Michael Barr is set to vacate his position as Wall Street's top regulator, assuming the role of governor at the Federal Reserve. Barr will end his term as vice-chair for supervision in February 2024, prematurely concluding a four-year appointment that commenced in July 2022.
In the realm of private equity, significant developments are afoot as major firms, including Blackstone and Apollo, are intensifying their lobbying efforts for increased access to retirement savings. The target is particularly focused on 401(k) plans, allowing for broader investments in unlisted assets, such as leveraged buyouts and private loans. This deregulatory push is aimed at maximising asset access to match the levels traditionally enjoyed by sovereign wealth funds and pensions. Notably, Apollo’s chief executive, Marc Rowan, highlighted the vast potential of the trillions stored within these accounts, stating, “I jokingly say sometimes, we levered the entire retirement of America to Nvidia’s performance... We’re going to fix this and we are in the process of fixing it.”
However, the prospects of deregulating these funds may raise concerns among some industry executives regarding the capacity of retirement savers to navigate the complexities of investment options, advocating for fiduciary oversight rather than direct individual choices.
In distinct news, Nippon Steel and US Steel are currently embroiled in a legal dispute following President Biden's recent order to halt their $15 billion acquisition deal. The companies have accused Biden's administration and rival US Steel's competitor, Cleveland-Cliffs, of illegal actions obstructing the transaction. This litigation rush follows Biden’s directive that mandates a closure of the deal within a 30-day period, which adds pressure in light of Trump's upcoming inauguration. The situation remains uncertain as it is unclear whether a change in administration would alter the prospects for the deal.
Wall Street dealmakers also find themselves at a pivotal juncture as the anticipated increase in transaction volumes for 2025 looms. Despite recent hiring surges that involved lucrative compensation packages, banking executives stress that such investments must begin to yield results soon. Julian Bell from Sheffield Haworth remarked on the staggering compensation figures for headhunted talent, while Brian Friedman from Jefferies noted, “Historically, periods of disruption and dislocation create opportunities. We capitalised on that opportunity.” Nonetheless, the expectation remains that significant hires need to acclimatise and deliver results, or face tough decisions on their future.
Finally, in corporate movements, Meta has appointed UFC CEO Dana White to its board, alongside former Microsoft executive Charlie Songhurst and Exor chief executive John Elkann. Additionally, Richard Powell joins Prosek as chief operating officer, bringing his extensive experience from Teneo. Arctos, a private equity firm focused on sports, has elevated Joe Corcoran to partner, while Stifel has acquired the European investment bank Bryan, Garnier & Co, thereby expanding its workforce by 200 individuals, including 33 managing directors.
This summary encapsulates the evolving landscape of business, investment strategies, and corporate governance, underscoring the intricate dynamics at play within the financial sectors.
Source: Noah Wire Services