Shares of banks and other financial institutions saw a boost in response to Federal Reserve Chair Jerome Powell’s address at the Kansas City Fed’s annual symposium in Jackson Hole, Wyo. In his speech, Powell emphasized the delicate balancing act of restraining the economy enough to reduce price pressures without causing a severe slowdown. While he advocated for keeping interest rates steady for now, he left the possibility of future rate hikes open if inflation doesn’t decline as desired. However, he made it clear that the Fed would proceed with caution and indicated little urgency to raise rates at the next policy meeting in September.
Wells Fargo Fined $35M by SEC
Amidst corporate news, Wells Fargo was slapped with a $35 million fine by the Securities and Exchange Commission (SEC). The bank allegedly overcharged nearly 11,000 clients a total of $26.8 million in advisory fees.
Blackstone Seizes Opportunity in Las Vegas Recovery
Blackstone is taking advantage of the revitalization of Las Vegas by selling a 22% stake in the Bellagio. This deal values the iconic property at $5.1 billion. Realty Income, a company that owns over 13,000 properties in the U.S. and Europe, is acquiring the stake for $300 million. The Bellagio is operated by MGM Resorts International under a long-term lease.
Morgan Stanley Settles Investigation with UK Regulator
Morgan Stanley has agreed to pay 5.41 million British pounds (approximately $6.82 million) to settle an investigation by the U.K.’s energy markets regulator. The investigation revolved around the bank’s traders’ use of prohibited messaging apps, which violated requirements for retaining written communications.