Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>The downfall of SVB was caused by Powell inflicting unnecessary pain, according to economist Joseph Stiglitz.</li><li>Stiglitz pointed to the Fed's aggressive policy, which raised interest rates 1700% over the last year.</li></ul>The downfall of Silicon Valley Bank was the result of Federal Reserve Chairman Jerome Powell inflicting unnecessary pain on the economy, according to Nobel economist Joseph Stiglitz. Stiglitz, the former chief economist of World Bank and a Columbia professor, blasted the Fed's role in the collapse of SVB on Monday, blaming the <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-svb-live-blog-fed-fdic-bailout-experts-2023-3">recent chaos in markets</a> on the central bank's aggressive monetary tightening policy."Now, as a result of Powell's callous – and totally unnecessary – advocacy of pain, we have a new set of victims, and America's most dynamic sector and region will be put on hold," Stiglitz said in an op-ed for <a href="https://www.project-syndicate.org/commentary/predictable-silicon-valley-bank-collapse-by-joseph-e-stiglitz-2023-03?barrier=accesspaylog" target="_blank" rel="noopener">Project Syndicate</a> on Monday, echoing other commentators who say the collapse of <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-collapse-spark-wave-startup-technology-mergers-wedbush-2023-3">SVB will ripple through the tech sector for years to come</a>."Silicon Valley's startup entrepreneurs, often young, thought the government was doing its job, so they focused on innovation, not on checking their bank's balance sheet daily."The tech-focused bank roiled markets last week after reporting a <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-svb-stock-price-bond-portfolio-firesale-treasury-2023-3?utm_medium=ingest&amp;utm_source=markets">$1.8 billion loss on its bond portfolio</a>, causing its stock to plunge 60% in a single day and, eventually, for the bank to be shuttered by state regulators and put under the control of the FDIC. The fiasco is largely the fault of the Fed, Stiglitz said, as central bankers raised interest rates 1,700% last year to control inflation. The move has weighed heavily on bond prices, and by the end of 2022, <a href="https://markets.businessinsider.com/news/stocks/charles-schwab-stock-price-crash-investors-circle-banks-bond-losses-2023-3">US banks were sitting on $620 billion in unrealized losses</a> in their bond portfolios, according to the FDIC.Other <a href="https://markets.businessinsider.com/news/stocks/fed-rate-hikes-growth-inflation-financial-stability-mohamed-el-erian-2022-10">Wall Street commentators have been critical</a> of the Fed's response to inflation as well, as central bankers blew off rising prices as "<a href="https://markets.businessinsider.com/news/stocks/stock-market-crash-fed-inflation-recession-rate-hikes-policy-put-2022-12">transitory</a>" in late 2021, before aggressively hiking rates in 2022. <a href="https://markets.businessinsider.com/news/stocks/wharton-siegel-silicon-valley-bank-svb-fed-hikes-inflation-recession-2023-3">Wharton Professor Jeremy Siegel</a> called Fed policy one of the main reasons behind SVB's implosion, and warned another 50 basis-point interest rate hike would increase the risk of more bank failures.Markets have dialed back expectations for next rate hike at the upcoming policy meeting, as some see the Fed pulling back in order to avoid putting additional stress on an already fragile banking system.Investors are pricing in a 83% chance of a 25 basis-point rate hike, and a 17% chance that the Fed will pause altogether, according to the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener">CME FedWatch tool</a>.

Silicon Valley Bank's downfall was the result of Powell inflicting 'callous' and unnecessary pain on the economy, Nobel economist says

Private credit is so hot, it was the talk of this week's SALT hedge fund conference.Private credit is a pocket of the lending market that has grown to about $1.25 trillion in assets, according to Preqin data.Private-credit funds lend — typically to leveraged companies — for myriad reasons, from financing acquisitions to servicing borrowers' working-capital requirements.In their infancy, these funds stepped in for regulated banks. They provided small loans (say between $50 million to $200 million) to riskier companies that banks avoided, and often negotiated extras in their credit agreements like seats on their boards.Private-credit funds plied their trade in the so-called middle market, and left banks to work on billion-dollar financings.Now, equipped with trillions of dollars in dry powder, private-credit is taking market share from big banks more than ever before.Let's take a look at the opportunities — dissected by Insider's Alyson Velati <a href="https://www.businessinsider.com/blackrock-owl-rock-private-credit-opportunities-tech-healthcare-2022-9">here</a> — firms like BlackRock, Owl Rock and Ares Management have found in this year's choppy credit markets.This post first appeared in 10 Things on Wall Street, a newsletter by Insider that brings you all the biggest stories dominating the finance industry — delivered daily to your inbox. Sign up <a href="https://www.businessinsider.com/subscription/newsletter/10-things-on-wall-street?r=US&amp;IR=T">here</a>. Download Insider's app <a href="https://link.insider.com/click/27645591.160803/aHR0cHM6Ly93d3cuaW5zaWRlci5jb20vYXBwP25yX2VtYWlsX3JlZmVyZXI9MSZ1dG1fc291cmNlPVNhaWx0aHJ1JnV0bV9tZWRpdW09ZW1haWwmdXRtX2NvbnRlbnQ9T3BlbmluZ19iZWxs/62667762063d6b9bef0cffb3Bf9c9aa56">here.</a><a href="https://www.businessinsider.com/blackrock-owl-rock-private-credit-opportunities-tech-healthcare-2022-9"></a>1. Private credit has taken off amid a slowdown in dealmaking. There are opportunities for private-equity firms to tap private-credit lenders for loans rather than big banks.Unlike bank loans, private-credit funds would usually underwrite the entire, albeit smaller, loan for a borrower, or team up with a few fellow lenders to provide the loans. Banks corral a syndicate of lenders to write sizable checks, which are then sold to third-party investors in the form of bonds or leveraged loans.It was harmonious. Private credit stuck to small deals for small companies. Banks focused on big-ticket deals.Now, equipped with trillions of dollars in dry powder, private-credit is taking market share from big banks more than ever before.Blackstone and Oak Hill led a <a href="https://www.bloomberg.com/news/articles/2022-05-17/private-credit-club-snags-2-9-billion-mantech-buyout-debt">roughly $3 billion debt package</a> for Carlyle's acquisition of US government contractor ManTech International, which <a href="https://www.globenewswire.com/news-release/2022/09/14/2516381/7056/en/ManTech-Announces-Completion-of-Acquisition-by-Carlyle.html">closed today</a>. In May, Goldman Sachs' asset-management arm provided <a href="https://www.bloomberg.com/news/articles/2022-05-04/goldman-s-private-credit-arm-steps-in-with-loan-for-cdk-buyout">$865 million in debt</a> to help fund Brookfield's purchase of software company CDK Global.Private-credit has a greater appetite for risk. They charge a greater interest rate, but can craft a deal faster (no roadshows, lender meetings), and they hold onto the loans usually until maturity.Banks move debt off their balance sheets quickly. And by selling these loans to investors as bonds or loans, this debt is at the mercy of volatile secondary markets.This year, banks have been left holding onto bad loans that they underwrote during the good times, and couldn't offload them when markets soured.This dislocation has created <a href="https://www.businessinsider.com/blackrock-owl-rock-private-credit-opportunities-tech-healthcare-2022-9">opportunities for private-credit behemoths like Owl Rock or Ares</a>.For more on private credit, check out these stories:<ul><li>Blue Owl is taking on big banks in funding tech buyouts. The president of the business created by the Dyal-Owl Rock SPAC deal <a href="https://www.businessinsider.com/blue-owl-rock-dyal-spac-merger-deals-private-credit-atac-2021-5">shares how he plans to become a "lender of first choice."</a></li><li>Thoma Bravo just scored a <a href="https://www.businessinsider.com/owl-rock-financing-thoma-bravos-calypso-acquisition-unitranche-loan-2021-4">record-setting loan from Owl Rock to fund a $3.75 billion fintech purchase</a>.</li></ul>In other news:<a href="https://www.businessinsider.com/blackstone-private-wealth-joan-solotar-alternatives-breit-bcred-futureproof-2022-9"></a><div type="image" title="Joan Solotar of Blackstone in front of a window, wearing a sweater and a watch." height="1800" width="2400" msid="94225236" hostid="261"></div>2. Blackstone has quadrupled its wealth business in four years. Joan Solotar, the firm's head of private wealth, outlined how the private-investment firm will win the <a href="https://www.businessinsider.com/blackstone-private-wealth-joan-solotar-alternatives-breit-bcred-futureproof-2022-9">war for retail clients</a>.3. Hedge funds are facing a shakeout as underperforming shops stutter. Here is what a $14 billion fund is doing to <a href="https://www.businessinsider.com/hedge-fund-consolidation-underperformers-tiger-cubs-salt-2022-9">come out as a winner</a>.4. SoftBank is considering launching a third Vision fund, the Wall Street Journal reported. SoftBank, led by Masayoshi Son, absorbed massive losses in its previous Vision fund, which is now worth less than the investment that <a href="https://www.wsj.com/articles/softbank-considers-launching-a-third-vision-fund-11663154600?mod=hp_lead_pos4">initially went into it</a>.5. Bankrupt crypto bank Celsius is plotting a comeback after the market crash, according to the New York Times. Alex Mashinsky, Celsius' chief executive, wants to rebuild the company by offering cryptocurrency storage and charging <a href="https://www.nytimes.com/2022/09/13/technology/celsius-network-crypto.html?campaign_id=4&amp;emc=edit_dk_20220914&amp;instance_id=71896&amp;nl=dealbook&amp;regi_id=162318335&amp;segment_id=106253&amp;te=1&amp;user_id=0162ea8283becc84919a0c458649e40f">fees for certain transactions</a>.6. Citi expects to divest from its Mexican consumer-banking business by next year, the bank's chief financial officer said at a conference. The bank could sell its interest in Citibanamex via a straight sale or through an <a href="https://www.reuters.com/markets/us/citigroup-expects-sale-or-ipo-mexico-consumer-business-next-year-2022-09-14/?campaign_id=4&amp;emc=edit_dk_20220914&amp;instance_id=71896&amp;nl=dealbook&amp;regi_id=162318335&amp;segment_id=106253&amp;te=1&amp;user_id=0162ea8283becc84919a0c458649e40f">initial public offering</a>.7. Staying on Citi, regulators want the bank to move faster to fix problems with its risk-management systems. Citi is expected to submit a plan today, which executives hope will ease regulators' concerns, per <a href="https://www.wsj.com/articles/regulators-want-citigroup-to-move-faster-to-fix-problems-with-its-risk-systems-11663172835">this story from the Wall Street Journal</a>.8. Startup founders' salaries have been upended amid the market downturn. Venture capital-backed founders have higher salaries than their counterparts who have not raised outside funding, <a href="https://www.businessinsider.com/top-takeaways-pilot-founder-salary-data-market-downturn-2022-9">new data from Pilot revealed</a>.9. Investors and landlords are watching big expiring leases from the likes of Twitter and Morgan Stanley. The monitoring is so they can understand just how hard remote work <a href="https://www.businessinsider.com/9-buildings-to-watch-as-companies-switch-to-remote-work-2022-9">will hit the office sector</a>.10. Inside the rise of the "bait-and-switch" job interview. Are you sure that a new employee is the same <a href="https://www.businessinsider.com/bait-switch-job-interviews-unqualified-applicants-paying-remote-work-2022-9">person you just interviewed?</a>People moves:<ul><li>Francisco Partners has welcomed four new executives to the private-equity firm:</li><ul><li>Erin Blake has joined as a managing director in legal and M&amp;A. Blake will work with the investment team on legal matters relating to transactions. She was most recently a partner at law firm Kirkland &amp; Ellis.</li><li>Jason Warner has joined as a MD and head of data science. He was most recently a principal in Blackstone's data science group.</li><li>Brian Elrod has joined as a director of tax. Previously, Elrod was a partner in Deloitte's M&amp;A tax group.</li><li>Tulsi Byrne has joined as a director and head of ESG. She was previously the head of ESG for fixed income, private credit, and private equity at Nuveen.</li></ul><li>Churchill Asset Management has appointed Carol Loundon its deputy chief risk officer. She was previously a MD in Churchill's senior lending underwriting and portfolio management group.</li></ul>Curated by Aaron Weinman in New York. Tips? Email <a href="mailto:aweinman@insider.com">aweinman@insider.com</a> or tweet <a href="https://twitter.com/aaronw11">@aaronw11</a>. Edited by Hallam Bullock (tweet <a href="https://twitter.com/hallam_bullock">@hallam_bullock</a>) in London.

