CLOs

US President Trump on Monday signed an executive order withdrawing the United States, the world’s second biggest emitter of planet-heating pollution, from the Paris climate agreement for a second time, reports the Guardian (21 January, Noor). Trump, who also signed eight other executive orders on stage, said: “The United States will not sabotage its own industries while China pollutes with impunity. China uses a lot of dirty energy, but they produce a lot of energy. When that stuff goes up in the air, it doesn’t stay there ... It floats into the United States of America after three-and-a-half to five-and-a-half days.” Trump has also pledged to reverse Biden’s efforts to grow the US’s clean energy sector, which Trump has called “the green new scam,” promising in his inauguration address to “drill baby drill” and remove all limits on the US fossil fuel industry.

From "Trump Signs Order to Withdraw US from Paris Climate Agreement, Again"
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Goldman Sachs has awarded CEO David Solomon with an US$80 million retention bonus to stay for five more years, reports the Wall Street Journal (18 January, Andriotis, Seal). The payout ends any lingering questions about his continued place in the C-suite of the Wall Street giant. Solomon had a difficult couple of years at Goldman that cast his longevity as CEO into doubt among many partners after taking over in 2018. The decision to keep the top of the bank in place comes the same week JPMorgan Chase and BlackRock saw changes in their own long-running succession dramas. At JPMorgan, Jamie Dimon’s right-hand man announced he was retiring and a top candidate to one day take the CEO job said she wasn’t interested. At BlackRock, a leading succession candidate to Larry Fink announced he was leaving. Apollo, meanwhile, promoted two internal candidates seen as likely CEO successors. Goldman’s board gave Solomon and other senior leaders some of the carried interest on several of the asset management group’s alternative funds. This is the first time Goldman’s board has made carried interest a part of its annual executive-compensation plan — similar to how chief executives and other top leaders at big private-equity firms are paid.

From "Goldman Sachs Gives Solomon US$80 Million to Stay"
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US President Trump said on Monday night that he planned to impose a 25 percent tariff on products from Canada and Mexico beginning February 1 and might impose levies on most US imports, reports the New York Times (20 January, Swanson), signing an executive order directing federal agencies to deliver a sweeping review of US trade policies by this spring. The order directed Mr. Trump’s officials to deliver reports to him, mostly by April 1, assessing unfair trade practices, currency manipulation, US technology controls, and discriminatory foreign taxes. It ordered officials to examine flows of migrants and drugs from Canada, China, and Mexico to the United States, and the compliance of those three countries and others with their existing trade agreements with the United States. The executive order also called for officials to investigate the causes of large and persistent trade deficits and “recommend appropriate measures, such as a global supplemental tariff or other policies, to remedy such deficits.”

From "Trump Promises Tariffs on Canada and Mexico, Paves Way for Further Trade Action"
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The European Union and Mexico agreed to a revamped free-trade agreement, reports Bloomberg (17 January, Nardelli, Vasquez). The agreement aims to boost both trade and economic security by de-risking supply chains, securing a sustainable supply of critical raw materials, and tackling climate change, according to a European Commission statement on Friday. Bilateral trade in goods reached €81.7 billion in 2023, while services trade was €22 billion in 2022. The agreement, which will need to be ratified by both sides, aims to expand EU exports in areas such as financial services and telecommunications, strengthen the supply chain of critical raw materials, and allow access to government contracts on an equal footing to domestic firms. It will also slash tariffs on agri-food products such as cheese, poultry, pork, pasta, apples, and jams as well as chocolate and wine. The EU and Mexico began talks on a global agreement in 2016 and reached a deal in principle on trade aspects in 2018. The EU has been working on expanding its trade defense measures and clinching bilateral agreements with other countries in an effort to boost its national security. The EU and the Mercosur countries of Brazil, Argentina, Paraguay, and Uruguay finalized negotiations on a trade partnership last month.

From "EU, Mexico Seal Trade Deal"
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A group of policyholders in the US state of Washington are asking a federal judge to preliminarily approve a US$32.5 million settlement with Symetra Life Insurance Co. over cost-of-insurance claims, reports Insurance News Net (17 January, Hilton). If approved, the 11-state settlement deal will cover about 43,000 policyholders in the class. It is just the latest multi-million dollar verdict in a cost-of-insurance lawsuit. Plaintiffs won several similar verdicts across the country in recent years. This particular lawsuit was filed in April 2021 in the US District Court for the Western District of Washington. Symetra is headquartered in Bellevue, Washington.

