Deutsche Bank Settles Epstein Case
Deutsche Bank (XE:DBK) has agreed to pay $75 million to settle accusations that it benefitted from human trafficking by retaining Jeffrey Epstein as a client. Lawyers describe this settlement as potentially the largest sex-trafficking settlement involving a banking institution in American history. The allegations against the German bank revolved around its alleged facilitation of Epstein’s sex-trafficking network. Deutsche Bank has yet to provide immediate comment regarding the settlement.
Credit Suisse Bondholders Demand Disclosure
In a legal battle to overturn a controversial writedown, Credit Suisse’s (NYSE:CS) bondholders have compelled Switzerland’s financial regulator to disclose the decree that wiped out their investments. Investors representing at least $4.5 billion of wiped-out Credit Suisse additional tier 1 bonds filed a lawsuit against Finma last month. The lawsuit accuses Switzerland’s banking regulator of unconstitutional actions when it ordered the cancellation of $17 billion in AT1 bonds as part of Credit Suisse’s merger with UBS two months ago.
Young Investors Fuel ETF Growth
According to a YouGov survey commissioned by the world’s largest asset manager, retail investors aged 18 to 34 are likely to replace those aged 35 and above as the dominant group of retail ETF investors in Europe. The survey, which involved over 16,500 participants across 14 European countries, suggests that the number of ETF investors in Europe may rise by 32% over the next 12 months. The survey was conducted between August 2022 and February of this year.
Alameda Research Seeks Fund Recovery
Alameda Research, currently under the leadership of restructuring expert John Ray, is seeking to recover hundreds of millions of dollars paid to individuals and firms in connection with a deal struck by Sam Bankman-Fried before his FTX cryptocurrency empire entered bankruptcy last year. Alameda alleges that Bankman-Fried and other insiders misappropriated FTX funds to acquire Embed Financial, a start-up broker-dealer that was intended to expand the cryptocurrency group’s offerings into traditional financial securities.
Micron Invests in Japanese Memory-Chip Manufacturing
Micron Technology (NASDASQ:MU) has announced its plan to invest approximately $3.6 billion in advanced memory-chip manufacturing in Japan, with support from the Japanese government. The agreement, announced in Japan ahead of the Group of Seven industrialized democracies’ summit in Hiroshima, states that Micron will produce cutting-edge memory chips resulting from the investment starting in 2025.
Bit Digital Expands to Iceland
New York-based Bit Digital (NASDAQ:BTBT) is expanding its operations to Iceland as a strategic move to mitigate regulatory risks amidst the proposed crypto-mining tax by the Biden administration. The CEO of Bit Digital, Samir Tabar, revealed that the company recently purchased 2,500 new bitcoin-mining machines worth $5 million, which will be housed in Iceland. This marks the company’s first instance of sending new computers outside the U.S. in two years.
Charles Schwab Sells $2.5 Billion in Debt
Charles Schwab (NYSE:SCHW) is reportedly selling $2.5 billion in long-term debt. In a regulatory filing on Wednesday, the brokerage giant announced its plan to offer senior notes due in 2029 and 2034. Notably, Schwab issued $1.2 billion of bonds due in 2029 and $1.3 billion of bonds due in 2034. The bonds due in 2029 were issued with a 5.643% yield, 2.05 percentage points higher than U.S. Treasuries, while the notes due in 2034 were sold at a 5.853% yield, with a 2.27 percentage point spread.
Tether Commits to Bitcoin Purchases
Tether (COIN:USDTUSD), a prominent crypto company, has committed to buying more bitcoin for its stablecoin reserves, in addition to the existing $1.5 billion of bitcoin backing its dollar-pegged token. Starting this month, Tether plans to allocate up to 15% of its net operating profits towards bitcoin purchases. However, the company did not specify the duration or consistency of these purchases. Tether’s profits in the first quarter were boosted by rising interest rates, reaching $1.48 billion.
BT Group to Reduce Workforce by 42%
BT Group Plc (LSE:BT-A), the UK’s largest network operator, has announced its intention to reduce its labor force, including both employees and contractors, by up to 42% by the end of the decade. This reduction comes after the completion of BT’s nationwide fiber-optic rollout. The company’s current workforce of approximately 130,000 people is expected to decrease to a range of 75,000 to 90,000 individuals by the fiscal year ending in March 2030. BT Group revealed this plan in its full-year earnings statement on Thursday.
Amazon Invests in India’s Cloud Infrastructure
Amazon.com Inc. (NASDAQ:AMZN) has unveiled plans to invest $12.7 billion in cloud infrastructure in India by 2030, aligning with other global tech giants who are optimistic about the growth of the country’s digital economy. The U.S.-based company’s cloud business already invested $3.7 billion in India between 2016 and 2022, with data centers located in the Mumbai and Hyderabad regions. The newly announced investment will encompass various areas, including construction, server computers, and telecommunications infrastructure, reinforcing Amazon’s commitment to the Indian market.