finance
Latest
Opera accused of offering predatory loans through Android apps (updated)
Opera has frequently tried to claim the moral high ground in the web browser world, but it's being accused of using its side projects for far less virtuous behavior. Hindenburg Research has published a report alleging that Opera is running four Android apps aimed at India, Kenya and Nigeria (CashBean, OKash, OPay and OPesa) that appear to be in direct violation of Google Play Store policies forbidding predatory loans and deceptive descriptions. The apps would claim to offer maximum annual percentage rate (APR) of 33 percent or less, but the actual rates were much higher, climbing to 438 percent in the case of OPesa. And while they publicly offered reasonable loan terms of 91 to 365 days, the real length was no more than 29 days (for OKash) and more often 15 days -- well under Google's 60-day minimum.
UK investigates if cyberattack led to stock exchange outage
UK officials are worried that a London Stock Exchange outage in August wasn't just the glitch that many suspected. Wall Street Journal sources say the GCHQ intelligence agency is investigating the possibility that the failure may have been due to a cyberattack. It's reportedly taking a close look at the associated code, including time stamps, to determine if there was any suspicious activity. The exchange was in the middle of updating its systems when the outage happened, and there's a fear this left systems open to attack.
Google wants to be your new bank
It's not just Apple and Facebook diving headlong into the financial world. Google has revealed plans to offer checking accounts in 2020 through a project nicknamed Cache. The search giant won't handle the actual underpinnings -- Citigroup and a credit union at Stanford University will both handle the accounts and feature the most prominent branding. There will still be integration between Google and the accounts, though, and some of it might raise concerns among regulators.
US says digital assets are covered by money laundering and disclosure laws
US regulators issued a blunt warning to cryptocurrency holders who think they're not beholden to the usual rules. The Securities and Exchange Commission, the Commodity Futures Trading Commission and the Financial Crimes Enforcement Network have put out a joint statement to "remind" people that digital assets like crypto, tokens and other digital assets are subject to laws that bar money laundering and require reporting of suspicious activity. The Bank Secrecy Act's rules "apply very broadly," the officials said.
G20 leaders will discuss raising taxes for big tech firms next week
For years, European countries have been grappling with how to get big tech firms to pay more taxes. They've proposed interim taxes on revenues, suggested global minimum taxes and slapped companies with hefty fines. We may be getting closer to a solution. Next week, G20 finance ministers are expected to discuss a proposed tax overhaul that would target big multinational firms, including Google, Amazon, Apple and Facebook.
EU grills Facebook over Libra's financial and privacy risks
It's not just central banks interrogating Facebook over its Libra cryptocurrency as of late. The Financial Times has learned that the European Commission has asked Facebook to answer a range of questions about Libra, including the risks to financial stability and data privacy as well as the company's ability to comply with counter-terrorist financing and money laundering rules. Officials also want to know how Libra would handle its reserves.
Facebook's Libra currency will get half its backing from the US dollar
Facebook was quick to promise that its Libra cryptocurrency would have the stability of real-world money behind it, but whose money will dominate? It's now particularly clear. Facebook sent a letter to German politician Fabio De Masi explaining that the US dollar will represent 50 percent of the backing for Libra. The remaining support will come from the euro (18 percent), Japanese yen (14 percent), British pound (11 percent) and Singapore dollar (7 percent). If you were hoping for currency representation from more parts of the world, you'll be disappointed.
Uber's next business idea: Lending money to drivers
Uber is reportedly looking into offering loans directly to drivers, according to a report from Recode. The ride sharing company recently sent out an in-app survey to some drivers that indicated the company is starting to build a "new financial product" designed to help Uber drivers "in a time of need." The survey contained a number of questions regarding the driver's previous use and future interest in loans.
Apple Card begins its rollout: here's how it works
Apple's much-hyped credit card has arrived -- if you applied to be notified when the Apple Card first became available, you'll be among the first to get access. But don't worry if you didn't, as it'll be released to the wider public later this month. Apple has also released a bunch of helpful video tutorials, outlining everything you need to know about the way the card works.
Apple’s credit card could arrive in the first half of August
In March, Apple made a fuss over its plans to introduce a credit card. But we haven't heard much about Apple Card since. Now, Bloomberg reports that the card will reportedly launch in the first half of August. The update suggests that the card is on track, as Apple initially said it would be ready this summer.
