Former New York mayor Michael R. Bloomberg will return as head of Bloomberg, the financial data and news company he founded, replacing Daniel Doctoroff, who has decided to step aside at the end of the year, the company said Wednesday.
“Bloomberg LP will not name a replacement, but rather will again be led by Mr. Bloomberg with support from the existing leadership team,” the company said.
The former mayor, who is the company’s majority shareholder, said in the statement that “this is a sad day for me and my company. I really wanted Dan to stay and continue in his leadership role. But I understand his decision.”
Bloomberg, who stepped down as New York mayor last December, added that he “never intended to come back to Bloomberg LP” after 12 years in office.
“However, the more time I spent reacquainting myself with the company, the more exciting and interesting I found it — in large part, due to Dan’s efforts.
“I have gotten very involved in the company again and that led to Dan coming to me recently to say he thought it would be best for him to turn the leadership of the company back to me,” Bloomberg added.
“It was a gracious and thoughtful offer and one that I finally accepted after significant pushback and great reluctance,” he said.
Federal regulators are requiring big banks to keep enough high-quality assets on hand to survive during a severe downturn, the latest move under a congressional mandate to lessen the likelihood of another financial meltdown.
The Federal Reserve adopted rules on a 5-to-0 vote Wednesday that will subject big U.S. banks for the first time to “liquidity” requirements. Liquidity is the ability to access cash quickly. The Federal Deposit Insurance Corp. and the Treasury Department’s Office of the Comptroller of the Currency adopted the rules later in the day.
Fed Chair Janet L. Yellen called the rules “a very important regulation that will serve to strengthen the resilience of internationally active banking firms.”
The 15 largest banks — those with more than $250 billion in assets — will have to hold enough cash, government bonds and other high-quality assets to fund operations for 30 days during a time of market stress. Smaller banks — those with more than $50 billion and less than $250 billion in assets — will have to keep enough to cover 21 days. Banks with less than $50 billion in assets and nonbank financial firms deemed by regulators as posing a potential threat to the system will not be subject to the requirements.
Combined, the largest banks will have to hold an estimated $2.5 trillion in high-quality assets to meet the requirements. The banks already hold all but about $100 billion of that amount, according to the Fed.
— Associated Press
● The U.S. economy strengthened in all regions of the country in July and August, in areas from consumer spending to auto sales to tourism, the Federal Reserve reported in a survey, known as the “beige book.” All 12 of the Fed’s regions reported growth. Six — New York, Cleveland, Chicago, Minneapolis, Dallas and San Francisco — characterized growth as “moderate.” The other regions reported somewhat slower expansion. Four described growth as “modest,” and two noted signs of improvement.
● Tesla Motors is expected to announce Thursday that it has chosen Nevada as the site for its first $5 billion “gigafactory” to build lithium ion batteries for its Model S and Model X electric vehicles. Gov. Brian Sandoval (R) will announce the deal Thursday at a news conference in Nevada’s capital, Carson City. Confirming the details, first reported by CNBC, a Tesla representative said: “We are in ongoing discussions . . . and look forward to joining the governor and members of the legislature tomorrow.” In winning the contract, Nevada beat out California, Texas, Arizona and New Mexico.
● Home Depot said it’s offering free identity protection services, including credit monitoring, to those customers who might be potentially hurt by a possible data breach at the home improvement chain. The company also said it’s working with leading security firms Symantec and FishNet Security to help it investigate a possible data hacking. The moves come as Home Depot is trying to reassure customers that it’s doing all it can after learning of “suspicious” activity that pointed to a breach. It said Tuesday that it was working with banks and law enforcement.
● The Agriculture Department has agreed to buy up to $13 million in canned pink salmon to ease a glut that has weighed down prices for Alaska fishermen. In July, Gov. Sean Parnell (R) asked the USDA to buy $37 million worth of canned fish under a federal law that allows the government to purchase surplus food from farmers and donate it to food banks or other programs. Earlier this year, the agency purchased $20 million worth of canned salmon. Sen. Lisa Murkowski (R) announced the USDA’s plans Wednesday.
— From news services
● 8:30 a.m.: July international trade and weekly jobless claims.
● 10 a.m.: Weekly mortgage rates.