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Some WeWork employees are now worried that they have a 'black mark' on their resumes

Mon, 09/30/2019 - 2:40pm  |  Clusterstock

  • Some employees worry that their time at WeWork could be a "black mark"  on their résumés, according to a New York Magazine Intelligencer report Monday.
  • Sebastian Gunningham recently warned employees the next few months would be difficult, according to the report, and "that anyone who wasn't interested in dealing with the transition ahead should probably consider getting out."
  • Employees reportedly found out about Neumann's replacement co-CEOs through a memo the day he left.
  • Visit Business Insider's homepage for more stories.

Some WeWork employees are worried that having the company's name on their résumés might act as a " black mark against them," following the recently postponed IPO and the departure of CEO and cofounder Adam Neumann, an article from New York Magazine reports. 

Job experience at WeWork, which until just a couple of months ago seemed destined for a blockbuster IPO, was supposed to be a résumé highlight. But now, as reports of the chaotic, alcohol-fueled culture at WeWork proliferate, employees are getting nervous that the experience could actually count against them as they look for new jobs, an executive told Reeves Wiedeman at New York Magazine's Intelligencer.

WeWork's Neumann presided over a company in which mandatory parties, nepotism and over-the-top behavior flourished, as detailed in an in-depth Business Insider report.  Now the office sharing company is trying to rehabilitate its image and impose financial discipline to staunch its financial losses.

"Thousands of people who worked tirelessly, because there's no other way to do it there, are going to end up screwed financially because they took lower income to have more equity that has disintegrated,"one executive told Reeves Wiedeman at New York Magazine's IntelligencerSeveral employees reported using their savings to buy stock options, which could leave them financially ruined. Before leaving, Neumann had already cashed out more than $700 million of the company's stock, The Wall Street Journal reported this summer.

Read more: Sex, Tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop partying to attain a $100 billion dream and the messy reality that tanked it

On September 24, the day Neumann was ousted from WeWork, the new co-CEOs sent a company wide memo announcing their new roles in the company, Intelligencer reports.

According to the Intelligencer report, WeWork employees were divided about new co-CEOs Artie Minson and Sebastian Gunningham. Some were ready for a post-Neumann WeWork, but many wondered why the executives hadn't done more to keep Neumann in check. CFO Minson, formerly a Time Warner Executive, joined WeWork in 2015. Neumann once referred to him as the "adult in the room." Gunningham was vice-chairman of WeWork before taking on the new role.

Intelligencer reported that the most used reactions to the news on Slack were the WeWork logo, and emojis

White Americans make up a disproportionate number of US homeowners, and it's most extreme in New York City

Mon, 09/30/2019 - 2:11pm  |  Clusterstock

  • A recent study by LendingTree looked at how much race affects homeownership rates in the 50 largest US metro areas.
  • It found that, in the 50 metro areas, white Americans make up an average of 59% of the population and own about 73% of the owner-occupied homes.
  • According to the study, the gap between white-American population and white-American homeownership is the widest in the New York metro area.
  • Visit Business Insider's homepage for more stories.

A recent study by LendingTree, an online lending marketplace, tackled one of the most heavily talked about categories in American life — race.

The analysis, published Tuesday, looked at how much race affects homeownership rates in the 50 largest US metro areas.

It found that in these areas, white Americans make up an average of 59% of the population and own about 73% of the owner-occupied homes, availing themselves to the wealth that can come along with real estate.

The gap found in this study speaks to an issue of racial inequality that extends beyond just the home-buying industry. For example, white Americans, on average, have higher average incomes and are more likely to have college degrees than Americans who identify with nonwhite races. These factors, along with other social factors, contribute to the homeownership gap.

Read more: The racial wealth gap in the US keeps getting bigger — and it could cost the economy as much as $1.5 trillion by 2028

The gap is largest in New York and smallest in Pittsburgh.

The gap between the population of white Americans and the amount of homes owned by white Americans is the widest in the New York metro area. The researchers found that white Americans own around 67% of the area's owner-occupied homes but make up around just 47% of the area's population.

Other major metro areas that saw big gaps between the population of white Americans and the amount of homes they own include San Diego, where white Americans make up around 46% of the area's population but own around 65% of the area's owner-occupied homes, and Phoenix, where white American's make up around 56% of the area's population and own around 75% of the area's owner-occupied homes.

The smallest gaps included Pittsburgh, where white Americans are 86% of the population and own 93% of the area's owner-occupied homes, and Cincinnati, where white Americans make up around 80% of the population and own around 93% of the area's owner-occupied homes.

Read the full study at LendingTree »

SEE ALSO: 8 startling facts that show just how hard the student-debt crisis is hurting black Americans

DON'T MISS: The 25 US cities where renters are becoming homeowners the quickest

Join the conversation about this story »

NOW WATCH: Meet the photographer behind the 'I Spy' books that captured millions of readers' imaginations

The Trump administration pushes back against reports it's looking to limit investment in China

Mon, 09/30/2019 - 1:44pm  |  Clusterstock

The Trump administration has pushed back against reports that officials are looking into ways to curb US investment in China, a development that would open a new front in a more than yearlong trade dispute between the largest economies. 

Bloomberg News reported last week that administration officials had held internal discussions about the potential to remove Chinese companies from American stock exchanges, as well as several other actions that would restrict American portfolio flows into China. Several other news outlets including the New York Times confirmed the report.

The White House declined to comment on Monday. Bloomberg News could not immediately be reached. 

"That story, which appeared in Bloomberg: I've read it far more carefully than it was written," White House Trade Adviser Peter Navarro told CNBC on Monday. "Over half of it was highly inaccurate or simply flat-out false."

Navarro did not specify which parts of the report he disputed. Treasury spokesperson Monica Crowley said over the weekend the administration was not "contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time."

China warned the Trump administration against such actions Monday, days before officials were set to meet for high-level trade negotiations in Washington. The two sides have seen tensions escalate dramatically in recent weeks, with further tariff hikes scheduled to take place in October and December. 

"To exert extreme pressure and even attempt to force the decoupling of China-US relations will definitely damage the interests of US and Chinese enterprises and people, cause financial market turmoil and endanger international trade and the world economic growth," foreign ministry spokesperson Geng Shuang said. 

Hopes for a deal to defuse tensions dimmed this summer, even as businesses and consumers warned of damage to both economies. President Donald Trump has long vacillated between apparent optimism toward China and threats that the dispute could last into 2020 and beyond. 

Now read: China extends olive branch ahead of trade talks, says it plans to buy US soybeans and pork

Read more: A hedge fund manager who turned $126,000 into $500 million explains his Warren Buffett-esque investment process — and why he's not concerned with today's stock market valuation

SEE ALSO: The Fed is injecting hundreds of billions into markets — and it's a practice that could become the new normal

Join the conversation about this story »

NOW WATCH: We did a blind taste-test of KFC and Popeyes fried chicken — here's the verdict

The top 10 countries with the most ultra-wealthy people, ranked

Mon, 09/30/2019 - 1:18pm  |  Clusterstock

The rich are everywhere. But you can find nearly three-quarters of them across just 10 countries.

Seventy-two percent of the global ultra-wealthy population (265,490 individuals) was spread across 10 countries in 2018, according to Wealth-X's 2019 World Ultra Wealth Report. The report analyzed data from Wealth-X's global database of more than one million records of the world's richest people.

Read more: These are the 15 hottest destinations billionaires are traveling to in 2019

It defines the world's ultra-wealthy population as those with $30 million or more in net worth. While the top 10 countries added a net 1,365 ultra-wealthy individuals since 2017, the combined net worth of all on the list declined by $362 billion (1.5%). However, these changes are close to the global average.

Take a look at which countries worldwide have the biggest ultra-wealthy populations, ranked in ascending order. Note that Hong Kong ranked in both Wealth-X's top countries and top cities lists, as it's a semi-autonomous, special administrative region of China.

SEE ALSO: The top 15 countries with the most billionaires, ranked

DON'T MISS: The top 15 cities with the most billionaires, ranked

10. Switzerland's rich took a hit from the late capital-market slump.

Number of ultra-high-net-worth individuals: 6,145 (down 4%)

Total wealth: $808 billion (down 7.8%)

Switzerland attracts businesses because of its technological innovation and favorable tax rates, according to The Culture Trip.

9. Italy saw an increase in both its ultra-wealthy population and their collective wealth since 2017.

Number of ultra-high-net-worth individuals: 6,270 (up 5.1%)

Total wealth: $708 billion (up 2.2%)

In addition to housing nearly 50 billionaires, Italy is home to many destinations frequented by the super rich, including the Amalfi coast, Portofino, Positano, Capri, Cinque Terre, Milan, and Venice.

8. Hong Kong has a significantly higher density of ultra-wealthy individuals than all other countries on this list, though the number of the rich and their collective worth did see a decline.

Number of ultra-high-net-worth individuals: 8,950 (down 10.6%)

Total wealth: $1.18 trillion (down 9%)

Hong Kong benefits from its status as a global financial center, its proximity and trading links to China, and its close ties with Europe and the US.

