“I want to emphasize that,” he added. “Through no fault of their own.”
The pandemic has hit African-Americans and Latinos hardest on all fronts, with higher infection and death rates, more job losses, and more business closures.
Proposals that confront the wealth gap head on, though, are both expensive and politically charged.
Professor Darity of Duke, a co-author of “From Here to Equality: Reparations for Black Americans in the Twenty-First Century,” has argued that compensating the descendants of Black slaves — who helped build the nation’s wealth but were barred from sharing it — would be the most direct and effective way to reduce the racial wealth gap.
Vice President Harris and Senators Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts and Cory Booker of New Jersey have tended to push for asset-building policies that have more popular support. They have offered programs to increase Black homeownership, reduce student debt, supplement retirement accounts and establish “baby bonds” with government contributions tied to family income.
With these accounts, recipients could build up money over time that could be used to cover college tuition, start a business or help in retirement.
Several states have experimented with small-scale programs meant to encourage children to go to college. Though those programs were not created to close the racial wealth gap, researchers have seen positive side effects. In Oklahoma, child development accounts seeded with $1,000 were created in 2007 for a group of newborns.
“We have very clear evidence that if we create an account of birth for everyone and provide a little more resources to people at the bottom, then all these babies accumulate assets,” said Michael Sherraden, founding director of the Center for Social Development at Washington University in St. Louis, which is running the Oklahoma experiment. “Kids of color accumulate assets as fast as white kids.”
Without dedicated funds — the kind of programs that enabled white families to build assets — it won’t be possible for African-Americans to bridge the wealth gap, said Mehrsa Baradaran, a law professor at the University of California, Irvine, and the author of “The Color of Money: Black Banks and the Racial Wealth Gap.”
Dr. Kendi’s book, a memoirish argument that Americans of all races must confront their roles in a racist system, has drawn attention, and controversy, for pulling the word “racist” away from its current usage as a hypercharged word reserved for the clearest cases. He thinks the word should be attached to actions, not people, and used to describe supporting policies — like standardized testing — that produce a racially unequal outcome. The focus on outcomes helped put Dr. Kendi at the center of the long-running argument about the roots of inequality. But when he published his book, he said, he was bracing for criticism from the left. It had become an axiom in some circles that Black Americans can’t be racist by definition. But the people committing racist acts in his book include President Barack Obama and Dr. Kendi himself.
And so Dr. Kendi’s work has influenced a growing newsroom debate over using the word descriptively, as an assertion about policy, rather than as a hazy, charged personal epithet. The 2019 book, and the intense focus on racism after the killing of George Floyd the next year, also transformed Dr. Kendi from a well-regarded but low-key academic networker into a mainstream, best-selling author whose book is sold at Logan Airport. He’s become what one of his friends called “Captain Black America” — a Black academic or journalist who becomes a lightning rod for the right and the object of white liberal adulation, as Ta-Nehisi Coates did after his 2014 Atlantic article making the case for reparations.
“If he didn’t exist, his critics would need to invent him, because he’s a person they can target,” said The New Yorker writer Jelani Cobb.
Self-promotion doesn’t come naturally to Dr. Kendi. But on his way home to put his daughter to bed Thursday, he gamely submitted to a short interview in the lobby of a Boston University building, double masked and wearing three layers of wool against the cold rain. While I waited, I read on Twitter about Alexi McCammond, a young Black woman forced to resign as the new editor of Teen Vogue after a controversy regarding racist tweets about Asians she sent as a teenager. I asked him about how his view that “racist” isn’t a permanent label for an individual squares with an unforgiving social media culture and a growing corporate culture that has translated his work into formalized training sessions — the subject of a recent critical opinion piece in The Globe.
Dr. Kendi said he would not “police” how people use his work. “People should be held accountable when they’re being racist, but I think people should be able to repair the damage,” he said. “I don’t view ‘racist’ as a fixed category.” He added that he did not believe that “if someone said something racist 20 years ago or even two days ago that right now, in this moment, they’re also racist.”
