: 1px solid #e6e6e6;font-size: 16px;line-height: 26px;"></div><div class="post-cta typography markup" style="font-family: 'SF Pro Display', -apple-system,system-ui, BlinkMacSystemFont, 'Inter', 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;text-align: initial;word-break: break-word;margin-bottom: 32px;margin: 32px 0;font-size: 16px;line-height: 26px;"><p style="color: rgb(54, 55, 55);margin: 0 auto 20px;text-align: center;width: 90%;line-height: 26px;font-size: 16px;margin-top: 0;"><span class="pencraft pc-reset _reset_14k7g_1" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">You're currently a free subscriber to <a href="https://substack.com/redirect/a4efa300-de9f-4d30-a2f0-bccc18a43679?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="color: rgb(54, 55, 55);text-decoration: underline;">Canadian Fintech</a>. 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href="https://substack.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.hc2Rrmb8UhJR26v8W1B-l7oPPSHLKKzp2-1Id2Go_D0?&utm_source=substack&utm_medium=email" style="font-family: system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';display: 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style="font-size:0px;line-height:0;">&nbsp;</td></tr></tbody></table><div class="footer _footer_11ym1_1" style="color: rgb(119, 119, 119);text-align: center;font-size: 16px;line-height: 26px;padding: 24px 0;"><div style="font-size: 16px;line-height: 26px;padding-bottom: 24px"><p class="pencraft pc-reset _color-secondary_14k7g_169 _size-12_14k7g_35 _reset_14k7g_1 small _meta_11ym1_14" style="list-style: none;font-family: system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';padding-bottom: 0;font-size: 12px;line-height: 16px;margin: 0;color: rgb(119, 119, 119);text-decoration: unset;">&#169; 2025 <span>Tal Schwartz</span><br>221 Clinton St. Toronto, Canada, M6G 2Y4 <br><a 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  11. CardsFTW #138: Open Banking Standards

    Wed, 15 Jan 2025 17:15:13 -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 #138: Open Banking Standards</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: #738a94; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 15px; 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border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Fires, Saying Goodbye to Dosh, and More</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/3cd3da5d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/528794e4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #138: Open Banking Standards</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">15 Jan 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/b4da41ec?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/6283aafc?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h1 id="eaton-fires" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Eaton Fires</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">For the past 20 years, I have lived in Pasadena, CA. While we have had our share of windstorms and wildfires, last week&#x2019;s Eaton Fire was a tremendously devastating and destructive disaster. My family and I are very fortunate to be safe, with an intact home to return to. However, our entire community is suffering, and if you haven&#x2019;t already, I would ask you to consider supporting the community. </p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I (Totavi) will donate all new or renewed paid CardsFTW subscriptions through the end of February to Pasadena Community Foundation&#x2019;s Eaton Canyon Fire Relief and Recovery Fund. Read more at <a href="https://www.cardsftw.com/r/4beed1a9?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>https://www.totavi.com/eaton</u></a>. You can find instructions on that page to make a direct donation, or simply subscribe below, and we&#x2019;ll send that money right away.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Upgrade to paid before February 28th, and your subscription will turn into a donation to the Eaton Fire Fund.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/7a6fb5c6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h1 id="open-banking-standards" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Open Banking Standards</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The CFPB continues to churn out content in the waning days of the Biden administration. From suing <a href="https://www.cardsftw.com/r/30114595?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">C<u>apital One</u></a> and <a href="https://www.cardsftw.com/r/c98bfefb?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Experian</u></a>, <a href="https://www.cardsftw.com/r/33e9154a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>to finalizing the medical debt rule</u></a>, and <a href="https://www.cardsftw.com/r/9e8f06ab?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>proposing to interpret EFTA to apply to rewards </u></a>(yikes, that&#x2019;s another post), they are wasting none of their final days.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The big one I want to touch on is open banking standards. The agency <a href="https://www.cardsftw.com/r/3392c250?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>approved</u></a> the application of the Financial Data Exchange (FDX) to be a standard-setting body under the 1033 data rules. More than a decade after the passage of Dodd-Frank, which required data access, we are now starting to get to the point where this could really work. We&#x2019;ve touched on this topic before, including in our guest post from Andrew Grant recently in <a href="https://www.cardsftw.com/r/623309b6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW #132: Rewards and 1033</a>. However, this announcement means we might be starting to see true industry standards and open access.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Key aspects of these approvals include FDX promoting true open banking and banning pay-to-play, reporting on the adoption of its standards, and, perhaps most importantly, making the reports freely available to the public.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">A common problem with industry standards is that they are hidden behind a firewall. Want to know how ACH works with all the details? You&#x2019;re supposed to get that from NACHA. Want to know about the details of a credit report? You better have a deal with Experian, Equifax, or Transunion. Somehow, this data finds its way around, but it creates many hurdles and confusion for folks working in the industry. Whether people are starting companies or just trying to get smart, these closed standards are a barrier to innovation.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">With open standards, anyone, including a small developer, can understand how to code for the data APIs and other tools for big banks. These folks are where the next interesting budgeting app will come from. Open standards will allow students or recent graduates to educate themselves on the topic and engage in work in the field.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I don&#x2019;t think open standards harm the business of the big banks involved. Holding and moving money (creating the data, perhaps) is very hard for a small player to do. An open banking standard itself doesn&#x2019;t make someone leave Chase. It takes a better banking product to do so. Some banks think that open banking will allow them to steal customers easily. Will PNC win users just because of open banking? No. They will need a better banking product, and open banking might make it easier.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">That isn&#x2019;t where my interest lies, though. I think consumers deserve to be able to aggregate their financial data in one place so that they can better understand it. Few consumers bank in only one place, and the open data capabilities will allow them to understand a critical part of their lives. I also don&#x2019;t think it&#39;s the death knell of Plaid or others; building the APIs may not be worth it, but at least folks can understand the data and build it if they want to.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Let&#x2019;s see what the CFPB does in its final week!</p><div></div><h1 id="join-the-totavi-research-network" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Join the Totavi Research Network</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">We are launching a new network for our proprietary research business and would love to invite you to join. We&#39;ll send surveys or ask to do interviews (for which you will be compensated). If this sounds interesting to you, please fill out our interest form. Thank you!</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/de51dabf?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Join the Totavi Research Network</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="goodbye-dosh" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Goodbye, Dosh</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Dosh, the card-linked marketing platform acquired by Cardlytics, is <a href="https://www.cardsftw.com/r/5fe765ca?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">closing its consumer platform</a> on February 27th.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">(BTW it&#x2019;s this <a href="https://www.cardsftw.com/r/f1373cba?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Dosh</u></a>, not that <a href="https://www.cardsftw.com/r/8354f438?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Dosh</u></a> &#x2013; again with the <a href="https://www.cardsftw.com/r/50fefa02?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>naming</u></a> fintech people.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I&#x2019;m disappointed to see Dosh shutting down. The app was a user-friendly take on merchant-funded card-linked offers, which have grown significantly in popularity. Over the years, I managed to earn a total of $256.17 through it! While I don&#x2019;t have detailed insight into the decision, I&#x2019;ve heard speculation about a shift from B2C to B2B over the years.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Cardlytics, an early card-linking pioneer, <a href="https://www.cardsftw.com/r/190d875f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>acquired</u></a> Dosh in 2021 for $275 million! Poor Cardlytics. On that day, the Nasdaq-listed company closed at $128.98 per share, near its all-time high of $157.18. On Tuesday, January 14, 2025, the stock closed at $2.85 and has a market cap of just $144MM. Ouch.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It may simply be that Cardlytics is bleeding money and can&#x2019;t support Dosh, or this could point to more. I do know that card-linked marketing isn&#x2019;t dead by any means. Newer providers are finding ways to bring these offers to more folks, and it&#x2019;s worth a deeper dive in a future newsletter. If you want more of a primer, head back to <a href="https://www.cardsftw.com/r/dee5f275?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW #5: Card-Linked Offers</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/2025/01/dosh_screen.png" class="kg-image" alt="App screen of Dosh closure notice." loading="lazy" width="480" height="1044" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Dear Dosh, I will miss you.</span></div></div><h1 id="bofa-tracker" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">BofA Tracker</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Bank of America is rolling out a quarterly spend tracker for its Customized Cash Rewards Card. It&#x2019;s not on my app yet, but a friend shared this screenshot:</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/2025/01/bofa-tracker.jpeg" class="kg-image" alt="Screenshot of BofA Tracker" loading="lazy" width="480" height="677" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Lots of room to earn more rewards!</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Many other quarterly cards (Chase Freedom, Discover it) have similar features, but they have long been missing from the BofA card. With these cards, I&#x2019;ve always wondered what the bank&#x2019;s internal data says about behavior. Do users who maximize these bonuses each quarter love their card and use it for other things? Or, like me, do they game it? Is a tracker good for the bank in terms of card loyalty and spend, or is it making the tracking hard to find to the bank&#x2019;s benefit? (Previously, for BofA, you had to go to your reward transactions screen and add up totals or wait until you hit the limit and it told you on a particular transaction.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Until I have an opportunity to run a card like this, I guess I will keep wondering. Related, will banks increase quarterly limits due to inflation? If you know, let me know.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h1 id="me-elsewhere" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Me, Elsewhere</h1><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;">I sat down with Lithic&#x2019;s Reggie Young on the Fintech Layer Cake podcast in December. <a href="https://www.cardsftw.com/r/a6eb65c0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Take a listen</a>. </li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">Open Banker published my opinion essay on the unintended consequences of the Durbin Act yesterday. <a href="https://www.cardsftw.com/r/9678fa92?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Read it here</a>.</li></ul><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;"><strong style="font-weight: 800;">CardsFTW</strong></h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/327fb44e?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/0424844c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/fd18e226?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/6c82eb2b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p><div></div> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; 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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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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/eJwszktuxCAMANDTDLuJsI2BWfgwfEySNikSoY16-0rVLN_uVaEIxGxUIJB_eSAgo2faj-dexYcYtEL0DtmzVQ6K5DKYTWxr3ufiMObasjqbEpeoJXBxhMxmF7TIFoAhAAMuHMgxEVBqGF-ZHs6e61LSqFeb91L6aYbMm-H3Y651O66BvT6c_dL7OnROHcvoVbuZkr-Pz-f_0kxZt37Nt34E_wIAAP__7Lc_AA"></body> </html>
  12. Canadian Fintech: Everyone is getting acquired 🛒

    Mon, 13 Jan 2025 13:55:12 -0000

