More from the column:
The problem is that Mr. Zuckerberg has been apologizing for years for all kinds of breaches of trust with his "community". And guess what? After every mea culpa, the Facebook community has grown.
In another part of the Facebook news: Defenders of the preservation of wildlife complained to the S.E.C. that the company is posting ads on the pages of wildlife dealers.
Are these two things related?
The Dow Jones industrial average and the S. & P. 500 fell in the last 10 minutes of trading yesterday.
What happened? The NYT reported that the F.B.I. he had raided the office and the hotel room of Michael Cohen, the personal lawyer of President Trump, looking for possible bank frauds. The searches, which emerged from a reference by Robert Mueller (and led to a prolonged public denunciation of Mr. Trump) suggest that the special lawyer's investigation is approaching the president.
To set the market in motion in perspective :
But today is another day: S. & P. 500 is up after President Xi Jinping of China asked "dialogue instead of confrontation" in commercial conversations.
An interesting dissident: A critic of Mr. Trump's argument that the Cohen raids violated the attorney-client privilege is George Conway, who is a counselor for Wachtell, Lipton, Rosen & Katz, and Kellyanne's husband Conway.
(For non-lawyers: Mr. Conway's link points to the Department of Justice's policy to search for attorneys)
Drilling attorney-client privilege
The report In The New York Times the FBI seized records from the office of long-time attorney for President Trump, Michael D. Cohen, raises a number of questions about how prosecutors could review those materials. A challenge will be dealing with the attorney-client privilege, which protects communications between lawyers and clients from any external review.
According to the guidelines of the Department of Justice, when seeking a lawyer, there must be established procedures "to ensure that privileged materials are not seen, decompressed or improperly preserved." One of the means to address privileged issues is to establish a "corrupt team," composed of agents and government lawyers who are not part of the underlying investigation to review the seized materials to determine what could be said to be privilege.
Once the determination is made, Mr. Cohen can argue that privileged materials must be returned because they are protected.
Despite President Trump's tweet that "attorney-client privilege is dead", protection remains in place. But there is an important way to avoid the privilege that the Justice Department can pursue. Under a doctrine called the criminal fraud exception, communications between a client and a lawyer designed to help the client participate in a pending or future crime are not protected by privilege.
The government would not have to prove a crime to avoid privilege, only that there is sufficient evidence to support a reasonable belief that an otherwise privileged communication was for the purpose of committing a criminal or fraudulent act. In fact, according to the decision of the Supreme Court in the United States c. Zolin, prosecutors can ask a judge to review communications privately to decide if they can present evidence of a possible crime or fraud.
This is a slow, likely drag process for months. But do not be surprised to see that the Department of Justice claims that communications with Mr. Cohen were made for criminal or fraudulent purposes, whatever it may be.
– Peter J. Henning
Will the tax cuts pay for themselves?
The Congressional Budget Office does not think so, and now projects that the federal deficit will surpass $ 1 trillion in 2020.
The question is how much growth will the cuts stimulate. The Republicans projected G.D.P. growth rates of 3 percent. The C.B.O. is waiting for an average of 1.9 percent over the next decade.
Critics' corner: The Peterson Foundation said: "It is clear that legislators have added significantly more debt on an already unsustainable path." Harm Bandholz of UniCredit said, "The CBO strongly contradicts the administration's claim that the stimulus will repay itself"
The Political Flight
• One year before Apollo Global Management lent millions of dollars to the Kushner Companies, Jared Kushner approached his co-founder Josh Harris to head the Office of Management and Budget. (The Guardian)
• Investors are looking for a "Kudlow put" or a "Powell put." (The Upshot)
• Russian markets, bonds and ruble plummeted yesterday after the US. UU Impose new sanctions (NYT)
• Governor Rick Scott's candidacy for the Florida Senate could hurt Democrats across the country: it's an expensive market, it's rich and it's ready to spend. (Politician)
• Qatar can bring President Trump to his point of view about the blockade against him. (NYT)
The Forrest Gump of Bitcoin & # 39;
It is worth reading the profile of Mike Novogratz, of Gary Shteyngart, of the New Yorker, a partisan financier who became an accidental evangelist of the cryptocurrency. Some notable lines:
• "Some of Novogratz's founders of coverage have questioned their understanding of the finer details of their trading strategies." He acts like a visionary, but deep down he's still a salesman, "he told me. a manager ".