That’s not how most Americans, or most reporters, use the word. But it has a clarity and flexibility that make it valuable whether you buy into Dr. Kendi’s broader worldview, which includes sweeping criticism of American capitalism. And The Emancipator is interesting in part because it’s an opportunity to put his ideas into journalistic practice.
on emergency mode to bolster growth in the face of the pandemic’s shock, it must now navigate an economy that is expected to strengthen rapidly in the coming months.
Officials will release an interest rate policy decision and their first economic projections of 2021 at 2 p.m. on Wednesday, and they are virtually certain to leave borrowing costs unchanged at near zero.
But analysts and Wall Street investors alike are eager to see whether growing economic optimism will shake up the outlook for policy in the months and years ahead.
The Fed slashed interest rates to rock bottom a year ago as the pandemic shut down huge swaths of the economy. It has also been buying $120 billion in bonds per month, a policy meant to keep credit cheap and help the economy rebound from a virus that has thrown millions out of work.
Jerome H. Powell, the Fed chair, has been clear for months that officials expect to be patient in removing that policy help — a cautious tone that he is expected to maintain at a news conference on Wednesday.
“This is one of the most critical Fed meetings we’ve had in a while,” said Michelle Meyer, head of U.S. economists at Bank of America Merrill Lynch. “Markets are really paying attention, and they’re going to dissect everything he says.”
That’s because the economic backdrop is shifting. Coronavirus vaccines are fueling hopes for reopening parts of the service sector. A freshly signed stimulus package will pump $1.9 trillion into the economy, with an eye on preventing evictions, funneling cash to parents and putting $1,400 checks directly into bank accounts.
Against that improving backdrop, economists in a Bloomberg survey expect the Fed to increase rates twice in 2023, the news outlet reported. In December, they expected rates to remain unchanged until 2024 or later.
As investors expect faster growth, higher inflation and a quicker-moving Fed, they have pushed up the yield on 10-year Treasury notes. That has weighed on stock indexes, which tend to fall when rates rise.
The Fed’s economic projections — which anonymously report officials’ forecasts for interest rates, unemployment, inflation and growth both through 2023 and in the longer run — could show a shift when they are released on Wednesday.
Wall Street will pay particular attention to the inflation forecast and the policy rate path. The Fed’s median interest rate forecast previously showed no rate increases over the next three years, but analysts expect that officials could now pencil in one move in 2023.
Wall Street has been paying close attention to the outlook for inflation in recent weeks. Key price indexes are expected to bounce back after weak readings last year, and some economists have warned that big government spending could keep them elevated.
That could put a spotlight on Federal Reserve officials’ inflation estimates, and on anything that Jerome H. Powell, the Fed chair, says about the outlook during his news conference after the central bank’s meeting on Wednesday.
The Fed is trying to use its policies to coax the economy back to full employment while lifting and stabilizing inflation, which has been slipping in recent decades. It wants to hit 2 percent annual price gains on average, and it has pledged not to raise rates from near zero until they are poised to hum along at a slightly faster pace for some time.
But some prominent onlookers have warned that the economy could overheat. They say inflation may jump well above the 2 percent average target, thanks to government outlays and booming demand in a reopening economy.
Fed officials have been consistently less concerned about that possibility, and will give an up-to-date snapshot of their own expectations in their first Summary of Economic Projections of 2021. The last set of estimates, released in December, showed inflation stabilizing at 2 percent.
“How much do they revise up inflation? That’s something I’ll be looking for,” said Seth Carpenter, chief U.S. economist at UBS and a former Fed employee.
Analysts broadly expect price gains to accelerate in the coming months for a mechanical reason: The data are about to lap very weak readings from last spring. The most closely watched inflation measures are compared against the same month a year earlier, a recipe for an automatic increase.
But Fed leaders have been clear that a short-lived bounce is not what they’re talking about when they say they want to see quicker increases.
“There’s a difference between a one-time surge in prices and ongoing inflation,” Mr. Powell said this month.
Investors expect a stronger economy and slightly higher inflation in 2021, and they will watch the Federal Reserve chair, Jerome H. Powell, at his news conference on Wednesday for any hints about what that portends for the central bank’s bond-buying plans.
The Fed has been buying $120 billion in Treasury and mortgage-backed bonds each month,and officials have said they will continue that pace until they see “substantial” further progress.