    <html style="scrollbar-width: thin;scrollbar-color: rgb(219, 219, 219) rgb(255, 255, 255);"><head><meta charset="utf-8"><title>Canadian Fintech: Everyone is getting acquired &#128722;</title><style> @media all and (-ms-high-contrast: none), (-ms-high-contrast: active) { .typography .markup table.image-wrapper img, .typography.editor .markup table.image-wrapper img, .typography .markup table.kindle-wrapper img, .typography.editor .markup table.kindle-wrapper img { max-width: 550px; } } @media screen and (max-width: 650px) { .typography .markup div.youtube-overlay, .typography.editor .markup div.youtube-overlay, .typography .markup div.vimeo-overlay, .typography.editor .markup div.vimeo-overlay { display: none !important; } } @media screen and (max-width: 370px) { .typography .markup div.tiktok-wrap, .typography.editor .markup div.tiktok-wrap { width: calc(95vw - 32px); height: calc((95vw - 32px - 2px) / 0.485714); } } @media screen and (max-width: 650px) { .typography .markup div.embedded-publication-wrap .embedded-publication.show-subscribe, .typography.editor .markup div.embedded-publication-wrap .embedded-publication.show-subscribe { padding: 24px; 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min-width: 110px; } } @media (max-width: 650px) { body .markup .tweet { padding: 12px; } } @media (max-width: 650px) { body .markup .tweet .tweet-text { font-size: 14px; line-height: 20px; } } @media (max-width: 650px) { body .markup .tweet .tweet-photos-container.two, body .markup .tweet .tweet-photos-container.three, body .markup .tweet .tweet-photos-container.four { height: 200px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-img { max-height: 180px; } } @media (max-width: 650px) { body .markup .tweet a.expanded-link .expanded-link-description { display: none; } } @media screen and (max-width: 650px) { body .markup .apple-podcast-container { width: unset; } } @media (max-width: 420px) { body .markup .install-substack-app-embed img.install-substack-app-embed-img { margin: 0 auto 16px auto; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-text { margin: 0 0 12px 0; max-width: 100%; width: auto; text-align: center; } } @media (max-width: 420px) { body .markup .install-substack-app-embed .install-substack-app-embed-link { display: flex; justify-content: center; } } @media screen and (min-width: 500px) { body .header a.logo { width: 42px; height: 42px; border-radius: 12px; } } @media screen and (max-width: 420px) { body .subscription-receipt table:first-of-type .subscription-amount .subscription-discount { width: 72px !important; } } @media screen and (min-width: 481px) { body .share-button-container { height: auto; } } @media screen and (max-width: 480px) { body .share-button-container .separator { display: block !important; margin: 0 !important; height: 8px !important; border-left: none !important; } } @media screen and (max-width: 650px) { .digest .item .post-meta-item.audience { display: none; } } @media screen and (min-width: 500px) { .digest-publication .logo img { width: 42px; height: 42px; border-radius: 8px; } } @media screen and (max-width: 650px) { .comments-page .container .comment-list .collapsed-reply { margin-left: calc(10 + 32px - 24px); } } @media screen and (max-width: 650px) { .comment > .comment-list { padding-left: 24px; } } @media screen and (max-width: 650px) { .finish-magic-login-modal .modal-content .container { padding: 24px 0; } } @media (max-width: 650px) { .reader2-text-b3 { line-height: 24px; } } @media screen and (max-width: 650px) { .reader2-text-h4 { line-height: 24px; } } @media screen and (min-width: 541px) { .user-profile-modal { padding-left: 12px; padding-right: 12px; } } @media screen and (max-width: 650px) { .subscribe-widget form.form .sideBySideWrap button.rightButton { padding: 10px 12px; } } @media screen and (min-width: 541px) { .pub-icon:hover .logo-hover, .feed-item-icon:hover .logo-hover { display: block; } } @media screen and (max-width: 650px) { .post-ufi.single-full-width-button .post-ufi-button-wrapper { width: 100%; padding: 16px; } .post-ufi.single-full-width-button .post-ufi-button-wrapper:empty { display: none; } .post-ufi.single-full-width-button .post-ufi-button { width: 100%; justify-content: center; } } @media screen and (max-width: 768px) { .file-embed-wrapper { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor { padding: 0; } } @media screen and (max-width: 768px) { .file-embed-wrapper-editor:active { padding: 0; } } @media only screen and (max-width: 650px) { .file-embed-button.wide, .file-embed-error-button.wide { display: none; } } @media only screen and (min-width: 630px) { .file-embed-button.narrow, .file-embed-error-button.narrow { display: none; } } @media screen and (min-width: 541px) { .audio-player-wrapper .audio-player { min-width: 500px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress { border-left-width: 16px; border-right-width: 16px; } } @media screen and (max-width: 650px) { .audio-player-wrapper-fancy .audio-player .audio-player-progress .audio-player-progress-bar .audio-player-progress-bar-popup { top: -54px; } } @media (min-width: 250px) { .audio-player-wrapper-fancy .audio-player { padding: 32px; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:last-of-type { display: block; } } @media (min-width: 300px) { .audio-player-wrapper-fancy .audio-player .btn-group { display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-title { margin-top: 16px; } .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 15%; width: 15%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } .audio-player-wrapper-fancy .audio-player .audio-player-substack-logo { display: block; } } @media (min-width: 350px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 25%; width: 25%; display: block; } .audio-player-wrapper-fancy .audio-player .btn-group { display: flex; } .audio-player-wrapper-fancy .audio-player .btn-group .button:first-of-type { display: block; } } @media (min-width: 400px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 40%; width: 40%; } } @media (max-width: 400px) { .audio-player-wrapper-fancy .audio-player .btn-group { margin-top: 12px; } .audio-player-wrapper-fancy .audio-player .btn-group .button { font-size: 13px; padding: 6px 12px; height: auto; margin-top: 10px; } } @media (min-width: 600px) { .audio-player-wrapper-fancy .audio-player .audio-player-hero-image-container { padding-top: 55%; width: 55%; } } @media (max-width: 650px) { .poll-editor-modal { min-width: calc(100% - 20px); } } @media (max-width: 750px) { .poll-embed .poll-anchor-target .poll-anchor-copy-button { left: 8px; top: 45px; } } @media screen and (min-width: 541px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { width: 552px; padding: 26px 24px; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-table .modal-row .modal-content > .container { padding: 40px 0; } } @media screen and (max-width: 650px) { .poll-embed .poll-wrapper.poll-web .poll-dialog .modal-row .modal-cell .modal-exit-btn { margin-right: -20px; } }</style></head><body class="email-body" style="font-kerning: auto;"><img src="https://eotrx.substackcdn.com/open?token=eyJtIjoiPDIwMjUwMTEzMTM1NDQ0LjMuYzExOGJiMzk0OTc0N2ViM0BtZy1kMC5zdWJzdGFjay5jb20-IiwidSI6MTkyNTY5NTEyLCJyIjoiMDc0ZGw1a3VmZnYzMDRvdUBuZXdzbGV0dGVyLnJvZGVvIiwiZCI6Im1nLWQwLnN1YnN0YWNrLmNvbSIsInAiOjE1NDc1NjYwMCwidCI6Im5ld3NsZXR0ZXIiLCJhIjoiZXZlcnlvbmUiLCJzIjo2NjMzNTMsImMiOiJwb3N0IiwiZiI6dHJ1ZSwicG9zaXRpb24iOiJ0b3AiLCJpYXQiOjE3MzY3NzY0OTQsImV4cCI6MTczOTM2ODQ5NCwiaXNzIjoicHViLTAiLCJzdWIiOiJlbyJ9.hyrFyZ2aqVvwS1xKjcVkmHjJmoKk3aVkuWRBZRUb2Jc" 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;">Scotia gets out of Central America. Shakepay gets regulated.</div><div class="preview" style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; &#173;&#847; &nbsp; &#8199; 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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;</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;"><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_h3mln_1 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_h3mln_16 _size-12_h3mln_35 _reset_h3mln_1" style="list-style: none;color: unset;text-align: right;font-size: 12px;line-height: 16px;text-decoration: unset;margin: 0;"><span class="pencraft pc-reset _reset_h3mln_1" translated="" style="list-style: none;color: unset;text-decoration: unset;margin: 0;">Forwarded this email? <a class="pencraft pc-reset _decoration-underline_h3mln_280 _reset_h3mln_1" href="https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jYW5hZGlhbmZpbnRlY2guc3Vic3RhY2suY29tL3N1YnNjcmliZT91dG1fc291cmNlPWVtYWlsJnV0bV9jYW1wYWlnbj1lbWFpbC1zdWJzY3JpYmUmcj0zNm5mbDQmbmV4dD1odHRwcyUzQSUyRiUyRmNhbmFkaWFuZmludGVjaC5zdWJzdGFjay5jb20lMkZwJTJGY2FuYWRpYW4tZmludGVjaC1ldmVyeW9uZS1pcy1nZXR0aW5nIiwicCI6MTU0NzU2NjAwLCJzIjo2NjMzNTMsImYiOnRydWUsInUiOjE5MjU2OTUxMiwiaWF0IjoxNzM2Nzc2NDkzLCJleHAiOjE3MzkzNjg0OTMsImlzcyI6InB1Yi0wIiwic3ViIjoibGluay1yZWRpcmVjdCJ9.ekza827UaJklU2Jgqq8pL-JLfwJwUaEla09SonPOoTg?" style="list-style: none;color: unset;text-decoration: unset;margin: 0;-webkit-text-decoration-line: underline;text-decoration-line: underline;">Subscribe here</a> for more</span></div></span></td></tr></tbody></table></td></tr></tbody></table><div class="post typography" dir="auto" style="padding: 32px 0 0 0;font-size: 16px;line-height: 26px;"><div class="post-header" style="font-size: 16px;line-height: 26px;"><h1 class="post-title published" style="color: rgb(54, 55, 55);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: 0;line-height: 36px;font-size: 32px;"><a href="https://substack.com/app-link/post?publication_id=663353&post_id=154756600&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=36nfl4&token=eyJ1c2VyX2lkIjoxOTI1Njk1MTIsInBvc3RfaWQiOjE1NDc1NjYwMCwiaWF0IjoxNzM2Nzc2NDkzLCJleHAiOjE3MzkzNjg0OTMsImlzcyI6InB1Yi02NjMzNTMiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.DsosIsuNCXbJ7JcLuhV3DTPr2T_aVw8UdgcY4l1ZxRw" style="color: rgb(54, 55, 55);text-decoration: none;">Canadian Fintech: Everyone is getting acquired &#128722;</a></h1><h3 class="subtitle" style="font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 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;">Scotia gets out of Central America. Shakepay gets regulated. </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_h3mln_166 _line-height-20_h3mln_80 _font-meta_h3mln_115 _size-11_h3mln_31 _weight-medium_h3mln_145 _transform-uppercase_h3mln_237 _reset_h3mln_1 _meta_h3mln_437 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_h3mln_166 _line-height-20_h3mln_80 _font-meta_h3mln_115 _size-11_h3mln_31 _weight-medium_h3mln_145 _transform-uppercase_h3mln_237 _reset_h3mln_1 _meta_h3mln_437" style="list-style: none;color: rgb(54, 55, 55);margin: 0;font-size: 11px;line-height: 20px;font-family: 'SF Compact', -apple-system, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 500;text-transform: uppercase;letter-spacing: .2px;text-decoration: none" href="https://substack.com/@talschwartz">Tal Schwartz</a></div></td></tr></tbody></table></td></tr><tr><td><table role="presentation" width="auto" border="0" cellspacing="0" cellpadding="0"><tbody><tr><td style="vertical-align:middle;"><div class="pencraft pc-reset _color-secondary_h3mln_169 _line-height-20_h3mln_80 _font-meta_h3mln_115 _size-11_h3mln_31 _weight-medium_h3mln_145 _transform-uppercase_h3mln_237 _reset_h3mln_1 _meta_h3mln_437" 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="2025-01-13T13:54:48.076Z">Jan 13</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/@talschwartz"><img class="custom-css-email-avatar _avatar_1mh60_65" 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'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: 400;"><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;margin-top: 0;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/0fee328d-8885-433b-b739-bad20e4ba17d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" 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 class="wide-image" 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bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Every Monday we break down the hottest topics in your industry in under 3 minutes.</p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><span>Last week I made my 2025 Canadian Fintech Predictions! You can read them </span><a href="https://substack.com/redirect/7dc47d0d-f627-44f7-8393-b02997553bad?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">here</a><span>. </span></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;">Was this forwarded to you? Become one of our 11,710 subscribers by clicking below.</p><div class="subscribe-widget is-signed-up" data-component-name="SubscribeWidget" style="margin: 0 0 1em;direction: ltr;font-size: 16px;line-height: 26px;"><p class="button-wrapper" style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button subscribe-btn primary" href="https://substack.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.H1OOAHDVzstPLOwYl0IM7qD8xICldalYSi9hBMjFOB4?&utm_medium=email&utm_source=subscribe-widget&utm_content=154756600" 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;color: #ffffff !important;text-decoration: none !important;margin: 0 auto;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Upgrade to paid</span></a></p></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#128176; Funding</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Una Software</strong><span>, a Toronto based financial planning platform </span><a href="https://substack.com/redirect/bebf2e5f-f46b-472b-be01-be55965bf192?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $7.5m</span></p></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#129309; M&amp;A</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Lexop</strong><span>, a Montreal based debt collections software for lenders and telcos was </span><a href="https://substack.com/redirect/48ea5c02-38aa-4b26-ab98-dc34243706a0?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> by </span><strong>Eltropy</strong><span>, a US competitor.</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>Humi</strong><span>,</span><strong> </strong><span>a Toronto based HR, benefits and payroll platform was </span><a href="https://substack.com/redirect/794e3cfe-b871-4b52-a773-3038f7e80845?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> for over $100m by </span><strong>Employment</strong><span> </span><strong>Hero</strong><span>, an Australian competitor.</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>Village Wellth,</strong><span> a Calgary based marketplace to buy and sell small businesses </span><a href="https://substack.com/redirect/c9406ab6-f78d-45aa-980d-753623a04ca4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> </span><strong>ByAndSellABusiness.com</strong><span>, a Vaughn based competitor.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Carbon6</strong><span>, a Toronto based portfolio of e-com tools for </span><strong>Amazon</strong><span> sellers (inventory management, listing optimization, tracking reimbursements, etc.) was </span><a href="https://substack.com/redirect/1ebd4827-83fa-421f-94f6-7fbd4ae40d88?