7. The United Kingdom experienced a rise in its ultra-wealthy population.

Number of ultra-high-net-worth individuals: 9,575 (up 2.2%)

Total wealth: $1.01 trillion (down 2.4%)

A resilient stock market and new opportunities for wealth creation factored into the UK's increase in ultra-wealthy individuals.

6. France saw a moderate fall in total net worth compared to the previous year.

Number of ultra-high-net-worth individuals: 10,145 (up 0.1%)

Total wealth: $1.05 trillion (down 3%)

Many French billionaires, like LVMH founder and CEO Bernard Arnault, are wealthy from success in the global luxury and fashion business, Hugh Carnegy reported for Financial Times.

5. Canada saw a decline in both its ultra-wealthy population and its collective wealth.

Number of ultra-high-net-worth individuals: 10,395 (down 4.1%)

Total wealth: $1.05 trillion (down 8.8%)

Canada's wealthy are getting richer faster than the rest of the population, according to CBC.

4. Germany witnessed an increase in its ultra-wealthy population and their collective wealth.

Number of ultra-high-net-worth individuals: 15,685 (up 4%)

Total wealth: $1.85 trillion (up 1.7%)

Germany's economic prospects fell significantly during the second half of 2018.

3. Japan saw modest falls in its ultra-wealthy population and collective net worth compared to last year.

Number of ultra-high-net-worth individuals: 17,855 (down 0.3%)

Total wealth: $1.67 trillion (down 0.8%)

While wealth in Japan was affected by a weaker demand in China and downturn in the global consumer electronics cycle, strengthening of the yen against the dollar helped balance it out.

2. China saw a rise in the number of ultra-wealthy residents since 2017, but a drop in collective wealth.

Number of ultra-high-net-worth individuals: 24,965 (up 1.3%)

Total wealth: $3.76 trillion (down 1.3%)

A stock-market slump and downward currency pressure against the dollar brought wealth portfolios down.

1. The United States accounts for 31% of the global ultra wealthy population.

Number of ultra-high-net-worth individuals: 81,340 (up 2.2%)

Total wealth: $9.84 billion (down 0.1%)

The total net worth of the ultra wealthy in the US exceeds the combined wealth of the five preceding highest-ranked countries.

11 vintage cars that make particularly good investments

Mon, 09/30/2019 - 1:10pm  |  Clusterstock

  • Cars tend to gradually lose their resale value over time. It is safe to say that most vehicles will be worth less money the older they get.
  • But there are certain cars that defy this trend. Their values increase with age.
  • A confluence of circumstances can create this type of scenario. For example, a vehicle that is unique or rare and also highly desirable can cause its overall value to increase. These cars can become great investment tools as a result.
  • To that end, here are a handful of vintage vehicles you might be wise to scoop up sooner than later.
  • Visit Business Insider's homepage for more stories.

As time progresses and the years go by, certain cars start to see a rise in value and become vintage, collectible items that can make great investments.

Unlike the average used car that will depreciate in value with time, these vehicles can appreciate as they get older. Reasons for this vary but often a major factor is supply and demand, with some cars being more desirable than others.

People remember cars and vehicles from their younger years in life and in later life they have the funds available to purchase them, creating a demand. If the supply of the vehicles is limited, then the vehicles start to spike in price as they are bought up, creating a scarcity in supply.

There are many cars that have the potential to increase in value, continue reading to see 11 hand-picked examples of these.

For all things supercars, car reviews and automobiles have a look at The Car Spotter website at

1. Original Fiat 500

Launched in 1957, the four-seat small city car has become an iconic Italian classic. Perfect for narrow streets and maneuvering into tight parking spots; the charming Fiat 500 is practical, economical and reliable.

Pristine examples sell for over $30,000 with models requiring restoration available for less than $10,000. The popular, retro-chic motor has a timeless appearance. The modern-day version of the Fiat 500 launched in North America in 2010. It sold poorly and is set to be discontinued for the 2020 model year.

2. Jaguar E Type

Cited by Enzo Ferrari, the founder of Ferrari, as one of the most beautiful cars ever made. The Jaguar E Type impresses with swooping lines, elongated hood and striking wire wheels. Available as a coupe or convertible, the performance sports car has a top speed of 241km/h (150mph).

Also known as the Jaguar XKE or Jaguar V-12; immaculate models fetch prices at over a quarter of a million dollars. E Types that require restoration can be bought for as little as $20,000, so there's money to be made. These British classics are only increasing in value.

3. Mk1 Volkswagen Golf GTi

First revealed at the Frankfurt Motor Show in 1975, the Volkswagen Golf GTi is one of the original hot hatchbacks. With imposing red grille trim, golf ball shift knob and boxy good looks the Mk1 Golf GTi is an eye-catching piece of engineering. 

Look out for rust when buying to avoid taking on more work than you bargained for. Due to the scarcity and dwindling numbers, these German classic hatchbacks are only going up in price.

4. BMW M3 E30

One of BMW's most recognizable cars, there was less than 20,000 BMW M3 E30 models produced, with less than 5,000 of these made for the US market. 

Due to low supply and high demand the value of the E30 M3 has shot up drastically in recent years with a low mileage example selling for $102,000

You can purchase the late 80s early 90s high performance German sedan with strong motorsport history from around $60,000.

5. Porsche 911

The high performance rear–engine luxury sports car first produced in 1963 is a vehicle desired by many. The body shape hasn't changed since inception due to the popularity of the 911. With room to seat four, it is versatile and can accommodate two children or small adults in the rear.

Porsche engines were air cooled until 1998 when they became water cooled. It is the air cooled models before 1998 that are the most desirable and therefore the most likely to appreciate further in value. Carrera, Turbo, RS and limited production models are the ones to look out for.

6. Ford Mustang

A vintage Ford that needs little introduction. Appearing in global blockbuster films such as Bullitt and Gone in 60 Seconds, the Mustang is iconic, a true American masterpiece.

The Ford Mustang was sold as a hardtop and convertible back in 1964. The Mustang was the original "pony car", an affordable sport coupe recognizable from the long hood and short rear deck. Over 10 million Mustangs have been produced in the U.S. alone.

Less desirable models can be picked up for below $10,000 with rarer, more sought after examples going for over $300,000. The late 60s Fastback models are the ones to look out for.

7. Ford Sierra RS Cosworth

Continuing the Ford theme, the next car on the list is the high performance version of the Ford Sierra. The Ford Sierra RS Cosworth was created as part of the Ford Motorsport project.

Created in both 3 door hatchback and 4 door saloon variants between 1986 and 1992, and popular amongst both motorsport and rally enthusiasts, the Sierra RS Cosworth brings back nostalgic memories of the 80s and 90s. Large tailgate wing and 2 litre turbocharged engine are what made the car so lusted after.

Low production numbers in the thousands make the Sierra RS Cosworth desirable and able to fetch between $25,000 and $95,000 depending on condition.

8. Ford Escort RS Cosworth

The Sierra RS Cosworth couldn't be chosen alone without mentioning the equally unique Escort RS Cosworth. 

Following the Sierra RS Cosworth, Ford again teamed with Cosworth this time to create the Escort RS Cosworth. With the Ford Escort being an everyday family car, the modified rally version was loved for a variety of reasons. Fitted with a huge whale tail spoiler, 0-100km/h acceleration in just 5.7 seconds and bright paintwork options to choose from, this is a car to get pulses racing.

Prices have increased dramatically for the vehicle produced 25 years ago as people are able to purchase their childhood poster pin ups.

9. Mercedes SL500

SL derives from the German Super-Leicht which means Super Light in English. Introduced in 1954 as a coupe with the recognizable gullwing doors, the SL has been a firm favorite for those looking for a fun two-seater grand tourer. 

The rare gullwing SL models fetch prices of hundreds of thousands of dollars; however the fourth generation R129 models that were produced between 1989 and 2001 have the makings of a future classic at a more reasonable price.

With angular bodywork and a highly powered 5.0L V8 engine, the German engineered Mercedes SL 500 is a luxury vehicle that will always remain in fashion.

10. First generation Acura NSX

The Acura (Honda) NSX is a 2 seater mid-engine sports car made from 1990 and 2005 in Japan. It produces almost 300 bhp from 3.0 litre and 3.2 litre VTEC engines and draws design inspiration from Ferrari, Porsche and Lamborghini.

Ten years later in 2015, the second generation hybrid Honda NSX sports car was released, winning plaudits and making Business Insider's 2016 Car of the Year

Despite being a brilliant car, the $157,500 price tag may be a little too steep for some. Original models go for between $45,000 and $90,000 and with a huge fan club and cult following, the price of the petrol variant is likely to go only one way.

11. Land Rover Defender

The Land Rover Defender is a truly British vehicle that can be driven on any terrain. Rugged and versatile, the multi-purpose functionality has made it a huge hit with off-road enthusiasts, farmers and those who love the look.

After a continuous production run spanning 67 years which ended in 2016, Land Rover recently introduced the all-new 2020 Defender.

For the Land Rover purists, the new refined and modern Defender doesn't compete with the proven, time tested Defender which means it has the potential to increase in value as people look to purchase historic models. This is one legendary off roader to watch out for in the future.

