Good Morning and Happy Christmas Week! Zelle's operators and its bank co-owners got sued for fraud, and it could have merit - since Zelle’s launch in 2017, JPMorgan Chase, Bank of America, and Wells Fargo customers have lost over $870 million.

Apollo predicts the private credit market could reach $40 trillion by 2030, and Blackstone is expanding its private credit team by poaching dealmakers from KKR and Ares. Goldman Sachs thinks that pro sports teams are becoming too expensive for even billionaires to buy, and private equity firms are considering buying college athletic programs.

Plus, Bank of America CEO Brian Moynihan is positioning himself to outlast JPMorgan’s Jamie, RFK Jr. was spotted working out in jeans at a Manhattan Equinox, and 2024’s biggest stock gainer is a banking app with a 934% increase.

Turn streaming hits into steady income—invest in music royalties with JKBX. 

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SPACtacular Comeback

SPACs came in clutch during the pandemic-era, offering a chance to go public for cash-hungry startups. But they failed spectacularly too—of the 860 SPACs that raised billions during the frenzy, all but less than 100 fizzled out. Nearly half of all SPACs still trading have lost over 90% of their value, while others filed for bankruptcy or sold for pennies on the dollar. 

But a lack of past success doesn’t seem to be dissuading Wall Street. Since April 2024, 50 SPACs have raised $8.7 billion—more than double the total raised in all of 2023. 

And it’s mostly the same cast of characters as last time, such as Howard Lutnick, Michael Klein, and Eagle Equity Partners. Lutnick’s working on his tenth SPAC, Klein raised $287.5 million in May, and Eagle Equity launched its ninth SPAC in October.

Even though Lutnick and Eagle Equity may have delivered some of the biggest investor wipeouts in recent memory (up to 99% in some cases), they’re not having trouble finding new investors.

The traditional IPO market is still in the gutter, and SPACs are marketing themselves as a “last resort” for companies desperate for cash. And with Trump more pro-deregulation than the current administration, the speculative nature of SPACs may very well get another boost.

Takeaway: SPACs are proof that Wall Street will never run out of ways to repackage a bad idea. For desperate companies and hopeful investors, they promise a lifeline, until the lifeboat starts sinking. Remember, if you’re buying into a SPAC hoping for quick profits, just make sure you don’t end up like Ginkgo Bioworks—99% off, but not in a good way.

_{PRESENTED BY JKBX}

When Beyoncé Gets Paid, So Could You

Streaming platforms pay billions in royalties. JKBX opens the door to invest in royalty shares of iconic songs, earning quarterly distributions tied to their performance.

This isn’t about fanfare—it’s about diversification. Music royalties offer a potential income stream tied to one thing people never stop doing: pressing play.

_HEADLINES

Top Reads

• CFPB sues big U.S. banks over alleged Zelle payment fraud (Axios)

• Apollo says private credit market may reach $40 trillion by 2030 (YF)

• Blackstone hiring dealmakers from KKR and Ares in private credit push (YF) 

• Goldman thinks sports teams too expensive for some billionaires to buy (MW)

• Private equity firms may buy college athletic programs (SI)

• Brian Moynihan is settling in to outlast Jamie Dimon on Wall Street (YF)

• RFK Jr. seen working out in jeans at a Manhattan Equinox (Cut)

• This year’s biggest gainer, a banking app with a 934% gain (CNBC)

• Party City closing all stores after 40 years in business (Axios)

• Low-income Americans are struggling. It could get worse (CNN)

• Record number of CEOs exit U.S. companies (Axios)

• Private equity faces an exit problem in Europe as bigger deals beckon (YF)

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Markets Rundown

Stocks Rally Following Key Inflation Data

Equity markets surged on Friday, reversing early losses as investors digested Wednesday's Fed economic projections. The S&P 500 climbed 1.1%, while the Dow added 1.2%, with markets shrugging off political uncertainty.

Overseas, Asian markets ended lower, and European markets declined after weaker-than-expected U.K. retail sales and higher German producer price inflation. Bond yields fell following the release of lower-than-expected inflation data, with the 10-year Treasury yield ticking down to 4.53%.

Key Inflation Data Eases Concerns

The personal consumption expenditure index rose just 0.1% in November and 2.4% annually, both below expectations and marking the lowest monthly gain since May. Core PCE, the Fed's preferred inflation measure, also gained 0.1% monthly and 2.8% annually, providing a welcome break from recent signs of slowing disinflation.

