Morning Brew Daily Regional Bank Stocks in Free Fall, Hindenburg Targets Icahn & Pornhub Blocks Utah
May 3, 2023
Explore the dramatic decline of regional banks like Western Alliance and PacWest amidst a financial crisis. Dive into the fierce battle between activist investors Carl Icahn and Bill Ackman, revealing a unique brand of billionaire rivalry. Discover why Pornhub has blocked access in Utah due to new age-verification laws, sparking a debate on protecting minors versus user safety. Plus, hear about the Surgeon General's alarming declaration of loneliness as an epidemic and surprising findings on the highest-paid athletes and their ties to the Middle East.
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Regional Bank Troubles
- Regional banks face trouble, mirroring First Republic's struggles with deposit outflows.
- Mid-sized banks are most vulnerable due to increased regulation and lack of scale compared to larger institutions.
Icahn Enterprises Accused
- Hindenburg Research accuses Icahn Enterprises of operating a Ponzi scheme, using new investor money to pay dividends.
- Icahn Enterprises trades at a high premium despite not having the cash flow to support its high dividend yield.
Icahn's Downfall
- Carl Icahn lost $10 billion and dropped from 58th to 119th on the world's richest list after Hindenburg's report.
- Bill Ackman, a rival investor, called the situation "karmic" due to a past feud over Herbalife.