Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
"I would love this to be clarified. We come to a deal on trade, boy, this market is up 10 to 15%, but without it's going to be worrisome," Jeremy Siegel says.Marketsread more
Tesla solar energy systems reportedly ignited at an Amazon warehouse in Redlands, California last June, and the Seattle e-commerce titan confirmed that it has no further plans...Technologyread more
Private equity is "benefiting" from the growing regulatory creep on Wall Street. At least, so says one of the industry's senior statesmen.
"I do think we benefit from regulation," Josh Harris, co-founder and senior managing director of Apollo Global Management, said Tuesday at the Deutsche Bank Global Financial Services Conference in New York.
That's a far cry from how big banks on Wall Street might feel. Complying with numerous Washington agencies and a growing list of requirements from the Federal Reserve, including producing "living wills, " has grown into a staffing and cost headache at most major banks.
Apollo Global, which is subject to less-stringent requirements than Wall Street banks, can buy other banks or insurance companies, Harris said, and take on lending businesses from which major banks have been "receding," he said during the question-and-answer portion of his talk at the event.
Specifically, he said, Apollo has been able to increase its lending business to borrowers willing to pay between 6 and 10 percent for loans.
But, Harris noted, there are parts of the private equity business that cannot escape the regulatory headaches big banks face.
Whereas Apollo is doing more lending that banks cannot, its business also faces challenges from how much less banks can lend to it for leveraged buyouts, thanks to post-crisis regulation in Washington.
The Treasury Department's Office of the Comptroller of the Currency and the Federal Reserve provided guidance to the firms they supervise in 2013, telling big banks to not provide private equity borrowers with excessive amounts of money to do deals. What they were trying to avoid are repeats of post-financial crisis disasters like TXU or Caesars, both bought by private equity investors and each levered to the gills, in terms of the debt each deal assumed ( would go on to file for bankruptcy protection).
And that means, now, that private equity firms can't borrow as much cash for big buyouts; instead, the debt-to-equity ratio for private equity firms like Apollo is closer to 50-50, Harris said. It wasn't always that way, especially in the years leading up to the financial crisis. Not being able to get debt might impact smaller private equity firms more; Apollo has $30 billion in funds it has raised to do deals.
Still, Harris happily hearkened back to his industry's headier days, when debt was easier to come across in the years leading up to the crisis.
"Literally every deal … was 80-20," Harris said during his presentation.