Facebook’s Libra currency gets backing from MasterCard, Visa, PayPal and more
Today, Facebook finally announced its long-rumored cryptocurrency platform, Calibra. Some speculated that the company would rely on outside firms and existing cryptocurrency exchanges, like the Winklevoss twins' Gemini. Instead, Facebook's Calibra will use a brand new cryptocurrency, Libra. The cryptocurrency will be governed by the Libra Association -- a purpose-built, independent non-profit headquartered in Geneva, Switzerland.
SEC approves a stock exchange built for tech startups
For tech companies, going public is often fraught with pressure -- they're suddenly expected to deliver positive news every quarter, and they might push innovation to the wayside in the quest to become proftiable. They should soon have a better alternative, though. The SEC has approved the creation of the Long-Term Stock Exchange, a Silicon Valley-based platform aimed at tech startups that want to go public while taking their time to develop products and services. The exchange will have rules to limit executive bonuses, require more disclosure for milestones and reward long-term shareholders with more voting power.
(Almost) everything you wanted to know about the Apple Card
With its latest product, Apple wants your money. But it also wants to be your personal finance coach. The company is pitching the Apple Card as a way to "help customers lead a healthier financial life," mostly through an intuitive app interface, a lack of fees and a unique new payment structure. The Card, issued in partnership with Goldman Sachs, does appear to give consumers greater control and understanding of their debt. But it's also another way to keep users stuck in the Apple walled garden -- how can you switch to Android when you owe thousands on your Apple Card?
Tesla investors sue to stop Elon Musk's 'unchecked' use of Twitter
The SEC isn't the only one concerned that Elon Musk may have crossed the line (again) with his tweets. A group of institutional investors has sued to stop Musk's "unchecked use of Twitter" to make "repeated misstatements" they believe hurt Tesla and, of course, its shareholders. Musk allegedly violated his duties to investors when he tweeted that Tesla would make "around 500k" cars in 2019, and backers want permanent safeguards to be sure this doesn't happen again.
Dow Jones' list of risky businesses was left on a public server
A Dow Jones database detailing more than 2.4 million records of risky businesses and people has been exposed. A third-party company reportedly left the watchlist on a public server without password protection.
Lyft may become a public company before Uber
Lyft is smaller than Uber, but it might just one-up its rival on the stock market and provide some fiercer competition. Wall Street Journal sources have learned that Lyft has filed documents with the SEC for its expected initial public stock offering, and hopes to sell shares in March or April. While Uber has long talked about an IPO, it has been targeting a debut in the second half of 2019. There could be a few months where Lyft is your only major choice if you want to invest in an American ridesharing company.
Most Americans believe algorithms will always be biased
If you're convinced that many algorithms are biased, you're not the only one. Pew has conducted a survey indicating that 58 percent of American adults believe algorithms and other programming will always contain some kind of human bias. That figure is partly skewed by age (63 percent of those over 50 didn't believe algorithms could be completely neutral), but even the relatively optimistic 18-29 crowd showed some distrust, with 48 percent believing there would still be some bias.
Facebook pushed for access to financial firms' user data
Facebook is in hot water again over its data sharing deals -- or rather, attempted deals. The Wall Street Journal has learned that Facebook had spent "years" negotiating for access to financial companies' user data. The amount of data it wanted to collect varied. It initially insisted that it had access to all data on its servers, but later backed off and arranged limited data use.
Square sellers no longer need signatures for card payments
Square Cash is continuing its crusade to make the business of parting with your hard-earned money a little less painful. It's just announced that it's cut down EMV transaction time on Square Reader for contactless and chip even further, to just two seconds, compared to the average eight to 13 seconds. The process uses a new "dip transaction flow" that prioritizes the parts of a transaction that are critical to security, which means less time standing in line, waiting for your card info to churn through to the issuer.
SEC investigates Elon Musk's tweets about taking Tesla private
You knew it was just a matter of time before regulators looked into Elon Musk's tweets about taking Tesla private, and it appears they're already on the case mere hours later. Wall Street Journal sources claimed that the Securities and Exchange Commission is inquiring with Tesla about the apparent announcement, including whether or not he was serious (that's not in any doubt), why he said it on Twitter instead of in a filing and whether or not Tesla believes the news respects investor protection rules. As you might guess, it's that last part which matters the most.