Private credit is so hot right now, the execs at SALT were raving about it. BlackRock and Owl Rock are taking advantage of banks' pain to win more of this booming part of Wall Street.

Check out the more than 50 pitch decks fintechs used to raise millions in funding from top investors

RBC Capital MarketsBlair Fleming<ul><li>Business Insider spoke with Blair Fleming, head of RBC Capital Markets US, about dealmaking and the Canadian bank's US growth plans.</li><li>Fleming: "We have a very deliberate and straightforward strategy to grow our investment bank here in the US."</li><li>On hiring: "We will continue to add the right people to the platform. Things are still in play and we will keep going."</li></ul>Blair Fleming is a man with many job titles.He's head of RBC Capital Markets in the US and the head of US investment banking for the Canadian bank. He's also CEO of RBC USA Holdco Corp., RBC's US intermediate holding company. It's so many titles that he has two business cards. He oversees a business that ranked 10th in investment-banking fees in the US in 2016, according to data provider Dealogic, with $979 million in fees. The bank had a 2.8% market share in the US, according to Dealogic, up 0.5 percentage points. It posted big gains in US debt capital markets revenue, US syndicated loan revenue, and global financial sponsor revenue. It's a striking change for a bank that has roots north of the border stretching back to 1864, before the confederation of Canada in 1867. It started out offering credit to merchants in Halifax, winning a government charter five years later in 1869. But while RBC stands for Royal Bank of Canada, Fleming insists that the bank is now "American as you can get" when it comes to investment banking. We talked to Fleming about dealmaking and hiring - and winning business with Facebook. Matt Turner: How's business?Blair Fleming: Two thousand seventeen has definitely been off to a better start than 2016.If you look at what's driving business now, the election helped. You're seeing a little bit of caution about tax reform, and so that seems to be dampening things a bit, but overall if you look at the origination business, clients are engaged in a lot more activity. M&amp;A is up. Debt markets are strong. There is an equity market. You are starting to see a fair number of IPOs get priced.Turner: US M&amp;A revenue hit a record high in the first quarter. What's going on there? Valuations seem pretty rich.Fleming: While I think it's pretty robust and optimistic, there is an element of caution given how expensive things are. If you look at banks for example, they took off after November and I think people were thinking, "Well, that's going to mean there's going be a lot of M&amp;A." But how does M&amp;A happen when things are so expensive? We have been waiting for bank M&amp;As since the financial crisis and there always seems to be something in the way.Turner: How does business break down for you across sectors? I know historically RBC was strong in energy, in commodities, in industrials, in infrastructure, but you've built out from there.Fleming: We are diversified, and that is deliberate. We don't have any industry that accounts for more than 12% to 15% of revenues. The big ones are FIG, consumer, industrials, healthcare, energy and communications, media and technology. We are in basically every industry. We've diversified deliberately because, you know, seven years ago we were a 25% energy shop. That would have been a problem last year.Sean Pavone/ShutterstockHouston.We've got a big energy team that is Houston-based, about 300 people, and that is across midstream services, E&amp;P, we've got a team doing sell-side, reserve-based M&amp;A. It's a big team, but it's no more than 15% of our revenue, which as an asset manager is what you want, right?Healthcare is a big part of the economy. Communications, media, and technology are a huge part of the economy, and capital intensive on the telecom side. We punch above our weight in TMT. Consumer retail is global and important. Retail is obviously challenging.We deliberately built them out to make sure that we've got a diversified business, because when I set my budgets every year - or when my budgets are set - it is pretty difficult to prognosticate with 100% accuracy as to which industries it is going to come from. Our product diversification has come along nicely too.Leveraged finance is about 40% of our revenue. That's comparable with the Street. Debt capital markets and investment grade would be about 10% of revenue. That's Street. M&amp;A is 23, 24%. That is a little bit under index but coming along nicely. And then equities is about 23 to 24%, which is Street. So I think we've done a decent job at trying to make sure our industry footprint is diversified. And that the revenue is diversified across our products too.And you try to make sure you get the right bankers to help drive that and to make sure you've got the right research platform. You know research is obviously very important to the business. It is hard, because research continues to be expensive.Turner: In terms of finding the right bankers, you guys seem to be hiring a fair bit.Fleming: You're always tinkering. We've hired 10 MDs in banking so far this year, which is a lot. Last year we hired 14. Some of that is natural churn. But a lot of this comes down to expanding our capabilities. Our overall market share is 3.25%. Our goals are something close to 4-4.5% in the next two to three years.Turner: You said that M&amp;A makes up a smaller chunk of the total business than at some of your rivals. Is that a focus for hiring?Fleming: That is the highest margin product, and the best gauge for the interaction with your client base. We're talking about CEO, CFO, and board-level sets of relationships. We're still reasonably young here in the US at 10 to 12 years old. I don't know what that would make us, a sophomore or something? Those relationships are coming. You know, it just takes time to build credibility.We've come a long way. That's a serious focus of ours. And as you can see from the bankers we're hiring, we're making sure that we're bringing on bankers who have strong C-suite relationships and are a strong cultural fit with the firm.Turner: You've hired 10 MDs, and we're in the middle of hiring season right now, so are there more hires on the way?Fleming: We recruit year-round. I mean, honestly, even for me, recruiting is year-round, because I'm always meeting people. We will continue to add the right people to the platform. Things are still in play and we will keep going.Turner: What's your pitch for someone you want to hire?Fleming: This is going to sound more arrogant than I want it to, but it's a reasonably small Street. If you're a banker at Bank X, you're going to know a lot of people here, because bankers have joined our platform from all over the place. We are very easy to check out. They can check out our culture, what we are like. And I think most people find when they come in and meet people, we are set up the way you would expect us to be set up. And we are a lot flatter than most. From a cultural standpoint people find us straightforward and pretty attractive.Turner: But the pitch has changed, right? The investment bank has a different look to it now versus five years ago.Fleming: Seven years ago, I would be asked: "Are you guys committed to the US?" You know, banks come in and come out. Well, 20% of our capital is in the US and 20% of our revenue comes from the US. If you look at the capital markets, which is a subset of the bank, we are a 60%-American firm. So we are as American as you can get.Thomson ReutersWe have a deliberate and straightforward strategy to grow our investment bank here in the US. That's a big part of the pitch. People see that. And some of it is opportunity. There is opportunity for leadership here. There is opportunity to grow. You've got to be up for the challenge. If you are up for the challenge, and you appreciate the brand, and quality of the people, and the culture of the place, it's not a bad place to hang your hat.Turner: You want people who are up for the challenge, but you have a pretty significant balance sheet in the US. It's not like you're a boutique.Fleming: The balance sheet is important. Our strategic plan for the next five years is to deploy a CAGR [compound annual growth rate] on balance sheet at about 4% to 5%. We are definitely going to grow the capital that we deploy here. That is not the case at most firms.We are results-oriented, and we are pretty transparent with our employees about how we are making money. We have a Monday-morning meeting at 7:15 every week with some of our core people who walk through the weekly financials. We try to push that down through the organization. It is very results-oriented and transparent, maybe to a fault.Turner: A few years ago someone told me that RBC actually stood for "revenue before costs," the idea being that RBC was probably a bit more methodical and cautious with investments than some of its peers. Does that ring true?Fleming: That's pretty good. "Revenue before cost?" It could be a little dated. I do think you need to invest in order to grow. I don't think it is totally inaccurate - we are focused on generating revenue and minimizing costs - but particularly in a geography like this, I mean we were building this thing post-financial crisis. You know, it wasn't a field of dreams, right? We saw an opportunity and invested, and thankfully it worked.Turner: That's fair, but from what I can tell you didn't just get the checkbook out either.Fleming: You have to work hard to get the right people, because when you bring the wrong people on it is just way more costly - financially, culturally, time-wise. But to be honest with you, it is more of an 80-20 rule. You can't get everything right. You make mistakes trying to do things as fast as you can. You can't attain perfection. But I am always amazed by the lack of diligence that some other firms have when it comes to people. We do our diligence.Turner: You've been here awhile, and watched the business change shape. What has that been like?Fleming: It's kind of fun actually. Facebook is a good example of a client relationship growing. There was obviously the dramatic IPO, where we were senior co-leads. We happened to have one of the best analysts in the space in Mark Mahaney. Mark is a key part of the tech space and fabric - don't tell him I said that.Mark MahaneyMark Mahaney.Facebook had a fair amount of their cash with us, which made OK money. It's not like doing a $20 million M&amp;A trade, but that's an area where they view us as strong. They like our credit rating, and we are very good at global asset management. We developed that relationship with Mark and with banker coverage. So you try to make an appropriate return, but you can't do that with everyone and you have to be patient. Equally, you've got to know when to cut and run, which I think we are reasonably good at doing. But you have to balance that with doing the best for your client.Turner: The sponsors business seems to be a really big driver for RBC.Fleming: We've got a big sponsor business; it's 35% of our revenue. It's highly profitable, but not without risk, obviously. The velocity of capital in the sponsor business is pretty high. We segment our clients pretty carefully, and you go through it by rating. Our ROE [return on equity] on a single client across everything is 16%, that's pretty good. And that's 6% or 7% on the loan, so this would tend to be an LBO [leveraged buyout]. We make 6% or 7% percent off the loan, but we make 6% to 9% on investment banking products. Our overall goal is 14% in capital markets; we are at about 12% or 13%, and the bank is at 18%.<h3>More from Matt Turner:</h3><ul><li><a href="http://www.businessinsider.com/rbc-capital-markets-blair-fleming-interview-2017-5" rel="nofollow">A 150-year old Canadian bank is muscling in on Wall Street (RY)</a></li><li><a href="http://www.businessinsider.com/martin-gilbert-aberdeen-asset-management-tough-time-asset-management-industry-2017-5" rel="nofollow">$385 BILLION FUND CHIEF: Fund managers are miserable</a></li><li><a href="http://www.businessinsider.com/jamie-dimon-jpmorgan-chase-ceo-american-dream-lost-generation-2017-5" rel="nofollow">JAMIE DIMON: There's no such thing as a dead-end job</a></li><li><a href="http://www.businessinsider.com/david-tepper-bank-of-america-13f-2017-5" rel="nofollow">David Tepper made a big bet on Bank of America (BAC)</a></li><li><a href="http://www.businessinsider.com/martin-gilbert-aberdeen-asset-management-complacency-market-worry-2017-5" rel="nofollow">The CEO of a $385 billion asset management firm says he's not worried about complacency in the market just yet</a></li></ul> <h3>NOW WATCH: <a href="http://www.businessinsider.com/john-cena-to-save-crocs-2017-5">Crocs has a new comeback plan - here's why it could actually work</a></h3> Please enable Javascript to watch this video

A 150-year old Canadian bank is muscling in on Wall Street

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>The Co-operative Bank just lost a senior member of staff that was charged with the task with turning around the beleaguered lender.The Co-op Bank confirmed to Business Insider that Bob Rickert, the chief financial officer at the lender, left the company last week after less than 18 months into the job.His departure comes after the Co-Op Bank was <a href="http://uk.businessinsider.com/uk-bank-stress-tests-december-2014-2014-12" target="_blank">the only British lender out of six to fail the stress test set up by the Bank of England</a> in December last year.While the Co-op Bank's spokesperson told us that the two events are unrelated, and that Rickert left "on his own choice," <a href="http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11445276/Co-op-Bank-executive-leaves-in-latest-high-profile-exit.html">his departure is was touted by the Telegraph as a clash of cultures</a>. According to the newspaper's unnamed source, he was "asked to leave" after "<a href="http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11445276/Co-op-Bank-executive-leaves-in-latest-high-profile-exit.html" target="_blank">he brought over with him both former colleagues from Barclays and a more aggressive style of management</a>."In May 2013, the Co-op Bank shocked the markets after it reported a £1.5 billion capital black hole. The revelation forced the Co-Operative group, until that moment the main shareholder, to seek a bailout from private investors.This led to the 143 year old "ethical bank," which was <a href="http://www.theguardian.com/money/2006/may/30/ethicalmoney.business" target="_blank">known to refuse business partnerships that are deemed un-ethical</a>, like in companies involved in fur trades or poor labour practices, being majority owned by hedge funds.Meanwhile, the Co-op Bank was downgraded to junk status by Moody's, and eventually the lender's CEO Barry Tootell resigned. He was replaced by former <a href="http://www.co-operative.coop/corporate/press/press-releases/headline-news/Niall-Booker-Co-operative-Bank-Chief-Executive/">HSBC banker Niall Booker by the end of the month</a>.Booker, through his spokesperson to Business Insider, said Rickert "leaves an important legacy behind" and that the bank is not looking for anyone else to hire in his place at the moment.<h3>"A sorry story of failings"</h3>The road to recovery for the Co-op Bank, which is one of Britain's smallest lenders with only 5 million customers, has been a rocky one.A series of executive scandals and damning independent reports into the governance and structure of the bank and its parent group led to the company and its lender overhauling its management.While the Co-op Bank is majority owned by hedge fund shareholders, <a href="http://www.co-operativebank.co.uk/">it is still part of the parent company</a>, the Co-operative Group.In April 2014, the independent report by Christopher Kelly, said the Co-op Bank was a "sorry story of failings in management and governance on many levels."That same month, Lord Myners announced he was quitting his role to help turn around the group and the bank as it was likely that the board would reject his proposals."Radical decisions on governance need to be taken soon - and with resolution - if the Co-op, as my mother knew it, is to be saved," he said at the time."The reforms I have set out are fully compatible with the core values and principles of Co-operative ownership. I have no interest in advocating the adoption of a PLC model, as some of my critics have claimed. But I do want to see a governance structure that works; the present one has lamentably failed. The decision lies in the hands of elected democrats. I have done all I can do."Around the same time, the Co-op Group boss boss Euan Sutherland quit after just ten months into the job. <a href="http://www.theguardian.com/business/2014/mar/11/co-operative-group-chief-executive-euan-sutherland-resign">He called the group "ungovernable."</a>According to an unnamed source in a Guardian newspaper report, <a href="http://www.theguardian.com/business/2014/mar/11/co-operative-group-chief-executive-euan-sutherland-resign">Sutherland was also clashing with investors</a> (emphasis ours):What we have here is a clash of cultures between PLC people and the Co-op people. Euan is a PLC animal and he is used to responses on a timescale and of a type that the Co-op isn't used to. We have tried this in the past, to bring people in from outside at a senior level, and it has never worked. Because they have not grown through the culture they try to make the beast dance in a way that the beast doesn't want to dance.One month later, Lord Myners delivered his damning 180-page report into the Co-op Group and the Co-op Bank:"There is no short cut to recovery from its present weakened state. It will require retrenchment and some painful choices. Financial health can only be restored through steady, step by step, rebuilding of the group's profitability and repayment of its excessive debt."Because of the losses exposed last year and their severe impact on the group's balance sheet, the high level of debt now being carried by the group has made it inevitable that the bank syndicates providing this funding will, for quite obvious reasons, continue to take the closest interest in the group making rapid progress to strengthen its governance."The group's bottom-up, competitive election process provides no rigour for assessing the commercial capability levels of candidates as there is no meaningful competency bar in place. Similarly, it provides no scope to balance the capabilities and fill skills gaps."<h3>Pressure from hedge fund investors</h3>Co-op will publish its annual financial results at the end of March. Another important document that investors are still waiting for is the bonus plan for its executives, which has been put on hold since the failed tests in December.The bank changed its chairman last month. After a long courtship, the Co-op Group confirmed that the former boss of Asda, <a href="http://uk.businessinsider.com/new-co-operative-group-chairman-allan-leighton-salary-for-charity-2015-2" target="_blank">Allan Leighton</a>, would take the helm.Meanwhile, Booker's contract expires in July 2015, but according to Sky News <a href="http://news.sky.com/story/1434880/co-op-bank-keen-to-extend-ceo-bookers-deal" target="_blank">he is set to stay for another year at least</a>. Sky also reported that Booker is facing pressure from US hedge funds that now control the majority of the shares at the bank.Sky said that <a href="http://news.sky.com/story/1434880/co-op-bank-keen-to-extend-ceo-bookers-deal" target="_blank">private shareholders are unhappy with Booker's conduct of the bank</a>, but are keen to give him another chance. This is mainly because he has the support of the Bank of England, who is against the group making another round of management changes. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/smartphone-impact-brain-body-sleep-2015-2">This is what happens to your brain and body when you check your phone before bed</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="BvMjVqcjoHdZBG6tTpXy8UkhB5_46U_c" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