• Novogratz is said to be considered "midway between center-left and progressive" and "During my lunch with him at The Mercer Kitchen, he told me," I've always said that I would run for office if I had a period Five years in my life where I really felt like, Hey, my behavior is praiseworthy. "
Where do CBS and Viacom go from here?
Public negotiations between the corporate brothers have intensified. Viacom's counterproposal: 0.68 of one CBS share per share of Viacom, or $ 14.7 billion; CBS had offered 0.55, or $ 11.9 billion – it is likely to be rejected.
However, the price may be a less difficult point than CBS's insistence on keeping its head of operations, Joe Ianniello, in the number 2 spot after a merger. That's the job that Viacom wants for their C.E.O., Bob Bakish. Michael has heard that this is a serious disagreement, with little movement towards compromise at the moment.
The deal on offers
• The Department of Justice has reportedly approved the purchase of Monsanto for $ 56,000 million by Bayer after the companies agreed to sell more business. (WSJ)
• Ant Financial will allegedly raise another $ 9 billion, making it the largest unicorn in the world. (WSJ)
• How the Saudi Arabian Stock Exchange Tadawul – current value on the list: $ 500 billion – is preparing to receive Aramco, with a valuation of up to $ 2 billion. (WSJ)
• Uber agreed to buy Jump, a manufacturer of electric bicycles (sorry, "pedal-assist") after they both tried out a bike share program in January. (NYT)
• Elliott Management raised its stake in Telecom Italia to 9 percent before a vote on the company's board on May 4. (FT)
• I.P.O. corner: Why the Superior Court of San Mateo, California, listens to so many cases about lists. The regulations may not be responsible for a fall in listed companies in the United States. And a plan to convert Eminem's royalties into a publicly traded company collapsed.
The most diverse and least diverse venture capital companies
The Information and Social Capital has just launched its third diversity survey in the large technology investment firms. Main findings:
• Kirsten Green's Canvas Ventures and Forerunner Ventures tied first at The V.C. Index of diversity. Tied to the end: Tiger Global Management and Slow Ventures.
• The number of women in senior positions in American venture companies rose to 14.2 percent last year, from 10.7 percent. The percentage of Hispanic decision makers rose 2.3 percent from 1.9 percent, while that of black leaders remained almost flat at just over 1 percent.
Come and see the Corner Office interview with the founder of Chobani live
at 5 p.m. m., listen to the founder and CEO of Chobani, Hamdi Ulukaya, who has resurrected economies in two communities and has made headlines for his leadership practices. He will be interviewed by David Gelles for a live version of the Corner Office column.
DealBook readers get $ 10 off tickets.
• Galaxy Digital, the cryptocurrency start-up managed by Mike Novogratz, has hired an operations director: Richard Kim most recently a London-based vice president at Goldman Sachs . (Bloomberg)
• The CEO of Glencore, Ivan Glasenberg left Rusal's board after the Russian aluminum producer was sanctioned by the US. UU (CNBC)
• Coinbase hired Rachael Horwitz previously head of marketing at Spark Capital, as its first vice president of communications. (Recode)
• The C.E.O. by Gizmodo Media Group, Raju Narisetti left, as Univision supposedly considers deep cuts. (The Daily Beast)
• The Office of Consumer Financial Protection is seeking a record fine against Wells Fargo for abuses in auto insurance and mortgage loans, unnamed sources said. (Reuters)
• Investors from the Middle East and Asia have offered close to $ 25 billion to buy an expanded version of the FIFA Club World Cup. (NYT)
• The S.E.C. it has expanded the definitions of "micromanagement" and commercial relevance, which makes it more difficult for shareholders to present resolutions of representation. (WaPo)
• Elon Musk likes it in Adelaide, but the Australian city has not completely transformed the manufacturing decline into technological progress. (NYT)
• WPP is expected to publish the findings of its Martin Sorrell investigation next week. (Reuters)
• Wynn Resorts has created a department of culture and community after its scandal of sexual misconduct. (WSJ)
• Pressure is growing on the chairman of Deutsche Bank, Paul Achleitner, about the messy layoff of John Cryan and the rush to replace him with Christian Sewing. (FT)
• The European Court of Justice ruled that the French government had the right to prohibit some transport services, including Uber, without first notifying European officials. (FT)
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