WeWork went from a $47 billion valuation to a failed IPO. Here's how the company makes money.

Mon, 09/30/2019 - 12:53pm  |  Clusterstock
  • WeWork is postponing its initial public offering indefinitely.
  • CEO Adam Neumann stepped down and was replaced by Sebastian Gunningham and Artie Minson, as permanent co-CEOs.
  • The company delayed its hotly anticipated IPO after investors questioned its valuation, business model, and Neumann's role in the company.
  • The co-working company was valued as high as $47 billion, though many don't agree with that number.
  • WeWork has tried to justify its valuation by saying it's a tech company, but most investors think it's a real estate company. At its core, WeWork is a landlord.
  • Visit Business Insider's homepage for more stories.

EDITOR'S NOTE: This video was originally published on September 20, 2019. 

Join the conversation about this story »

From Tesla to McDonald's, these are the 20 CEO-enriching companies that would get hit hardest by Bernie Sanders' new inequality tax

Mon, 09/30/2019 - 12:48pm  |  Clusterstock

  • Sen. Bernie Sanders announced a tax plan Monday that would penalize companies where CEOs make more than 50 times the median worker. 
  • There are 50 companies where the top executive makes more than 1,000 times the median worker, according to a study by the Institute for Policy Studies.
  • Listed below are the top 20 companies where the pay gap between workers and CEOs is more than 1,000.
  • Tesla tops the list. 
  • Read more on Business Insider.

On Monday, Sen. Bernie Sanders announced a new Income Inequality Tax Plan that aims to penalize companies where the top executive is paid more than 50 times what the median worker makes. 

But at many companies the inequality Sanders aims to tackle is even more pronounced. According to a new study by the Institute for Policy Studies — which the presidential hopeful cited in his tax plan — there are at least 50 companies where the top executive is taking home more than 1,000 times what workers are making. 

"At the 50 publicly traded US corporations with the widest pay gaps in 2018, the typical employee would have to work at least 1,000 years — an entire millennium — to earn what their CEO made in just one," co-authors Sarah Anderson and Sam Pizzigati wrote in the September study. 

The median CEO pay at these top 50 firms was $15.9 million in 2018, according to the study. For the typical worker at the same firms, average 2018 pay was $10,027. Roughly 88% had temporary or part-time status in 2018, the study found. Further, 31% of them worked in China, Mexico, or another low-wage country. 

Read more: A hedge fund manager who turned $126,000 of firmwide assets into $500 million explains his Warren Buffett-esque investment process — and why he's not concerned with today's stock market valuation

The problem is prevalent even outside the top 50 firms with the widest pay gaps, according to the study. More than 80% of firms in the S&P 500 paid their CEO more than 100 times the median worker pay in 2018, IPS found. Only five firms in that group had ratios of less than 25-to-1. 

But even that's a flawed measure of CEO wealth, according to the study. The majority of CEO real earnings come from holding company stock. Those can be as high as $87 billion for Warren Buffett at Berkshire Hathaway.

These kinds of pay incentives also factored into the IPS ranking. Elon Musk of Tesla makes more than 40,000 times the median worker, based on a $2.2 billion stock option he was awarded in 2018. 

Here are the top 20 firms with the widest pay gaps between median workers and CEOs, according to the IPS report. They are organized by the pay ratio from smallest to largest. 

20. Estee Lauder Companies

Ticker: EL

CEO: Fabrizio Freda

CEO Pay: $49 million 

Median Worker Pay: $28,845

CEO-Worker Pay Ratio: 1,690 

Source: Institute for Policy Studies

19. VF Corporation

Ticker: VFC 

CEO: Steven E. Rendle 

CEO Pay: $18 million 

Median Worker Pay: $10,099

CEO-Worker Pay Ratio: 1,767

Source: Institute for Policy Studies

18. Nu Skin Enterprises

Ticker: NUS 

CEO: Ritch Wood 

CEO Pay: $6 million 

Median Worker Pay: $3,382

CEO-Worker Pay Ratio: 1,793

Source: Institute for Policy Studies

17. Western Digital

Ticker: WDC

CEO: Stephen Milligan 

CEO Pay: $20 million 

Median Worker Pay: $10,999

CEO-Worker Pay Ratio: 1,795

Source: Institute for Policy Studies

16. McDonald's

Ticker: MCD

CEO: Stephen Easterbrook 

CEO Pay: $16 million 

Median Worker Pay: $7,473

CEO-Worker Pay Ratio: 2,124

Source: Institute for Policy Studies

15. Skechers USA

Ticker: SKX

CEO: Robert Greenberg 

CEO Pay: $27 million 

Median Worker Pay: $12,673

CEO-Worker Pay Ratio: 2,159

Source: Institute for Policy Studies

14. Jabil

Ticker: JBL 

CEO: Mark Mondello 

CEO Pay: $11 million 

Median Worker Pay: $5,091

CEO-Worker Pay Ratio: 2,238

Source: Institute for Policy Studies

13. Universal Corporation

Ticker: UVV

CEO: George Freeman lll

CEO Pay: $4 million 

Median Worker Pay: $1,528

CEO-Worker Pay Ratio: 2,429

Source: Institute for Policy Studies

12. Williams-Sonoma, Inc

Ticker: WSM 

CEO: Laura Alber 

CEO Pay: $27 million 

Median Worker Pay: $11,137 

CEO-Worker Pay Ratio: 2,447 

Source: Institute for Policy Studies

11. Chipotle Mexican Grill

Ticker: CMG

CEO: Brian Niccol 

CEO Pay: $34 million

Median Worker Pay: $13,779

CEO-Worker Pay Ratio: 2,450

Source: Institute for Policy Studies

10. G-lll Apparel Group

Ticker: GIII

CEO: Morris Goldfarb 

CEO Pay: $18 million 

Median Worker Pay: $7,101 

CEO-Worker Pay Ratio: 2,493

Source: Institute for Policy Studies

9. Manpower Group

Ticker: MAN

CEO: Jonas Prising 

CEO Pay: $11 million 

Median Worker Pay: $4,563

CEO-Worker Pay Ratio: 2,508

Source: Institute for Policy Studies

8. Axon Enterprise

Ticker: AAXN

CEO: Patrick Smith 

CEO Pay: $246 million 

Median Worker Pay: $95,157

CEO-Worker Pay Ratio: 2,585

Source: Institute for Policy Studies

7. Aptiv Plc

Ticker: APTV 

CEO: Kevin Clark

CEO Pay:  $14 million 

Median Worker Pay: $5,414 

CEO-Worker Pay Ratio: 2,609

Source: Institute for Policy Studies

6. Yum China Holdings, Inc.

Ticker: YUMC

CEO: Joey Wat

CEO Pay: $11 million 

Median Worker Pay: $3,885 

CEO-Worker Pay Ratio: 2,731

Source: Institute for Policy Studies

5. Align Technology, Inc.

Ticker: ALGN

CEO: Joseph Hogan 

CEO Pay: $42 million 

Median Worker Pay: $13,180 

CEO-Worker Pay Ratio: 3,168 

Source: Institute for Policy Studies

4. Mattel

Ticker: MAT

CEO: Ynon Kreiz 

CEO Pay: $19 million 

Median Worker Pay: $5,489 

CEO-Worker Pay Ratio: 3,408

Source: Institute for Policy Studies

3. Gap

Ticker: GPS

CEO: Arthur Peck 

CEO Pay: $21 million 

Median Worker Pay: $5,831

CEO-Worker Pay Ratio: 3,566

Source: Institute for Policy Studies

2. Abercrombie & Fitch Co.

Ticker: ANF

CEO: Fran Horowitz- Bonadies 

CEO Pay: $8.5 million 

Median Worker Pay: $2,317

CEO-Worker Pay Ratio: 3,660

Source: Institute for Policy Studies

1. Tesla

Ticker: TSLA 

CEO: Elon Musk 

CEO Pay: $2.2 billion 

Median Worker Pay: $56,163 

CEO-Worker Pay Ratio: 40,668*

Source: Institute for Policy Studies

*This outlier ratio is based on a $2.2 billion stock option award to the CEO in 2018, the IPS report said. According to the Tesla proxy statement, this award will fully vest over 10 years if the company's market capitalization increases to $650 billion (from a current $42 billion) and if the CEO achieves 12 of 16 performance benchmarks.


Here is a list of the top nonbank and alternative lenders in 2019 (PFSI, ONDK, PYPL)

Mon, 09/30/2019 - 12:30pm  |  Clusterstock

Nonbanks and alternative lenders have garnered attention in the banking industry due to their ability to partner with legacy banks and utilize technology to make financial transactions more efficient and convenient for users.

Consumers are attracted to the idea of completing loan applications and payments digitally, with no initial fees, and at low interest rates. Alternative lending companies and nonbank financial institutions have been able to cater to these demands by adapting to the digital age and remaining open to company growth. 

Here is a list of some of the top alternative lending competitors. 

1. Quicken Loans

In 2015 Quicken Loans transformed the mortgage industry with the introduction of Rocket Mortgage — its online mortgage application that reportedly takes less than 10 minutes to complete. With no other viable challengers to the status quo in sight, this online application was immediately appealing to tech-savvy applicants.