The 'ungovernable' Co-op Bank just lost its financial chief

<h3><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">John LeFervreJohn LeFevre</div></div></div></h3>Editors note: We sent John LeFevre, aka @GSElevator, a list of questions about his new book <a href="http://www.amazon.com/Straight-Hell-Deviance-Debauchery-Billion-Dollar/dp/0802123309/ref=sr_1_5?s=books&amp;ie=UTF8&amp;qid=1397968996&amp;sr=1-5&amp;keywords=straight+to+hell">Straight To Hell: True Tales of Deviance, Debauchery, And Billion-Dollar Deals</a>. Here are his answers.<h3>Some critics of your book, which is now a New York Times bestseller, have said that it's just a bunch of Wall Street clichés. What is your response?</h3>Stories of bankers behaving badly are certainly nothing new. But I am capturing an entire culture of pervasive deviance and corruption from a vantage point that has never been revealed - the bond syndicate desk. Michael Lewis described syndicate managers as the "omniscient, omnipotent, omnivorous presence" on every trading floor.It's like being the catcher in a baseball game - in on every play and the only player who can see the entire field. I worked with M&amp;A bankers and traders, buy side and sell side clients, and led deals all over the world with every bank on Wall Street.More important, it's not just about deviance, excess, and bankers behaving badly. I'm highlighting some substantive issues and questionable practices at all the big banks. Wall Street apologists can attempt to frame the conversation around lazy stereotypes or a few rotten apples. But that's simply not the case.<h3>So does this book glamorize Wall Street?</h3>To me, the cliché would be to write about redemption and epiphany. So I chose to be unapologetic and let readers draw their own conclusions. I can't help it if some people aren't smart enough to get it.Even Bloomberg's mostly great Matt Levine accuses me of bragging and glamorizing degeneracy, when in fact my intention is the complete opposite. Forget that I'm highlighting a culture of pervasive deviance with outrageous and often illegal exploits, the entire premise of the Twitter account started as a way to criticize and satirize banking culture.<h3><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">John LeFvevre</div></div></div></h3><h3>In the book, once you get beyond the deviance and debauchery, you make some pretty serious accusations? </h3>As per my last answer, we did some crazy things. We regularly colluded on fees, and in particular, what we charged sovereign borrowers like Korea, Indonesia, and the Philippines. We often laughed at the misfortune of some of our clients.I once punished a spivvy hedge fund manager for inflating his order on an illiquid deal by giving him a full allocation and then refusing to buy the bonds back when the market softened. He got fired two weeks later, and other bankers thanked me for getting rid of "that pain in the a--."We frequently put our own interests ahead of our clients. One of my coverage bankers begged me to tell his client to delay a bond deal - forgoing favorable market conditions and taking on months of headline and market risk - so that we could count the revenue toward next year's bonus.We traded allocations on hot deals for steak dinners, non-public information, and all kinds of favors from hedge funds. And if we didn't participate in these antics, we'd lose our edge. If I didn't give a big client a heads up on deal, we'd lose business to the bank that did.If I didn't let my own trading desk know that we were announcing a deal that would move markets, God help me if they got picked off by a customer who got that information from another bank working on the same deal. That's the culture. <h3>Describe the average Wall Street banker.</h3>Well-educated, bright, ambitious, respected in society… until you get them on an Asia roadshow. Then all bets are off.Do you think you were an average Wall Street banker?In the book, I try to be thoughtful (with my boarding school recollections) and consider if I always had a bit of a felonious mentality or if banking turned me that way.My conclusion is that Wall Street attracts a certain mentality, and then builds them into a person with a set of values that deviates significantly from societal norms and quite often, basic human decency.My first boss referred to the hiring of women as the "Office Beautification Project." My first mentor bullied me into spending my entire first year bonus in five days in Saint Tropez. My second boss introduced me to FBTs (fake business trips), which facilitated him cheating on his wife. After that, I noticed a correlation between my performance reviews and my ability to binge drink, play golf, and keep secrets.There are exceptions obviously, and the M&amp;A culture is very different to the trading floor, but I found most of the people to be similarly-minded, where we all embraced the culture that had been passed down to us.<h3>A few people still seem to be upset that @GSElevator was not actually a Goldman Sachs insider? </h3>The Twitter account was a joke. Quite clearly, it's always been about satirizing banking culture. If any person sincerely thought these tweets were literally about conversations overheard in the elevators of Goldman Sachs, they're an idiot.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Vimeo/ Downtown Alliance The Goldman Sachs Cafeteria.</div></div></div>Matt Levine attempted to hit at my credibility by saying he "never heard things like this in an elevator" because "an elevator is a dumb place to say vile things." Dear God, I wonder how someone so smart can say something so stupid.And for the record, despite the fact that I was hired by Goldman Sachs, when it comes to fixed income, Salomon is far more prestigious than Goldman.[Editors note: Matt Levine said "Cool, cool" when asked to respond to Lefevre's description of him. Lefevre asserts that he was offered a job at Goldman Sachs, but later had the offer revoked due to a legal issue with a former employer.]<h3>So why was it @GSElevator and not @CitiElevator?</h3>The purpose of the account was always to illuminate an amplified reflection of the banker/frat/bro/douche mentality. And in my experience, having done countless deals with Goldman Sachs, I found their culture to be an amplified version of broader Wall Street culture.Also, it was more interesting to appeal to Main Street's fascination with the great "vampire squid."[Editors note: a Goldman Sachs spokesman said of Lefevre's description: "Mr. Lefevre's lack of knowledge of the real culture @GoldmanSachs could fill a book."]<h3>Is banking boring?</h3>It's definitely changed a great deal. As compensation structures, balance sheets, and risk appetite have evolved post-crisis, so has the culture.Many of the more colorful characters of the trading floor have left for the buy side or the beach. But many of the antics I describe still go on today; people are just a bit more low-key about it. And most of the characters in the book are still in senior positions at big banks.Certainly, the systemic conflicts of interest and the quid pro quo nature by which banks allocate deals remains the same - totally corrupt.<h3><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">CNBC</div></div></div>Do bankers in Asia behave worse than bankers in the US? </h3>Banking in the US is far more commoditized than it is in Asia, so our attitudes and behaviors reflect the way business gets done in the emerging markets. Often times, it was our clients who would dictate the pace. I've seen a Chinese CEO threaten a senior banker with the loss of future business unless he joined us for after-hours karaoke.But, these stories are more about banking culture than they are a reflection of Asia. The craziest nights I've ever had were always with the bankers visiting from New York and London. The walking Ralph Lauren catalogues were the most deviant.<h3>What is it about Wall Street that brings out the Gordon Gekko party animal in people?</h3>I don't think of Gordon Gekko as a party animal; he was trading deutschmarks before the sun came up, right?But generally, it's well known that bankers often embrace the tired "work hard, play hard" cliché. I think it's a function of getting sucked into a fast-paced world where you make a lot of money and the deals you work on end up in The Wall Street Journal.This can give people a distorted sense of reality, and self. That's part of it, and so is the stress. Going out and having fun can be a good release. And in my experience, it was also a great way to bond with colleagues and clients.<h3> <div class="KonaFilter image-container display-table float_left"><div><div class="image on-image">Anonymous</div></div></div>Are there different kinds of bankers? If so, what's the best kind of banker and what's the worst?</h3>The worst kind of banker is the guy who takes himself too seriously and defines himself as a person by the fact that he works on Wall Street. The best kind of bankers are the same as the best kind of people - the ones who don't take themselves too seriously, like to laugh and have fun, and have interests outside of their professional lives.<h3>Most of your book is pretty negative about Wall Street, aside from the salary of course. Is there anything positive about the industry?</h3>Someone once argued that Michael Milken has done more for humanity than Mother Teresa. And I think there's some truth to that. We helped companies raise billions of dollars, albeit with a few causalities along the way.The problem comes when bankers interpret those accomplishments to mean that the world owes them something, in addition to a seven-figure bonus.<h3>Share a short story that didn't make it into the book.</h3>There are too many to count. I have a collection of stories about hosting big US financial institutions and GSEs (government sponsored enterprises) on Asian roadshows. They were insistent on coming out to Asia every year, and investors really had no interest in meeting them. So quite frequently, I'd have to set up fake meetings where some of our junior salespeople would pose as investors. These guys didn't even really care; the after-hours itinerary was far more important.We also had a Group Treasurer of a large GSE get so drunk that he missed his keynote speech at our Tokyo investors' conference. <h3><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Tyrone SiuHong Kong's central financial district's (from L to R) Bank of China Tower, Cheung Kong Centre, HSBC headquarters and Standard Chartered Bank are pictured lighted up before Earth Hour March 28, 2015. </div></div></div>What do you miss about banking?</h3>Having a Bloomberg terminal and infinite resources at my fingertips. It was also great being surrounded by smart, capable, and ambitious people. One lap around Walmart is an easy reminder that the real world operates at a much slower pace and level of efficiency.<h3>What do you miss about living in Hong Kong?</h3>Every night is Friday night and every weekend is a vacation.Although now that I have kids, I look back on it as a bit of a soulless existence. So I would have to say I miss my once-a-day foot massage addiction, and the fact that a live-in maid only costs $600 a month.<h3>What do you consider your best tweet of all time?</h3>They're all good, but a couple of my favorites would be: "Every time my wife gives me a BJ, I know it's time to check my American Express statement."Or maybe: "The fact that most people are too stupid to know how dumb they really are is the fabric holding our society together." <h3><div class="KonaFilter image-container display-table float_left"><div><div class="image on-image">Daniel Goodman / Business Insider</div></div></div>What are the one or two luxuries you became accustomed to as a banker that you can't live without?</h3>Custom suits and shirts, even though I don't wear them very often anymore. The air miles were also nice, but I don't travel much now with two young kids. So I guess the lesson is there aren't really any material things that I can't live without.<h3>What are you going to tell your kids about being a banker? </h3>Life is short, probably too short to spend twelve hours a day looking at a Bloomberg screen, emailing your way through dinner, or listening in on pedantic conference calls, mostly on mute.<h3>What are you going to tell them after they read your book?</h3>My kids are both under the age of two, so I've got plenty of time to think about it. But my wife enjoyed the book. I think she sees the antics more as a reflection of a culture and an industry than of me as a person. But that's not my way trying to deflect accountability for all of the things I've done. I really don't care.John LeFevre is the creator of <a href="https://twitter.com/GSElevator">@GSElevator</a> on Twitter, and the author of a new book and New York Times Bestseller, <a href="http://www.amazon.com/Straight-Hell-Deviance-Debauchery-Billion-Dollar/dp/0802123309/ref=sr_1_5?s=books&amp;ie=UTF8&amp;qid=1397968996&amp;sr=1-5&amp;keywords=straight+to+hell">Straight To Hell: True Tales of Deviance, Debauchery, And Billion-Dollar Deals</a> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/wall-street-jargon-word-games-2015-6">6 word puzzles that only finance geeks will understand</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="M2Mzl4bDosoK6RSjDOSvXHReVBffF3Dd" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

