- GRIT
- Posts
- Big Banks Fail Test
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.
🎯 GRIT TAKE: Given the events of 2008… upgrade to VIP now to read the full GRIT Take!
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.
Chart of the Day
📊University Endowments
Source: StatsPanda
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstbets
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss, however arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy and Disclaimer Policy
If you have any questions please contact us at info@gritcap.io
Reply