The Week in Business: A $ 900 Million Mistake

Hope you all stay warm. You have a quick round of business and technology news to get ahead of the week. – Charlotte Cowles

Citigroup made an embarrassing mistake last summer and accidentally wired $ 900 million to a group of lenders, instead paying very little interest to send it. Citigroup is trying to recover the money it sent from beauty company Revlon. And in general, cash recipients wired into error need to return it. But last week, A judge ruled that lenders could keep it all. His reasoning: He had grounds for believing that the payment, which is owed to Revlon, was all intentionally covered. The decision is a major setback for Citigroup, which it says will appeal.

This was the question Introduced by members of congress When he grilled key players in the GameStop trading frenzy that hijacked the stock market last month, many investors, both big and small, lost money. At the center of the hearing was Vlad Tenev, chief executive of online brokerage firm Robinhood, which handled most of GameTop’s trades, but abruptly halted him when he reached fever pitch on 28 January. Mr. Tenev then explained – GameStop trades were halted due to the new requirements of the clearinghouses that perform them. He apologized to his users for the company’s failures, but also insisted that Robinhood had done nothing wrong and privileged powerful business partners at the expense of small-time investors, as some critics Has suggested. It is unclear what – if anything – laws and regulators will do to reduce such turmoil in the future.

Walmart, the nation’s largest private employer, He said that it would increase the salary of its employees by 425,000. This means that about half of its 1.5 million workers in the United States would take at least $ 15 an hour. But many of its workers will still earn less. Unlike its biggest rivals such as Target and Amazon, Walmart has a minimum wage of $ 11 per hour, with wages starting at both $ 15 per hour. The company was announced about a week after its CEO, Doug McMillan meets President Biden And discussed the administration’s interest in increasing it National minimum wage $ 15 per hour at its current rate of $ 7.25 per hour.

Texas is recovering from a severe cold snap that lasted for millions of days without electricity and water, but its economy is collapsing. Its agricultural industry has been Really frozen, And livestock are dying. Many semiconductor companies had to deactivate production, Reducing the global shortage of computer chips She is already Slow car manufacturing On plants worldwide. But such catastrophic events can be the new normal. Economists – including a top Federal Reserve official – are warning banks Need to be better dressed for more information Climate change-related disruption For manufacturing, electricity and other industries.

House of Representatives is planned Don’t hold its first floor On the Biden administration’s $ 1.9 trillion pandemic rescue package this coming Friday. Democrats hope to pass the measure before March 14, when additional federal unemployment benefits ($ 300 a week, provided on top of current state unemployment benefits) are scheduled to be abolished. Through a legislative flaw, the stimulus bill Can be approved With a simple congressional majority and no Republican support.

Australian Government has Proposed a law Tech companies to pay news outlets for content they share on their platforms (and, in turn, helps them with advertising dollars). This poses obvious problems for giants like Facebook and Google, who are taking the opposite approach to the proposal. Facebook took a fighting stance by indefinitely blocking all news links from its platforms. On the other hand, Google announced a three-year deal with Rupert Murdoch’s News Corp to make up for its content, and said Similar partnership is in the works. If the law is successful, other countries can follow in Australia’s footsteps.

Retail Sales Jumped 5.3 percent in January, It shows that Americans spend the incentive checks received at the end of the year rather than saving them. Parler, the social network that was forced to go offline, called millions of Trump supporters for violence during the capital riot, Coming back and running. And the Attorney General of New York has Sued amazon, Accusing them of providing inadequate safety protections for workers during the epidemic in New York City and retaliating against employees who raised concerns.

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