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> by </span><strong>SPS Commerce</strong><span>, a retail focused supply chain company for $301m.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Carbon6 </span><a href="https://substack.com/redirect/eac52564-d7e3-44c1-b69d-2a0d33063955?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">raised</a><span> $88m in 2022.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Thomson Reuters</strong><span>, the Toronto headquartered media conglomerate </span><a href="https://substack.com/redirect/80f04349-28b0-41f4-baef-9960ecfe1662?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> </span><strong>SafeSend</strong><span>, a US based tax automation platform for USD $600m.</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>Softchoice</strong><span>, a publicly traded enterprise cloud and cybersecurity company was </span><a href="https://substack.com/redirect/3d90b38d-b0c5-4184-99de-d0cfadf878e4?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">taken private</a><span> by </span><strong>WWT</strong><span>, a US based IT company. I </span><a href="https://substack.com/redirect/c130e729-0c0f-4b49-9288-f7b442fdd1c8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">wrote about</a><span> the Canadian go-private trend in last week&#8217;s predictions.</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>Altus Group</strong><span>, a Toronto based commercial real estate analytics firm </span><a href="https://substack.com/redirect/945a0027-37aa-4169-a783-baf5506626c3?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">sold</a><span> its property tax business to </span><strong>Ryan</strong><span>, a US based tax services company for $700m.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>1Password</strong><span>, a Toronto based secure sign-in platform </span><a href="https://substack.com/redirect/93902cb0-4e15-4f1e-bc2e-02bc31316aa8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> </span><strong>Trelica</strong><span>, a UK based security tool to manage access to company apps in one place.</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;">1Password has raised USD $920m to date and this is their fourth acquisition.</p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Scotiabank</strong><span> is selling off its banking operations in Colombia, Costa Rica and Panama to </span><strong>Davivienda</strong><span>, a Colombian bank in exchange for a 20% stake in the lender.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>Scotia also recently </span><a href="https://substack.com/redirect/f38c2ccb-143c-4a43-86af-c8aedd7e3518?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">acquired</a><span> 14.9% of KeyCorp, a large US lender.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>The $6b merger of </span><strong>Fairstone Bank</strong><span> and </span><strong>Home Trust</strong><span> has closed. You can read my breakdown </span><a href="https://substack.com/redirect/6984b922-fd61-4e11-bf3d-b7f226b6b989?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">here</a><span>.</span></p></li></ul><div class="captioned-image-container-static" style="font-size: 16px;line-height: 26px;margin: 32px auto;"><figure style="width: 100%;margin: 0 auto;"><table class="image-wrapper" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="486" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/de799c93-1d22-4432-9dc7-04ed2fed423f?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/b36f66da-612b-486f-95e6-aed164ed61c0_486x367.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:367,&quot;width&quot;:486,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:261531,&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}" alt="" width="486" height="367" src="https://substackcdn.com/image/fetch/w_486,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb36f66da-612b-486f-95e6-aed164ed61c0_486x367.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;">How I felt writing this section</figcaption></figure></div><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><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" data-component-name="Image2ToDOMStatic" width="100%" border="0" cellspacing="0" cellpadding="0" style="mso-padding-alt: 1em 0 1.6em;"><tbody><tr><td style="text-align: center;"></td><td class="content" align="left" width="1456" style="text-align: center;"><a class="image-link" rel="" target="_blank" href="https://substack.com/redirect/0fee328d-8885-433b-b739-bad20e4ba17d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"><img class="wide-image" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/07cd9a6f-7029-4ed4-b417-8c32cbf71e95_6912x3456.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:728,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:1731910,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false}" alt="" width="550" height="275" src="https://substackcdn.com/image/fetch/w_2912,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F07cd9a6f-7029-4ed4-b417-8c32cbf71e95_6912x3456.png" style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"></a></td><td style="text-align: center;"></td></tr></tbody></table></figure></div><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><span>Get your Early Bird Ticket to Canada&#8217;s </span><a href="https://substack.com/redirect/0fee328d-8885-433b-b739-bad20e4ba17d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">largest automotive finance conference</a><span> before they end!</span></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><span>Join executives from </span><strong>TD</strong><span>, </span><strong>Scotiabank</strong><span>, </span><strong>CanCap</strong><span>, </span><strong>Nissan</strong><span>, </span><strong>Santander</strong><span>, and more! </span></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><strong><a href="https://substack.com/redirect/0fee328d-8885-433b-b739-bad20e4ba17d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Early Bird Tickets end today!</a></strong></p><p class="button-wrapper" data-component-name="ButtonCreateButton" data-attrs="{&quot;url&quot;:&quot;https://financeevents.ca/evnt/autofinancecanada/&quot;,&quot;text&quot;:&quot;Early Bird Tickets Here&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;text-align: center;cursor: pointer;border-radius: 4px;"><a class="button primary" rel="" href="https://substack.com/redirect/0fee328d-8885-433b-b739-bad20e4ba17d?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" 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;margin: 0;opacity: 1;outline: none;white-space: nowrap;color: #ffffff !important;text-decoration: none !important;background-color: #e85c57;padding: 12px 20px;height: auto;"><span style="color: #ffffff;text-decoration: none;">Early Bird Tickets Here</span></a></p><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><h4 class="header-anchor-post" style="position: relative;--highlight-bg: rgba(var(--color-bg-accent-themed-rgb), 0.2);font-family: 'SF Pro Display', -apple-system-headline, system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54, 55, 55);line-height: 1.16em;font-size: 1.125em;">&#128640; Product</h4><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>RBC</strong><span> is </span><a href="https://substack.com/redirect/31c46aac-0022-4ebf-9cae-0a3d37d90170?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">implementing</a><span> </span><strong>Cohere</strong><span>&#8217;s new enterprise AI platform &#8220;North&#8221; within the bank.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>TD has also been </span><a href="https://substack.com/redirect/d13d9110-1998-4d3a-b650-8043808885ef?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">testing</a><span> Cohere&#8217;s models.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Grayhawk Wealth</strong><span>, an Alberta based ultra high net worth wealth management firm is </span><a href="https://substack.com/redirect/7a99992b-322f-486c-9d1d-74bfce806fe9?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">rebranding</a><span> as </span><strong>Sagard Wealth</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Sagard</strong><span>, Montreal based alternative investments firm that operates within the </span><strong>Power Corp</strong><span> family of companies, </span><a href="https://substack.com/redirect/5d7696d0-9c93-4ddf-824e-557057d2ac7a?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">purchased</a><span> a majority stake in Grayhawk in 2020.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Spring Financial</strong><span>, a Vancouver based consumer lender </span><a href="https://substack.com/redirect/6cea83c3-0a2a-4e7f-ac2c-bc87166920a8?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">launched</a><span> a personal finance management app called Bloom.</span></p></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>Shakepay</strong><span>, Montreal based bitcoin focused banking platform (crypto exchange, cash accounts, bitcoin cashback card, etc.) has </span><a href="https://substack.com/redirect/cb9dd3d8-0d10-4c0e-8b69-ac79e4a543ea?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">become</a><span> a regulated member of </span><strong>CIRO</strong><span>.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><strong>Wealthsimple</strong><span> and </span><strong>WonderFi</strong><span> are also dealer members with crypto businesses.</span></p></li></ul></li><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;"><strong>TD</strong><span>&#8217;s incoming CEO is reviewing their 10% ownership in </span><strong>Charles Schwab</strong><span>, a large US based FI.</span></p><ul style="margin-top: 0;padding: 0;"><li style="margin: 8px 0 0 32px;mso-special-format: bullet;"><p style="color: rgb(54, 55, 55);line-height: 26px;margin-bottom: 0;box-sizing: border-box;padding-left: 4px;font-size: 16px;margin: 0;"><span>TD was slapped with a USD $3b fine and a cap on their US assets after pleading guilty to a US money-laundering </span><a href="https://substack.com/redirect/a1682eca-477d-4f44-8287-dc4c6da7769c?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">scandal</a><span>.</span></p></li></ul></li></ul><div style="font-size: 16px;line-height: 26px;"><hr style="margin: 32px 0;padding: 0;height: 1px;background: #e6e6e6;border: none;"></div><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><strong>Raising money for your fintech?</strong><span> </span><a href="https://substack.com/redirect/661c1187-656f-472d-a622-e7b0ccdaa43c?j=eyJ1IjoiMzZuZmw0In0.4eiGI4rivRuKCtZpUgTEqhM2H3NJM6U8dLH7tXnICvU" rel="" style="color: rgb(54, 55, 55);text-decoration: underline;">Fill out this form</a></p><p style="margin: 0 0 20px 0;color: rgb(54, 55, 55);line-height: 26px;font-size: 16px;"><strong>Want to invest in Canadian 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  13. CardsFTW #137: End-of-Year CFPB Excitement

    Wed, 08 Jan 2025 17:15:44 -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 #137: End-of-Year CFPB Excitement</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: #738a94; 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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line-height: inherit; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Bernie Sanders hates risk-based pricing and more</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/db80b03c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/1d5e1e1a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #137: End-of-Year CFPB Excitement</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">8 Jan 2025 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/4559dba4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/987fd532?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;SegoeUI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Happy New Year, CardsFTW subscribers! I enjoyed a brief vacation from writing the newsletter and am feeling energized and ready to get back to work for what looks to be an exciting year in cards and payments.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you haven&#x2019;t lately, now is a great time to forward CardsFTW to a curious colleague or friend who is interested in cards. They can subscribe for free or get a paid subscription for more of our deep insights coming later this year. On to the news and analysis&#x2026;</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h2 id="squeezing-in-those-last-biden-era-cfpb-moves" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Squeezing in those last Biden-era CFPB moves</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Who knows what the next four years will bring for the Consumer Financial Protection Bureau? It&#x2019;s probably not aggressive enforcement (count that as an official 2025 prediction). The CFPB has been hard at work through the end of the year, pushing out a number of enforcement actions, lawsuits, and more, most of which I will not cover here. However, two key updates are right in my area of interest.</p><h3 id="credit-card-finder-tool" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;"><strong style="font-weight: 800;">Credit Card Finder Tool</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">First, the CFPB launched its long-anticipated consumer credit card finder tool <a href="https://www.cardsftw.com/r/82bfcf11?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>on its website</u></a>. I can&#x2019;t find documentation, but I think they&#x2019;ve been hinting at doing something like this since the early 2010s when the agency was nascent. The tool is built on data that card issuers must, by law, submit to the CFPB with full credit card terms and interest rates.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I love this data set. When I was operating Wallaby, we used the CFPB data to find out how cards really worked since it is surprisingly hard to find the terms and conditions for a credit card that isn&#x2019;t in your wallet. The dataset here should represent the superset of all known cards you can apply for in the U.S., but (at least 10 years ago) it was not complete as it didn&#x2019;t include cards thatwere active but weren&#x2019;t accepting applications (e.g., deprecated products) nor did it properly account for cards that may operate on a single cardholder agreement, but with different tiers of rewards.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The new tool is positioned as a consumer-first, unbiased marketplace. However, it has some major flaws. First, the data will rapidly be outdated as these terms are snapshots provided periodically by law (every six months), not real-time updates as rates change (especially important in today&#x2019;s market). Second, there is too much data!