What we’re reading (7/25)
“Robinhood Promises To Fix ‘The Issues’ That Outraged Customers When It Restricted Trading In Meme Stocks” (Business Insider). “Robinhood knows it angered many retail investors earlier this year when the trading app halted buying of GameStop, AMC, and other meme stocks amid an epic rally — and the company has pledged to earn back the trust of frustrated customers. In a roadshow event Saturday ahead of its planned initial public offering, Robinhood cofounder and CEO Vlad Tenev said the company is ‘focusing on is making sure we fix the issues that led to customers being upset.’”
“FICO Score’s Hold On The Credit Market Is Slipping” (Wall Street Journal). “For decades, nearly every consumer credit decision revolved around a three-digit number—the FICO credit score. That is changing. FICO has long dominated the market for consumer credit, providing scores for some 200 million U.S. consumers that are used by a whole host of lenders to evaluate credit-card, auto-loan and mortgage applicants. For borrowers, higher scores can mean bigger loans and lower interest rates. But powerful forces are aligning to challenge its dominance.”
“Start-Ups Will Suffer From Antitrust Bills Meant To Target Big Tech, VCs Charge” (CNBC). “While proponents argue such bills would prevent so-called killer acquisitions where big companies scoop up potential rivals before they can grow — Facebook’s $1 billion acquisition of Instagram is a common example — tech investors say they’re more concerned with how the bills could squash the buying market for start-ups and discourage further innovation.”
“Why You Should Issue GDP Linked Bonds” (Bretton Goods). “[W]ill your GDP next year be higher and lower than this year. And by how much? Having a market based estimate of this information would be extremely helpful. To begin with it would provide a real time, day by day forecast of GDP. And given that prediction markets have had a good run so far, it will probably be more accurate than conventional forecasters. So the question comes: how do you structure a security to predict GDP?”
“Crocs Accuses Walmart, Hobby Lobby And Nearly 20 Other Brands Of Copying Its ‘Iconic Design’” (Washington Post). “In four lawsuits filed last week, the Colorado-based manufacturer claims the knockoffs infringe on its trademark for the distinctively clunky $50 shoes made with buoyant foam and ventilation holes that can be adorned with charms. ‘These actions underscore our determination to take forceful steps to protect our trademarks and other intellectual property,’ the company’s chief legal officer, Daniel Hart, said in a statement. ‘It is essential that we protect Crocs’ iconic DNA, and we will not tolerate the infringement of our rights or those who try to freeride on the investments we have made in our brand.’”
