CIT Bank To Acquire Savings Bank Unit Of Mutual Of Omaha – Quick Facts
CIT Group Inc. (CIT) said CIT Bank will acquire Mutual of Omaha Bank, the savings bank subsidiary of Mutual of Omaha. The purchase price of $1 billion will be comprised primarily of cash and up to $150 million of CIT common stock. The deal adds $6.8 billion in deposits.
CIT Group expects the acquisition to be accretive to 2020 earnings per share by 2 percent. The earnings per share accretion is projected to grow to double-digits over time. The deal is anticipated to close in the first quarter of 2020.
Punctuation Can Scare Off Investors More Than Actual Assets!
Forget lengthy disclosures. There’s nothing like punctuation to ward off investors.
According to Bank of Israel research published Tuesday, the simple addition of an exclamation mark to the names of some mutual funds led to significant declines in net flows as retail investors grew warier. The bank calls it the “Exclamation Mark of Cain.”
While conventional theories on decision-making hold that investment strategies should be made following rational analysis of qualities like risk, return, or fees, the research paper published Tuesday shows presentation can shape investment behavior.
The paper draws on a study of a 2010 Israel Securities Authority reform that required fund managers to add an exclamation mark to the names of mutual funds allowed to hold high-yield corporate bonds beyond their maximum exposure to equity investments. Only the risk salience was affected, not the fundamentals or information available.
However, the name change also created another impact.
Funds that added an exclamation mark boosted junk bond holdings significantly. “We leave the further investigation of this behavior to future research,” the researchers wrote.
Social Sightings: 'The Mane Event' at House, Dublin
‘Hadestown’ Sets National Tour: Multiple Tony Winner Hits Road In 2020
Hadestown, Anaïs Mitchell’s hit Broadway show as popular with audiences as with critics and Tony voters, will launch a national tour in the fall of 2020, producers have announced.
The tour will include more than 30 cities, including Denver, Houston, Los Angeles, Minneapolis, New Orleans, Philadelphia, Tempe, and Washington, DC. More cities will be announced soon.
Casting and creative team for the tour were not announced. As directed by Rachel Chavkin on Broadway, Hadestown won eight Tonys and has been among the summer stand-outs at the box office, selling out week after week to become the he highest-grossing musical in the history of the Walter Kerr Theatre.
“Throughout its development, Hadestown has been deeply influenced by diverse audiences around the world,” said producers Mara Isaacs, Dale Franzen, Hunter Arnold, and Tom Kirdahy in a joint statement. “We have been overwhelmed by the response on Broadway and are thrilled and humbled to now share this beautiful story, written and directed by two amazingly talented women, with audiences across the country.”
Hadestown, with a gorgeous folk-pop-inspired score, is a modern, even uncannily prescient, re-telling of the Orpheus, Eurydice, Hades and Persephone myths. Among its Tony wins was Best Musical, Original Score, Direction and Featured Actor/Musical (André De Shields).
Dow jumps more than 500 points on reports of progress on China-U.S. trade talks
U.S. stocks on Tuesday pivoted decidedly higher from an early slide out of the gate after the USTR said an increase in tariffs on some goods from China would be delayed. The U.S. Trade Representative said it would delay imposing 10% tariffs on certain Chinese products until Dec. 15, the USTR office said Tuesday. The USTR said the delay will apply to products including cell phones, laptop computers and video games. President Donald Trump has announced 10% tariffs on $300 billion in Chinese goods beginning Sept. 1, and the delay comes as officials from both sides spoke by phone. A USTR spokesman said U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin held discussions and officials would speak again within two weeks. The Dow Jones Industrial Average DJIA, +1.63% traded 503 points, or 2%, higher at 26,393, after tumbling more than 390 points on Monday. The S&P 500 index SPX, +1.57% rose 2% to 2,940, while the Nasdaq Composite Index COMP, +1.97% surged 2.5% to 8,056.
Social Sightings: Irish Premiere of Once Upon a Time…in Hollywood
Amazon Facilitating School Supplies Donation
Amazon.com (AMZN) has rolled out a way for its customers to donate school supplies to needy students via Alexa.
“Alexa customers can donate a backpack full of school supplies via Alexa to a student in need. Customers simply have to say, “Alexa, Donate to Happy School Year,” and they will be presented with a backpack offer from Amazon,” Amazon said in a statement.
After the customer confirms the order for donation, Amazon will fill the backpack with basic school supplies and ship it directly to Communities In Schools, the nation’s largest provider of in-school resources and support to students in need.
According to the National Retail Federation, parents with children in elementary school plan to spend an average of $696.70 this year, up from $684.79 in 2018, while students in college plan to spend $976.78, up from $942.17.
Customers who donate will receive a thank you message from NBA legend Shaq, who is also a member of the Communities in Schools National Board.
“Alexa makes it easy for customers to brighten the start of the school year for children who need it most. Donating is simple – just say ‘Alexa, Donate to Happy School Year.’ We can’t wait to see the generosity of our customers this back-to-school season,” said Chuck Moore, VP Alexa.