</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The underlying dataset includes 638 cards, which is a lot, but it isn&#39;t comprehensive. My friends at Kudos* have more than 3800 card profiles in their system. Even if I filter for folks like me (excellent credit, California), I get 349 results, and many of them are for credit unions for which I don&#x2019;t qualify:</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdeQFp5gNOtc2FbKgEHUeFv21T5ZC6kMFSjlIhgFhDumV4-NxdtS-7yrC8HSBcOupoIQA9W1KD5CryM36xd8OS3HNIAmxMsyLXloXym3L3idirdCNvTwUaINk2hx5Ze-ER4IKXREw?key=wPU4agOKHXKP9UoKYkUKTFUh" class="kg-image" alt="Screenshot of a credit card comparison tool sorted by &quot;Balance transfer APR.&quot; The highlighted card is from Winthrop Area Federal Credit Union, labeled as a Visa Credit Card Platinum. Key details include a purchase APR of 11.5% as of June 30, 2024, a $0 account fee, and a 0% balance transfer APR. Rewards are listed as &quot;Cash back, travel,&quot; and there is a note about eligibility requirements. A link to &quot;See card details&quot; is included, and the data is noted to be current as of June 30, 2024, with a clickable &quot;Learn about the data&quot; option." loading="lazy" width="600" height="201" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">I wonder how many cards would be left if I filter out credit unions</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It&#x2019;s not very helpful.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I think it is important that credit card comparison sites disclose their incentives and structures. We know that some are based purely on how much their partners pay, while others have a stronger editorial independence line. We also know that these sites don&#x2019;t want to put the effort into listing smaller cards because it creates a risk of them having out-of-date data. I suppose the CPFB isn&#x2019;t going to fine itself if its website is wrong.&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/01/Frame-3--1-.png" class="kg-image" alt="A meme featuring two identical Spider-Man characters pointing at each other. One Spider-Man is labeled &quot;The CFPB will fine you for this,&quot; while the other is labeled &quot;I am the CFPB.&quot; In the background, there is a police van with &quot;NYPD&quot; written on it and a wall with wooden crates stacked nearby." loading="lazy" width="600" height="283" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">This is how I imagine it playing out in my head.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I don&#x2019;t think this tool is going to be a big win, and it is likely not a great use of resources. I don&#x2019;t see why they didn&#x2019;t just stick with posting the data set for others to use.</p><h3 id="rewards-circular" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;"><strong style="font-weight: 800;">Rewards Circular</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The CFPB <a href="https://www.cardsftw.com/r/c6a8021b?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>published a circular</u></a> on December 18th on the topic of rewards. Nothing ground-breaking here: the CFPB says you shouldn&#x2019;t use bait-and-switch tactics. OK. Isn&#x2019;t this all covered by existing UDAAP rules? This circular was released alongside the credit card finder tool, which doesn&#x2019;t provide much insight at all into how rewards work. Don&#x2019;t worry, there are plenty of blogs and Reddit forums for this.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">This was one post that I particularly enjoyed:</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;"><strong style="font-weight: 700;">Question Presented:</strong> Can credit card issuers violate the law if they or their rewards partners devalue earned rewards or otherwise inhibit consumers from obtaining or redeeming promised rewards?</p></blockquote><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;"><strong style="font-weight: 700;">Response:</strong> Yes.</p></blockquote><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">OK, did anyone actually think otherwise? Not sure what we&#x2019;re trying to say here that&#x2019;s new.</p><div></div><h2 id="the-chevron-card-it%E2%80%99s-a-gas" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">The Chevron Card, It&#x2019;s a Gas</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Speaking of rewards cards that aren&#x2019;t usually on sites like Nerdwallet or WalletHub: The Techron Advantage Credit Card from Synchrony. Chevron and leading co-brand issuer Synchrony <a href="https://www.cardsftw.com/r/e10172dc?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> an extension of their <strong style="font-weight: 700;">17-year(!)</strong> partnership for this card.&#xA0;</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2025/01/Frame-3.png" class="kg-image" alt="Two Chevron and Texaco Techron Advantage credit cards displayed at an angle, overlapping each other. Both cards feature a sleek black carbon fiber background with silver chip readers. The Chevron and Texaco logos are positioned on the upper left, and &quot;Techron Advantage&quot; is printed in bold white text. One card shows a silver peel-back corner with &quot;with Techron&quot; text underneath. The name &quot;L. A. Reynolds&quot; is printed on the lower left of the front card, and the Visa logo appears in silver on the bottom right." loading="lazy" width="600" height="283" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Ina da Carr&#xE9;</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">People LOVE gas cards because the price of gas is volatile, and 10 cents sounds like a good deal, even when it isn&#x2019;t anymore. I suppose it depends on where you live; however, at today&#x2019;s AAA-reported average of $3.064 per gallon, a 10-cent discount is just about 3%. There are other cards with 3% back on gas every day (and at every station), and many rotating quarterly category cards use gas at least one quarter for a 5% discount. I prefer the flexibility, but maybe you love Chevron? I mean, <a href="https://www.cardsftw.com/r/8afe2a8d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">the cars are cute.</a></p><h1 id="bernie-hates-credit-cards" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Bernie Hates Credit Cards</h1><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/2025/01/Screenshot-2025-01-07-at-1.49.56-PM.png" class="kg-image" alt="Meme featuring Bernie Sanders outdoors in a winter setting, wearing a brown coat and glasses, with trees and a snowy ground in the background. The text at the bottom reads, &quot;I am once again asking you to not enjoy credit card rewards.&quot;" loading="lazy" width="600" height="435" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">We can&#39;t have fun things anymore.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">OK, Senator Bernie Sanders not liking credits isn&#39;t exactly <em>news</em>, per se. Well, neither does President-Elect Trump. Sanders wrote on Twitter:</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;">During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates. Great idea. Let&#x2019;s see if he supports the legislation that I will introduce to do just that.</p></blockquote><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Capping credit card interest rates sounds like a good idea, but I don&#39;t think it really is. Credit cards work today through risk-based pricing, which was popularized by Capital One in the 1990s. As <em>PBS Frontline</em> notes:</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;">By identifying lower-risk individuals in high-risk groups, Capital One was able to market to reliable consumers other companies wouldn&#39;t touch, says Meyer. In just six years, Capital One became the sixth-largest credit card issuer in the country. &quot;When others were attacking the market with blunt instruments, Capital One used a scalpel,&quot; says Meyer.<sup>1</sup></p></blockquote><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">By charging different customers different rates, banks are able to balance risk based on each customer&#39;s individual profile. A cap will lock many (if not most) higher-risk customers out of the credit card market, thus forcing them to other loan types that carry higher rates.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">My 2025 prediction: This is dead in the water.</p><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;"><strong style="font-weight: 800;">CardsFTW</strong></h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/f2ce7dcb?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/e0333ea9?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/387ea92e?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/8d5c3c53?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p><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;">Becker, A. (2004). <em>The Battle Over &quot;Share of Wallet&quot;</em>. PBS Frontline. <a href="https://www.cardsftw.com/r/bfa5a82d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">&#x21A9;&#xFE0E;</a></li></ol> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" width="30%"> <a href="https://www.cardsftw.com/r/6ce92589?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; vertical-align: middle;"> <p class="feedback-button-text" style="display: inline-block; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin: 1em 0 0 0; line-height: 1.4em; word-break: break-word; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; margin-top: 20px; text-align: center; padding-bottom: 10px; padding-top: 10px; padding-left: 30px; padding-right: 30px; line-height: 1.5em; font-size: 13px;" valign="top" align="center">CardsFTW &#xA9; 2025 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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/eJwszkFuxCAMAMDXLLeNwGA7e_BjAjZJ2qRIhDbq7ytVe5zbqMQ5RERnEjhSRMKUnJ3Lfjx3FWK2DJkpARJ6QzYAZnKbJGAsNdNLdVli1Fdkyn4utcxknNTtAh7QBz8HDpjCFLEsIdfiodaQij2SP9epLF2vOu6ptNN1GTeG34-x6nZcHZo-kv-y-zpsDOtTb2rNDcnfx-fzf-mGrFu7xls_An8BAAD__0aYQAE"></body> </html>
  14. CardsFTW #136: There is No One Card to Rule Them All

    Wed, 18 Dec 2024 17:15:49 -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 #136: There is No One Card to Rule Them All</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: #738a94; 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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padding-bottom: 52px !important; } table.body .kg-header-card.kg-v2 .kg-header-card-heading { font-size: 2.2em !important; line-height: 1.1 !important; } table.body .kg-header-card.kg-v2 .kg-header-card-subheading { line-height: 1.3em !important; } .feature-image-caption { font-size: 13px!important; } .kg-card-figcaption { font-size: 13px!important; } .kg-card-figcaption p, .kg-card-figcaption p span { font-size: 13px!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; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Netflix + Mastercard, New Alaska Airlines Card</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/3f3405a3?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/a38caa8f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #136: There is No One Card to Rule Them All</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">18 Dec 2024 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/846b90f7?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/746b4ea5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h2 id="programming-notes" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Programming Notes</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Today&#x2019;s newsletter is the final CardsFTW for the year. We wish you happy holidays and a great end to your year. See you in 2025!</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Also, we&#39;re aware that some subscribers may not have received our issue last week. You can catch up on last week&#39;s credit card news and a deep dive into PIN-less debit in <a href="https://www.cardsftw.com/r/393b5456?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW#135</a>.</p><h2 id="stocking-stuffers-for-your-favorite-fintech-nerd" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Stocking Stuffers for Your Favorite Fintech Nerd</h2><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2024/12/holidaysocks.png" class="kg-image" alt="Promotional image for Goldman socks featuring two feet with a Santa on on the toes." loading="lazy" width="600" height="344" 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;"><em>Today is the final day to get 40% off Goldman Socks and have them delivered by Christmas. Use code &quot;SOCKSFTW40&quot; checkout. Check out all five fun designs today!</em></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/437a8346?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Get socks today!</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h2 id="no-you-can%E2%80%99t-have-one-card-to-rule-them-all" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">No, You Can&#x2019;t Have One Card to Rule Them All</h2><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2024/12/DALL-E-2024-12-17-17.16.11---A-stylized-and-less-realistic-depiction-of-an-anthropomorphic-credit-card-as-a-king.-The-credit-card-has-no-facial-features--wearing-a-golden-crown--h.webp" class="kg-image" alt="An illustration of a stylized anthropomorphic credit card depicted as a king. The credit card stands on a raised, ornate dais in a grand, minimalist cartoon-like hall. It is adorned with a golden crown, holding a scepter, and draped in a flowing red royal cape. The design is colorful, vibrant, and flat, with no facial features on the credit card, giving it a regal yet animated aesthetic." loading="lazy" width="600" height="343" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">King Credit Card, Sovereign of the Wallet, Keeper of the Points, and Ruler of Commerce.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">My love of credit card rewards started in 2004 when, as a junior strategy consultant at Deloitte Consulting, I was thrown into the travel-every-week lifestyle. It wasn&#x2019;t very glamorous; I flew from Los Angeles to somewhere in the Bay Area every week for about 18 months, but it sure did involve a lot of airplanes and hotels. Business consultants were early to the credit card reward maximization game, and my more experienced colleagues taught me how to optimize my spending.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Over the next seven years, I continued to travel quite a bit through two other jobs - one to two dozen trips annually. I slowly acquired a few more cards, ending up with five. While pumping gas at the Shell Station near the Burbank airport in 2011, I realized that managing my cards was too hard and was inspired by all of the ways that software could fix it. The idea for the Wallaby card was born.