Dan Loeb wins big on election-related bets. His Third Point hedge fund gained nearly $400 million by betting correctly on the result of the U.S. election, The Financial Times reports. While many investors sold stocks amid the market turbulence in the weeks before the election, Third Point maintained its exposure — and benefited from the huge rebound after the vote.
Kodak says former executives sold stock options they didn’t own. The company disclosed that accounting deficiencies allowed five people to exercise 300,000 in forfeited options. Kodak will try to reclaim $3.9 million, the fair value of the shares sold, and $3 million for withheld taxes on behalf of the former employees.
Jeffrey Toobin is fired by The New Yorker. The star journalist was dismissed after an internal investigation into reports that he exposed himself on a Zoom call with other magazine staff members. There’s no word on his status at CNN, where he is chief legal analyst but had asked for time off after the incident.
Exclusive: Twitter’s $100 million investment in racial equality
Twitter will announce today that is investing $100 million in community development financial institutions, or C.D.F.I.s, in a new initiative aimed at combating “racial injustice and persistent poverty.”
The commitment is worth around 1 percent of Twitter’s cash pile, and will be used for loans provided by the Opportunity Finance Network’s network of C.D.F.I.s across the United States. These institutions take government money, donations and other funds to seed businesses that banks won’t deal with in underserved communities. More than 80 percent of customers in the group’s network have low incomes, and around 60 percent are people of color.
The announcement follows similar corporate initiatives, including from Netflix (deposits in Black-owned banks), PayPal (investments in Black- and Latino-led venture firms) and Square (C.D.F.I.s), with the latter company also run by Twitter’s C.E.O., Jack Dorsey. Twitter’s finance chief, Ned Segal, said it was inspired by those companies, and held conversations with nonprofit groups and financial institutions about how “to bring our balance sheet to benefit these communities,” he said. Twitter wants to establish a model that can be replicated by other companies, so that the Opportunity Finance Network can scale up if other corporate investors come on board.
Twitter will reinvest the interest it earns from loans, which it says will be offered at below-market rates, into Operation Hope, a nonprofit organization aimed at improving financial literacy and economic inclusion.
It’s part of Twitter’s role as a public citizen. The social media company has been criticized for the spread of disinformation on its platform, which it has been trying to contain. Twitter’s announcement today fits with its broader mission of “serving the public conversation,” Mr. Segal said. “We hope that each thing stands on its own.”