But Mr. Powell and crew haven’t defined “substantial” with any precision. What counts as sufficient economic healing — when the Fed might slow and stop its program — matters to markets because the buying helps to push up prices in bonds and stocks alike.
Some investors have begun to expect the Fed to taper off its buying sooner than they had been forecasting. Others think a recent increase in longer-term bond yields, which has been driven by investor expectations for growth and inflation, could prompt the Fed to revamp its program in the near term.
That’s because those higher market-based rates could make mortgages more expensive and corporate investments less attractive, working against the Fed’s goals. The central bank could shift the composition of its purchases or even buy more to keep interest rates historically low across the spectrum.
Mr. Powell has pushed back on the idea that a taper is imminent and has promised that the Fed will alert investors well before the slowdown starts. He has also pointed out that rates are moving up because of a brightening outlook, and has suggested that the change isn’t worrying for now.
“I would be concerned by disorderly conditions in markets or a persistent tightening in financial conditions that threatens the achievement of our goals,” Mr. Powell said at an event this month, while stressing that the Fed looks at a range of financial conditions.
The House Financial Services Committee is holding its second hearing on the GameStop frenzy on Wednesday, with a range of experts expected to expound on what the saga says about the stock market’s plumbing.
The hearing appears likely to have a more wonkish tone than the committee’s first hearing on GameStop, which put a spotlight on Robinhood, the trading app at the center of a remarkable rally that sent shares of the struggling video game retailer up by over 1,600 percent in January,
Witnesses will include stock exchange officials, market analysts, former regulators and academics. Prepared testimony suggests the witnesses will focus on what — if any — deficiencies in the American stock trading system were revealed by the surge of trading in GameStop.
Sal Arnuk, co-founder of trading firm Themis Trading, plans to spotlight the growing role of payment-for-order-flow, where retail brokerage houses such as Robinhood channel customer orders to specific trading firms in exchange for payments.
“These practices create a massive incentive for such brokers to sell their clients orders to sophisticated trading firms uniquely tooled to profit off of them,” Mr. Arnuk will say, according to preliminary testimony released by the House committee. “This is a needless conflict that can harm retail investors, and it degrades the integrity of the market ecosystem as a whole.”
Other witnesses, such as Alexis Goldstein, a senior policy analyst at Americans for Financial Reform, will underscore the growing dominance of the trading firms that pay retail brokerage firms to execute their orders.
Two major market-makers, Citadel Securities and Virtu Financial, “execute a larger volume of U.S. stocks than the New York Stock Exchange,” she said in prepared testimony, urging regulators to look at whether their growth has worsened the prices that are available to investors on the public exchanges.
The hearing is to begin at 10 a.m. Other participants include Michael Blaugrund, chief operating officer of the New York Stock Exchange; Vicki L. Bogan, a Cornell University professor who focuses on the financial and investment behavior of households; Dennis Kelleher, the chief executive of Better Markets, which advocates market reforms; and Michael Piwowar, executive director of the Milken Institute Center for Financial Markets and a former S.E.C. commissioner.
BMW became the latest carmaker to promote its commitment to electric vehicles Wednesday, moving up the introduction of a new electric sedan, hinting at plans for an electric Rolls-Royce, and saying that its Mini cars will run exclusively on batteries, though not until the 2030s.
BMW follows rivals like Volkswagen, General Motors and Volvo that have recently declared their intention to shift to electric vehicles. But BMW, based in Munich, is pursuing a more cautious strategy than some of the others.
Unlike Volkswagen, for example, BMW has not introduced a platform — a chassis and other components shared among numerous body styles — designed exclusively for electric propulsion. BMW models will accommodate either battery power or internal combustion engines, an approach that inevitably involves engineering compromises.
Oliver Zipse, the BMW chief executive, said the company’s strategy gave customers more choice. “Others focus on individual market segments and niches,” he said during a news conference Wednesday. “We, on the other hand, are taking a targeted approach across all market segments.”
Some analysts say BMW’s approach prevents it from fully exploiting the advantages of battery power, such as the opportunity to create roomier interiors.