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I designed the Wallaby card to be a physical card that would sit in front of a cloud-based digital wallet with each of your other credit cards. You would set preferences and then swipe your Walalby card in person. We would reroute the transaction in the cloud to the preferred card based on rewards, fees, interest rates, etc., so that you didn&#x2019;t have to worry if you were using the right credit card; we would just do it for you.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2024/12/wallaby-ipad.jpg" class="kg-image" alt="Promotional image of Wallaby website" loading="lazy" width="600" height="310" 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;">Consumers loved this idea, but banks did not. We had a plan for how to make this work for banks and make the economics work (people probably will ask how we dealt with the interchange, but we did have a plan).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">We planned to go live with an issuing bank and a prospective network deal with Mastercard by late 2012.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Well, it didn&#x2019;t work out. It turns out that the big banks and payment networks do not want you to build an over-the-top credit card-optimizing wallet that subjugates the branded bank cards. While it wasn&#x2019;t technically against the rules when I started Wallaby, Visa and Mastercard changed the network rules (I got their attention in a bad way) so that you cannot run back-to-back transactions.</p><div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Yet, people keep asking me about this. I receive a message asking me how to build the Wallaby card every month. UK-based provider Curve came to the U.S. to do this, but while they had a deal with Mastercard, Visa and Amex blocked them, so there was no point. They are back on a waitlist for their &#x201C;comeback tour.&#x201D;</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf9JrLSe1Nw3xfLQqHuel_rZ4LF7HWLKdHaxa3fw6_fbCrdFk7-sbvA9_QKmR_g15SPl4u3Q51qmqWJsKhkr8yJs2aqHnBv9btz-UXeuOuBwOgLN0AKJ4Yirl2kG99X5fs7Y4Lf7w?key=MxKjiGUaOqR1FQDRxaCqspID" class="kg-image" alt="Image of Curve&#39;s website with the &quot;Join our waitlist&quot;." loading="lazy" width="600" height="377" 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;">A couple of years ago, a team built a card called &#x201C;Percents&#x201D; on Stripe&#x2019;s platform doing the basic Wallaby stuff and claimed to have a waiver from Visa. I had one of their cards briefly, and it worked, but it no longer exists (the entire company).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The moral of the story is that some ideas can&#x2019;t be developed due to business dynamics. If Visa, Mastercard, Amex, or Discover do not want to allow an over-the-top digital wallet, they simply don&#x2019;t have to. (In the UK, where Curve originated, they have to allow access due to separate open banking regulations.)&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">There is a possible future based on the open NFC APIs that Apple and Google now provide to select the card in the digital wallet, which would be a good step. The issue is that the consumer ideal (a smart wallet that optimizes for YOU) contradicts the bank ideal (you use the same card for everything that isn&#x2019;t optimized).</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;;background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/e28f4575?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgraid to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h2 id="netflix-mastercard" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Netflix + Mastercard</h2><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdxdPITfKKsXfyoc1GxTxbfeAI2akdeEfARIPGEPigUeGXaWzOe6EIIczmFze3mx6g4FDEi0t2WCO4gbO7ZyE3NquC5k3uqRb7bJ_ixNMcN1CUUdhErlCyl-PldgThMy4zmhVfi-w?key=MxKjiGUaOqR1FQDRxaCqspID" class="kg-image" alt="Promotional image for Netflix House" loading="lazy" width="600" height="316" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">How many hours of streaming does it take to be classified as a &quot;Netflix house&quot;?</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Netflix and Mastercard <a href="https://www.cardsftw.com/r/7d1a834f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>have teamed up</u></a> to offer exclusive perks to Mastercard credit cardholders in the United States. This new partnership aims to enhance the Netflix experience for Mastercard users.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Mastercard cardholders will gain access to unique live experiences related to popular Netflix shows and movies. These events may include immersive pop-ups, exclusive screenings, and meet-and-greets with talent. They will also offer cardholders the opportunity to purchase limited-edition merchandise inspired by Netflix content. This could include collectibles, clothing, and other themed items. While specific details are not provided, the partnership hints at potential improvements to the Netflix streaming experience for Mastercard users. I don&#39;t know what that could be. All your streaming in 8K for free? Ability to share passwords?</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">For Netflix, this collaboration represents diversifying its offerings beyond streaming content, opening new revenue streams, and enhancing customer loyalty. For Mastercard, it provides an opportunity to offer unique value to its cardholders, potentially driving increased card usage and customer acquisition&#x2014;yet another example of cards as lifestyle platforms.</p><h2 id="new-alaska-premium-card" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">New Alaska Premium Card</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Bank of America and Alaska Airlines <a href="https://www.cardsftw.com/r/f51cb702?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>announced</u></a> a coming new premium card for next summer, following the successful merger of Alaska Airlines and Hawaiian.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It looks like a primary feature is the card may be black.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXenUL16v87cF3kfRbwbUDvRqI7NRMQRUjymxLxYQGxmYn34R_H_YJ2O08DZ7XhP9txd2Lvp5R7FlmO5RdZSagE852zBsGzeMEaIAtTXQikBeGaZWxbmGMzOfcALaWwM32E76xPQ5A?key=MxKjiGUaOqR1FQDRxaCqspID" class="kg-image" alt="Image of a blank black card with the text &quot;Our new premium card lands summer 2025&quot;" loading="lazy" width="600" height="164" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Maybe they haven&#39;t agreed to a design yet?</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">There are some details, like new global companion certificates (the standard card includes an annual companion certificate for domestic flights), 3x miles on all foreign purchases, and dining. Usually, you get charged a fee on foreign purchases, so bonus miles are a new one for me. The card also comes with lounge passes, Wi-Fi passes, and elite status acceleration.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you sign up today, you will earn 500 miles just by preregistering. If you are approved for the card, you earn 5,000 bonus points in addition to the standard signup bonus. (This is precisely how the Grand Reserve World Mastercard waitlist worked!)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I imagine this card will cost $450 or more and be filled with benefits. I&#x2019;m curious about the full slate of offerings and am excited to see what they bring to the market.</p><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;"><strong style="font-weight: 800;">CardsFTW</strong></h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/aa1fe0d5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/c751d2d5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit<a href="https://www.cardsftw.com/r/bc4785b0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/1884f015?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p><div></div> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" nowrap width="30%"> <a href="https://www.cardsftw.com/r/a4a4ef0e?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: inline-block; vertical-align: middle;"> <p class="feedback-button-text" style="margin: 0 0 1.5em 0; line-height: 1.6em; display: inline; padding-left: 8px; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin-bottom: 0; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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; 2024 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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/eJwszktuhDAMANDTTHag2HFisvBhAjafFhoppEW9faVqlm_3VMIEIUZnAhwoEgJNzq5ynMOhkjgFH4ImBMvBl8SzptmK28WXNRSCHGPU4ImyX1aDtGZmzMazOwQ9EiBMwBApjZmV0QoARUW18iJ_beNSmt5rf8alXq5JfyL8fvRN9_NuWPVF_sue-7TerY2tqlXXZf4-P4f_peuy7fXub_0I_gUAAP__AcY_ZA"></body> </html>
  15. CardsFTW #134: Cards & Live Events

    Wed, 04 Dec 2024 20:27:24 -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 #134: Cards &amp; Live Events</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: #738a94; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 15px; 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line-height: 1.1 !important; } table.body .kg-header-card.kg-v2 .kg-header-card-subheading { line-height: 1.3em !important; } .feature-image-caption { font-size: 13px!important; } .kg-card-figcaption { font-size: 13px!important; } .kg-card-figcaption p, .kg-card-figcaption p span { font-size: 13px!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; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus, Eddie Bauer launched a new card, and I complain about ACH fees</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/30bf53d8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/0013a870?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #134: Cards &amp; Live Events</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; padding: 0;" valign="top" align="center"> By MatthewGoldman &#x2022; <span class="post-meta-date" style="white-space: nowrap;">4 Dec 2024 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/ee3efb69?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/d6eb153f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;SegoeUI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h1 id="card-perks-and-live-events" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Card Perks and Live Events</h1><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2024/12/img_3464.jpg" class="kg-image" alt loading="lazy" width="600" height="450" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">My first game at SoFi! No, this is not the VIP section.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I&#x2019;ve been attending a couple of events over the past few months, and it started me to think about how financial services companies, specifically those with debit and credit cards, are connecting their brands to live events. While the networks (Visa and Mastercard) have long promoted usage at major venues to tie emotional experiences (like going to a baseball game or the Olympics) to cards, the specificity of what a card membership can actually get you is increasing.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">While the networks (Visa and Mastercard) have long promoted usage at major venues to tie emotional experiences (e.g., going to a baseball game or the Olympics) to cards, the specificity of what you can get as a card member is increasing.&#xA0;</p><p style="margin: 00 1.5em 0; line-height: 1.6em;">American Express has member-only entrancesat several venues and events, from the U.S. Open to the Hollywood Bowl. Amex&#x2019;s <a href="https://www.cardsftw.com/r/5c9e84a1?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Venue Collection</u></a> includes special access tickets, dedicated lanes, and a 10% discount on concessions as a statement credit.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2024/12/download_enhanced.jpg" class="kg-image" alt="Text on a black banner that says &quot;American Express Venue Collection&quot;" loading="lazy" width="600" height="134" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">What will they collect next? Airlines? Oh, wait...</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I went to my first game at SoFi stadium the other week. I noticed that <a href="https://www.cardsftw.com/r/7cf6da37?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>SoFi members</u></a> had access to shorter ticket lines and 25% cashback rewards on concessions and merchandise (not to mention express entry and VIP access during NFL season)! Had I known about that beforehand, I would have absolutely picked up a SoFi card before going. I do wonder, though, why the deal doesn&#x2019;t apply to credit cards.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The <a href="https://www.cardsftw.com/r/11ae3698?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Chase Lounge at New York&#x2019;s Madison Square Garden</u></a> offers free food and soft drinks, as well as advanced ticket sales, preferred seating, and special offers at the team stores. Many local banks and credit unions offer similar privileges at various local stadiums, like how Wescom Bruin Edge Visa Credit cardholders get VIP entrance for UCLA home games at my backyard venue, the Rose Bowl. </p><p style="margin: 0 01.5em 0; line-height: 1.6em;">Speaking of the Rose Bowl, The Weeknd announced a one-night-only show at the venue, where <a href="https://www.cardsftw.com/r/ae8b8c48?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Cash App Visa cardholders</u></a> will have access to premium tickets and 20% off merchandise purchased at the show. This deal is already blowing up on Reddit, so we&#39;ll see how long those premium tickets last.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Each card and its unique benefits speak to the continuing trend of cards as lifestyle choices, not just financial tools. If you are a sports superfan and go to a venue many times a year, these benefits could turn the tide for your card choice. For others, like myself, the cards may be a simple nice-to-have if and when I attend a specific venue. Either way, we&#x2019;re all receiving many more benefits from our cards than we used to.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/4ec10113?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h1 id="a-new-eddie-bauer-card" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">A New Eddie Bauer Card</h1><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/2024/12/unnamed.png" class="kg-image" alt="A green Mastercard with the Eddie Bauer logo and an outline of a goose in the background" loading="lazy" width="600" height="377" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Choosing which card to use will be like a game of duck, duck, goose!</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Fintech credit card provider <a href="https://www.cardsftw.com/r/846f0eaf?