Rocket Mortgage propelled Quicken Loans into the digital mortgage sector — altering the traditional home loan application process and opening the door to smaller online lenders. According to Business Insider Intelligence's Online Mortgage Lending Report, by Q4 2017, Quicken Loans had become the largest US residential mortgage originator by volume. 

Learn more about Quicken Loans.

2. LoanDepot

LoanDepot became popular in the mortgage loan market in 2017 when it introduced a suite of tools  for consumers to fill out mortgage loan applications conveniently from their smartphones. 

This alt lender has funded over $165 billion since it launched in 2010, and is the nation's fifth largest retail mortgage originator — taking second place for largest nonbank consumer lender. 

Learn more about LoanDepot

3. PennyMac

PennyMac has stayed ahead of its alternative lending competitors by continuously adapting to consumers' digital preferences. Catering to the online user, PennyMac provides digital loan support and allows consumers to submit documents electronically. 

With no minimum income required, PennyMac offers a wide variety of loan options ranging from conventional and jumbo loans to U.S. Department of Veterans Affairs and Federal Housing Administration loan and mortgage programs. 

Learn more about PennyMac.

4. OnDeck

OnDeck's digital technology services and partnerships with incumbent financial services providers have secured it as a top alternative lending option for small- and medium-sized businesses (SMBs).

In 2018 OnDeck launched ODX to help banks build their own digital small-business lending products. The firm also partnered with JPMorgan in 2014 – and extended the partnership in 2017 – to create a platform allowing SMBs to access up to $200,000 in loans online.

Learn more about OnDeck.

5. Social Finance (SoFi)

Originally focused on student loan refinancing, SoFi now includes mortgage loan refinancing, mortgages, and personal loans. In 2019 SoFi expanded its offerings with the launch of SoFi Invest, which offers customers both active and automated investing options with no fees. 

SoFi's success as an alternative lending platform is largely due to its continuous committment to expanding its suite of financial services. In addition to the launch of SoFi Invest, the company also partnered with insurtechs Lemonade and Root in 2019 to add three more types of insurance to its product suite. 

Learn more about SoFi

6. Reali Loans 

Reali Loans is an online alternative lending platform that has no origination fee or upfront charge, and accommodates tech-savvy customers looking for a convenient way to seek loans.

Reali's platform allows users to complete a loan application completely online; customers can upload and sign documents electronically and track the progress of their loan, including payments, through the user dashboard.

Learn more about Reali Loans.

7. Kabbage 

Kabbage is another online lending platform that has earned a spot on the list of top nonbank financial institutions. The startup offers business-to-business (B2B) operations, and in July 2019 it secured a $200-million revolving credit facility. 

Particularly popular in SMB lending, Kabbage provides a suite of digital services where customers can link business information online to get an automatic financial review. Kabbage also allows users to withdraw from their line through three distinct methods: logging into a computer, using a mobile banking app, or swiping a Kabbage Card. 

Learn more about Kabbage.

8. PayPal

PayPal is a popular peer-to-peer (P2P) lending service that Business Insider Intelligence projects to grow at a 42.7% five-year compound annual growth rate to hit $574 billion by 2023. PayPal also owns Venmo, a P2P lending app that's popular with millennials and on pace to drive $100 billion in volume in 2019.

PayPal offers various security services, including alerts of suspicious activity, in addition to easy check-out options where users can make financial transactions online. By adapting to consumers' preferred digital channels and offering both personal and business lending options, PayPal has become popular amongst a variety of users.

Learn more about PayPal.

Banking Industry Analysis

The banking industry is undergoing rapid disruption as consumers show an increasing appetite for digital channels and nontraditional financing. With the integration of new technologies in financial services well underway, it's important for the industry's principal decision-makers to stay informed on the success of alternative lending and nonbank financial institutions. 

That's why Business Insider Intelligence is launching Banking, our newest research coverage area that will keep you up to date on how nonbanks and alternative lending services are making their way to the forefront of the banking industry. 

Interested in getting the full report? Here's how to get access:

  1. Purchase & download the full report from our research store. >>  Purchase & Download Now
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GOP congressman Chris Collins will plead guilty to insider-trading charges

Mon, 09/30/2019 - 12:09pm  |  Clusterstock

  • GOP congressman Chris Collins will plead guilty in an insider-trading case, Bloomberg reported Monday, citing court documents and sources close to the matter.
  • The House Representative for New York's 27th District first pled not guilty after being arrested in 2018.
  • His son, Cameron Collins, and the father of Cameron's fiancee, Stephen Zarsky, were also arrested, and changed their pleas with the representative.
  • The trial is tentatively scheduled for February 2020.
  • Collins submitted his resignation letter to House Speaker Nancy Pelosi and New York Governor Andrew Cuomo Monday afternoon.
  • Visit the Business Insider homepage for more stories.

GOP congressman Chris Collins of New York's 27th District will plead guilty to insider trading, Bloomberg reported Monday morning, citing court documents and sources close to the case.

Collins submitted his letter of resignation to House Speaker Nancy Pelosi and New York Governor Andrew Cuomo Monday afternoon. The resignation will go into effect Tuesday. 

The GOP congressman was charged with trading on non-public knowledge on Innate Immunotherapeutics, an Australian biotech firm. Collins was arrested in August 2018 with his son, Cameron Collins, along with the father of Cameron's fiancee, Stephen Zarsky.

All three first pled not guilty to the crimes, but Cameron and Zarsky will change their pleas with the congressman, Bloomberg reported. Collins' change-of-plea hearing is set for 3 p.m. ET Tuesday in Manhattan federal court, while Cameron and Zarsky's hearings are scheduled for 2 p.m. ET Thursday.

Read more: Wall Street titans including JPMorgan and Pimco are flagging a striking disconnect in markets that exposes how worried investors are about another crash

Chris Collins served on the Innate's board and called his son with a stock tip after the company failed a key drug test, prosecutors claimed. Cameron then sold shares of the company and passed the information on to Zarsky, who also unloaded shares, according to the complaint.

The trades occurred before news of the failed trial was made public, prosecutors alleged. Innate stock dropped 92% on the Australian Securities Exchange after the public announcement of the drug's failed test.

Lawyers for Collins could not be immediately reached.

Now read more markets coverage from Markets Insider and Business Insider:

JPMorgan predicts Apple's stock will spike 20% on strong iPhone demand 

The Fed is injecting hundreds of billions into markets — and it's a practice that could become the new normal

'We're being squeezed': Marketers are freaking out about coming privacy laws in the US and worry that it will be worse than Europe's GDPR

Join the conversation about this story »

NOW WATCH: Amazon is reportedly seeking a new space in New York City. Here's why the giant canceled its HQ2 plans 5 months ago.

How Nobel award-winning economists are working to fight climate change

Mon, 09/30/2019 - 12:00pm  |  Clusterstock

The human impact on the environment is the topic of the century and plans to mitigate the effects are on the table across the globe. With the number of environmental economists on the rise, are we closer to a solution?

Environmental economics has become increasingly important, with a growing number of research papers and, at the same time, an equally growing number of public voices calling for action. When William Nordhaus received the Nobel Prize in 2018 for his work on integrating climate change into macroeconomic analyses, the committee emphasized the important challenge to create sustained and sustainable economic growth in the future. 

"It's a race between growth on the one hand and changing the growth model enough," says Michael Spence, a colleague of Nordhaus's and a vocal supporter of the importance of his work. 

"A tax on carbon emission could start off small, but then it would grow exponentially." — Kydland

In 2012, Finn Kydland was a member of a Copenhagen Consensus panel that analyzed different approaches to address the world's biggest challenges. One of the top solutions presented was instituting a tax on carbon emissions. "This tax could start off being initially small," Kydland suggests, "but then it would grow exponentially. That's a solution that will affect incentives." He explains how providing incentives is a core aspect of economic theory, and that carbon pricing is a good example of this.

Carbon pricing today is understood as a crucial element in the fight to mitigate climate change. "There are relatively few things that are almost unanimously agreed upon among economists, but this is surely one of them," says Spence. 

There are proposals on the table in many countries, including the US, China, and Canada. "If we don't manage to put a price on carbon, we can't solve the problem for two reasons," explains Spence. "One, we create an incentive to overuse fossil fuels and generate carbon dioxide; and second, the new technologies that are clean are disadvantaged because one output of the old technology, the fossil fuels, is not being priced properly, in this case negatively."

According to the World Bank, more than 45 nations have carbon pricing mechanisms in place, which translates to roughly 20% of annual global greenhouse gas emissions. The Carbon Pricing Leadership Coalition (CPLC) emphasizes how a carbon price shifts the burden to those who are responsible for polluting and can thus reduce, or prevent, the damage. Not only does a carbon price incentivize businesses to reduce their own emissions, it also encourages innovations in the clean energy sector. 

Still, without global rules, there is the concern that companies would relocate to avoid these taxes, causing people to lose their jobs as a result. "Taxing carbon is an essential step in dealing with climate change, but whether it's going to happen politically is very difficult to understand," says Spence.