BMW said Wednesday it would introduce its last new Mini with an internal combustion engine in 2025, but would continue to sell the model into the 2030s. In addition, BMW will begin selling its electric i4 BMW sedan this year, sooner than planned. Rolls-Royce, which has been owned by BMW since the late 1990s, will also offer an electric model, Mr. Zipse said, but he did not give details.
Unlike General Motors or Volvo, BMW and other German carmakers have not set a deadline to stop selling cars that run on fossil fuels. They argue that many regions lack charging stations for electric vehicles. “It is not realistic that the same technologies will prevail equally in every country at the same time,” Mr. Zipse said Wednesday.
BMW sold 2.3 million passenger cars last year, 8 percent fewer than in 2019. That is a relatively small number of vehicles compared with Volkswagen or Toyota, which sell four times that number, and could be a disadvantage as the industry goes electric.
BMW as well as Daimler will have trouble selling enough electric vehicles to justify the expense of retooling factories or developing dedicated platforms, Patrick Hummel, an auto industry analyst at UBS, said during a conference call with reporters last week.
“BMW and Daimler will not be in a position to replicate what Volkswagen is doing,” Mr. Hummel said.
The stimulus money promised under the American Rescue Plan will hit the bank accounts of many Americans on Wednesday — the first official payment date — though some financial institutions chose to make the cash available to people even before it arrived from the government.
Not everyone eligible to receive a payment will get one on Wednesday, though. Additional rounds of payments will be made in the coming weeks, including for people who will receive theirs by mail as a check or debit card. You can check the status of your payment with the Internal Revenue Service’s Get My Payment tool.
Payments top out at $1,400 per person, including children and adult dependents. To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income must be $112,500 or less, and for married couples filing jointly, that number has to be $150,000 or below. Partial payments are available to people who earn more, but the amounts fall quickly.
The payments are calculated using the most recent information on file with the I.R.S., which could be your 2019 tax return if you haven’t yet filed for 2020.
If you’re newly eligible for a payment based on your 2020 income but haven’t yet filed your return, the law allows the Treasury Department to continue payments until September. If you don’t get one during that period, you can claim what you’re owed when you file your 2021 taxes.
Uber will reclassify more than 70,000 drivers in Britain as workers, it said on Tuesday. The decision, which will provide the drivers a minimum wage, vacation pay and access to a pension plan, is the first time the company has agreed to classify its drivers in this way, Uber said. It comes in response to a landmark British Supreme Court decision last month that said Uber drivers were entitled to more protections. The decision represents a shift for Uber, though the move was made easier by British labor rules that offer a middle ground between freelancers and full employees that doesn’t exist in other countries.
Google is cutting in half its commission on developers’ first $1 million in app sales, following a similar move by Apple that is aimed at appeasing developers and regulators who accuse the companies of abusing their dominance of the smartphone industry. Google said that starting July 1, it would take 15 percent of the first $1 million developers take in from certain app sales, down from 30 percent. Google will still charge 30 percent after the first $1 million.
The S&P 500 index is set to open slightly lower on Wednesday, futures indicated, before the latest Federal Reserve monetary policy decisions are announced.
The S&P 500 pulled back from a record high on Tuesday, but volatility in stock markets has subsided from earlier in the month when bond yields jumped higher at a rate that took investors by surprises and caught the attention of central bank officials.
Government bond prices fell on Wednesday, sending their yields higher. The yield on 10-year Treasury notes rose 2 basis points, or 0.02 percentage points, to 1.64 percent.
Most European stock indexes were down. The Stoxx Europe 600 index fell 0.3 percent, led by health care and industrial companies. In Britain, the FTSE 100 index dropped 0.4 percent and the CAC 40 in France was 0.2 percent lower.
Oil prices fell. Futures on West Texas Intermediate, the U.S. crude benchmark, fell 0.7 percent to $64.34 a barrel.
A Bank of America analyst maintained his “buy” rating on Uber after the company said it would reclassify all 70,000 of its drivers in Britain as workers, giving them additional benefits, following a court ruling last month. Justin Post, the analyst, said the change would increase driver costs in the country by 7 percent to 9 percent but the outcome “reflects evolution, not platform risk.”
