HSBC nears deal to sell French retail unit; GSA auctions bitcoin share

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Adieu

HSBC “is in final negotiations to sell its French retail network to a subsidiary of U.S. private equity firm Cerberus, as the bank continues to dispose of underperforming assets in the west and sharpen its strategic focus on Asia,” the Financial Times reported. HSBC France CEO Jean Beunardeau said that the deal did not include insurance or asset management. FT sources warned that the deal “could still fall through and other bidders could come back into the frame.”

“The move comes as lenders including Spain’s Santander, Sweden’s Handelsbanken and Société Générale in France weigh up their physical distribution networks and the role of bank branches as the coronavirus crisis has hastened customers’ shift online.”

“Cerberus plans to combine HSBC France with My Money Group, a French lender it acquired in 2017 from General Electric,” the Wall Street Journal said. HSBC “also is considering selling its unprofitable U.S. retail-banking network.”

Wall Street Journal

Deeper into crypto

Bank of New York Mellon “is investing in a cryptocurrency startup, the latest move by a traditional Wall Street player to embrace digital assets. The startup, Fireblocks, builds tools for the secure storage and transfer of bitcoin and other cryptocurrencies. BNY Mellon plans to use Fireblocks’s technology to underpin a new business that the bank unveiled last month, in which it plans to serve as a custodian for digital assets on behalf of institutional investors. BNY Mellon’s strategic investment in Fireblocks is part of a larger funding round that Fireblocks is set to announce Thursday.”

Financial Times

Long way from over

“Silicon Valley’s most prominent start-ups are normally consumer internet ventures such as Facebook and Uber — aggressive, fast-growing companies on a relentless drive for global domination and the huge brand awareness that goes with it. Yet it is Stripe — a name unfamiliar to most outside the tech industry — that now sits atop the list of Silicon Valley’s most prized private companies after investors valued it at $95 billion this week.”

“Stripe’s software makes it simple for any website or app to accept payments, without having to obtain their own licenses or strike deals with the many different banks and card operators that the company has already integrated. Underpinning a near-tripling of Stripe’s valuation in the past year is a belief from investors that the digitization of commerce and payments still has some way to run.”

New York Times

Plan carefully

“Banking giants like Bank of America, Citigroup and JPMorgan Chase, as well as smaller institutions, have announced initiatives totaling billions of dollars that are largely focusing on communities and entrepreneurs of color. Some of the funding is earmarked for affordable housing and commercial development in low-income communities, which will benefit all real estate developers.”

“Longtime practitioners and analysts in the field say that if new dollars are to redress the industry’s racial imbalance, the funds need to be carefully designed so that more of the money winds up in the hands of Black developers.”

Equity centerpiece

The Treasury Department “is moving ahead with a formal racial equity review of the agency and its programs, putting in place an effort to ensure that economic fairness is prioritized throughout the Biden administration as it begins to disburse $1.9 trillion in relief money. The initiative is expected to be led by Adewale Adeyemo once he is confirmed as deputy Treasury secretary. It will be undertaken in close collaboration with Treasury Secretary Janet L. Yellen, who is making racial equity a centerpiece of her agenda as she oversees the disbursement of much of the stimulus package.”

“The review follows an executive order that President Biden signed in January requiring federal agencies to pursue racial equity and to support underserved communities in their policies and programming.”

Washington Post

Sold!

The General Services Administration sold a 0.7501 share of a bitcoin at a “first-of-its kind auction” Wednesday at a price of $53,104, “about 21% higher than the market value, meaning the government auction generated a significant premium.” It was the “first time the GSA — which typically offers surplus government vehicles and office supplies — has allowed the public to place bids on cryptocurrency. The GSA declined to share where its bitcoin fraction came from, citing privacy concerns.”

“The auction comes amid an extraordinary rally in cryptocurrency markets, and as bitcoin recently surpassed $60,000 for the first time. Bitcoin’s value has roughly doubled since the start of the year, riding a staggering comeback from the lows of last spring, when investors rushed to sell during the early weeks of the coronavirus pandemic.”