While international agreements are crucial, Spence sees most of the progress in the area of individual engagement. "Tens of thousands of people are in one way or another directly working on this," he says. "That's good. It's essential."

"The progress we've made is in the engagement area. That's good. It's essential." — Spence

Spence emphasizes that one approach alone won't be sufficient; you need to change the mindset of people and deliver a better understanding of the positive outcomes it would carry. 

"A carbon tax would be top-down, regulation would be top-down, but bottom-up means changing your behavior based on shifting values," says Spence. "It means educational programs. It means recycling stuff." 

The younger generations have been among the most motivated to reduce and prevent further climate change. The school strikes for climate, an international movement of students striking to demand climate action, inspired strikes in nearly 300 cities worldwide in 2018. Their hope is that by applying enough pressure on politicians, they will be able to make a difference. 

"Economics evolves," says Spence. "At no point in time could you say the economics profession has got all the right models, all the right solutions, but I think it evolves and it will make a contribution."

The debate around climate change is here to stay. How we can reduce the human impact on the environment is one of the most important topics on the global agenda. It's clear that economists will play a big role in finding good solutions, even though exactly what those solutions will be is much more complex.



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I'm a financial planner — here's the single best piece of advice I can give you about money

Mon, 09/30/2019 - 12:00pm  |  Clusterstock

For most of us, financial mistakes are a rite of passage.

Even the most successful people have a money-related regret or two (or more). As a financial planner in New York City, I've come to expect new client meetings to include conversations about financial anxiety, confusion, and frustration.

The reality is, when it comes to money, most people are doing far better than they think they are. Sure, you may not have reached your goals yet, but that doesn't mean you won't or that you've failed already. Even if things are particularly tough right now, it won't stay that way forever.

That is why the best piece of advice I can give you about money is this:

Money is dynamic. Plan for the long run, and don't get too caught up on today.

To see this in action, all you have to do is take a look at any of your account balances over the past year, or five years, or longer. If you're like most people, you've had highs and lows. The stock market is the same way. Money is constantly on the move.

When it comes to your money, a financial planner can help you see the big picture. Use SmartAsset's free tool to find a qualified financial adviser today »

Keeping track of your net worth is a good way to follow the ups and downs of your financial situation and to remind yourself that you aren't stuck. Making one mistake doesn't doom you to a lifetime of financial struggle, and getting lucky once — even winning the lottery — doesn't necessarily mean you're set for life.

If things are great right now, enjoy it. But make sure to save as much as you can for a time in the future when you'll need it. Retirement is one universal example, but a job loss, medical expense, or other big life event could happen as well. It will be easier to weather the tough times if you prepare during the good times.

And, if you're living through one of those tough times, try to remember that it's temporary. Don't stress about the progress you're not making. Just try to get through today. If you lost your job, focus on finding a new one. If you're in over your head with debt, cut back as much as you can to pay it off. You'll get through it.

It's worth mentioning — and this is where the long-term planning really comes into play — since money is dynamic, your financial goals can be, too. Don't underestimate your potential. If your current goal feels far away, be patient and keep working toward it. If you've recently reached a financial goal, set a new one. The important thing is to keep moving.

A financial adviser can help you plan for the long term and grow your money. Use SmartAsset's free tool to find a qualified professional near you »

SEE ALSO: After nearly 10 years as a financial planner, the first 2 questions I ask every client have nothing to do with money

DON'T MISS: How much the average American could be saving at every age

Join the conversation about this story »

NOW WATCH: Top financial adviser: Just working hard will not make you wealthy

JPMorgan says the 'universally hated' energy sector is set to surge. Here are 5 reasons the firm's top US stock strategist is betting on a rally.

Mon, 09/30/2019 - 11:55am  |  Clusterstock

  • Dubravko Lakos-Bujas, JPMorgan's chief US equity strategist, says the energy sector is due for a rally after being neglected for much of the year. 
  • He said the sector has largely been abandoned, even though oil prices have surged since late 2018. But with global economic growth likely to improve in the months ahead, he sees a lot of room for improvement.
  • Oil prices this month briefly soared after Saudi Arabia's oil refineries were attacked, but even that failed to set off a sustained rally in the sector.
  • Click here for more BI Prime stories.

The rest of the stock market has left energy companies in the dust this year, and JPMorgan's chief US equity strategist says that sentiment has stretched to an unreasonable extent.

Under normal circumstances, it's a fact of life that if oil prices are rising, energy companies are on the rise as well. That has not only not happened, but they've also moved in opposite directions all year, Dubravko Lakos-Bujas said.

"While Oil has recovered ~32% from last December low, Large-cap E&Ps are hovering near December lows and Small-cap E&Ps have declined by another -20%," he said in a recent client note.

But Lakos-Bujas isn't simply arguing that the sector is undervalued. He said there was a series of attributes to like about energy companies that, when combined, create a real opportunity.

"We believe favorable technicals, improving fundamentals with stabilizing business cycle, and ongoing geopolitical tensions in the Middle East could help redirect flows into this universally hated and cheap sector," he wrote.

He broke down five reasons energy stocks are positioned for a recovery. Investors who want exposure to the sector can achieve it through the SPDR Energy Select Sector ETF.

1. Positioning is very low

Here's what Lakos-Bujas meant when he said the sector was hated: Systematic funds are shorting oil, institutional investors have "abandoned" the energy sector, and factor-investing trends aren't bullish on energy companies either. Add that up, and some companies are abnormally inexpensive.

"Absolute and relative valuations are at lows with small-cap E&Ps trading below book value and at price levels seen almost 25 years ago," he said.

2. Returns are improving

Energy-sector returns are improving, as companies throughout the industry have increased their dividends this year and low stock prices have encouraged more buybacks. That combination of falling prices and growing returns means yields for energy companies have jumped to 3.9%.

Energy executives and leaders seem optimistic about how the stocks will perform.

"We find it encouraging that corporate managers are finding value in this sector with insider buying activity hitting an all-time high," Lakos-Bujas said.

Read more'Invest in what's scarce': Famed economist David Rosenberg explains how the average trader can supercharge returns in a tumultuous market

3. Middle East tensions are up

Usually, turmoil in the Middle East drives up oil prices and energy stocks. The drone attack on Saudi Arabia's oil facilities caused a big spike in oil prices that quickly faded, and there hasn't been much movement in energy companies. Lakos-Bujas said this didn't make much sense.

"Two-thirds of Energy companies are trading below pre-attack levels," he said. "The market should assign a structural premium to the equity-oil complex with the Middle East currently a geopolitical tinderbox."

He added that it was not clear if there would be a military response to the attack, and it would take months before all of Saudi Arabia's refining capacity is functional again.

4. Improving growth

Oil prices have been hurt by investors' worries about the ongoing US-China trade war and related concerns about the weakening global economy. But Lakos-Bujas said economic growth was likely to pick up in the next few months as the result of monetary easing and economic stimulus from central banks around the world.

He expects trade tensions to ease as the 2020 presidential election approaches. That would help the global economy by encouraging businesses and consumers to spend.

"Energy-equities would be a direct beneficiary of improving global growth, tighter oil supply/demand, and weaker USD," he wrote.

Read moreThe cofounder of $300 billion private-equity behemoth Apollo outlines 4 mistakes the average investor makes — and explains how he takes advantage

5. Unappreciated upside

Lakos-Bujas reasons that the market collectively expects oil prices to rise about $5 a barrel next year — but because of high leverage in the sector, shares of energy companies will see outsize gains if oil prices rise further than that.

Overall, that means companies will continue to increase their buyback and dividend returns, and that suggests the multiples on energy stocks should be higher than they are.

"Since S&P 500 Energy has higher quality integrated and refiners, pure-play E&P and Service should see even stronger growth under higher oil scenarios," he said.

One way investors can get exposure to oil and gas companies is through the SPDR S&P Oil & Gas Exploration Production ETF, while a way to invest in refinery operators is the VanEck Vectors Oil Refiners ETF. The VanEck Vectors Oil Services ETF can provide exposure to that part of the energy sector.

SEE ALSO: JPMORGAN: The threat of Trump's impeachment will change how investors play defense. Here's how to keep yourself safe as uncertainty swirls.

Join the conversation about this story »

NOW WATCH: The Navy has its own Area 51 and it's right in the middle of the Bahamas

The family behind OxyContin reportedly just made $60 million from a real-estate deal. Meet the Sacklers, who built their $13 billion fortune off the controversial prescription drug.

Mon, 09/30/2019 - 11:40am  |  Clusterstock

The Sacklers are one of the wealthiest families in the US, with an estimated fortune of $13 billion, but they may not be for much longer.

Purdue Pharma, the pharmaceutical company owned by members of the Sackler family, has filed for bankruptcy as part of a tentative settlement agreement in thousands of lawsuits over what accusers say is misleading marketing of Purdue Pharma's controversial painkiller, OxyContin, that's been partly responsible for the US opioid crisis. The settlement requires the owners of Purdue Pharma, members of the Sackler family, to pay $3 billion of their own fortune in cash over the next seven years.

