Money Stuff: The Podcast Generous Portion: FTC, CMG, ETF
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Nov 15, 2024 Dive into the world of merger arbitrage and the impact of regulatory scrutiny on failed deals. Explore the quirky connection between burrito sizes and securities fraud, complete with humorous anecdotes. Discover the complexities of leveraged ETFs, particularly a double version tied to Berkshire Hathaway. Lastly, gaze into the explosive rise of U.S.-listed ETFs, hinting at a future where they might outnumber stocks. A mix of finance and fun intertwined!
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Tapestry-Capri Deal Failure
- The Tapestry-Capri merger, focusing on affordable luxury handbags, faced FTC scrutiny.
- The deal ultimately failed, causing a significant drop in Capri's stock price and impacting merger arbitrageurs.
Merger Arbitrage Challenges
- Merger arbitrage has faced challenges due to increased FTC scrutiny and deal failures.
- This has led to job losses in the sector, as highlighted by a Wall Street Journal article.
Wells Fargo Chipotle Study
- Wells Fargo analysts conducted a study on Chipotle burrito bowl sizes in NYC, finding significant variations.
- The largest bowl was almost twice the size of the smallest, raising concerns about portion consistency.