May 8, 2017 - Economy & Business

Coach acquiring Kate Spade for $2.4B

Shannon Vavra

John Minchillo / AP

Coach Inc. is buying Kate Spade for $2.4 billion, per Reuters.

The deal: Kate Spade announced it was considering a sale in February since it wasn't achieving competitive profit margins. Coach said it expects to work out $50 million in savings over three years from the deal.
The millennial appeal: Kate Spade's brightly colored handbags are popular with millennials, which could help Coach's position in the crowded market.
The trend: Coach bought luxury shoe brand Stuart Weitzman in 2015 after a failed attempt to create a new brand, Reed Krakoff. Coach reported strong earnings in Q3 of 2016, indicating this strategy of acquiring luxury brands might be working (compare that to Michael Kors, which decided to sell higher quality bags to remedy its dip in sales). Analysts are saying Coach's next move could be a buyout of Burburry or Jimmy Choo.

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Deutsche Bank pays New York $150 million for dealings with Jeffrey Epstein

Photo: Stephanie Keith/Getty Images

Deutsche Bank has agreed to pay the state of New York a $150 million penalty for "significant compliance failures" related to its dealings with now-dead convicted sex offender Jeffrey Epstein, the State Department of Financial Services announced Tuesday.

Why it matters: Deutsche Bank "failed to properly monitor account activity conducted on behalf of the registered sex offender despite ample" public information about Epstein's criminal history, according to regulators. It's the first time any financial institution has been penalized for its dealings with Epstein.