"Purdue Pharma continues to work with all plaintiffs on reaching a comprehensive resolution to its opioid litigation that will deliver billions of dollars and vital opioid overdose rescue medicines to communities across the country impacted by the opioid crisis," the company said in a statement emailed to Business Insider.

In September, in the midst of the court proceedings, members of the family closed a deal that earned them about $60 million from the sale of 17 ski resorts in the Northeast and Midwest, Washington Post's Christopher Rowland reported.

The source of the family's wealth is OxyContin, the prescription painkiller that many say has fueled the US opioid crisis. Purdue Pharma has faced thousands of lawsuits over what accusers say is misleading marketing of OxyContin that contributed to opioid-related deaths.

Here's a look at the secretive and controversial family.

SEE ALSO: Nonprofits, museums, and hedge funds: Here are the groups that have cut ties with the Sackler family over the opioid crisis

DON'T MISS: Meet Bernard and Lisa Selz, the wealthy New York City couple who have donated millions to the anti-vax movement

The Sackler family is one of the richest families in the US.

In 2016, Forbes estimated their net worth at a "conservative" $14 billion, beating out famously wealthy families such as the Mellons and the Rockefellers. More recent estimates put the figure at $13 billion. They own Purdue Pharma, a pharmaceutical company in Connecticut.

The vast majority of the Sackler fortune comes from a well-known prescription painkiller that Purdue Pharma launched in 1996, OxyContin.

By 2001, sales of the drug made up about 80% of Purdue Pharma's revenue.

OxyContin is seen as partly to blame for the opioid crisis sweeping the US.

More than 130 people in the US die each day after overdosing on opioids, including prescription pain relievers, heroin, and synthetic opioids such as fentanyl, according to the National Institute of Drug Abuse.

A Centers for Disease Control and Prevention report in July indicated that overdose deaths actually dropped 5% from 2017 to 2018, the first year-to-year decline since 1990.

Purdue Pharma, which generates $3 billion in annual sales, has faced hundreds of lawsuits over what accusers say is misleading marketing about the risks of addiction when taking OxyContin.

The Sackler family still completely owns the company, and the multibillion-dollar fortune is shared among 20 or so family members. The family fortune has been estimated at $13 billion, but, as The New York Times reported, the exact number is unknown as Purdue Pharma is a private company.

On September 11, the New York Times reported that the owners of Purdue Pharma — including members of the Sackler family — reached a tentative settlement agreement.

The settlement requires the Sacklers to pay $3 billion of their own fortune in cash over the next seven years, The Times reported. 

On September 15, The Washington Post reported that Purdue Pharma had filed for bankruptcy. The Chapter 11 filing came as part of a tentative settlement of more than 2,000 lawsuits against the pharmaceutical company for between $10 billion and $12 billion.

The proposed settlement includes the Sackler family giving up ownership of the company and turning it into a for-profit "public benefit trust" that would provide $4 billion in drugs — some of which are used to save people from overdoses — to cities, counties, and states, according to NBC News.

The deal would also include $3 billion in cash from the Sackler family, Bloomberg reported.

In a statement released on September 16, the Sackler family said:

"It is our hope the bankruptcy reorganization process that is now underway will end our ownership of Purdue and ensure its assets are dedicated for the public benefit ... We are hopeful that in time, those parties who are not yet supportive will ultimately shift their focus to the critical resources that the settlement provides to people and problems that need them."

Despite the tentative settlement, Purdue Pharma continues to deny any wrongdoing. In a statement to Business Insider, the company said: "While Purdue Pharma is prepared to defend itself vigorously in the opioid litigation, the company has made clear that it sees little good coming from years of wasteful litigation and appeals."

The company declined to comment on any further details of the proposed settlement to Business Insider.

Later in September, members of the family reportedly finalized a deal that earned them about $60 million from the sale of 17 ski resorts in the Northeast and Midwest, The Washington Post reported.

"Many of the ski areas in the transaction sit in places that have been hit hard by prescription narcotic abuse over the past 20 years, including those in New Hampshire, as well as hills in Vermont, the Catskills in New York, Ohio and Pennsylvania," Christopher Rowland reported for the Post.

The deal included the sale of Attitash Mountain Ski Area and Wildcat Mountain Resort, both in New Hampshire.

Members of the Sackler family bought stock in Peak Resorts Inc., the company that sold the ski resorts, in 2011, according to the Post.

Representatives for the Sackler family and for Purdue Pharma did not immediately respond to Business Insider's request for comment regarding the deal. 

The Sacklers are far from a tight-knit family.

 The Guardian described them in 2018 as "a sprawling and now feuding transatlantic dynasty."  According to a 2017 article from The New Yorker, there are 15 Sackler children in the generation following the founders of Purdue.

While some Sacklers previously served as board members of Purdue Pharma, others, notably those descended from the eldest brother, Arthur M. Sackler, who died before OxyContin was invented, have distanced themselves from the company and condemned the OxyContin-based wealth, according to The Guardian. On September 18, a representative for Purdue Pharma told Business Insider that no Sackler family members have served on Purdue Pharma's board since January 2019.

The pharmaceutical empire began when the brothers Mortimer and Raymond Sackler took over a small pharmaceutical company in New York City's Greenwich Village called Purdue Frederick as cochairmen.

It later became Purdue Pharma.

Arthur, the oldest Sackler brother, worked in pharmaceutical marketing and became one of the world's leading collectors of Asian art.

He died in 1987 at age 73, before OxyContin was invented. His descendants split off from the rest of the family years ago and are "mere multimillionaires," according to Esquire.

Arthur's four children, Elizabeth Sackler, Carol Master, Arthur Felix Sackler, and Denise Marica, have said they have not made any money from OxyContin.

Elizabeth, a board member of the Brooklyn Museum, where she endowed the Elizabeth A. Sackler Center for Feminist Art, has called the OxyContin-based wealth of her family members "morally abhorrent."

A 2018 investigation by The Atlantic found a court document that showed a nearly $20 million payment to Arthur M. Sackler's estate in 1997 from the Purdue family of companies, suggesting his descendants did benefit in some way from OxyContin.

In an email to Business Insider, Janet Wootten, a spokeswoman for Jillian Sackler, widow of Arthur M. Sackler, denied that Jillian, Arthur, or their heirs have financially profited from the sale of OxyContin.

Mortimer Sackler, the middle son who was one of Purdue Pharma's chief executives, died in 2010 at age 93. He left behind his third wife, Theresa Sackler, and seven children, three of whom were board members of Purdue Pharma, according to The Guardian. A rep for Purdue Pharma told Business Insider that no Sackler family members have served on Purdue's board since January 2019.

Theresa is heavily involved in philanthropic work. In 2011, she received the Prince of Wales Medal for Art Philanthropy.

One of those former board members is his son, also named Mortimer.

The other two are the daughters Kathe Sackler, who is also the founder and president of the Acorn Foundation for the Arts & Sciences, and Ilene Sackler Lefcourt, the director of the Sackler Lefcourt Center for Child Development.

The elder Mortimer's other four children — Samantha Sophia, Michael, Marissa, and Sophie — are apparently not involved in the company.

Marissa Sackler, who considers herself a "social entrepreneur," is the founder of Beespace, a nonprofit that supports organizations such as the Malala Fund.

Sophie Sackler is married to a British cricket player, with whom she lives in a $40 million house in London, according to The New Yorker.

Raymond Sackler, Purdue Pharma's other former chief executive, died in 2017 at age 97. He had two children: Jonathan and Richard.

Both were board members at Purdue Pharma, The Guardian reported in February 2018.

Richard's son and Raymond's grandson, David, was also a board member.

Richard Sackler reportedly lives in a six-bedroom home in Austin, Texas.

The home in the Westlake neighborhood of Austin comes with a pool and views of Lake Austin.

His son, David Sackler, paid cash for a $22.5 million home in Los Angeles in 2018, according to Curbed.

The 10,000-square-foot estate sits on four acres in the Bel Air neighborhood, according to Curbed, and includes a tennis court and a pool.

David is married to Joss Sackler, the founder of a private social club and clothing company for women.

Joss is the founder of LBV, a private social club that costs $2,500 a year in dues to be a core member. The club also recently launched its own fashion line.

Raymond's granddaughter, Madeleine Sackler, is an award-winning filmmaker.

In response to criticism related to her family background, she said she had "never worked at the company or had any influence in it."

"The Sacklers have hidden their connection to their product," Keith Humphreys, a psychiatry professor at Stanford University who has written extensively about the opioid crisis, told Esquire.

"They don't call it 'Sackler Pharma,'" Humphreys said. "They don't call their pills 'Sackler pills.' And when they're questioned, they say, 'Well, it's a privately held firm, we're a family, we like to keep our privacy, you understand.'"

But the family is well-known for their philanthropic endeavors, with their names visibly emblazoned on hospital wings and museum galleries.

In a 2017 New Yorker article about the Sacklers titled "The Family That Built an Empire of Pain," Patrick Radden Keefe noted the Sacklers were well-known for their philanthropy.

The Sacklers reportedly donated $3.5 million to the Metropolitan Museum of Art in New York City in 1974 to create the Sackler Wing, where the Ancient Egyptian Temple of Dendur sits.