From "Symetra Reaches US$32.5 Million Settlement Over Cost-of-insurance Charges"
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The US Department of Justice (DOJ) has filed suit against Walgreens, reports the Associated Press (17 January), accusing it of filling millions of prescriptions in the last decade without a legitimate purpose, including for dangerous amounts of opioids. Filed in the US District Court for the Northern District of Illinois, the complaint says the drugstore chain’s pharmacists filled controlled substance prescriptions with clear red flags that indicated they were highly likely to be unlawful. Walgreens also systematically pressured pharmacists to fill prescriptions without taking the time to confirm their validity, according to the complaint. The lawsuit says Walgreens filled “unlawful” prescriptions in violation of the federal Controlled Substances Act and sought reimbursement from federal health care programs for them in violation of the False Claims Act. Walgreens is also accused of ignoring evidence, including from its own pharmacists and internal data, that stores were dispensing unlawful prescriptions, according to the complaint. In addition, it allegedly deprived pharmacists of crucial information including by preventing them from warning each another about particular prescribers. The company said it is asking the court to clarify the responsibilities of pharmacies and pharmacists and to protect against the government’s attempt to enforce arbitrary “rules” that do not appear in any law or regulation and never went through any official rulemaking process. The DOJ filed a similar lawsuit against CVS in December. A spokesperson for that chain has said it strongly disagrees with the allegations and what it called a “false narrative” in the complaint.

From "US Accuses Walgreens of Filling Illegitimate Prescriptions"
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Investment advisor units of Wells Fargo & Co. and Bank of America Corp.’s Merrill shortchanged customers by funneling uninvested cash into sweep accounts that benefited the banks but not their clients, reports Bloomberg (17 January, White, Doherty). The US Securities and Exchange Commission (SEC) said that the firms paid US$60 million to settle the claims without admitting to or denying the regulator’s allegations. Wealth advisers direct clients into so-called cash sweep accounts before customers make investment decisions. These accounts are supposed to let customers earn more interest than if they sat on piles of uninvested cash. Both Wells Fargo and Merrill for several years offered only one cash sweep option for most of their clients and these accounts delivered paltry returns, the SEC said. Regulators have been zeroing in on cash sweep account practices, probing them about their duties to act in the best interest of clients. Customers also have filed proposed class actions against several big banks, including Charles Schwab Corp., JPMorgan Chase & Co., and Wells Fargo.

From "Wells Fargo, Merrill Cash-Sweep Accounts Shortchanged Clients, SEC Alleges"
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A new lawsuit accuses Procter & Gamble of deceiving Charmin purchasers with misleading environmental claims about how it sources its toilet paper, reports Reuters (17 January, Stempel). In a proposed class action on Thursday, eight consumers said Procter & Gamble obtains most wood pulp for Charmin from the Canadian boreal forest, one of the world’s most important biological ecosystems, through harmful logging practices such as clear cutting and burning. The consumers called this sourcing “completely at odds” with Procter & Gamble’s public commitment to protecting the environment, including its “Keep Forests as Forests” campaign and the “Protect-Grow-Restore” logo found on Charmin packages. The lawsuit also called the display of logos from the Forest Stewardship Council (FSC) and Rainforest Alliance misleading because Procter & Gamble uses little pulp from FSC-certified forests and the Rainforest Alliance no longer has a certification program. Procter & Gamble’s marketing deceived consumers into buying or paying too much for Charmin, and violated the US Federal Trade Commission’s Green Guides, which help companies avoid deceptive environmental claims, the lawsuit said. The lawsuit in Seattle federal court seeks restitution, compensatory damages and punitive damages for violations of consumer protection laws in 28 US states and Washington, DC.

From "Procter & Gamble Accused of Greenwashing Charmin Toilet Paper"
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Air Products and Chemicals is separating the roles of CEO and chair, reports Reuters (17 January, Dhumal), as it comes under pressure from an activist investor to lay out a succession plan for the top job. The company will name a new president no later than March 31, and expects the transition to the new CEO to occur within three months of the individual joining the company, it said. Both the CEO and president positions are currently held by Seifi Ghasemi, who has been at the helm for a decade. The move comes at a time when activist investor Mantle Ridge has called for a clear CEO succession plan at the company.

From "Air Products to Split CEO, Chair Roles"
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The Bank of England (Boe) said Friday that it will delay the start of a new capital rules for UK banks while it waits to see how the incoming Trump administration will implement the global Basel agreement in the United States, reports the Financial Times (17 January, Arnold). The BoE’s statement was published by its regulatory arm, the Prudential Regulation Authority (PRA), having made the decision in consultation with Britain’s Treasury. The PRA said it had taken into account competitiveness and growth considerations. Implementation of the reforms in Britain had previously been delayed last summer by about six months to January 2026.

