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Employers get super clingy; UpEquity crazy $$$ ; Fed bans 📩

By October 25, 2021 No Comments

Navy Federal Credit Union: Employers are “clinging” to their employees

Did the pandemic stress you? If so, maybe you should consider acting your age!

A new study finds the average American feels the most stressed at 36 years old. 

Despite this — fear not — a recent survey of 2,000 Americans over the age of 30 reveals the average respondent is better at managing stress now than they were a decade ago. According to the results, only 18 percent feel stressed “all the time.”
Do you want to know who’s also stressed? Employers! 
That’s because finding new workers are hard to come by, and efforts to retain current staff are higher than ever!
Jobless claims fell slightly and notched a new pandemic low last week, a sign layoffs remain low as companies struggle to hire workers.
Worker filings for initial unemployment benefits decreased to 290,000 last week from a revised 296,000 a week earlier, the Labor Department said Thursday.

Last week’s decline brings claims to the lowest level since the pandemic struck in March 2020. 

Claims, a proxy for layoffs, are holding well below a recent peak of 424,000 in mid-July but remain above 2019’s weekly average of 218,000.

Claims could return to their pre-pandemic levels by the end of the year, said Robert Frick, corporate economist at Navy Federal Credit Union. “Employers are clinging to employees given it’s so hard to hire, it’s so hard to retain,” Mr. Frick said. (WSJ paywall.)

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UpEquity $$$ raise is the latest sign of housing market boomtown!!!

Late last week, UpEquity announced the closing of $50 million in Series B funding led by S3 Ventures, with $20 million in equity and $30 million in debt allocated. 

And, boy, did the deal get investors buzzing (we’ll explain more below)!!!
Next Coast Ventures also participated in the round, along with BP Capital Management, Alumni Ventures, Gaingels, Launchpad Capital and Early Light Ventures.
UpEquity has seen year-over-year revenue growth of 500% and has raised a total of $77 million to date. 
The company anticipates originating more than $1 billion in mortgages over the next 12 months! 
The investment market for housing finance is currently cray-ah-zie!!!
Institutional investors have deployed a stunning $77 billion in a period of six months into single-family homes as an asset class with no signs of slowing down!
“Your average homebuyer is now regularly competing against massive companies that can offer very attractive terms to sellers such as all-cash offers and fast close times,” said S3 Ventures Partner Charlie Plauche, in a statement. 
“UpEquity’s technology is leveling the playing field for everyone by enabling average homebuyers to also make all-cash offers with market-leading close times,” he added. “We are excited to be involved.”

🔥 Working with the Hispanic Community 🔥

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Fed reverses course; bans members from securities and bond trading

The Federal Reserve is imposing new restrictions on investments by its senior officials as it seeks to address a controversy involving trades made by two regional Fed bank presidents last year.

Robert Kaplan, who ran the Dallas Federal Reserve Bank, bought or sold stock worth more than a million dollars last year in each of nearly two dozen companies, including Amazon, Kraft Heinz and Delta Airlines. 
Eric Rosengren, who ran the Boston Federal Reserve Bank, bought or sold securities tied to real estate.
The trades came at a time when the Fed was pouring trillions of dollars into financial markets, and so rose an issue of conflict.
Therefore, following a comprehensive review, the Federal Reserve Board announced a broad set of new rules that will prohibit the purchase of individual securities, restrict active trading, and increase the timeliness of reporting and public disclosure by Federal Reserve policymakers and senior staff. As a result of the new policies, senior Federal Reserve officials will be limited to purchasing diversified investment vehicles, like mutual funds.
The new restrictions will apply to both Reserve Bank and Board policymakers and senior staff and prohibit them from purchasing individual stocks, holding investments in individual bonds, holding investments in agency securities (directly or indirectly), or entering into derivatives. 

The new rules are expansive and are designed to place the Federal Reserve's investment and trading rules at the forefront among major federal agencies.

“These tough new rules raise the bar high in order to assure the public we serve that all of our senior officials maintain a single-minded focus on the public mission of the Federal Reserve,” said Federal Reserve Board Chair Jerome H. Powell.

To help guard against even the appearance of any conflict of interest in the timing of investment decisions, policymakers and senior staff generally will be required to provide 45 days' advance notice for purchases and sales of securities, obtain prior approval for purchases and sales of securities, and hold investments for at least one year. 

Further, no purchases or sales will be allowed during periods of heightened financial market stress.

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