On May 15, 2019, however, the Met announced it would stop taking gifts from the Sacklers.

Many other institutions including nonprofits, museums, and universities have recently cut ties with the Sackler family over the opioid crisis.

There's a Sackler Center at the Guggenheim in New York City, as well as a Sackler Educational Lab at the American Museum of Natural History.

Source: Esquire

The family's influence on art extends beyond New York City. There's a Sackler Gallery at the Smithsonian Institution in Washington, DC.

According to Esquire, at Yale University, there's a Raymond and Beverly Sackler Institute for Biological, Physical and Engineering Sciences and a Richard Sackler and Jonathan Sackler Professorship of Internal Medicine.

And in London, there's the Serpentine Sackler Gallery.

There's even a type of rose named after a Sackler.

Some have suggested the Sacklers should instead put their money toward helping those affected by opioid addiction, The New Yorker's Patrick Radden Keefe reported.

The digital trends disrupting the banking industry in 2019

Mon, 09/30/2019 - 11:32am  |  Clusterstock
  • Business Insider Intelligence is launching its brand new Banking coverage in early September.
  • To obtain a free preview of our Banking Briefing, please click here.
Banking Industry Overview

The banking industry is in a much healthier place now than it was after the financial crisis of 2008. Total global assets climbed to $124 trillion in 2018, according to The Banker's Top 1000 World Banks Ranking for 2018. 

With so much money to manage, major banks such as JPMorgan Chase, Bank of America, Wells Fargo, and more are releasing new features to attract new customers and retain their existing ones. On top of that, startups and neobanks with disruptive technologies are breaking into the scene, and traditional banks are either competing with them or merging with them to improve their service.

So let's dive into the banking industry, the challenges it faces, and the road ahead.

Banking Industry Trends

The most prevalent trend in the banking industry today is the shift to digital, specifically mobile and online banking (more on each of those in a bit). In today's era of unprecedented convenience and speed, consumers don't want to have to trek to a physical bank branch to handle their transactions. This is especially true of Millennials and the older members of Gen Z, who have started to become the dominant players in the workforce (and the biggest earners).

This digital transformation has led to increased competition from tech startups, as well as consolidation of smaller banks and startups. In 2018, overall fintech funding hit $32.6 billion by the end of Q3, up 82% from 2017's total figure of $17.9 billion, according to CB Insights. 

Mobile Banking

To be frank, mobile banking is all but a requirement for consumers at this point. In Business Insider Intelligence's Mobile Banking Competitive Edge Study in 2018, 89% of respondents said they use mobile banking, up from 83% in 2017.

When broken down by generation, 97% of millennials use it (up from 92% in 2017)  91% of Gen Xers (up from 86%) and 79% of Baby Boomers (up from 69%). Critically for the banks themselves, 64% of mobile banking users said that they would research a bank's mobile capabilities before opening an account, and 61% say they would change banks if their bank offered a poor mobile banking experience.

But we've now reached the point where simply having a mobile app isn't enough for banks to attract and keep customers. Additional tools and features – such as the ability to put temporary holds on cards, view recurring charges, or scanning a fingerprint to log into an account –  are becoming increasingly necessary. Take a look at the chart to the right to see how valuable these features and more are to consumers.

Online Banking

Online banking is extremely convenient, and is understandably one of the two main ways that consumers interact with their banks (along with mobile banking). But there is still a significant contingent of banking customers who want physical branches.

Despite an overwhelming reliance on digital banking channels overall, and the resulting decline in branch visits, consumers have maintained a preference for depositing checks in-branch, according to a recent Fiserv study. More than half (53%) of respondents said their top reason for visiting a branch in the past month was to deposit a check, compared with 41% who went to withdraw cash, and 36% who went to deposit cash.

Still, there's no denying the rising prevalence of online banking, which has led to other innovations such as open banking. This system, implemented in the U.K., involves sharing customers' financial information electronically and securely, but only under conditions that customers approve.

Open banking forces lenders to offer a digital "fire hose" of data that any third party can use to get standardized access — provided the startup is registered with the UK Financial Conduct Authority (FCA) and the customer agrees to share their data.

Investment Banking

Investment banking is a type of financial service in which a person or company advises individuals, businesses, or even governments on how and where to invest their money. For decades, this has been a human-to-human process that led to a mutually beneficial relationship.

But now, with the rise of robo-advisors, artificial intelligence (AI) is starting to infiltrate the money management space. Predictive analytics can help investors make wiser and more profitable decisions before the market moves. AI can, in some cases, also help identify M&A targets. Lastly, AI can help validate an investment banker's hypothesis and lead to more informed future decisions.

Banking as a Service (BaaS)

Because of tight regulations (particularly in the U.S.), not everyone can just open a bank. This is where banking as a service (BaaS) comes in to fill the gap.

BaaS platforms enable fintechs and other third parties to connect with banks' systems via APIs to build banking offerings on top of the providers' regulated infrastructure. So, launching BaaS platforms helps banks benefit from fintechs entering the finance space, as it turns them into customers rather than just competitors.

While BaaS technically falls under the umbrella of open banking, it shouldn't be confused with the aforementioned Open Banking system in the U.K.  Open banking encompasses all actions in which a bank opens its APIs to third parties and gives those players access to data or functionality. The UK's Open Banking focuses on providing third parties with data from incumbent banks, while BaaS looks at how these players can get access to banks' services.

Banking Regulations

Banking is involved in almost every aspect of American life, from consumers to businesses to stocks. Because of this, the federal government has instituted numerous regulations on the banking industry, though the severity of those restrictions has waxed and waned in the last decade.

After the financial crisis of 2008, the Obama administration enacted the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010. Dodd-Frank overhauled the U.S. financial regulation system in the aftermath of the crash. The most sweeping and impactful changes from the act included:

  • The elimination of the Office of Thrift Supervision
  • The creation of the Consumer Financial Protection Bureau (CFPB) to protect consumers against abuses and unfair practices tied financial services and products such as credit cards and mortgages
  • The reassignment of responsibilities for agencies such as the Federal Deposit Insurance Corporation
  • The creation of the Financial Stability Oversight Council and the Office of Financial Research to analyze potential threats to U.S. financial stability
  • The expansion of the Federal Reserve's powers to regulate particular institutions

In 2018, current President Donald Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA), which rolled back some of the Dodd-Frank changes. Specifically, EGRRCPA raised the threshold under which the federal government deems banks too important to the financial system to fail from $50 billion to $250 billion.

It also eliminated the Volcker Rule (a federal regulation that largely forbade banks from conducting particular investment activities with their own accounts and restricted their dealings with hedge funds and private equity funds) for small banks with less than $10 billion in assets.

Despite the rollbacks, it's still difficult in the U.S. to get a banking license, which has hampered some banking startups. On the other hand, this has increased mergers and acquisitions activity. As a result, regulation will be a key focal point for the banking industry in the coming years.

Banking Industry Analysis

With so many different facets of the banking industry undergoing change, it's crucial for those connected to the banking industry to be informed and stay ahead. That's why Business Insider Intelligence is launching Banking, our latest research coverage area, to keep you up to date on the latest banking trends and shakeups.

Click here to obtain an exclusive FREE preview of Banking!

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Justin Bieber and Hailey Baldwin are tying the knot for a second time — and they're just one of many younger couples dropping serious cash on multiple wedding ceremonies and breaking marriage traditions

Mon, 09/30/2019 - 11:27am  |  Clusterstock

Justin Bieber and Hailey Baldwin are tying the knot — again.

The two got hitched in a Manhattan courthouse in September 2018. Now, they're holding a second wedding ceremony on September 30, 2019, in South Carolina, reported Amanda Arnold and Marie Lodi for Vulture. Ahead of their "I do" redo, Bieber even took to Instagram to share a throwback photo with his wife and her parents, thanking his in-laws for allowing their daughter to "marry a savage like [him]."

They're just one of many millennial couples throwing multiple wedding ceremonies. It's a rising trend among couples tying the knot, reported Jessica Schiffer for The New York Times.

"Multiceremony wedding experiences are becoming more common among couples looking to accommodate different cultural and religious backgrounds, not to mention guests who may not be able to afford pricey destination weddings," Schiffer wrote.

More than half of couples today are marrying someone with a different background, which has reduced the perception that multiple ceremonies are "over the top," Schiffer said, citing stats from WeddingWire. New York wedding planner Jove Meyer told Schiffer that 15% of his clients in the past year have had at least two ceremonies.

According to WeddingWire, the national average cost for weddings is around $38,700, but that hikes up to an average cost of $50,000 when multiple ceremonies are involved — with some exceeding $100,000, Schiffer wrote. Costs can get high, she said, because cultural celebrations can be elaborate and have lengthy guest lists.

For example, Indian wedding celebrations last for days and Japanese brides have several costume changes, according to Business Insider's Abby Rogers.

Read more: Millennials' preferences are leading to major changes in the wedding industry

But some couples keep things more low-key, which lowers costs — one couple Schiffer spoke to had an unofficial wedding ceremony in France and a backyard and beach celebration in California, all for $11,000.

Couples are also implementing a few boundaries, like not overlapping guest lists across celebrations and not throwing any ceremonies past the one-year mark, Schiffer said.