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Imprint</u></a> continues to expand, most recently with <a href="https://www.cardsftw.com/r/6117a6f6?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>the announcement of a new card with retailer Eddie Bauer</u></a>. The new <a href="https://www.cardsftw.com/r/ffe25bd0?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Eddie Bauer World Mastercard</u></a> earns 3x points at Eddie Bauer, 2 points on dining and gas, and 1 point everywhere else. It has a modest signup bonus of 15% off your first online purchase, plus 500 points. The card ties into Eddie Bauer&#x2019;s existing &#x201C;Adventure Rewards&#x201D; program, whichearns 5x points at Eddie Bauer, so cardholders can earn a total of 8x points per dollar. Shoppers also get free return shipping, which apparently isn&#x2019;t something Eddie Bauer normally offers.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">These retail cards get a big &#x201C;meh&#x201D; from me. They&#x2019;re cookie-cutter offerings for a very small and specific group of users. Are there enough Eddie Bauer super fans that want a credit card? I don&#x2019;t know. I also don&#x2019;t see Imprints cards as having the kind of deep brand integration modern tech platforms can provide; instead, I see these looking a lot like what Synchrony and Comenity have been offering for decades. Even the card website is on <a href="https://www.cardsftw.com/r/37bdc59a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>imprint.co</u></a>, not <a href="https://www.cardsftw.com/r/96dbd725?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>eddiebauer.com</u></a>. I&#x2019;m not the target demographic here; I don&#x2019;t recall the last time I purchased something from Eddie Bauer, but I&#x2019;m not impressed.</p><div></div><h1 id="not-cards-whats-the-deal-with-ach-fees" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Not Cards: What&#39;s the Deal with ACH Fees?</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Pay-by-bank, which is just a fancy way of saying ACH and checks, has began to challenge the dominance of credit cards. I mean really, aren&#39;t all payments via a bank? Credit cards are issued by banks after all.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">As more and more consumer and end-user focused pay-by-bank options come into play, I have been astonished by the costs providers are charging. QuickBooks charges 1% for ACH payments, on a cost I presume is something like a flat $0.02 - $0.10 per transaction. Other platforms may charge 0.5% with a cap of $5-10, which feels more reasonable. ACH is a preferred payment for larger charges (think of purchases like home contractors at $5,000-$10,000 and up vs. small payments). </p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If the ACH providers and pay-by-bank platforms want to win, I think they need to be super aggressively inexpensive. And I don&#39;t mean 1% rather than 3%, but 0.5% with a $5 cap aggressive. Consumers and merchants alike give up a set of protections and processes (e.g., disputes, zero liability fraud, guaranteed payment, etc.) that ACH doesn&#39;t provide. Unless that 1% starts to include all of these features, it&#39;s just a rip-off. And the insurance, so to speak, of the credit card makes the cost worth it.</p><h1 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">CardsFTW</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/a4f81112?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/84d30a32?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit<a href="https://www.cardsftw.com/r/615f9da5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u> www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>Interested in reaching our audience? </em><a href="https://www.cardsftw.com/r/6473002c?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><em><u>You can sponsor CardsFTW.</u></em></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><em>*Indicates a company with which Totavi has a financial relationship.</em></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" nowrap width="30%"> <a href="https://www.cardsftw.com/r/1b149342?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: inline-block; vertical-align: middle;"> <p class="feedback-button-text" style="margin: 0 0 1.5em 0; line-height: 1.6em; display: inline; padding-left: 8px; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin-bottom: 0; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; 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N,&#xA0;Sacramento, CA 95816</span></p></td></tr> <tr> <td class="footer" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto,Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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; 2024 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1px" height="1px" alt="" src="https://email.mg.cardsftw.com/o/eJwszkluhTAMANDT_OxAju1MixwmgwO00EghLertK1V_-XavRvKajFEStSMiZmBScqXjXI4arTOQM5JFLYEgWZerqZbUHrXNojNj8064pRKCMDcwYBJJK14dEQFZIzACOsRVh5Ja9aJNBgrJvxiubS1p1LvNZy39UiPOx-jfj7nV_bwH9vpi-JLnPmVOGevoVbqaMX-fn8v_Us247f2eb_1E_AsAAP__Rsw_3w"></body> </html>
  16. CardsFTW #133: A Card Nerd's Gift Guide

    Wed, 27 Nov 2024 17:38:30 -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 #133: A Card Nerd&#39;s Gift Guide</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: #738a94; 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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line-height: inherit; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Thanksgiving is late this year, and the traditional holiday shopping period is one week shorter. We&#39;re taking a break from our usual programming to share a fun-filled gift guide for fintech and credit card nerds. Share this with your loved ones so they know what to get you, or treat yourself! Goldman Socks Earlier this year, we launched Goldman Socks, which now features five fin-tastic sock designs. You can show your love for CardsFTW or wear a reminder of how to profit when trading. Socks ar</span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/9eb0a8b3?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-no-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 16px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/29b0290a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #133: A Card Nerd&#39;s Gift Guide</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">27 Nov 2024 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/ba3a0d67?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/c2f65c19?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Thanksgiving is late this year, and the traditional holiday shopping period is one week shorter. We&#39;re taking a break from our usual programming to share a fun-filled gift guide for fintech and credit card nerds. Share this with your loved ones so they know what to get you, or treat yourself!</p><h1 id="goldman-socks" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Goldman Socks</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Earlier this year, we launched <a href="https://www.cardsftw.com/r/2379f7c3?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Goldman Socks</a>, which now features five fin-tastic sock designs. You can show your love for CardsFTW or wear a reminder of how to profit when trading. Socks are $24 per pair, but you can <strong style="font-weight: 700;">save 20% with code &quot;diversify&quot;</strong> so that you can, you know, diversify your sock portfolio.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2024/11/goldman-sock-collection-1.png" class="kg-image" alt="Image of the Goldman sock collection, featuring five colorful pairs of socks with unique financial-themed designs.From left to right: a geometric pattern with earthy tones, blue argyle with dollar signs, a yellow sock with a wallet icon, a red sock with &#x2018;BAAS&#x2019; text and sheep holding money, and a teal sock featuring bull and bear market icons with the phrases &#x2018;SELL HIGH&#x2019; and &#x2018;BUY LOW.&#x2019;" loading="lazy" width="600" height="417" 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;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/d71ba71f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Buy Socks!</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="bellroy-slim-sleeve-wallet" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Bellroy Slim Sleeve Wallet</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">I may have more than 30 active credit cards (including business cards!). While I can&#39;t carry all of them in this wallet, I can carry a lot of them without getting a <a href="https://www.cardsftw.com/r/fc464316?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">George Costanza wallet effect</a>. I&#39;ve been using the Bellroy Slim Sleeve for almost a decade and find it the best wallet for a card aficionado.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><a href="https://www.cardsftw.com/r/8fc3c246?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><img src="https://www.cardsftw.com/content/images/2024/11/bellroy.jpeg" class="kg-image" alt="Image of a sleek, minimalist brown leather wallet with visible stitching along the edges. The wallet features the &#x2018;Bellroy&#x2019; logo embossed in the lower-right corner, highlighting its premium craftsmanship." loading="lazy" width="600" height="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></a><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">We recommend this Totavi-approved deep orange.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/6c432982?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Grab a Wallet</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="card-case" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0;font-size: 42px; font-weight: 700;">Card Case</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">OK, now you have the wallet, but where do you store all your other cards? I keep my active and inactive collection in a couple of these Amazon goodies: the Gowall Business Card Holder.</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><a href="https://www.cardsftw.com/r/1d34e353?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><img src="https://www.cardsftw.com/content/images/2024/11/gowall.jpg" class="kg-image" alt="Image of a black leather-bound name card book with &#x2018;Name card Book 240 Cards&#x2019; embossed on the cover. The book is open, displaying clear plastic sleeves holding business cards." loading="lazy" width="600" height="634" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></a><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Just imagine credit cards, instead of business cards.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/64e77763?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Carry a Card Case</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="a-totavi-research-subscription" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">A Totavi Research Subscription</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you&#39;re looking to level up your industry knowledge, our new Totavi Research Subscription offers updated, in-depth reports on cards and fintech. <strong style="font-weight: 700;">Use code &quot;cardsftw&quot; for 20% off </strong>the annual subscription.</p><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/size/w1600/2024/11/research-reports.png" class="kg-image" alt="Image showcasing three market analysis reports offered by Totavi, titled &#x2018;Data Aggregator Market Analysis,&#x2019; &#x2018;Debit Card Program Management Platform Market Analysis,&#x2019; and &#x2018;Credit-Cards-as-a-Service Market Analysis.&#x2019; Each report features a unique cover design: the first with data visualizations and orange tones, the second displaying a grid of debit card designs, and the third with a stylized abstract rocky landscape." loading="lazy" width="600" height="333" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></div><p style="margin: 00 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/c65f07da?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Read the Research</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h1 id="new-books" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">New Books</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">We have a strong collection of books in our <a href="https://www.cardsftw.com/r/546b2366?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">CardsFTW reading list</a>, but three new ones have caught our eyes for holiday reading.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/3d79fda4?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><strong style="font-weight: 700;"><em>Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models</em></strong></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Jason Mikula&#39;s forthcoming book on banking as a service drops just after the holidays (in case you need a Boxing Day present).</p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><a href="https://www.cardsftw.com/r/9c30e663?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><img src="https://www.cardsftw.com/content/images/2024/11/jason.jpg" class="kg-image" alt="Book cover for &#x2018;Banking as a Service: Opportunities, Challenges and Risks of New Banking Business Models&#x2019; by Jason Mikula. The cover features a dark blue background with a stylized design of interconnected dots and lines forming a semicircle and radiating outward, symbolizing networks or data. " loading="lazy" width="333" height="500" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></a><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Pairs Great with our BAAS socks.</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/8fede577?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><strong style="font-weight: 700;">Savings and Trust: The Rise and Betrayal of the Freedman&#39;s Bank</strong></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Our second book is by author Justene Hill Edwards and covers the history of the Freedman&#39;s Bank. </p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><a href="https://www.cardsftw.com/r/01b8e1fe?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><img src="https://www.cardsftw.com/content/images/2024/11/freedmans.jpg" class="kg-image" alt="Book cover for &#x2018;The Rise and Betrayal of the Freedman&#x2019;s Bank: Savings and Trust&#x2019; by Justene Hill Edwards. The cover features an ornate, vintage-style border with sepia tones, centered text in bold, and an archival photograph of a group of African Americans in historical attire, emphasizing the historical significance of the Freedman&#x2019;s Bank established in 1865." loading="lazy" width="327" height="500" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0 auto; height: auto; width: auto;"></a><div class="kg-card-figcaption" style="text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Important Reading</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/23805dc9?