The benefits could make Uber more appealing for drivers, force other companies to make similar changes and make it harder for new entrants in the market, Mr. Post wrote in a research note. Uber’s share price fell 2.2 percent on Tuesday before the announcement.
Amalgamated Bank, the New York-based lender with a history of supporting progressive causes, announced on Wednesday that it would endorse a bill calling for a federal commission to study the lingering effects of slavery — and the merits of providing reparations.
It is the first American bank to support H.R. 40. The legislation, named after the federal government’s promise to give freed families “40 acres and a mule,” was first proposed more than 30 years ago. Its current lead sponsor is Representative Sheila Jackson Lee, Democrat of Texas, and its 169 co-sponsors are all Democrats. (President Biden has endorsed forming a committee to study reparations, but he has not committed to signing the bill should Congress approve it, which isn’t assured.)
Amalgamated came to support the bill after racial justice protests last year. Lynne Fox, the lender’s chair and interim chief executive, told the DealBook newsletter that the protests convinced the bank’s leaders that they needed to address structural racism with “systemic changes” to society. The bank, which has $6 billion in assets, has previously embraced policies that it said would help reduce gun-related violence.
A bank’s support is symbolically important, according to Ms. Fox. “We acknowledge — and I think others in the financial industry need to acknowledge — the deep-rooted connections between the American financial sector and the slave economy,” she said.
Executives in the banking industry have noted that their firms’ histories have included financing slaveholders, and admitted more recently to racial discrimination against employees and customers. Lenders are under increasing pressure to promote racial equity, including by shareholders.
For her part, Ms. Fox declined to criticize other lenders directly. “We don’t see ourselves as judging other institutions’ conduct,” she said. “Talking is a good first step. We look forward to when other concrete steps are taken.”
Amalgamated has already moved to address racial equity within its walls,Ms. Fox said. Those steps include reviewing wage policies, forming an employee-led committee to review policies and practices, and providing antiracism training.
In its statement endorsing the legislation, Amalgamated pledged to do more: “We believe the commission created through H.R. 40 is an important first step towards achieving racial justice. The work shouldn’t stop there.”
The problems of Greensill Capital, a financial firm with ties to SoftBank and Credit Suisse, deepened Tuesday after its German unit entered insolvency proceedings.
Germany’s banking regulator, known as BaFin, said Tuesday that a judge had granted its request to open insolvency proceedings for Greensill Bank in Bremen. BaFin also formally determined that Greensill Bank was not able to repay all of its customers’ deposits, a step that allows depositors to receive compensation from public and private insurance funds.
The insolvency of the German unit was expected after Greensill Capital, which provides financing to companies and has been advised by former Prime Minister David Cameron of Britain, filed for a form of bankruptcy protection in Britain last week.
Credit Suisse acknowledged on Tuesday that it was likely to suffer losses from a loan it had made to the firm. It said that it had received $50 million from the administrator of Greensill Capital’s assets in Britain but that $90 million of the loan was outstanding.
Credit Suisse’s asset management unit oversaw $10 billion in funds that Greensill packaged based on financing it provided to companies. The loans allowed companies to stretch out payments to suppliers. Credit Suisse has returned $3 billion in cash to investors in the funds and said it was working to recover more money.
Credit Suisse said Tuesday that the funds’ managers “intend to announce further cash distributions over the coming months.” The bank has not specified what losses, if any, investors in the funds might ultimately suffer.
Major U.S. airlines have received more than $50 billion in grants in multiple rounds of taxpayer-funded bailouts during the pandemic. As travel begins to rebound and the stock market cruises to record highs, Andrew asks in his latest column: Was the rescue worth it?
The good news: The bailouts probably saved as many as 75,000 jobs and kept the airlines from declaring bankruptcy.
The bad news: Taxpayers probably overpaid, with the original grant of $25 billion implying that each job cost the equivalent of more than $300,000. (That price grew with subsequent bailouts.)
throw money at everything these days, and the Fed’s stimulus kept the credit markets open.
U.S. airlines were able to issue more than $30 billion in bonds last year, in some cases backed by their loyalty programs.
Boeing and Carnival Cruise Line also raised billions in debt from private investors.