We asked the man behind @GSElevator 19 questions about deviance, debauchery and what he plans to tell his kids about banking

<ul class="summary-list"><li>You don't need to break the bank to find a reliable pair of running shoes - so long as you know what to shop for. </li><li>Some of the best athletic brands like New Balance, Hoka One One, and Brooks offer dependable runners in the range of $100 to $130.</li><li>Whether you prefer ample cushioning, a shoe capable of logging heavy miles, or just want a wallet-friendly pair for quick weekend runs, there's an affordable running shoe fit for your lifestyle.</li></ul>I've been running for more than 20 years and in that time, I've tried just about every type of shoe on the market: stability, neutral, minimalist, cushioned, and everything in between. I've run marathons, navigated trails on the weekend, and crested the hilliest of country roads. So has Brian Metzler, author of <a href="https://amzn.to/2SiUYkx" target="_blank" rel="nofollow noopener">Kicksology</a>, a comprehensive look at the history and science behind running shoes. Likewise, Mike Fronsoe, owner of the <a href="http://www.fleetfeetmonroe.com/" target="_blank" rel="noopener">Fleet Feet</a> specialty running store in Monroe, LA, has decades of running in his legs. Combined, we've put in thousands of miles in running shoes and know what works for us and others. While the shoes have evolved and changed over time, the one thing that remains constant is the uptick in cost. Today, there are shoes upwards of $250 that promise - and deliver - faster running. For the average runner, however, that's more shoe than you'd ever want or need. Thankfully, the market offers its fair share of affordable options, too. "There are plenty of good, mid-range shoes in the $110 and under market," Metzler told Business Insider. "The challenge is there's a lot of marketing that goes into selling shoes and that jacks the prices up."<h3>Try before you buy</h3>Before you dive in on price alone, you'd be wise to visit a specialty running shoe store to try before you buy."I get a lot of customers who buy a shoe online, find it doesn't work for them, and then come in to get fitted," Fronsoe said. "Much comes down to how a shoe feels on your foot."Use your time in a shoe store to try a variety of shoes and figure out what works for you in the price range you're after. Once you know, you can then make it more affordable in a variety of ways. Some stores, like Fronsoe's Fleet Feet location, have frequent buyer programs offering credit after a certain value of purchases. You can also look for sale tables that feature last year's versions of shoes - most brands update shoe models about every nine months, which means a past version then moves to a discounted price. "If it was a great shoe last year, it's still a great shoe this year," Metzler added. Finally, you can find decent mid-range models online and at big-box stores like Dick's Sporting Goods. According to Metzler, these stores don't carry the marquee models but they do have pairs that are functional, and that you can put some miles in.To help narrow down the growing selection of cheap running shoes, we picked a few of our favorites. From brands like Hoka One One and Skechers to Brooks and New Balance, these shoes keep you running comfortably while also staying kind to your wallet. <h2>Here are our picks for the best cheap running shoes:</h2><ul class="summary-list"><li>Best cheap running shoes overall: <a href="http://go.redirectingat.com/?id=35871X943606&amp;url=https%3A%2F%2Fwww.hokaoneone.com%2Fwomens-road%2Frincon%2F1102875.html%23start%3D6%26cgid%3Dwomens-road" target="_blank" rel="nofollow noopener">HOKA One One Rincon</a></li><li>Best-selling cheap running shoes: <a href="https://www.amazon.com/s/ref=as_li_ss_tl?k=brooks+ghost+12&amp;linkCode=ll2&amp;tag=biipgf_021220_best-affordable-running-shoes-20&amp;linkId=dfdf526967834728e123c99f78167662&amp;language=en_US" target="_blank" rel="nofollow noopener">Brooks Ghost 12</a></li><li>Cheapest running shoes: <a href="https://www.amazon.com/gp/product/B07M5RPXSZ/ref=as_li_tl?ie=UTF8&amp;tag=biipgf_021220_best-affordable-running-shoes-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=B07M5RPXSZ&amp;linkId=9ee3bbba73e8f3c76e0b662e8678a4fb" target="_blank" rel="nofollow nofollow nofollow noopener">Skechers GOrun Fast Quake</a></li><li>Best workhorse/all-purpose cheap running shoes: <a href="https://click.linksynergy.com/deeplink?id=EHFxW6yx8Uo&amp;mid=39756&amp;murl=https%3A%2F%2Fwww.newbalance.com%2F880%2F%3FsearchSource%3D880" target="_blank" rel="nofollow noopener">The New Balance 880</a></li><li>Best cushioned cheap running shoes: <a href="https://www.hokaoneone.com/fly-collection/?gclid=CIzdt5qWpOcCFRL5swod8s0P-Q&amp;gclsrc=ds">HOKA One One Clifton</a></li></ul>Updated 4/3/2020 by Rick Stella: Added more information in the introduction on what to look for when shopping for cheap running shoes and how beneficial trying them on at a specialty store can be, checked the availability of each selected shoe, and updated the prices, formatting, and links. <a href="http://e.businessinsider.com/join/ci/insider-picks">Subscribe to our newsletter.</a> <a href="https://www.parsintl.com/publication/business-insider/">You can purchase syndication rights to this story here.</a> Disclosure: This post is brought to you by the <a href="https://www.businessinsider.com/shopping">Insider Reviews</a> team. We highlight products and services you might find interesting. If you buy them, we get a small share of the revenue from the sale from our commerce partners. We frequently receive products free of charge from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. We operate independently from our advertising sales team. We welcome your feedback. Email us at reviews@businessinsider.com.