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><strong style="font-weight: 700;"><em>Fintech Feminists</em></strong></a></p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Lastly, we picked up Nicole Casperson&#39;s new book at Money2020.</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/2024/11/fintech-feminists.webp" class="kg-image" alt="Book cover for &#x2018;Fintech Feminists&#x2019; by Nicole Casperson. The cover features a close-up of a woman in professional attire, with the title text in bold, modern typography. The subtitle reads, &#x2018;Increasing Inclusion, Redefining Innovation, and Changing the Future for Women Around the World.&#x2019;" loading="lazy" width="337" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Remember inclusion isn&#39;t just a job for women</span></div></div><h1 id="keysmart-card-tracker" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">KeySmart Card Tracker</h1><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you love cards as much as I do, losing them is anightmare. While a traditional Apple AirTag is too bulky, the KeySmart SmartCard is a Bluetooth tracker that looks just like a card! </p><div class="kg-card kg-image-card kg-card-hascaption" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2024/11/keysmart.webp" class="kg-image" alt="Image showcasing the KeySmart Card, a slim tracking device designed to fit into a wallet. The card is partially inserted into a sleek black leather cardholder, emitting a green light. Beside it, a smartphone screen displays a map with the location of the KeySmart Card, emphasizing its tracking functionality." loading="lazy" width="600" height="600" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">I bought one of these for myself!</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/6513e962?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Track Your Wallet</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h3 id="a-cardsftw-subscription" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;">A CardsFTW Subscription</h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">If you&#39;re not already a paid subscriber (thank you to those who are!), now is the perfect time to gift yourself a premium subscription to <em>CardsFTW</em>.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"><table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"><tr><td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"><a href="https://www.cardsftw.com/r/887c5c61?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade Today!</a></td></tr></table></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><h2 id="me-elsewhere" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">Me, Elsewhere</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">It&#39;s the end of the year, which means that it&#39;s time for everyone&#39;s predictions about the year ahead are starting to roll out (our annual post will be shared in a few weeks). This week&#39;s <a href="https://www.cardsftw.com/r/069af5b5?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Fintech Takes with Alex Johnson</a> podcast features a conversation with Alex, Todd Pollak, CRO at Marqeta, and me, discussing the state of credit and what we thinkmay lie ahead in 2025.</p><div class="kg-card kg-embed-card" style="margin: 0 0 1.5em; padding: 0;"><iframe style="border-radius: 12px" width="100%" height="152" title="Spotify Embed: Fintech in 2025: Where the Industry Goes Next - The State of Credit in 2025" frameborder="0" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" loading="lazy" src="https://open.spotify.com/embed/episode/4p6HWBhvdC5RQHjD56syp1?si=dec06509bc4945d7&amp;utm_source=oembed"></iframe></div><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">CardsFTW</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/dbfd8288?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at&#xA0;<a href="https://www.cardsftw.com/r/9c5b447d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit&#xA0;<a href="https://www.cardsftw.com/r/523d32c9?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a>&#xA0;to learn more.</p><div></div> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; margin: auto; width: 100%;" width="100%"> <tr> <td dir="ltr" valign="top" align="center" style="font-size: 18px; color: #15212A; display: inline-block; vertical-align: top; font-family: inherit; text-align: center; padding: 0 4px 4px; cursor: pointer; width: 30%;" nowrap width="30%"> <a href="https://www.cardsftw.com/r/9c3ae8d2?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" target="_blank" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;"> <img src="https://static.ghost.org/v5.0.0/images/comment-mobile.png" border="0" width="42" height="42" alt="Comment" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: inline-block; vertical-align: middle;"> <p class="feedback-button-text" style="margin: 0 0 1.5em 0; line-height: 1.6em; display: inline; padding-left: 8px; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; color: #15212A; font-weight: 500; margin-bottom: 0; font-size: 13px;">Comment</p> </a> </td> </tr> </table> </td> </tr> <tr> <td class="subscription-box" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; padding: 32px 0; border-bottom: 1px solid #e5eff5; color: #15212A;" valign="top"> <h3 style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; font-size: 14px; font-weight: 700; text-transform: uppercase; margin: 0 0 18px;">Subscription details</h3> <p style="margin: 0 0 1.5em 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; margin-bottom: 16px; color: #15212A;"> <span>You are receiving this because you are a <strong style="font-weight: 700;">free subscriber</strong> to CardsFTW.</span> </p> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr> <td class="subscription-details" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top"> <p class="" style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Name: roger</p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Email: <a href="#" style="overflow-wrap: anywhere; text-decoration: none; color: #15212A;" target="_blank">tw51yjtgdhlsr2od@newsletter.rodeo</a></p> <p style="margin: 0 0 1.5em 0; margin-bottom: 0; font-size: 15px; font-weight: 400; line-height: 1.45em; text-decoration: none; color: #15212A;">Member since: 7 March 2024</p> </td> <td align="right" valign="bottom" class="manage-subscription" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; white-space: nowrap; font-size: 15px; font-weight: 600; text-align: right; line-height: 1.45em; vertical-align: bottom; color: #F9A60D;"> <a href="https://www.cardsftw.com/#/portal/account" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> Manage subscription &#x2192;</a> </td> </tr> </table> </td> </tr> <tr> <td class="wrapper" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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; 2024 &#x2013; <a href="https://www.cardsftw.com/unsubscribe/?uuid=c62b746c-f2ed-4fee-8f26-488cc07e1c4e&key=44d661c4f7da07f15bd29599b4345e87e54ce5bd0afd084e1bee49ee89a327ac&newsletter=4537ad55-eebc-4678-b2bf-fd6731d3805e" style="overflow-wrap: anywhere; color: #738a94; text-decoration: underline; font-size: 13px;" target="_blank">Unsubscribe</a></td> </tr> <tr> <td class="footer-powered" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> </tr> <!--[if mso]> </table> </center> </td> </tr> <![endif]--> </table> <img width="1px" height="1px" alt="" src="https://email.mg.cardsftw.com/o/eJwszs1OxSAQQOGnkd1t5qcwsJiH4XagrbaSULTx7Y3mLk9yFp8pR2TvXVEUJqGEkFw58348dtMgs3ghHwhLYshBnjZXL27TVNk4xUhCbGYBIRMklKVmX3Oc3a4ENCOSoDAQTAEsC5thxCUI29sM5zotudtVxz0t7XRdx-3x532sth1Xp_Y3fZb7OsoYpU-9WWlu6PPr-Hj8K93QdWvXeNW30m8AAAD__7ZzPts"></body> </html>
  17. CardsFTW #132: Rewards and 1033

    Wed, 20 Nov 2024 17:31:09 -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 #132: Rewards and 1033</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: #738a94; text-decoration: underline !important; } .kg-nft-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 14px; line-height: 1.3em; padding-top: 4px; padding-right: 20px; padding-left: 20px; padding-bottom: 4px; } .kg-twitter-link { display: block; text-decoration: none !important; color: #15212A !important; font-family: inherit !important; font-size: 15px; 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line-height: 1.1 !important; } table.body .kg-header-card.kg-v2 .kg-header-card-subheading { line-height: 1.3em !important; } .feature-image-caption { font-size: 13px!important; } .kg-card-figcaption { font-size: 13px!important; } .kg-card-figcaption p, .kg-card-figcaption p span { font-size: 13px!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; } .btn-primary table td:hover { background-color: #34495e !important; } .btn-primary a:hover { background-color: #34495e !important; border-color: #34495e !important; } } </style> </head> <body style="background-color: #fff; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; -webkit-font-smoothing: antialiased; font-size: 18px; line-height: 1.4; margin: 0; padding: 0; -ms-text-size-adjust: 100%; -webkit-text-size-adjust: 100%; color: #15212A;"> <span class="preheader" style="color: transparent; display: none; height: 0; max-height: 0; max-width: 0; opacity: 0; overflow: hidden; mso-hide: all; visibility: hidden; width: 0;">Plus a New Card Funding College Athletes </span> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="body" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background-color: #fff; width: 100%;" bgcolor="#fff"> <!-- Outlook doesn't respect max-width so we need an extra centered table --> <!--[if mso]> <tr> <td> <center> <table border="0" cellpadding="0" cellspacing="0" width="600"> <![endif]--> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A;" valign="top">&#xA0;</td> <td class="container" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; display: block; max-width: 600px; margin: 0 auto;" valign="top"> <div class="content" style="box-sizing: border-box; display: block; margin: 0 auto; max-width: 600px;"> <!-- START CENTERED WHITE CONTAINER --> <table role="presentation" border="0" cellpadding="0" cellspacing="0" class="main" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; background: #ffffff; border-radius: 3px; border-spacing: 20px 0; width: 100%;"> <!-- START MAIN CONTENT AREA --> <tr> <td class="wrapper" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; box-sizing: border-box;" valign="top"> <table role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%;"> <tr class="header-image-row"> <td class="header-image" width="100%" align="center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; padding-top: 24px; padding-bottom: 16px;" valign="top"> <a href="https://www.cardsftw.com/r/7a500c6f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="color: #F9A60D; text-decoration: none; overflow-wrap: anywhere;" target="_blank"> <img src="https://www.cardsftw.com/content/images/size/w1200/2024/01/cftw-logo-3.png" width="600" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%;"> </a> </td> </tr> <tr> <td class="post-title post-title-with-excerpt post-title-serif" style="vertical-align: top; color: #15212A; font-size: 36px; line-height: 1.1em; font-weight: 700; text-align: center; padding-bottom: 8px; font-family: Georgia, serif; letter-spacing: -0.01em;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/2d8fd2a1?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="post-title-link" style="text-decoration: none; display: block; margin-top: 32px; color: #15212A; text-align: center; line-height: 1.1em; overflow-wrap: anywhere;" target="_blank">CardsFTW #132: Rewards and 1033</a> </td> </tr> <tr> <td style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; width: 100%;" width="100%" valign="top"> <table class="post-meta-wrapper" role="presentation" border="0" cellpadding="0" cellspacing="0" width="100%" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: 100%; padding-bottom: 32px;"> <tr> <td height="20" class="post-meta post-meta-center" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; 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;">20 Nov 2024 </span> </td> <td class="post-meta post-meta-center view-online desktop" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; display: none;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/91295b77?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; 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: #738a94; font-size: 13px; font-weight: 400; text-align: center;" align="center"> <td height="20" class="view-online" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; color: #738a94; font-size: 13px; font-weight: 400; text-align: center; text-decoration: underline;" valign="top" align="center"> <a href="https://www.cardsftw.com/r/e6703d98?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" class="view-online-link" style="word-wrap: none; white-space: nowrap; color: #738a94; overflow-wrap: anywhere; text-decoration: underline;" target="_blank">View in browser</a> </td> </tr> </table> </td> </tr> <tr class="post-content-row"> <td class="post-content-sans-serif" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; vertical-align: top; font-size: 17px; line-height: 1.5em; color: #15212A; padding-bottom: 20px; border-bottom: 1px solid #e5eff5; max-width: 600px;" valign="top"> <!-- POST CONTENT START --> <h2 id="a-programming-note" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">A Programming Note</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Today we will feature a guest post by my friend Andrew Grant. Andrew is a co-founder and partner at Runway LLP, and loves talking all things cards, payments, and open banking. You can find him on <a href="https://www.cardsftw.com/r/1adc907a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">LinkedIn</a> or at andrew@rnwy.group</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Next week, weare off for Thanksgiving.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Before we dig into Andrew&#39;s thoughts on rule 1033, a quick note about a new card that stuck out to me this week.</p><h1 id="buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo%E2%98%A8" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;">Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo&#x2628;</h1><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/2024/11/gobuffscard.jpeg" class="kg-image" alt="Image of the Go Buffs&#xAE; Visa&#xAE; Signature Rewards Credit Card" loading="lazy" width="283" height="178" 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, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; padding-top: 10px; padding-bottom: 10px; line-height: 1.5em; color: #738a94; font-size: 13px;"><span style="text-align: center; white-space: pre-wrap;">Dmitri Borgmann</span></div></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/a2108c85?