From "Bank of England Delays New Capital Rules Ahead of Trump Presidency"
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The US Federal Trade Commission (FTC) sued Pepsi on Friday for offering preferential pricing to a larger retailer, whom an insider said was Walmart, reports Reuters (17 January, Godoy). The practices fed high consumer prices by leaving other retailers, from large grocery chains to independent convenience stores, to pay more, the FTC said. The lawsuit, filed in New York, alleges that the soft drink manufacturer violated the Robinson-Patman Act, a law that went largely unenforced for decades by the federal government. “The FTC’s action will help ensure all grocers and other businesses — no matter the size — can get a fair shake and compete on the merits of their skill, efficiency, and talent,” FTC Chair Lina Khan said. The FTC’s two Republican commissioners, including Andrew Ferguson, who will chair the FTC after President-elect Donald Trump takes office, voted against the case.

From "US Sues Pepsi over Exclusive Discounts to Walmart"
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US President Trump signed an executive order on Monday that pauses implementation of a law banning TikTok in the United States and provides a liability shield to business partners of the app, reports NPR (20 January, Allyn). According to the order, the law will be paused for 75 days and companies that work with TikTok will not be liable for doing so, giving the administration time “to pursue a resolution that protects national security while saving a platform used by 170 million Americans.” Trump’s action is tied to a TikTok law that took effect Sunday makes it a crime — punishable with stiff fines — for companies to support TikTok as long as the service is controlled by ByteDance, a Beijing-based tech company. Earlier this month, the Supreme Court ruled the app’s “well-supported” national security concerns justify a forced sale — and if TikTok remained owned by ByteDance, the clampdown on TikTok would start on January 19. In response, on the eve of that date, firms that provide web hosting and cloud infrastructure to TikTok, including Oracle and Akamai, dropped the video app. Google and Apple removed TikTok from their app stores. TikTok, meanwhile, switched off its servers, rendering it dark in the US for about 14 hours. But the service was restored Sunday morning, after Donald Trump, at that time still the president-elect, wrote on Truth Social that he planned to take executive action to postpone the ban law’s start date and provide legal cover to TikTok’s business partners once he entered the White House. Companies reacted differently to Trump’s social media post. TikTok flipped its servers back on and sent a notification to all users crediting Trump with TikTok’s return. “Essentially with TikTok, I have the right to sell it or close it,” Trump said from the White House after signing the executive action on Monday.

From "Executive Order Pauses TikTok Ban in US, Provides Immunity to Tech Firms"
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Universal Music Group NV has agreed to plan a US share sale by September 15, reports Bloomberg (16 January, Morris), in order to fulfill an agreement with Bill Ackman’s hedge fund Pershing Square. The Amsterdam-listed entertainment company will use reasonable efforts to launch an underwritten offering for the sale of shares owned by Pershing Square, according to a Wednesday statement. The agreement between Pershing Square and UMG requires that Ackman’s firm sell US$500 million of its shares in connection with a US listing, according to a post on Ackman’s X account following UMG’s statement. Pershing Square’s total investment in UMG is worth US$3.3 billion, according to Ackman’s post. Pershing Square believes a US listing will substantially increase the valuation of UMG shares, as well as demand for them from investors who are limited to buying US-listed securities, Ackman wrote.

From "Universal Plans US Share Sale for Pershing Square Stake"
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Argentina will roll out changes to the country’s anti-dumping system in an effort to promote greater competition and bring down prices, reports Reuters (16 January, Pelaez-Fernandez), citing a social media post from Economy Minister Luis Caputo. The changes include reducing the maximum duration of anti-dumping duties from five years, with unlimited renewals, to three years with a single two-year extension, Caputo said. According to the official, Argentina’s current provisions for anti-dumping duties, intended to prevent unfair competition between imported and domestic goods, have increased consumer prices and industrial costs. The changes, which will be published in the government’s official bulletin on Thursday, will also include shortening investigation timelines to eight months and streamlining procedures. “With this reform, competition is encouraged, the original function of anti-dumping duties is restored and a more transparent and balanced foreign trade is sought,” Caputo said.

From "Argentina to Reform Anti-dumping System to Boost Competition"
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The US Federal Trade Commission (FTC) filed a lawsuit on Thursday against Greystar Real Estate Partners, reports the New York Times (16 January, Kaye), accusing the largest US apartment landlord of charging tenants hundreds of millions of dollars in hidden fees. Greystar routinely failed to notify prospective renters of mandatory fees for services including trash collection, pest control, and package delivery, the FTC said in its complaint. Combined, these apartment fees have often added up to hundreds or thousands of dollars each year. Many tenants, the agency said, did not discover the fees until after they signed a lease or moved into a Greystar property. The real estate giant’s pricing practices, since at least 2019, have in some cases included lease termination charges amounting to thousands of dollars, according to the lawsuit. Those charges essentially lock tenants into leases that require them to pay more than the advertised cost.