The best cheap running shoes

<ul class="summary-list"><li>An <keyword id="35216" type="ENTERTAINMENT" weightage="60" keywordseo="initial-public-offering">initial public offering</keyword> (<keyword id="6354763" type="UNKNOWN" weightage="60" keywordseo="ipo">IPO</keyword>) marks a private company's debut on a stock exchange and its issuance of publicly traded stock.</li><li>Companies do IPOs for the prestige of going public and the cash the new shares bring.</li><li>IPOs are often high risk, as the new shares' prices can initially soar and then drop dramatically.<a href="https://www.businessinsider.com/?hprecirc-bullet"></a></li></ul>An "IPO," short for initial public offering, is a big day in the life of a business. It's the point at which a privately owned business makes it to the major leagues of the publicly traded companies - and onto stock exchanges like the NYSE or the NASDAQ. It's also a chance for early investors to make a killing - like in September 2020, when software company <a href="https://www.businessinsider.com/snowflake-ceo-frank-slootman-comensation-explainer-2020-9" target="_blank" rel="noopener">Snowflake</a>'s price more than doubled on its opening day, breaking records as the <a href="https://markets.businessinsider.com/news/stocks/snowflake-ipo-biggest-ever-software-listing-2020-9-1029593272#" target="_blank" rel="noopener">largest-ever US software initial public offering</a>. So it's no surprise that pumped-up investors jump on IPOs. In 2019, 235 companies went public for a total of $65.4 billion, according to <a href="https://insight.factset.com/u.s.-ipos-raised-more-money-in-2019-despite-a-decline-in-ipo-volume" target="_blank" rel="noopener">FactSet</a>. The analytics firm also <a href="https://insight.factset.com/u.s.-ipo-market-spacs-drive-a-third-quarter-ipo-surge" target="_blank" rel="noopener">notes</a> that 283 companies had IPOs in the first three quarters of 2020. IPOs offer a chance to get in on the ground floor of a newly launched <a href="https://www.businessinsider.com/what-is-common-stock" target="_blank" rel="noopener">stock</a>. Here are the risks and rewards - the ABCs of IPOs - that investors need to know.<h2>How the IPO process works</h2>An IPO means that a company is transitioning from private ownership to public ownership. To wit, the process is often referred to as "going public." Going public is the dream of many a company. But a successful IPO is rooted in a "viable business model that will interest investors," says <a href="https://www2.deloitte.com/us/en/profiles/pwaas.html" target="_blank" rel="noopener">Previn Waas</a>, a partner at Deloitte &amp; Touche and the leader of its IPO Center of Excellence. When they're ready to pull the trigger, owners and initial backers of a private business will "consult with banks to underwrite the deal. Next, the banks will present their view of the company." A lot of thinking goes into the timing, including whether the current market is receptive to initial public offerings in general and that company in particular.If it looks like a go, the company and its backers will select a banking syndicate - a group of institutions that share the going-public costs - to lead the IPO, Waas adds. With their help, "the company will draft an S-1 registration," or prospectus, which can take two or three months.The S-1 is required as a way to disclose to potential investors about the company's business, financial statements, potential risks, and its plans for how the cash raised from the public offering will be used. "The SEC will review the S-1 and may send it back with questions or comments," says Waas, adding that it could go through multiple drafts until it's accepted."<h3>Building the book</h3>After the SEC gives its blessing, the new company and its backers have to price the public offering. Too low could mean missing out on a lot of capital, but pricing that's too high could choke off demand. That's where "book building" comes in - performed by an underwriter, or investment bank, in collaboration with the IPO's backers, notes Jay R. Ritter, the Joseph B. Cordell Eminent Scholar Chair at the <a href="https://warrington.ufl.edu/" target="_blank" rel="noopener">University of Florida's Warrington College of Business</a>. "The underwriter gets information about the state of demand from institutional investors, and then recommends an offer price."A date is set to go public. The day before, about 90% of shares are allocated - pre-sold, in a sense - to certain institutional investors, mainly hedge funds and mutual funds. Finally, "the stock opens for trading on Nasdaq or the NYSE the next morning. A 'designated market maker' is assigned the task of opening trading at a price that balances supply and demand," according to Ritter. And they're off. The stock starts trading. The share price can jump - as it did with Snowflake. Or it can fall, like ride-hailing pioneer Uber, which <a href="https://markets.businessinsider.com/news/stocks/uber-stock-price-2q-earnings-losses-after-earnings-report-disappoints-2019-8-1028432631" target="_blank" rel="noopener">dropped</a> more than 7% on its first trading day in 2019.<h2>Why do companies go public?</h2><ul><li>Raise capital: An IPO brings an immediate cash infusion from the stock sales for a company, its owners, and those who already owned a piece of it, like venture capitalists (who often cash out at this point). In 2020, "the average deal was $186 million," notes Joe Daniels, co-chair of law firm <a href="https://www.mccarter.com/" target="_blank" rel="noopener">McCarter &amp; English</a>'s Venture Capital &amp; Emerging Growth Companies practice. </li><li>Long-term benefits: "Stock that is listed on a major exchange may be more easily used for 'acquisition currency,'" says Daniels - meaning a public company can make an all-stock, or cash-and-stock bid for another company it wants to buy, instead of making an all-cash offer than may require heavy borrowing. A publicly traded company can do a better job of attracting and retaining talent, since "stock and options are considered much more valuable incentive compensation," he adds.</li><li>Cachet: There's prestige in going public. "A listed company may be perceived as more reliable to counterparties, lenders, and investors," Daniels says.</li></ul><h2>The drawbacks of going public</h2>Going public isn't all roses. It "does add another layer of complexity to the business," says Chris DeCresce, a partner in the law firm <a href="https://www.cov.com/" target="_blank" rel="noopener">Covington</a> whose practice focus includes securities and capital markets. "Drafting the S-1 can put a lot of stress on the CFO and the accountants. It can also distract the management team from their traditional business responsibilities for months at a time."Even after a successful IPO, "there are multiple SEC filing requirements that include annual, quarterly and other detailed reports," he adds. "Publicly held companies typically have to hire more people in their accounting and other departments, and pay more for employees who have regulatory experience."And a publicly held company can no longer operate in the shadows. The business's financial results - and by extension its top management - will be scrutinized by regulators, shareholders, portfolio managers and reporters. Actions that used to be considered in a relatively straightforward way must now be weighed against their effect on short-term issues like quarterly earnings and stock prices.Sometimes, even announcing an IPO can blow up a company. That's what happened in 2019 when coworking company WeWork publicly filed its IPO paperwork. Investors and the media put WeWork's finances and leadership under the microscope, and a series of red flags were soon raised. In September 2019, WeWork shelved its IPO.And finally, while successful firms tend to be the ones that launch, there's no guarantee the market will embrace them. According to the independent news and research firm <a href="https://www.iposcoop.com/">IPOScoop, </a> of nearly 200 IPOs tracked in 2020 through early December, 53 were down from their opening day price.Still, IPO investments overall returned a nearly 65% yield year-to-date, according to IPOScoop, compared to nearly 38% for the NASDAQ Composite Index. <h2>Investing in an IPO</h2>So there's certainly been opportunities to profit from IPOs, with a "39% average first-day pop [share-price increase]," according to a 2020 third-quarter report by <a href="https://xcssprrx.pages.infusionsoft.net/" target="_blank" rel="noopener">Renaissance Capital</a>, which provides pre-IPO institutional research, and management of IPO-focused investment products. Its Renaissance IPO Index gained 27% compared to the S&amp;P 500's 6%. But for average individual investors, it could be tough to get in on the action, says Kathleen Shelton Smith, a co-founder and principal of Renaissance Capital LLC. First, there's a question of being able to buy into an IPO - that aforementioned 90% allocation to the investment funds. "It's often very difficult for a Main Street investor to get IPO shares," she says. "Most of them go to large institutions and high-net-worth customers of big brokerages."Other challenges can include finding out about an IPO, although sometimes, a good-hearted broker will tip off their customers, even if they're not big-wheel ones. Or investors can track down upcoming IPOs by checking out the NASDAQ IPO <a href="https://www.nasdaq.com/market-activity/ipos" target="_blank" rel="noopener">Calendar</a>.Some brokerages do reserve slots for small investors. E*Trade, for example, lets customers place a "conditional offer," where an individual specifies the number of shares and the maximum price he or she is willing to pay. "However, submitting a conditional offer does not necessarily mean that you will be allocated shares; the allocation of shares depends on many factors," according to E*Trade's <a href="https://us.etrade.com/e/t/estation/pricing?id=1209044001#allocation-1" target="_blank" rel="noopener">website</a>.<a href="https://www.fidelity.com/stock-trading/faqs-ipos">Fidelity</a> also gets access to some IPOs. Fidelity also allocates some of those IPO shares to its brokerage customers. But they need a "minimum of $100,000 in certain assets at Fidelity," according to the website. And that minimum only gets investors behind the gate for IPOs underwritten by Kohlberg Kravis Roberts &amp; Co., one of Fidelity's business partners. "Other providers of traditional IPOs, and other equity public offerings made through Fidelity may be reserved for brokerage customers with a minimum of $100,000 or $500,000 in certain assets at Fidelity."<h3>Some alternate ways to buy IPOs</h3><ul><li>One way for small investors to get into an IPO is through a <a href="https://www.businessinsider.com/what-is-a-spac" target="_blank" rel="noopener">SPAC</a> (Special Purpose Acquisition Company) It's basically a new publicly traded firm with operations, no assets - other than a war chest of cash - and just one stated business plan: to eventually buy another company. The high number of shares sold in a SPAC offering makes it easier for smaller investors to get in early.</li></ul><ul><li>Another way is to buy into a pool of recently minted IPOs. For example, Renaissance Capital's U.S. and International IPO ETFs (exchange-traded funds) offer small investors a chance to diversify while getting into those newly issued securities. "Our ETFs - which are traded like stocks - represent a portfolio of recent IPOs," explains Smith. "So an investor doesn't face the risk associated with a single stock selection. The ETFs are also designed to emphasize larger companies that went IPO, which studies indicate are a slightly safer bet compared to small-company IPOs."</li></ul><h2> The financial takeaway</h2>There's always a lot of excitement around a company that goes public. So when an IPO happens, investors can quickly bid prices up, offering early investors a quick way to make some good money. Or a quick way to lose some or all of their investment, if the shares nosedive - right away, or in the following months. IPOs involve taking a chance on a company -one that has a good history and promising prospects but is an untried player in the public markets. They may favor it or deem it overvalued.But individuals who carefully examine the S-1 registration and the company's management teams may be able to improve their chances of landing a winning IPO. <h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://markets.businessinsider.com/news/stocks/ipos-top-largest-initial-public-offerings-all-time-ranked-cash-2020-7-1029373999" target="_blank" rel="noopener">Here are the 11 largest IPOs of all time</a></h3><h3><a href="https://www.businessinsider.com/what-is-a-stock-split" target="_blank" rel="noopener">What is a stock split, and is it a good or bad sign when it happens?</a></h3><h3><a href="https://www.businessinsider.com/what-is-market-cap">Market capitalization tells you how much a company is worth, and whether buying its stock suits your overall investing strategy</a></h3><h3><a href="https://www.businessinsider.com/what-is-a-large-cap-stock" target="_blank" rel="noopener">What is a large-cap stock? It represents a $10 billion-plus company - and often low-risk, stable returns for investors</a></h3><h3><a href="https://www.businessinsider.com/trading-vs-investing" target="_blank" rel="noopener">Trading and investing are two approaches to playing the stock market that bring their own benefits and risks</a></h3>