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Elevations Credit Union</a>, which I&#39;ve never talked about before, announced the launch of <a href="https://www.cardsftw.com/r/44bcc66d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">The Go Buffs&#xAE; Visa&#xAE; Signature Rewards Credit Card</a>. As far as I know, the new card is the first and only credit card that funds college athletes via the NCAA name, image, and likeness (NIL) program with every swipe.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">That&#39;s right folks, not only do you earn 3% cash back on select Colorado University purchases like merchandise, the team store, the CU Book Store (but only in Boulder), home game concessions and donations to the right clubs; 2% on gas, restaurants, phone plans, streaming, and tv, but <strong style="font-weight: 700;">2 cents</strong> ($0.02) per swipe and your entire $49 annual fee go directly to donations for NIL. </p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">But wait, there&#39;s more! You also get free popcorn at home basketball and football games. (Only available while supplies last to members who present an Elevations card.)</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">The designs are nice if you&#39;re a huge Colorado fan (choose from black or gold). The Deion Sanders effect has finally reached credit cards, but I&#39;m not sure what to do with it. I went to a DIII school, so I can&#39;t get too excited about college football, but while many <a href="https://www.cardsftw.com/r/dc638e86?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">college football cards exist with extremely specific rewards</a>, this NIL bit is new. Wild. Just like the buffalo should be.</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0;height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Thank you for subscribing to&#xA0;CardsFTW. Please consider supporting this newsletter&#xA0;by upgrading to a paid subscription today.</span></p><div class="btn btn-accent" style="box-sizing: border-box; width: 100%; display: table;"> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse: separate; mso-table-lspace: 0pt; mso-table-rspace: 0pt; width: auto;" width="auto"> <tbody> <tr> <td align="center" style="font-size: 18px; vertical-align: top; color: #15212A; border-radius: 5px; text-align: center; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; background-color: #F9A60D;" valign="top" bgcolor="#F9A60D"> <a href="https://www.cardsftw.com/r/0f14faf8?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; border: solid 1px #3498db; border-radius: 5px; box-sizing: border-box; cursor: pointer; display: inline-block; font-size: 14px; font-weight: bold; margin: 0; padding: 12px 25px; text-decoration: none; background-color: #F9A60D; border-color: #F9A60D; color: #FFFFFF;" target="_blank">Upgrade to Paid</a> </td> </tr> </tbody> </table> </div> <p style="margin: 0 0 1.5em 0; line-height: 1.6em;"></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h1 id="maximizing-credit-card-rewards-%E2%80%93-why-access-under-1033-could-benefit-customers" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 42px; font-weight: 700;"><strong style="font-weight: 800;">Maximizing Credit Card Rewards &#x2013; Why Access Under 1033 Could Benefit Customers</strong></h1><div class="kg-card kg-image-card" style="margin: 0 0 1.5em; padding: 0;"><img src="https://www.cardsftw.com/content/images/2024/11/1033-copy.png" class="kg-image" alt="Illustration of a credit card and various symbols to represent sharing of credit card rewards data" loading="lazy" width="600" height="328" style="border: none; -ms-interpolation-mode: bicubic; max-width: 100%; display: block; margin: 0auto; height: auto; width: auto;"></div><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">While I assume anyone reading this newsletter is aware that the CFPB finalized its 1033 rulemaking, in case not, or if you&#x2019;re unclear what it is, here&#x2019;s a high-level, one-sentence overview. The 1033 rule requires &#x201C;data providers&#x201D;&#x2014;your banks and other financial institutions&#x2014;to make certain data available to an &#x201C;authorized third party&#x201D; (think your budgeting app) via APIs. This data is basically data from your credit cards or bank accounts (with some nuances on scope there).&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Today, most data providers do not make credit card rewards information available via APIs to third parties. But for data providers to comply with the final rule, that will change! Specifically, data providers must make (1) &#x201C;rewards credits&#x201D; information and (2) rewards program terms available via their &#x201C;developer interfaces&#x201D; to &#x201C;authorized third parties.&#x201D; Below, I&#x2019;ll explain what that means, what it doesn&#x2019;t mean, what open questions remain, and why giving consumers greater access to rewards information across credit cards makes me excited for new opportunities to better empower consumers to earn and use rewards in addition to better understanding their existing rewards programs against competitive programs.&#xA0;</p><div></div><h3 id="what-do-%E2%80%9Crewards-credits%E2%80%9D-and-%E2%80%9Crewards-program-terms%E2%80%9D-mean-and-when-must-data-providers-share-this-information" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;"><strong style="font-weight: 800;">What do &#x201C;rewards credits&#x201D; and &#x201C;rewards program terms&#x201D; mean, and when must data providers share this information?</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">So, what are &#x201C;rewards credits&#x201D;? Good question! The CFPB doesn&#x2019;t define the term, but I expect they&#x2019;re what you&#x2019;d anticipate &#x2013; what rewards you&#x2019;ve <em>earned </em>from a rewards program <em>from that data provider</em>. But the 1033 rule contains a potentially key general limitation for data sharing that may be felt more acutely with rewards credits than in other areas - data providers must only make available &#x201C;covered data&#x201D; the data provider can retrieve in the ordinary course of <em>its</em> business. This means that not <em>all</em> rewards information may be available; if you use a co-brand card and the rewards information resides with that partner and not the data provider, e.g., airline miles, the data provider isn&#x2019;t responsible for making that information available.&#xA0;&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">What about &#x201C;rewards program terms&#x201D;? That seems straightforward &#x2013; the terms applicable to the rewards program. But I&#x2019;m curious about its implementation.&#xA0; Will it just be the actual rewards terms for a program? Will it include reward options that a consumer may opt into, e.g., this week, choose from the following ten merchants to receive additional rewards? I&#x2019;d be surprised if the latter were initially included. Still, as with other components of 1033 that are not currently being provided consistently, the &#x201C;consensus standard&#x201D; that develops will be critical (the use of standard-setting bodies and &#x201C;consensus standards&#x201D; is an entirely different and interesting topic! But not &#x2013; yet &#x2013; for this newsletter).</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Okay, when can you authorize a third party to access rewards information on your behalf (by law, at least)? Reader &#x2013; it will be at least until April 1, 2026 (longer if the lawsuit challenging 1033 is successful). This is when the original set of data providers must make the information available. These are the largest data providers &#x2013; depository institutions with $250B in total assets or non-depository institutions with $10B in receipts. Then follows tiered dates until April 1, 2030, when all covered data providers must make this information available through a &#x201C;developer interface.&#x201D; So, this will not be immediate. And, as noted above, it will not cover <em>all</em> rewards credits (or even rewards terms)&#x2014;only those with the data provider. So, while this will not be immediate, I think it will have a profound impact on how people use and manage their rewards while also influencing what cards they sign up for and why. So, let&#x2019;s discuss some possibilities that may arise!</p><div class="align-center" style="text-align: center;"><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><span style="white-space: pre-wrap;">Do you love CardsFTW? Share or forward this post to a friend!&#xA0;</span></p><hr style="position: relative; display: block; width: 100%; margin: 3em 0; padding: 0; height: 1px; border: 0; border-top: 1px solid #e5eff5;"></div><h3 id="why-is-it-important-that-i-can-authorize-third-parties-to-access-my-credit-card-rewards-information" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;"><strong style="font-weight: 800;">Why is it important that I can authorize third parties to access my credit card rewards information?</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">In the CFPB&#x2019;s words, &quot;rewards programs information will help consumers comparison shop and use any awards they accrue optimally.&#x201D; I think the CFPB is 100% correct here. Expanding access to rewards information is an important part of the larger push for consumer empowerment, including allowing them to better compare and select credit cards.&#xA0;</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">So, how may this information do so? Here are some of my thoughts on some use cases that can meaningfully help consumers:</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;"><u>Optimize Rewards Usage Across Multiple Programs</u>. Apps could help consumers track, compare, and use rewards across different programs; provide a consolidated view of all rewards; highlight expiration dates; and recommend optional redemption options.&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><u>Dynamic Recommendations to Optimize Rewards Accrual</u>. Apps could analyze spending behavior in real time and recommend the best credit card to use to maximize rewards for that transaction. Further, the app could send personalized, context-based notifications to users when shopping at a specific store or traveling.</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><u>Automated Rewards Redemption</u>. Users could set specific parameters for redeeming rewards, or the app could identify various optimal redemption options and allow them to choose which they prefer.&#xA0;&#xA0;</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;"><u>Rewards Value Tracking and Analysis</u>. An app could help consumers assess the real value of their rewards by comparing redemption rates and trends in program valuations (or devaluations) and alerting users to whether their rewards programs have changed how they value rewards or how users can earn rewards. For example, the app could calculate a user&#x2019;s rewards &#x201C;portfolio&#x201D; and provide recommendations for diversifying their rewards or getting better returns on spending for a particular class of rewards.</li></ul><h3 id="some-questions-on-what%E2%80%99s-next" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 26px;"><strong style="font-weight: 800;">Some questions on what&#x2019;s next?</strong></h3><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Here are a couple of questions I have and issues I&#x2019;ll be watching over the coming months and years as this provision of the 1033 rolls out:</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;">Will other entities, like airlines, look to make their rewards information available? As I noted above, not all rewards information may be available if, for example, the co-brand partner holds that data. Data providers for &#x201C;covered data&#x201D; under 1033 cannot charge for data access; this does not prohibit other entities from doing so. Obviously, providing consumers complete access to their rewards data will be most beneficial, but will we get there?</li><li style="margin: 0.5em 0; padding-left: 0.3em; line-height: 1.6em;">What will the impact be on card issuers and market dynamics? This may further encourage competition and transparency in rewards.&#xA0;</li></ul><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">Overall, exciting times are ahead for open banking. And I&#x2019;m sure that new ideas will emerge between now and the time data providers must make this available about how to best empower consumers to earn and use their rewards. </p><div></div><h2 id="cardsftw" style="margin-top: 0; font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; line-height: 1.11em; font-weight: 700; text-rendering: optimizeLegibility; margin: 1.5em 0 0.5em 0; font-size: 32px;">CardsFTW</h2><p style="margin: 0 0 1.5em 0; line-height: 1.6em;"><a href="https://www.cardsftw.com/r/4f4cf99a?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>CardsFTW</u></a>, released weekly on Wednesdays, offers insights and analysis on new credit and debit card industry products for consumers and providers. CardsFTW is authored and published by Matthew Goldman and the team at <a href="https://www.cardsftw.com/r/2382dbf2?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>Totavi</u></a>, a boutique consulting firm specializing in fintech product management &amp; marketing. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Visit <a href="https://www.cardsftw.com/r/a4fa215d?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank"><u>www.totavi.com</u></a> to learn more.</p><p style="margin: 0 0 1.5em 0; line-height: 1.6em;">&#x2628;<a href="https://www.cardsftw.com/r/4c26147f?m=c62b746c-f2ed-4fee-8f26-488cc07e1c4e" rel="noreferrer" style="overflow-wrap: anywhere; color: #F9A60D; text-decoration: underline;" target="_blank">Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo</a></p> <!-- POST CONTENT END --> </td> </tr> </table> </td> </tr> <!-- END MAIN CONTENT AREA --> <tr> <td dir="ltr" width="100%" style="font-family: -apple-system, BlinkMacSystemFont, &#39;Segoe UI&#39;, Roboto, Helvetica, Arial, sans-serif, &#39;Apple Color Emoji&#39;, &#39;Segoe UI Emoji&#39;, &#39;Segoe UI Symbol&#39;; font-size: 18px; vertical-align: top; color: #15212A; background-color: #ffffff; text-align: center; padding: 32px 0 24px; border-bottom: 1px solid #e5eff5;" align="center" bgcolor="#ffffff" valign="top"> <table class="feedback-buttons" role="presentation" border="0" cellpadding="0" cellspacing="0" style="border-collapse: separate; 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