But that's not the only way couples, millennials in particular, are changing love and marriage. They're waiting longer in their relationships to get married — 4.9 years on average, reported Kristin Salaky for INSIDER, citing a Bridebook study. They're also getting married at a later age, according to INSIDER's Kim Renfro.

A delay in marriage has given couples more time to acquire their own assets — as a result, more couples are signing prenups before marriage to protect these assets in the event of a divorce.

And when they do get married, they tend to ditch traditional weddings, opting for unconventional venues such as barns and farms over banquet halls and hotel reception rooms, reported Business Insider's Mary Hanbury.

Read the full story at the New York Times »

SEE ALSO: From a $10,000 celebration at a country club to a 6-figure ceremony in Central Park, here's what 7 real couples spent on their weddings

DON'T MISS: Prenups aren't just for the rich or famous — more millennials are signing them before getting married, and you probably should too

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5 things Nobel Laureates say you should do to be successful

Mon, 09/30/2019 - 11:20am  |  Clusterstock

In an increasingly connected world, it can be difficult to say no to 24/7 accessibility. How can we avoid turning into workaholics but still achieve our goals? Hear from Nobel Laureates

You probably won't win a Nobel if you don't spend a large amount of time on one key thing: research. Still, despite the constant traveling, research efforts, teaching, and speaking engagements, Nobel economists rarely show signs of sleep deprivation. What are their secrets to maintaining a healthy work-life balance? We spoke to a few Nobel Laureates who gave us their Nobel guide to more success and fewer worries.

Step 1. Be passionate about the road you're taking.

Most of us spend the better part of our day at work. In fact, according to the World Health Organization, one-third of adult life is spent working. Research shows that one of the most important aspects of a healthy work-life balance is to feel needed, appreciated, and to be able to contribute to something of value. Nobel Laureate Daniel McFadden emphasizes that it's not about paying a price for success but to make success possible by choosing what we feel passionate about.

"I was never doing my work because I viewed it as a road to success. I did it because I was compelled to do it," says McFadden. "I'd have these unsolved problems and I simply had to solve them." You will feel better each and every Monday if you know that there is something waiting on your desk that you will enjoy working on.

Step 2. Accept that you need a break sometimes.

"Creativity is one of the great rewards of being an academic, and I think you do that best if you're not doing it 100% of the time," says Robert Engle, a financial economist and father of two. "My family expects and deserves equal share." 

Engle acknowledges that maintaining a healthy work-life balance is difficult, especially for people who push hard on their career. "I think you just have to decide this isn't a compromise that you want to give up." He's a good role model in that regard, says his wife Marianne, a psychologist. "Parenting has been for us one of the best parts of life. He works all the time, but our children didn't feel it," she says.

Step 3. Demand more flexibility.

Joseph Stiglitz knew he wanted to be a professor when he had to write an essay about his dream job in 9th grade. "I don't know if I knew what it was to be a professor," the Nobel Laureate of 2001 remembers, "but I knew it was a life of the mind." 

Over the years, Stiglitz realized that his profession allowed him to live a more flexible life. "I haven't had to face some of the tradeoffs so many other people have faced," says Stiglitz. "Academia gives you the ability to control your time more. I've been able to work at home, play with my kids, and write." 

Flexibility in the workplace is something that employees expect today, and employers should provide it. More flexibility leads to reduced stress levels and increased productivity, a win-win for all parties involved.

Step 4: Don't be afraid of failing.

Enough with the pressure. Angus Deaton, an expert on welfare economics, has an important piece of advice to share: Be easier on yourself. "You're not really going to get anywhere in life if it's all planned step-by-step from when you start," says the Nobel Laureate of 2015. 

Once the pressure is off, you are more likely to accept turbulent times. "I would tell young people not to worry too much about the meticulously-planned life," says Deaton. "At some point, you're going to have to go off that track. You have to find yourself and finding yourself means making mistakes."

Step 5. Lower your expectations.

For McFadden, winning the Nobel was a gamechanger in many ways. Still, he would have been equally happy if it had never happened. "Don't worry about whether there's a Nobel Prize 40 years down the road or not," he says. "Concentrate on doing a good job right now."


Learn more about UBS.

This post was created by UBS in partnership with Insider Studios.

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WeWork's bonds plummet to record low after company pulls its IPO

Mon, 09/30/2019 - 11:19am  |  Clusterstock

  • WeWork's 7.875% notes maturing in 2025 tumbled to a record low of 85.067 cents on the dollar on Monday after the company said in its latest S-1 filing that it would pull its initial public offering.
  • The company's new co-CEOs, Artie Minson and Sebastian Gunningham, said: "We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong."
  • The bond's sell-off came after S&P Global cut WeWork's credit rating further into junk territory last week.
  • Read more WeWork news here.

WeWork's bonds hit a record low on Monday after the company said it would withdraw its S-1 filing for an initial public offering.

The coworking company's 7.875% notes maturing in 2025 plummeted to 85.067 cents on the dollar following WeWork's announcement on Monday morning. The bonds have tumbled more than 13 basis points since September 19, by far the biggest decline on record for a period of that length.

"We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong," newly appointed co-CEOs Artie Minson and Sebastian Gunningham said. "We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future."

On Thursday, S&P Global slashed the company's credit rating, moving it deeper into junk territory. The rating agency lowered WeWork's credit status to B- from B and changed its outlook for the company to negative from stable.

WeWork has faced a barrage of challenges in recent weeks. Its cofounder Adam Neumann stepped down as CEO last week following concerns over his leadership and the company's governance structure.

WeWork's bonds rallied to an all-time high of 104.965 cents on the dollar in August after the company said in its IPO filing that it paid off a portion of the bonds and was planning to raise an additional $6 billion in debt funding contingent upon a successful public offering by the end of 2019.

Read more: Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked it

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European stocks have lagged US ones by 20%. JPMorgan says now is the time to pounce.

Mon, 09/30/2019 - 11:11am  |  Clusterstock

  • JPMorgan in a note said that now is the time to move into European stocks.
  • The bank's equity strategists previously had favored US stocks, but "now believe that that there is a tactical opportunity opening up for eurozone to catch up."
  • This comes despite obvious threats in the European economy, namely Brexit and a slowing German economy that could be headed for recession.
  • The analyst upgraded the euro region to overweight while pushing the US to neutral.
  • View Markets Insider's homepage for more stories.

Equity analysts at JPMorgan are signalling now is the time to move into European stocks over US stocks, saying that "there is a tactical opportunity opening up for eurozone to catch up."

Previously, the bank's equity analysts have favored American stocks, saying European stocks have fallen 20% in dollar terms over the last 18 months.

Mislav Matejka, head of global and European equity strategy, said the bank has switched changed its tune. The bank upgraded European stocks to "overweight" while downgraded American stocks as "neutral."

This moves comes despite obvious threats to Europe in the form of Brexit and a slowing European economy. Just last week confidence in Europe's economy hit a four-year low. 

Here's why JPMorgan is bullish on Europe:

1. Europe is "sitting on a significant spell of underperformance, and it is under-owned." The bank pointed to the fact that European stocks in dollar terms lose 20% in relative value and more and more funds are exiting the region — 20% of AUM outflowing since March 2018. 

2. The metrics say it's good value. "Eurozone sector neutral P/E relative is close to outright cheap territory," said the bank. 

3. Poor economic performance could mean that governments start spending. "Any increase in fiscal stimulus speculations could be a help for the sentiment," said the bank in the note adding that given the trade uncertainty around Brexit, governments might seek to take action. "In 2020, the net fiscal stimulus might increase in a proactive way, rather than just reactive as was the case this year. After all, Eurozone fiscal leverage and primary surplus are far better than in the other main regions."

4. Italy might not be as worrisome as before. "Italian 2020 budget negotiations are ongoing and this could remain a source of volatility. However, Italian spreads have narrowed significantly of late," the bank said, "suggesting Euro assets should benefit."

JPMorgan did outline risks, mainly due to Brexit and whether a deal is formed and, if so, when. But, in a "very bullish" scenario, the bank said that any deal formed before the Halloween deadline of October 31 "would significantly help our eurozone upgrade."

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Africa Is Building an A.I. Industry That Doesn’t Look Like Silicon Valley, Researchers want to pave their own path. But the growing industry is still dependent on tech giants like Google and Microsoft by @davegershgorn

Sun, 09/29/2019 - 8:31pm  |  Timbuktu Chronicles
Dave Gershgorn writes:
In late August, under the shade of an arching pepper tree in Nairobi, Kenya, hundreds of A.I. researchers gossiped about their algorithms. Some stood in front of posters, which wound around the tree’s sprawling roots, depicting machine learning systems that promised to predict everything from soil nutrition, to whether a small-scale farmer would repay a loan, to how a self-driving car might navigate the bustling streets of Cairo.

Over the last three years, academics and industry researchers from around the African continent have begun sketching the future of their own A.I. industry at a conference called Deep Learning Indaba. The conference brings together hundreds of researchers from more than 40 African countries to present their work, and discuss everything from natural language processing to A.I ethics...[more]

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