An IPO is when a company starts trading on a public exchange, offering investors a chance to get in on a hot new stock

Hello everyone! Welcome to this weekly roundup of stories from Insider from Business co-Editor in Chief Matt Turner. <a href="http://newsletter.businessinsider.com/join/4np/insider-weekly">Subscribe here to get this newsletter in your inbox every Sunday.</a>Read on for more on <a href="https://www.businessinsider.com/the-top-29-gen-z-vcs-changing-venture-capital-2021-2">Gen Z VCs</a>, <a href="https://www.businessinsider.com/citibank-revlon-loan-900-million-mistake-payment-how-it-happened-2021-2">Citigroup's $900 million blunder</a>, <a href="https://www.businessinsider.com/walmart-healthcare-strategy-health-clinics-2021-2">Walmart slowing its healthcare ambitions</a>, and <a href="https://www.businessinsider.com/inside-gaia-video-streaming-website-conspiracy-theories-2021-1">what happened next at yoga brand Gaia</a>Read time: 5 1/2 minutes.Hello!Former President Donald Trump is set to speak at the <a href="https://www.businessinsider.com/cpac-2021-speakers-trump-pence-orlando-republican-conservative-2021-2">Conservative Political Action Conference (CPAC)</a> in Orlando, Florida, next week, in his <a href="https://www.businessinsider.com/trump-to-make-first-public-appearance-at-cpac-convention-florida-2021-2">first public appearance since he left the White House</a>. Here's what's trending this morning.<ul><li><a href="https://www.businessinsider.com/aoc-texas-fundraiser-doubled-4-million-as-lawmakers-tour-houston-2021-2">AOC doubled her fundraising total for Texas storm victims to $4 million, as she joined fellow lawmakers in Houston to continue relief efforts</a></li><li><a href="https://www.businessinsider.com/biden-official-solarwinds-attack-response-may-come-within-weeks-2021-2">A Biden official says the White House's response to the SolarWinds attack may come within weeks</a></li><li><a href="https://www.businessinsider.com/michelle-wie-west-roasts-rudy-giuliani-panties-comment-to-bannon-2021-2">Pro-golfer Michelle Wie roasts Rudy Giuliani after he shared a crude 'panties' story about her on Steve Bannon's podcast</a> </li></ul><h2><keyword id="159493" type="PERSON" weightage="60" keywordseo="Gen-Z">Gen Z</keyword> VCs</h2>From Margaux MacColl:Gen Z venture capitalists have made headlines by starting syndicates, <a href="https://www.businessinsider.com/gen-z-vcs-slack-movement-venture-capital-investing-tiktok-sway-2021-1">networking in Slack groups</a>, and making a <a href="https://www.businessinsider.com/vcs-flocked-to-bachelor-style-clubhouse-room-made-by-gen-zers-2021-2">racket on Clubhouse</a>. It has quickly become clear: Gen Z is already shaking up the venture-capital industry.There's no set path for Gen Z, people born between 1995 and 2010, to break into venture. Some landed their first jobs by <a href="https://www.businessinsider.com/a-cold-email-landed-21-year-old-gaby-goldberg-a-vc-job-at-bessemer-2020-12">getting lucky with a cold email</a>, while others got the attention of bigwigs through ambitious personal projects. For example, one Gen Zer on our list landed his venture-capital job after writing a book at age 18 that impressed a venture-firm partner. Others are forgoing traditional firms entirely, opting instead to angel invest in startups led by Gen Z founders that they believe in.But there are some commonalities between the rising stars on this list: Almost everyone leverages social media in some way (see: <a href="https://www.businessinsider.com/why-founders-sign-venture-deals-with-tiktok-stars-sway-boys-2020-11">the three TikTok superstars</a>), many deeply understand the importance of <a href="https://www.businessinsider.com/gen-z-is-reimagining-how-to-become-a-vc-2021-1">forming their own Gen Z venture-capital communities</a>, and pretty much all of them want to change the world.Read the full story here:<ul><li><a href="https://www.businessinsider.com/the-top-29-gen-z-vcs-changing-venture-capital-2021-2">GEN Z VCS: Meet the top 29 up-and-comers changing the world of venture capital</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/generation-z-banking-fintech-payments-social-media-growth-customers-2021-2">Fintechs are desperate to reach Gen-Z. Here's how they're using influencers like Charli D'Amelio to tap into what's soon-to-be the largest generation of US customers.</a></li><li><a href="https://www.businessinsider.com/marqeta-ipo-confidential-filing-2021-2">Fintech startup Marqeta, valued at $4.3 billion, has confidentially filed paperwork to go public</a></li><li><a href="https://www.businessinsider.com/why-google-loon-balloon-wifi-project-failed-pichai-page-astro-2021-2">Google blew $100 million a year building giant balloons to spread internet access. Insiders describe how Larry Page's passion project imploded.</a></li></ul><h2>Citi's $900 million blunder</h2><div type="image" title="Michael Corbat, CEO of Citigroup" height="2673" width="4009" msid="81140062" hostid="261"></div>From Yoonji Han and Dakin Campbell:It was around 9 a.m. on Aug. 12 when Arokia Raj first realized that something had gone terribly wrong.Raj, a member of a Citigroup team that processes and services asset-based loans, was reviewing the previous day's transactions when he noticed large gaps in the numbers - a discrepancy of just under $900 million.Raj quickly put two and two together: The figure matched, down to the decimal point, the outstanding principal balance on a loan that the beauty company Revlon had taken out nearly five years ago. With a few fatal clicks, Raj had mistakenly sent Revlon's lenders not just the accrued interest of less than $8 million, as intended, but also the total outstanding principal. Read the full story here:<ul><li><a href="https://www.businessinsider.com/citibank-revlon-loan-900-million-mistake-payment-how-it-happened-2021-2">Inside Citigroup's $900 million error - one of the biggest blunders in banking history</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/goldman-sachs-org-chart-top-executives-leadership-management-operating-committee-2020-9">Goldman Sachs has seen an exodus of senior executives in recent months. Here's our exclusive org chart mapping out the power structure of 135 top leaders.</a></li><li><a href="https://www.businessinsider.com/cathie-wood-profile-ark-invest-etf-rise-success-following-tesla-2021-2">Cathie Wood made a career betting on the future. Insiders reveal how the ARK Invest founder won the funds (and hearts) of memelord traders and boomer investors alike.