November's gains were driven by a 0.2% rise in services, while goods prices were flat. While today's data suggests inflation is trending lower, we expect a bumpy road ahead as the Fed continues to monitor progress toward its 2% inflation target.

Market Implications

Lower-than-expected inflation data provided relief to markets, as investors anticipate a slower pace of future rate cuts. With the Fed signaling a cautious approach to policy easing, bond yields have been moderating, and equities remain supported by a robust economic backdrop.

While the looming government shutdown introduces some uncertainty, historical precedence suggests markets will remain resilient as long as economic fundamentals stay intact.

Movers & Shakers

• (+) Mission Produce ($AVO) +17% because the avocado producer beat earnings.

• (+) Carnival Corp. ($CCL) +6% after record bookings, strong Q4 earnings.

• (–) Novo Nordisk ($NVO) -18% because its obesity trial for its new drug CagriSemi disappointed.

Private Dealmaking

• Wesfarmers sold Coregas for $447 million

• Oura, a smart sleep ring maker, raised $200 million

• 1KOMMA5, a home electrification startup, raised $156 million

• Remodel Health, a healthcare insurance startup, raised $100 million

• Anysphere, a code editor creator, raised $100 million

• Verde Clean Fuels, a low-carbon fuel developer, raised $50 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Big Score

Over the past five decades, the tech industry has grown into one of the most important sectors of the global economy. Silicon Valley―replete with sprawling office parks, sky-high rents, and countless self-made millionaires―is home to many of its key players. But the origins of Silicon Valley and the tech sector are much humbler. At a time when tech companies’ influence continues to grow, The Big Score chronicles how they began.

One of the first reporters on the tech industry beat at the San Jose Mercury-News, Michael S. Malone recounts the feverish efforts of young technologists and entrepreneurs to build something that would change the world―and score them a big payday. Starting with the birth of Hewlett-Packard in the 1930s, Malone illustrates how decades of technological innovation laid the foundation for the meteoric rise of the Valley in the 1970s.

Drawing on exclusive, unvarnished interviews, Malone punctuates this history with incisive profiles of tech’s early luminaries―including Nobelist William Shockley and Apple’s Steve Jobs―when they were struggling entrepreneurs working 18-hour days in their garages. And he plunges us into the darker side of the Valley, where espionage, drugs, hellish working conditions, and shocking betrayals shaped the paths for winners and losers in a booming industry.

A decades-long story with individual sacrifice, ingenuity, and big money at its core, The Big Score recounts the history of today’s most dynamic sector through its upstart beginnings.

“The only contemporary history of the birth of Silicon Valley, from the reporter who had a ringside seat to it all.”

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Bullish Sentiment in the Stock Market

_{PRESENTED BY FENCHURCH LEGAL}

What Will You Be Unwrapping This Holiday Season?

As the holidays bring time to reflect, it’s also the perfect moment to plan for your financial future. Consider litigation funding investments with Fenchurch Legal—a fixed-income opportunity designed for stability and impact in 2025.

Why Choose Litigation Funding?

• Earn steady, quarterly returns, independent of market volatility.

• Diversify your portfolio with a risk-adjusted alternative asset.

• Backed by multiple layers of security, ensuring returns regardless of case outcomes.

With Fenchurch Legal, you can fund consumer litigation claims while earning reliable income. Make 2025 the year you invest in justice—and your portfolio.

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Contagious Power of Compassion

In a world often divided by differences, compassionate listening emerges as a simple yet profound tool for connection. It requires more than just hearing words; it demands genuine presence, openness, and the suspension of judgment.

This practice can transform not only classrooms but entire communities. By creating spaces where individuals feel seen and heard, we cultivate trust, empathy, and belonging.

Compassion, as research shows, is contagious. When we listen with compassion, we inspire others to do the same, setting off a domino effect of understanding and kindness.

This practice bridges divides, reduces hostility, and strengthens the social fabric that binds us together. It’s a reminder that even in the face of polarizing issues, common ground is not only possible—it’s essential.

Take a moment today to practice compassionate listening. Whether it’s a conversation with a colleague, a family member, or even a stranger, aim to listen without the need to respond or fix.

Acknowledge their feelings, offer your presence, and simply let them be heard. In doing so, you contribute to a ripple effect of compassion that can touch far beyond the moment.

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Short Squeez Picks

• 6 ways to be more productive

• How to make a good first impression

• Can exercise help a hangover?

• 5 hard truths to transform your leadership skills instantly

• Body language signs of someone who is deeply unhappy

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Memes of the Day