SWFI First Read, April 3, 2019
Posted on 04/03/2019
Patrick McClanahan Named COO of Federal Reserve
Patrick McClanahan has been hired as Chief Operating Officer of the Federal Reserve, effective April 29, 2019. Previously, he was at media giant Gannett. The Federal Reserve’s last COO was Don Hammond who retired in 2019 and started in his role in 2012. Before 2016, McClanahan as Deputy Director and Controller in the Federal Reserve’s division of financial management.
Supreme Court of India Throws Out RBI NPL Circular
The Supreme Court of India issued a blow to the Reserve Bank of India’s controversial attempt to force banks into cleaning up their balance sheets. This February 12, 2018 circular mandated banks to classify loans as non-performing loans as soon as the borrower defaulted.
The court deemed the Reserve Bank of India’s “February 12 circular” to be ultra vires, or an overreach of the central bank’s legal authority.
U.S. Senator Warren Proposes Criminal Liability for Large Company CEOs That Cause “Severe Harm” to Families
2020 presidential candidate U.S. Senator Elizabeth Warren proposed a law that, “expands criminal liability to any corporate executive who negligently oversees a giant company causing severe harm to U.S. families.” Specifically, this proposed law would apply to negligent CEOs of any company with “more than US$ 1 billion in annual revenue.” Warren has pursued large agricultural companies, large technology companies like Facebook, and banks like Wells Fargo.
On another note, Warren is proposing a wealth tax. She proposes taking an annual 2% tax on assets above a taxpayer’s first US$ 50 million in assets. The amount goes to 3% on assets that exceed US$ 1 billion.
More Mergers Ahead in Abu Dhabi?
The Abu Dhabi government is contemplating further consolidation in its banking industry. First Abu Dhabi Bank PJSC could end up merging with Abu Dhabi Islamic Bank PJSC.
OMERS-Backed Paradigm Buys Restore Rehabilitation
Medicaid reimbursement billing company Paradigm, which is backed by OMERS, acquired Restore Rehabilitation, a case management company that provides field coverage in 27 states and nationwide telephonic coverage. Nashville-based Bailey Southwell & Co. acted as exclusive financial advisor to Restore Rehabilitation.
SpringWorks Therapeutics Raises US$ 125 Million for Series B Round
Stamford, CT-based SpringWorks Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, raised US$ 125 million Series B preferred stock financing led by Perceptive Advisors. New investors participating in this financing include Boxer Capital of Tavistock Group, HBM Healthcare Investments, BVF Partners, Surveyor Capital (a Citadel company), Samsara BioCapital, ArrowMark Partners, GlaxoSmithKline, and Laurion Capital Management, as well as several other long-term institutional investors. All of the Company’s existing investors – OrbiMed, Bain Capital, Pfizer via Pfizer Ventures, and LifeArc – also participated in the offering. SpringWorks Therapeutics plans to use the capital to advance two late-stage rare disease oncology programs towards potential regulatory approval and commercialization.
Keyword: Ontario Municipal Employees Retirement System