Herbalife: avoiding the p-word

Herbalife, the nutritional shake multi-level marketing enterprise involved in a three-year battle over the legitimacy of its business model, has agreed to change the way it does business as part of a settlement with the Federal Trade Commission announc…

Herbalife, the nutritional shake multi-level marketing enterprise involved in a three-year battle over the legitimacy of its business model, has agreed to change the way it does business as part of a settlement with the Federal Trade Commission announced Friday.

The Los Angeles-based group also agreed to pay $200m compensation to customers to settle a complaint that it, among other things, caused substantial injury to customers through an unfair compensation scheme in which the only true way to profit was through recruitment.

There was no mention of the term pyramid scheme, but keep in mind that a multi-level marketing enterprise is at heart nothing more then a product and a compensation scheme. Messy legalities about what makes one operation legitimate and the other illegitimate have shifted for the benefit of those exploited.

Continue reading: Herbalife: avoiding the p-word

FT Opening Quote: Softbank bets on post-Brexit Britain

Softbank’s blockbuster offer for Arm Holdings, British Land’s wariness and Boris Johnson’s Brussels debut as foreign minister. FT Opening Quote, with commentary by Naomi Rovnick, is your early Square Mile briefing. You can sign up for the full newsletter here.

Continue reading: FT Opening Quote: Softbank bets on post-Brexit Britain

Softbank’s blockbuster offer for Arm Holdings, British Land’s wariness and Boris Johnson’s Brussels debut as foreign minister. FT Opening Quote, with commentary by Naomi Rovnick, is your early Square Mile briefing. You can sign up for the full newsletter here.

Continue reading: FT Opening Quote: Softbank bets on post-Brexit Britain

Further reading

Elsewhere on Monday,

Gavyn Davies on Japan’s flirtation with helicopter money.

– The Herbalife Rorschach Test.

McKay Coppins on how the world taunted Donald Trump into running.

– A critique of Jeremy Corbyn by his former shadow minister Thangam Debbonaire which is… not great tbh.

Continue reading: Further reading

Elsewhere on Monday,

- Gavyn Davies on Japan’s flirtation with helicopter money.

- The Herbalife Rorschach Test.

- McKay Coppins on how the world taunted Donald Trump into running.

- A critique of Jeremy Corbyn by his former shadow minister Thangam Debbonaire which is… not great tbh.

Continue reading: Further reading

FirstFT – Crackdown in Turkey, how to make Brexit manageable and the ideal diet for a positive mind

Response to failed coup moves to president’s inner circle

Continue reading: FirstFT – Crackdown in Turkey, how to make Brexit manageable and the ideal diet for a positive mind

Response to failed coup moves to president’s inner circle

Continue reading: FirstFT – Crackdown in Turkey, how to make Brexit manageable and the ideal diet for a positive mind

If Spain didn’t need capital controls, why would anyone?

Until relatively recently, academics and Western policymakers overwhelmingly supported the official position of the European Union. Nowadays we live in a world where the head of the International Monetary Fund — who also happens to be the former Finance and Economy Minister of France — publicly says the “inherent volatility” of cross-border capital movements is a problem.

Continue reading: If Spain didn’t need capital controls, why would anyone?

Until relatively recently, academics and Western policymakers overwhelmingly supported the official position of the European Union. Nowadays we live in a world where the head of the International Monetary Fund -- who also happens to be the former Finance and Economy Minister of France -- publicly says the "inherent volatility" of cross-border capital movements is a problem.

Continue reading: If Spain didn’t need capital controls, why would anyone?

Liquidity regulations could help Fed policy transmission, or maybe just non-bank lenders

Obvious statement: Banks are crucial for the transmission of monetary policy into the US economy.
Not-so-obvious theory: Bank lending might become more important in that transmission because of post-crisis liquidity requirements. This one is interestin…

Obvious statement: Banks are crucial for the transmission of monetary policy into the US economy.

Not-so-obvious theory: Bank lending might become more important in that transmission because of post-crisis liquidity requirements. This one is interesting because it comes straight from the blog of the New York Fed, the guys in charge of US monetary policy implementation.

But if reserves do return to normal levels, that means even more credit risk could be pushed off of banks' balance sheets. And that could leave an even bigger role for non-bank lenders and asset managers.

Continue reading: Liquidity regulations could help Fed policy transmission, or maybe just non-bank lenders