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Good Morning!
Happy Monday! Let’s have a great week:
👉Banks fail major test
👉 Target partners with Shopify
👉EU accuses Apple
BANKS: Fail Test
On Friday, banking regulators revealed weaknesses in the resolution plans of four major US banks: Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America. These plans, known as living wills, outline how banks will unwind their operations in case of failure.
Source: NYT
The Federal Reserve and the Federal Deposit Insurance Corp. found issues with how these banks planned to unwind their extensive derivatives portfolios. For example, Citigroup failed a test requiring it to use different inputs to unwind its contracts. This issue affected all four banks. Living wills are crucial for regulatory compliance, and were introduced after the 2008 financial crisis. Every two years, major US banks must submit these plans. Banks must address any weaknesses by the next submission in 2025.
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TARGET: New Partner
Target is partnering with Shopify to bring trendy new brands to its website. Starting Monday, Shopify-connected companies can apply to join Target Plus, Target’s third-party marketplace.
Source: CNBC
Target Plus now features over 1,200 sellers and more than 2 million products, including popular items like the UnBrush and brands like Crocs and Ray-Ban. The marketplace has doubled its seller and product count in the past year. Third-party marketplaces are popular in retail for their higher profits, with sellers handling inventory and financial risks.
EU: Accuses Apple
EU regulators stated Monday that Apple breached new tech rules by not allowing App Store customers to choose alternatives. The European Commission also launched a probe into Apple's developer terms.
Source: The Verge
In March, the EU began investigating Apple, Alphabet, and Meta under the Digital Markets Act (DMA), which limits Big Tech's power. Anti-steering rules, which prevent tech firms from blocking businesses from informing users about cheaper alternatives, are a key focus. Preliminary findings showed Apple's App Store rules violate the DMA by stopping developers from steering consumers to other channels. Apple only allows links to external webpages for purchases, but with restrictions. The Commission noted Apple’s fees for acquiring new customers exceed what's necessary. Apple claims its changes comply with the DMA.
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📊University Endowments
Source: StatsPanda
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