CVS Health shares were trading down 8% on Thursday after Blue Shield of California announced plans to cut back on its pharmacy benefit management services.
Why it matters: CVS Caremark is one of three PBM players that control roughly 80% of the industry. But there are increasing concerns about the regulatory environment as the industry comes into the crosshairs of the Federal Trade Commission and Congress.
Driving the news: Farmington State Bank and its holding company FBH were slapped with a cease-and-desist after violating commitments to state and federal regulators by engaging in digital asset activity.
Flashback: The bank, which also conducted business as Moonstone Bank, drew scrutiny in the wake of FTX's collapse. Alameda, the hedge fund arm of FTX had a stake.
The order did not mention FTX or Alameda.
Zoom in: The Federal Reserve Bank of San Francisco approved FBH's application to be a holding company in Sept. 2020 as it bought Farmington Bancorp.
FBH at the time didn't have a master account, though, Farmington State Bank did (since the 1990s), according to the FRB database of master accounts.
Alameda acquired a stake in FBH in March 2022 for $11.5 million; the holding single-branch bank's was worth $5.7 million at the time.
In the weeds: All of that describes what is called a "charter strip," that is when a company that wants to open a bank with a new business model simply buys one, instead of applying for a de novo bank charter.
The intrigue: FBH's Chairman Jean Jacques Pierre Chalopin, of the Inspector Gadget cartoons and owner of the Bahamas-based Deltec Bank was named in the Fed's enforcement action, but was not charged as an individual.
Just last month U.S. authorities were authorized to seize millions from Deltec amid a fraud investigation; Deltec has links to Tether.
Of note: Farmington worked with a third party to facilitate the issuance of their stablecoins to the public in exchange for "50 percent of mint and burn fees on certain stablecoins," per the Fed's cease-and-desist.
The bank was also ordered to take steps "to preserve records and suspend any deletion, overwriting, modification, or other destruction of all paper documents, electronic documents, physical items, and data under their control."
The U.S.'s largest crypto exchange, Coinbase, is expanding its line of crypto products and services to include regulated futures trading.
Why it matters: For Coinbase, derivatives present another source of revenue (a bigger potential market than spot trading). For the industry, it would appear to bone up the crypto trading ecosystem.
U.S. mortgage rates hit a two-decade high this week as the economy continues to grapple with the fallout from inflation.
Why it matters: Higher rates threaten to stall home sales as existing homeowners don't want to give up low-interest mortgages, while prospective buyers are hesitant to borrow.
As Adobe's chief communications officer and vice president of marketing strategy, Stacy Martinet is responsible for shepherding consumers into the AI frontier by introducing major innovations like Adobe Firefly.
The U.S. Small Business Administration today will open up billions of loan dollars to venture capital funds, via the implementation of a new rule, it tells Axios exclusively.
The big picture: This is a modernization of the Small Business Investment Company (SBIC) program, which is aimed at increasing investment in U.S. startups.
D'Amelio Brands, the company founded by TikTok stars Charli and Dixie D'Amelio and their parents, is getting into food with a forthcoming snack line and $5 million in new funding for Fifth Growth Fund.
Why it matters: Combined, the family's TikTok accounts top more than 400 million followers, with Charli currently having the second most-followed account on the app.
Power companies and grid operators increasingly risk financial calamity from natural disasters, with challenges intensified by operational hurdles, soaring costs and the effects of climate change.
Why it matters: The utility industry was once thought of as virtually impervious to financial disaster — a surefire investment bound to deliver steady returns.
In the wake of the devastating Hawai'i wildfires, many businesses that typically cater to the islands' tourism sector have pivoted to focus on relief efforts for locals.
Driving the news: The rate on the 30-year-mortgage ticked up to 7.16% this week — back to the high last reached in October last year. Before that you'd have to go back to 2001 to find mortgage rates this high.
Goldman Sachs is revising its call on home prices; in a new note its credit strategy research team forecasts prices will rise 1.8% this year — previously they'd predicted a drop of 2.2%.
Why it matters: With home prices going up — and mortgage rates at a stunning 22-year-high — the situation is looking increasingly bleak for Americans looking to buy a house.
Family members of victims and survivors of the 2022 mass shooting in Buffalo, New York, announced Wednesday that they have filed two lawsuits against YouTube, Reddit and several gun-related companies.
State of play: Authorities said the mass shooting at Tops supermarket in a predominantly Black neighborhood was a racially motivated hate crime and a state report found the shooter was "radicalized" online — both points the lawsuits note, as they accuse the defendants of helping enable the white gunman to kill 10 Black people.
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