We’ll never know what would have happened without the bailouts. The airlines say the government grants were crucial: As American Airlines put it, they “saved thousands of airline jobs, preserved the livelihoods of our hard-working team members and helped position the industry to play a central role in the nation’s recovery.”
There are conditions attached to the rescues, including halting share buybacks and limiting C.E.O. pay. But other things, like stock warrants issued to the government, are worth a small fraction of the grants the airlines received (unlike the majority equity stake that the government took when it rescued G.M. as part of its bankruptcy in 2009).
The debate about the appropriateness of the bailouts is just beginning, Andrew writes. “After the banking crisis of 2008 led to bailouts, the recriminations began when firms like Goldman Sachs had a banner year in the aftermath — and paid bankers record bonuses.” Will the same thing happen to the airlines?
HERE’S WHAT’S HAPPENING
Uber will classify British drivers as “workers.” The ride-hailing service’s decision will entitle more than 70,000 drivers to a minimum wage, vacation pay and access to a pension plan, but stops short of making them employees. It comes in response to a British Supreme Court ruling last month.
Wall Street firms plan for in-office workers. JPMorgan Chase expects summer interns in New York and London to work at the office. And Ralph Schlosstein, the co-C.E.O. of Evercore, told Bloomberg Television that he hoped to have some summer trainees “at least be partly in the office.”
its process for reviewing deals involving drug makers, following an investigation by Representative Katie Porter, Democrat of California, into the impact of consolidation. It’s the latest sign of the Biden administration’s stance on antitrust.
Treasury Department opens a racial equity review. It will examine its policies in an effort to ensure economic fairness, a priority of Treasury Secretary Janet Yellen. The review will be led by Adewale Adeyemo once he is confirmed as deputy Treasury secretary.
The buyer of Jeffrey Epstein’s Manhattan mansion is revealed. Michael Daffey, a former Goldman Sachs executive, paid $51 million for the residence after racking up big gains on Bitcoin.
Exclusive: A U.S. bank backs a reparations commission
Amalgamated Bank, the New York-based lender with a history of supporting progressive causes, plans to announce this morning that it will endorse H.R. 40, legislation calling for a federal commission to study the lingering effects of slavery — and the merits of providing reparations.
The lender came to support the bill after racial justice protests last year. Lynne Fox, Amalgamated’s chair and interim C.E.O., told DealBook that the protests convinced the bank’s leaders that they needed to address structural racism with “systemic changes” to society. The bank, which has $6 billion in assets, has previously embraced policies that it said would help reduce gun-related violence.
H.R. 40, named after the federal government’s promise to give freed families “40 acres and a mule,” was first proposed over 30 years ago. Its current lead sponsor is Representative Sheila Jackson Lee, Democrat of Texas, and its 169 co-sponsors are all Democrats. (President Biden has endorsed forming a committee to study reparations, but he has not committed to signing the bill should Congress approve it, which isn’t assured.)
A bank’s support is symbolically important, Ms. Fox said: “We acknowledge — and I think others in the financial industry need to acknowledge — the deep-rooted connections between the American financial sector and the slave economy.” Bank executives have noted that their firms’ histories have included financing slaveholders, and admitted more recently to racial discrimination against employees and customers. Lenders are under increasing pressure to promote racial equity, including by shareholders.
For her part, Ms. Fox declined to criticize other lenders directly. “We don’t see ourselves as judging other institutions’ conduct,” she said. “Talking is a good first step. We look forward to when other concrete steps are taken.”
Amalgamated has moved to address racial equity within its walls, Ms. Fox said. Those steps include reviewing wage policies, forming an employee-led committee to review policies and practices, and providing antiracism training. In its statement endorsing H.R. 40, Amalgamated pledged to do more: “We believe the commission created through H.R. 40 is an important first step towards achieving racial justice. The work shouldn’t stop there.”
the addition of LeBron James as a co-owner of Fenway Sports Group — the owner of the Red Sox, the English Premier League’s Liverpool soccer club and more — grabbed headlines yesterday, an investment in the group by RedBird Capital Partners may be more noteworthy.
