Apple CEO Tim Cook speaks at an Apple event on the campus of Apple's headquarters in Cupertino, Calif., on Sept. 7, 2022. Apple Music is about to reach a huge numerical milestone — offering an eye-popping 100 million songs available on the streaming service. (AP Photo/Jeff Chiu, File)
Here is a rundown of Cheddar News' top market stories of the day.
BIG BANKS REPORT EARNINGS
Three of the biggest U.S. banks reported earnings before the bell on Friday, marking the unofficial start to the earnings season. Both Bank of America and JPMorgan Chase's earnings beat Wall Street estimates, though the latter said it was putting aside extra funds in case of a recession. Wells Fargo, meanwhile, took a massive hit from a $3.7 billion settlement with the Consumer Financial Protection Bureau for illegally assessing fees on borrowers, but nonetheless beat the Street's admittedly low expectation.
TIM COOK'S PAY CUT
Apple CEO Tim Cook is getting a pay cut. According to an SEC filing, shareholders voted on a $49 million pay package for the coming year, compared to $99.4 million in 2022. The compensation committee was partially responding to pressure from institutional investors who have argued for reducing the executive's pay. Going forward, more of Cook's compensation will be tied to stocks. Shares of Apple are down around 23 percent from a year ago.
SEC CHARGES CRYPTO FIRMS
While it may seem like too little, too late for those who called for more aggressive federal regulation earlier, the Securities and Exchange Commission is charging prominent crypto firms Genesis Global Capital, LLC and Gemini Trust Company, LLC for selling unregistered securities. “Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws," said SEC Chair Gary Gensler in a press release. "Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.”
CRYPTO LAYOFFS
In other crypto news, Crypto.com announced that it's cutting 20 percent of its workforce. "The reductions we made last July positioned us to weather the macro economic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry," CEO Kris Marszalek said in a blog post.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
