A federal appeals court said Thursday it will reconsider its earlier ruling that would have increased the president’s authority over the government’s consumer finance watchdog agency, a target of criticism from banks and Republican lawmakers.
A divided three-judge panel ruled last year that the way the Consumer Financial Protection Bureau is organized violates the Constitution’s separation of powers by limiting the president’s ability to fire the agency director. That decision would have given President Trump the power to fire CFPB chief Richard Cordray at will, a move sought by some Republican lawmakers. Cordray is a Democrat and Obama appointee whose five-year term ends next year.
But the full U.S. Court of Appeals for the District of Columbia said it would grant the bureau’s request to throw out that ruling and hear arguments in the case again May 24.
The banking industry has viewed the CFPB as a thorn in its side, accusing it of overreaching in its regulation of consumer financial activities. Trump has promised to dismantle the 2010 law that created the bureau in response to the financial crisis.
— Associated Press
The parent of social network Snapchat is valuing itself at up to $22 billion as it prepares for the tech industry’s biggest initial public offering in years.
Snap said in a regulatory filing Thursday that the IPO is likely to be priced at $14 to $16 per share. Had the IPO price matched the $30.72 per-share price obtained in its last round of financing, Snap would have a market value of about $30 billion, based on the quantity of outstanding stock listed in its IPO documents.
Snap’s highly anticipated IPO would be the largest since China’s Alibaba Group went public in 2014. Social network giant Facebook raised $16 billion when it went public in 2012.
Snap co-founders Evan Spiegel and Robert Murphy will have controlling power of Snap through a special class of stock.
Snap is expected to trade on the New York Stock Exchange under the “SNAP” ticker.
— Associated Press
● Freddie Mac said Thursday that it will pay the Treasury a dividend of $4.5 billion next month after its profit more than doubled in the past quarter. The government-controlled mortgage company has paid Treasury more than $101 billion in dividends since receiving $71.3 billion in federal bailouts between 2008 and 2012. The company reported net income of $4.85 billion in its fourth quarter, compared with $2.16 billion in the same period a year before.
● A former employee of Tiffany says the jewelry maker pushed her out after she had her breasts and ovaries removed to prevent cancer. Lisa O’Rourke alleges in a federal lawsuit in Rhode Island that Tiffany discriminated against her because she carries a gene mutation that put her at high risk for developing cancer. Her lawyer said the surgeries were lifesaving. Tiffany said the allegations are “completely without merit.”
● The Keystone XL pipeline developer is again seeking approval for a route through Nebraska. TransCanada said Thursday that it has filed an application with the state commission that regulates oil pipelines. The company’s previous attempts to start construction in Nebraska have been thwarted by activists and some landowners who worry about its environmental impact. President Trump last month signed executive memos to make it easier for the project to move forward.
● Delta Air Lines is resuming free meals in coach on 12 transcontinental U.S. routes, restoring a perk that vanished amid nonstop cost-cutting last decade. Complimentary food returns March 1 on flights from New York’s John F. Kennedy International Airport to Los Angeles and San Francisco. On April 24, the offering will expand to an additional 10 cross-country flights out of New York, Boston, Seattle and Washington, Delta said in a statement Thursday.
● Airbnb has bought Luxury Retreats in its biggest acquisition yet as the rental website takes steps toward becoming a full-service global travel company. Airbnb announced its acquisition of the Canadian manager of high-end rentals and services Thursday, declining to disclose financial terms. Luxury Retreats, with more than 4,000 properties around the world, has built a concierge service that Airbnb will be able to offer to customers.
— From news services
● Morning: Fannie Mae reports quarterly financial results before the market opens.