</a> </li><li><a href="https://www.businessinsider.com/pimco-accused-of-sexual-harassment-and-discrimination-in-lawsuit-2021-2">Pimco's former funds board chair and ex-communications executive face accusations of sexual harassment in lawsuit</a></li></ul><h2>Walmart's healthcare slowdown</h2><div type="image" title="Walmart Health" height="1875" width="2823" msid="81140063" hostid="261"></div>From Shelby Livingston and Blake Dodge:Walmart's ambitious plan to build thousands of low-cost health clinics across the country is slowing down, less than two years after the retail giant embarked on a big push to expand access to primary care.Walmart launched its <a href="https://www.businessinsider.com/sean-slovenski-on-walmart-healthcare-strategy-clinics-home-care-2019-9">first comprehensive health center in September 2019</a>. The one-stop-shop clinics were an attempt to leapfrog the competition and capture a piece of the $3.8 trillion industry while sending more people into Walmart stores.Walmart's <a href="https://corporate.walmart.com/newsroom/2019/09/13/our-goal-of-becoming-americas-neighborhood-health-destination-introducing-the-walmart-health-center">vision</a> was to become "America's neighborhood health destination." The push deeper into healthcare came as competitors like Amazon and CVS Health also bulked up their healthcare ambitions.Now Walmart's clinic strategy is in flux, Insider has learned from conversations with eight current and former employees, most of whom spoke on condition of anonymity as they were not authorized to speak with the press because of confidentiality agreements. Their identities are known to Insider.The most concrete sign of the slowdown is that the company isn't on track to meet its earlier projections for the number of clinics it wants to build this year, according to documents obtained by Insider.Read the full story here:<ul><li><a href="https://www.businessinsider.com/walmart-healthcare-strategy-health-clinics-2021-2">2 years ago, Walmart secretly signed off on a plan to build thousands of health clinics. Now it's slowing its ambitious push into healthcare.</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/big-tech-hamstringing-health-bets-common-problems-2021-2">Amazon and other tech giants want to upend healthcare, but time constraints, egos, and infighting are holding them back</a></li><li><a href="https://www.businessinsider.com/cvs-health-ceo-karen-lynch-priorities-strategies-for-pharmacy-giant-2021-2">Pharmacy giant CVS bought a health insurer then rolled out hundreds of in-store clinics. CEO Karen Lynch shares how she'll make all the pieces work together.</a></li><li><a href="https://www.businessinsider.com/covid-19-vaccine-sign-up-online-struggles-digital-divide-2021-2">Experts warned of the digital divide for years. Now it's 'life or death' as people struggle to sign up for online COVID-19 vaccinations.</a> </li></ul><h2>ICYMI: What became of Gaia</h2><div type="image" title="gaia conspiracy streaming 2x1" height="1200" width="2400" msid="81140064" hostid="261"></div>From Rob Price:Only a select group of employees were allowed to know about the corpse.It had surfaced in the valleys of southern Peru, and word quickly made its way to Jirka Rysavy, a former athlete from Czechoslovakia turned serial entrepreneur. Rysavy, now operating a young video-streaming service called Gaia, got to work, dispatching a video crew from the company's crystal-strewn headquarters in the shadows of Colorado's Rocky Mountains to document the find. The team was sworn to silence, hiding its mission even from coworkers.The body looked, at first glance, almost human. But the mummified cadaver had just three disturbingly long fingers on each hand. Each foot bore a trio of freakishly long toes. Its eyes were unnatural, alien slits.Read the full story here:<ul><li><a href="https://www.businessinsider.com/inside-gaia-video-streaming-website-conspiracy-theories-2021-1">Gaia was a wildly popular yoga brand. Now it's a publicly-traded Netflix rival pushing conspiracy theories while employees fear the CEO is invading their dreams.</a></li></ul><h2>INVITE: Next-Gen founders on racial equity and inclusion in tech</h2>From Dominic-Madori Davis:The Black Lives Matter protests last summer helped fuel a new drive for diversity and inclusion in the workplace. But how far have we come since then? And how much farther do we have to go? Every industry in Corporate America has its own issues to grapple with. Insider is taking a deep dive into tech to talk to Next-Gen founders about racial equity and inclusion in this industry. On Thursday, February 25th at 12 PM ET, Dominic-Madori will moderate a panel featuring Vernon Coleman, CEO and cofounder of the video networking app Realtime, Jordan Walker cofounder of the audio messaging app Yac, and Urenna Okonkwo, founder of the finance app Cashmere.<a href="https://www.businessinsider.com/live-event-and-exclusive-panel-racial-equity-in-tech-2021-2021-2">Sign up here to watch. </a>Lastly, don't forget to<a href="https://www.morningbrew.com/?utm_source=insider&amp;utm_medium=partnership&amp;utm_campaign=insiderweekly_h12021y_h12021" target="_blank" rel="noopener"> check out Morning Brew</a> - the A.M. newsletter that makes reading the news actually enjoyable.Here are some headlines from last week that you might have missed.- Matt<a href="https://www.businessinsider.com/stock-picks-small-cap-mid-cap-smid-ideas-jp-morgan-2021-2">JPMorgan says 2021 is a stock-picker's paradise offering big money-making opportunities. Here are the firm's 22 highest-conviction small-cap investment ideas.</a><a href="https://www.businessinsider.com/h1b-visa-lottery-system-alternative-options-sponsorship-2021-2">H-1B visa regulations are changing. An expert and top Silicon Valley immigration lawyer share 4 alternatives to the lottery system.</a><a href="https://www.businessinsider.com/exclusive-asset-manager-divests-exxon-stocks-climate-concerns-2021-2">An asset manager overseeing nearly $100 billion divested from Exxon on concerns it is failing to move fast enough to address climate change</a><a href="https://www.businessinsider.com/pfizer-walmart-cdc-ran-ads-on-websites-peddling-vaccine-misinformation-2021-2">More than 4,000 advertisers including Pfizer, Walmart, and even the CDC ran ads alongside vaccine misinformation</a><a href="https://www.businessinsider.com/jeff-bezos-amazon-colin-bryar-vp-what-i-learned-2021-2">I'm a former Amazon VP who was there for 12 years and also served as Jeff Bezos' chief of staff. Here are the top insights I personally learned from him that have helped me in my career.</a><a href="https://www.businessinsider.com/klarman-baupost-spac-bets-q4-linkedin-founder-och-dragoneer-2021-2">Billionaire Seth Klarman's Baupost pumped nearly $200 million into 6 new SPAC bets in the fourth quarter</a><a href="https://www.businessinsider.com/mrbeast-burger-team-on-influencer-ghost-kitchens-and-expansion-plans-2021-2">The startup behind MrBeast Burger sees a huge opportunity in influencer 'ghost kitchens' and plans to expand the brand to 1,000 restaurants</a>

You Searched For "hwo to check Syndicate bank balance" and got 10 results

Silicon Valley Bank's downfall was the result of Powell inflicting 'callous' and unnecessary pain on the economy, Nobel economist says

Jennifer Sor

Private credit is so hot right now, the execs at SALT were raving about it. BlackRock and Owl Rock are taking advantage of banks' pain to win more of this booming part of Wall Street.

Aaron Weinman

Check out the more than 50 pitch decks fintechs used to raise millions in funding from top investors

Shannen Balogh,Anita Ramaswam…

A 150-year old Canadian bank is muscling in on Wall Street

Matt Turner

The 'ungovernable' Co-op Bank just lost its financial chief

Stefano Pozzebon

We asked the man behind @GSElevator 19 questions about deviance, debauchery and what he plans to tell his kids about banking

Linette Lopez

The best cheap running shoes

Amanda Loudin

An IPO is when a company starts trading on a public exchange, offering investors a chance to get in on a hot new stock

Martin Daks

Gen Z is already shaking up the venture-capital industry. Meet 29 up-and-coming investors.

Matt Turner

How a founder went from being worth millions to -$10,000 almost overnight - then rebounded to a $100 million fortune

Anna Mazarakis,Alyson Shontell

Popular Keywords

Buying Guides