RedBird paid $750 million for an 11 percent stake in F.S.G., at a $7.3 billion valuation. That’s a huge gain for F.S.G.’s existing leaders, John Henry and Tom Werner, who paid just over $1 billion for the Red Sox and Liverpool. It will bring on board Gerry Cardinale, the head of RedBird and a former Goldman Sachs deal maker.
The funds could help the group make big purchases. The Boston Globe reports that F.S.G.’s wish list includes an N.F.L. or N.B.A. team, as well as a sports betting company.
Mr. James is getting a 1 percent stake in F.S.G. without paying a dime, Axios’s Dan Primack reports. The Times notes that the N.B.A. star already had a relationship with F.S.G.: Its affiliate, Fenway Sports Management, gained Mr. James’s global marketing rights in a 2011 deal that gave him a stake in Liverpool.
Mr. Primack, an avowed Boston sports fan, notes the “certain amount of sacrilege” involved: Mr. Cardinale was a top adviser to the Red Sox’s archrivals, the New York Yankees, and Mr. James grew up a Yanks fan. But that’s business.
Executive stress tests
Work woes may hasten a manager’s demise, according to an academic study on C.E.O. stress, aging and death. The research found that anxiety at work affects an executive’s longevity and looks, and there’s a lesson for all workers, Marius Guenzel of Wharton, one of the authors, told DealBook.
entering and exiting office, showing the aging effects of a very stressful job.
THE SPEED READ
EToro, an online brokerage, plans to go public by merging with a SPAC at a $10 billion valuation. (Reuters)
Politics and policy
Republican attorneys general pressed President Biden over a provision in the stimulus package restricting state efforts to cut taxes. (NYT)
New York State lawmakers are planning tax increases for top earners, including a new levy on capital gains. (WSJ)
Google followed Apple in cutting some commissions in its app store, though an analysis suggests it’s not giving up much revenue. (NYT, CNBC)
Lawmakers called to reconsider the F.T.C.’s decision a decade ago not to sue Google over alleged antitrust violations, following the release of internal documents. (Politico)
“How Stripe became Silicon Valley’s most prized asset” (FT)
Best of the rest
JPMorgan Chase removed gender-specific language from its bylaws, including replacing “chairman” with “chair.” (Bloomberg)
An analysis of skin tones in 27,000 Instagram posts found that fashion brands’ pledges to cast more diverse models was mostly bluster. (Quartz)
“This Is Your Brain on Peloton” (NYT)
We’d like your feedback! Please email thoughts and suggestions to email@example.com.
“It is not just about family history, it is German history,” he added.
Prinz von Preussen’s great-great-grandfather, Kaiser Wilhelm II, was the last emperor of Germany and by far the richest man in the country before World War I. After Wilhelm abdicated in 1918, he retained substantial wealth: At least 60 railway wagons carried furniture, art, porcelain and silver from Germany to his new home in exile in the Netherlands. The kaiser and his family also held onto substantial cash reserves and dozens of palaces, villas and other properties.
But after World War II, the Hohenzollerns’ forests, farms, factories and palaces in East Germany were expropriated in Communist land reforms, and thousands of artworks and historical objects were subsumed into the collections of state-owned museums.
Prinz von Preussen’s claim for restitution was first lodged by his grandfather after the fall of the Berlin Wall, when thousands of Germans took advantage of new laws allowing them to seek compensation and restitution for confiscated property. Officials assessed it for more than 20 years before negotiations with the family began.
If Prinz von Preussen pursues the case in court, success could hinge on how much support his great-grandfather, Crown Prince Wilhelm, gave to the Nazis in the 1930s. Under German law, if a court deems someone lent the Nazis “substantial support,” then their family is not eligible for compensation or restitution of lost property.
The crown princehoped that Adolf Hitler would reinstate the monarchy, and wrote him flattering letters. He defended Hitler’s anti-Semitic policies and wore a swastika armband in public. If a court were to agree that Crown Prince Wilhelm’s support for Hitler was “substantial,” then Prinz von Preussen’s claims would be dismissed.
Prinz von Preussen said his great-grandfather had “recognized this criminal regime, and it very quickly became clear that he didn’t have the moral fortitude, or courage, to go into opposition.” But he questioned whether that amounts to “substantial” support, adding that this was a “question that has to be cleared up by legal experts.”