Was this email forwarded to you? Sign up here. (Today's Smart Brevity count: 1,285 words, ~ 5 minutes.)
Photo illustration: Drew Angerer/Getty Staff; Aïda Amer/Axios
The banking industry has argued in recent weeks that the problems in the systemically important repo market are the result of excessive regulations and could result in larger and more damaging liquidity events in the future.
Background: Rates in the repo market that banks use to access quick cash spiked last month, reaching five times their normal level.
What's happening: Bank lobbying groups and a handful of CEOs have said the problem stems from too much regulation of the financial sector.
Between the lines: In her letter to Mnuchin, Warren said she's not buying the argument and the Treasury Department and Financial Stability Oversight Council, which Mnuchin chairs, should not buy it either.
Warren isn't the only one who's dubious of the banks' cries for reduced regulation. Minneapolis Fed President Neel Kashkari told Axios that his patience is "basically gone" for bank complaints about reduced liquidity.
U.S. existing home sales fell 2.2% in September as the housing market continues to tread water with a dearth of properties for sale, especially cheaper homes, and a lack of interested buyers despite historically low mortgage rates.
Why it matters: It's the latest example of the U.S. real estate market's continued struggles.
WeWork has accepted a multibillion-dollar rescue package from SoftBank that gives the Japanese firm an 80% stake in the company.
Why it matters: Per Axios' Dan Primack who first reported that the deal was about to happen, it's a dramatic development in a "saga that has seen the embattled company plunge from a $47 billion valuation to below $8 billion."
What's happening: WeWork said SoftBank had committed to provide significant funding, including $5 billion in new financing "and the launching of a tender offer by SoftBank of up to $3 billion for existing shareholders."
What's next: WeWork said its board would appoint SoftBank Group COO Marcelo Claure to be executive chairman of the WeWork board of directors, "effective upon closing of the accelerated $1.5 billion payment commitment."
Under Armour CEO Kevin Plank and Nike CEO Mark Parker are both stepping down from their roles, the two companies announced in separate statements Tuesday.
The big picture: Plank and Parker have been on the job for a similar period of time, but have delivered radically divergent returns to shareholders during their time overseeing the two companies.
On the other side: Parker's tenure as Nike's CEO has been marred by major scandals in the past two years, but the stock has managed to perform well.
What's next: Under Armour COO Patrik Frisk will take over the top post, and John Donahoe, a current Nike board member and CEO of cloud computing company ServiceNow, will take the reins at Nike.
Axios' Kim Hart writes: Almost two in three finance officers in large cities are predicting a recession as soon as 2020, according to a new report from the National League of Cities, as weakening major economic indicators and shrinking revenue sources put pressure on municipal budgets.
Why it matters: One of the first signs of changing economic conditions can be seen in city revenue collections. For the first time in seven years — generally seen as the recovery phase since the Great Recession — cities expect revenues to decline as they close the books on the 2019 fiscal year.
Threat level: The impact of changing economic conditions tends to be felt by cities sooner than at the national level.
What's happening: The annual City Fiscal Conditions report, which will be released Monday, analyzed the responses from financial officers in 554 cities of varying sizes, but all with populations greater than 10,000. (Note: The chart above reflects data from 451 cities, since not all cities collect property, sales and income tax.)
The other side: Across the South, West and Northeast, municipalities of all sizes showed some growth in general fund revenues, albeit slower growth than previous years.
The bottom line: Peaks and valleys in property, sales and income tax collections tend to balance each other out over time. The fact that all three revenue sources are trending downward simultaneously — combined with the growing gap between city revenues and expenditures — suggests an economic downturn may be on the horizon.
Editor's note: The chart in story no. 4 was corrected.