The SBA has more than tripled the size of emergency pandemic loans; Tesla will accept bitcoin
the Wall Street newspaper
Stocks of fintech companies like PayPal, Square, Shopify and others have recently cooled after a strong rally last year, but they “may well find a second wind, ”Says the Journal.
“A larger positive trend for fintech newbies has been a shift towards the use of debit cards over credit cards. A major revenue stream for many neobanks and digital wallets such as Square’s Cash app, which have seen an influx of customers using them as a destination for direct deposits, are the fees charged when using debit cards. .
“Neo-banking fintechs have prospects for the future, such as improving payments technology and digital wallets in traditional banks, or increasing competition for deposits as rates rise. But in the shorter term, the market may be surprised enough by the big second quarter numbers to boost these high growth stocks again. “
Greensill Capital, the financial supply chain startup that collapsed earlier this month, has relied on several major Wall Street banks “to fuel its expansion.” Greensill’s closest relationship to Wall Street was with Credit Suisse, which provided him with funding through $ 10 billion in investment funds. But a handful of other big players, including Citigroup and Morgan Stanley, played key roles in the rise of Greensill.
“Citigroup has expanded its activities with Greensill despite repeated internal warnings not to do so due to reputation issues, according to people familiar with the Citigroup-Greensill relationship. The big American bank operated a trust that processed payments from Greensill borrowers, transferring money to investors from Credit Suisse funds. Citigroup also worked on a last failed attempt to raise new capital for the startup. Greensill was founded in 2011 by former Morgan Stanley and Citigroup banker Lex Greensill.
Fidelity Investments “plans to launch an exchange traded fund that tracks the price of bitcoin, promoting the fund manager’s push to bring cryptocurrencies to traditional finance. The ETF, called Wise Origin Bitcoin Trust, will aim to match an index that takes spot prices from various bitcoin markets. The ETF, which requires approval from the Securities and Exchange Commission, would be a big step forward in the company’s bitcoin ambitions. If approved, the ETF could be available for purchase on major brokerage and wealth management platforms that oversee trillions of dollars in individual investor assets.
New York Times
Lift up your cap
The Small Business Administration is raising the limit of its economic disaster lending program to $ 500,000, starting April 6.
“The pandemic has lasted longer than expected,” Isabella Casillas Guzman, agency administrator, said on Wednesday. “We’re here to help our small businesses, and that’s why I’m proud of more than tripling the amount of funding they can access.
“The SBA has approved $ 200 billion in disaster loans to 3.8 million borrowers since the program began last year. Unlike forgivable loans under the larger and more publicized Paycheck Protection Program, disaster loans must be repaid. But they carry a low interest rate and a long repayment term. The agency still has $ 270 billion to lend under the coronavirus program. “
Bitcoin on wheels
Tesla CEO Elon Musk said on Wednesday “that the company accept Bitcoin as a payment method for cars in the United States”, With overseas sales expected later this year.
Notably, “Tesla will hold digital currency, rather than converting payments to dollars, and handle crypto transactions internally,” Musk said. This means that when someone buys a Tesla with Bitcoin, the price of the car may well rise – or fall – over time. In other words, Tesla turns one-off payments into variable-value assets or, essentially, investments.
Goldman Sachs has told “all staff except critical” of its large Indian operation in Bangalore “to back to work from home wednesday, reversing measures to move staff back to one of its largest global offices as coronavirus infections in the city increased, ”Reuters reported. “The Bangalore office has around 7,000 employees, most of its Indian workforce.”
“We continue to work on plans to get our people back to the office safely, and those plans will vary division by division, country by country, city by city,” a Goldman spokesperson said. “The safety of our people is our top priority and we will remain flexible as we monitor changing government guidelines and the uneven deployment of vaccines around the world.”
“Bitcoin paid to Tesla will be kept as Bitcoin, not converted into fiat currency. Tesla CEO Elon Musk announced that the electric car maker will accept digital currency in the United States for vehicle purchases.