From "FTC Sues Largest US Apartment Landlord over Hidden Fees"
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Zhu Jiusheng, the CEO of China Vanke Co., one of the country’s largest property firms, has been detained by police, reports Bloomberg (16 January, Scanlan). Vanke is facing a deepening bond selloff as worries grow about its mountain of debt coming due and a property crisis that remains entrenched despite government rescue efforts. Vanke has US$4.9 billion in yuan- and dollar-denominated bonds maturing or facing redemption options in 2025, its highest annual amount ever, and the most for any Chinese developer this year, according to Bloomberg-compiled data. Because of its state backing through its largest shareholder, Shenzhen Metro Group Co., Vanke has been seen as more insulated from the risk of default than some of its peers.

From "China Vanke CEO Zhu Taken Away by Authorities"
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Tokyo Gas has identified assets, including from its vast real estate portfolio, to be sold to fund growth investments, reports Reuters (16 January, Obayashi, Uranaka, Golubkova), though no decisions have been made yet on what to sell. The company is facing pressure from Elliott Management, which bought a 5.03 percent stake in Japan’s top city gas provider last year, to divest parts of its extensive real estate portfolio to boost shareholder value. Tokyo Gas President Shinichi Sasayama said asset reviews are conducted regularly to improve capital efficiency. “We’ve identified assets that should be sold to fund necessary growth investments, not limited to real estate, to enhance corporate value,” Sasayama said in an interview on Wednesday. The company may use the funds for growth investments or shareholder returns, he said, declining to comment when disclosures could be made.

From "Tokyo Gas Has Identified Assets to Sell to Fund Investments, President Says"
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General Motors (GM) and its subsidiary OnStar agreed not to disclose sensitive vehicle geolocation and driver behavior data to consumer reporting agencies for five years, reports Reuters (16 January, Single). According to the US Federal Trade Commission, GM collected, used, and sold drivers’ precise geolocation data and driving behavior information from millions of vehicles, which can be used to set insurance rates, without notifying consumers and obtaining consent. The vehicles automatically collected data on hard braking, late night driving, and speeding and sold that data to consumer reporting agencies without permission from drivers. The agencies used the data to compile reports that insurance companies then sometimes used to deny insurance and in some cases raise rates. The company must henceforth obtain driver consent to collect data, and allow drivers to delete or limit data as part of the settlement.

From "GM Agrees to Five-year Ban on Selling Driver Location Data"
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A pair of technology trade groups sued the US Consumer Financial Protection Bureau (CFPB) on Thursday to block a new rule giving the regulator supervisory authority over payment apps and digital wallets from large non-banks, reports Reuters (16 January, Stempel). NetChoice and TechNet said the US Congress did not give the CFPB the authority to aggressively, arbitrarily, and capriciously police large non-banks offering consumer financial services through such products as Apple Wallet, Google Pay, and Venmo. The trade groups also said the CFPB identified no consumer risks or gaps in regulatory oversight that justified the rule, which covers companies that process at least 50 million transactions annually, and more than 13 billion overall. According to the complaint filed in Washington, DC, federal court, “The bureau failed to show what consumer risks the rule was even meant to alleviate in its haste to dream up a problem in search of a solution."

From "Tech Groups Sue CFPB to Block Rule on Payment Apps, Digital Wallets"
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Perdue Farms and JBS, two of the biggest US meatpackers, will pay a combined US$8 million after the US Department of Labor found the companies employed migrant children to work in their slaughterhouses, reports the New York Times (16 January, Dreier). Federal investigators found that children had been working at a Perdue plant on Virginia’s Eastern Shore as far back as 2020. The children, who had been hired by a staffing firm, worked late hours and performed dangerous tasks with electric knives and hot sealing tools. Perdue agreed to pay US$4 million in restitution to the children and to organizations including Kids in Need of Defense, a national nonprofit organization that provides lawyers to young migrants who come to the country alone. Perdue, one of the country’s largest poultry processors, will also pay a US$150,000 civil penalty. JBS, the world’s largest meat processor, agreed to pay US$4 million after investigators found that children as young as 13 were working overnight cleaning shifts at its slaughterhouses in states including Colorado, Minnesota, and Nebraska. Mostly from Central America, the children were hired through an outside sanitation company. They worked with potent chemicals — sometimes showing up to school with burns — and washed hazardous tools.

From "Meatpacking Companies to Pay US$8 Million for US Child Labor Violations"
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